Notice2026-05689

Eligibility Designations; Programs Under Section 312 of the Higher Education Act of 1965, as Amended (HEA)

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Published
March 24, 2026

Issuing agencies

Education Department

Abstract

The Department of Education (Department) announces the process for the designation of eligible institutions for fiscal year (FY) 2026.

Full Text

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<title>Federal Register, Volume 91 Issue 56 (Tuesday, March 24, 2026)</title>
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[Federal Register Volume 91, Number 56 (Tuesday, March 24, 2026)]
[Notices]
[Pages 14003-14005]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05689]


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DEPARTMENT OF EDUCATION


Eligibility Designations; Programs Under Section 312 of the 
Higher Education Act of 1965, as Amended (HEA)

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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SUMMARY: The Department of Education (Department) announces the process 
for the designation of eligible institutions for fiscal year (FY) 2026.

DATES: 
    Applications Available: March 24, 2026.
    Deadline for Transmittal of Applications: April 23, 2026.

FOR FURTHER INFORMATION CONTACT: Nemeka Mason-Clercin, Telephone: (202) 
987-1340. Email: <a href="/cdn-cgi/l/email-protection#7f111a121a141e51121e0c10113f1a1b51181009"><span class="__cf_email__" data-cfemail="3a545f575f515b14575b4955547a5f5e145d554c">[email&#160;protected]</span></a>.
    If you are deaf, hard of hearing, or have a speech disability and 
wish to access telecommunications relay services, please dial 7-1-1.

SUPPLEMENTARY INFORMATION: The Department announces the process for the 
designation of eligible institutions under section 312 of the HEA for 
FY 2026.

Full Text of Announcement

I. Funding Opportunity Description

    Purpose of Programs: Under certain HEA programs, including the 
Strengthening Institutions Program, institutions are eligible to apply 
for grants if they meet specific statutory and regulatory eligibility 
requirements.
    Section 312 of the HEA, 34 CFR 607.2-607.5, includes many of the 
basic eligibility requirements for its grant programs. Section 
312(b)(1)(B) of the HEA provides that, to be eligible for these 
programs, an institution of higher education's average ``educational 
and general expenditures'' (E&G) per full-time equivalent (FTE) 
undergraduate student must be less than the average E&G expenditures 
per FTE undergraduate student of institutions that offer similar 
instruction (public 2-year, public 4-year, private 2-year, and private 
4-year) in that year.
    The National Center for Education Statistics (NCES) calculates Core 
Expenses per FTE of institutions, a statistic like E&G per FTE. Both 
E&G per FTE and Core Expenses per FTE are based on regular operational 
expenditures of institutions (excluding auxiliary enterprises, 
independent operations, and hospital expenses). They differ only in 
that E&G per FTE is based on fall undergraduate enrollment, while Core 
Expenses per FTE is based on 12-month undergraduate enrollment for the 
academic year.
    To avoid inconsistency in the data submitted to, and produced by, 
the Department, for the purpose of section 312(b)(1)(B) of the HEA, E&G 
per FTE is calculated using the same methodology as Core Expenses per 
FTE. Accordingly, the Department will apply the NCES methodology for 
calculating Core Expenses per FTE. Institutions requesting an 
eligibility exemption determination must use the Core Expenses per FTE 
data reported to NCES' Integrated Postsecondary Education Data System 
(IPEDS) for the most currently available academic year, in this case 
academic year 2023-2024.
    Special Note: The most recent data available in IPEDS for Core 
Expenses per FTE are for base year 2023-2024. To award FY 2026 grants 
in a timely manner, we will use these data to evaluate eligibility.
    Each institution interested in applying for a grant program for 
which eligibility under section 312 of the HEA is required must be 
designated as an eligible institution in FY 2026. See 34 CFR 607.5.
    Eligible Applicants: The eligibility requirements for the 
authorized programs are in section 312 of the HEA (20 U.S.C. 1058) and 
in 34 CFR 607.2-607.5.
    The Department has instituted a process known as the Eligibility 
Matrix (EM), under which we use information institutions submitted to 
IPEDS to determine which institutions meet the basic eligibility 
requirements under section 312 of the HEA. The data are utilized in the 
Department's eligibility system to calculate and determine which 
institutions meet the eligibility requirements. To make eligibility 
determinations for FY 2026, we use an institution's 2023-2024 
enrollment and fiscal data. Beginning March 24, 2026, an institution 
will be able to review the Department's eligibility decision by 
checking the eligibility system linked through the Department's 
Institutional Service Eligibility website: https://www.ed.gov/grants-
and-programs/grants-higher-education/eligibility-designations-higher-
education-

[[Page 14004]]

programs. The direct link is <a href="https://HEPIS.ed.gov/">https://HEPIS.ed.gov/</a>.
    During the application period, the EM can be reviewed within the 
eligibility system (<a href="https://HEPIS.ed.gov">https://HEPIS.ed.gov</a>). The eligibility system 
maintains a record of all postsecondary institutions that are 
potentially eligible to apply under section 312 of the HEA. If the 
eligibility system's entry for your institution indicates your 
institution is eligible, you will not need to apply for eligibility or 
submit a waiver request. Rather, if you choose to apply for the grant, 
you may print out the eligibility letter directly. If your institution 
is not shown as eligible, you must submit the application discussed in 
this notice before the application deadline.
    To check your institution's eligibility, go to <a href="https://HEPIS.ed.gov/">https://HEPIS.ed.gov/</a>, and log into the system using a <a href="http://Login.gov">Login.gov</a> account. If 
you are not sure whether you have an account in the system, click the 
``Request Account'' button. If you do not have an account, the system 
will walk you through setup. Note that it may take up to five business 
days to verify user identity and to complete new account setup, so 
please allow enough time to complete the application. If the Grant 
Eligibility Application (GEA) system is open for new applications, you 
may check your institution's eligibility status by clicking the ``View 
pre-Eligibility Information'' button.
    If the system does not show that your institution is eligible for a 
program you can apply for reconsideration using the process described 
in this notice. The application process mirrors that used in previous 
years. You will first complete an application on the website at <a href="https://HEPIS.ed.gov/">https://HEPIS.ed.gov/</a>.
    Enrollment of Needy Students: Under section 312 of the HEA, an 
institution is considered to have an enrollment of needy students if it 
meets either of the following two criteria: (1) at least 50 percent of 
its degree-seeking students received financial assistance under the 
Federal Pell Grant, FSEOG, or FWS programs; or (2) the percentage of 
its undergraduate degree-seeking students who were enrolled on at least 
a half-time basis and received Federal Pell Grants exceeded the median 
percentage of undergraduate degree students who were enrolled on at 
least a half-time basis and received Federal Pell Grants at comparable 
institutions that offer similar instruction.
    To qualify under the second criterion, an institution's Federal 
Pell Grant percentage for base year 2023-2024 must be more than the 
median for its category of comparable institutions provided in the 
2023-2024 Median Pell Grant and Average Core Expenses per FTE Student 
Table in this notice. If your institution qualifies only under the 
first criterion, you must submit an application containing the data 
necessary to satisfy the first criterion (showing at least 50 percent 
of your degree-seeking students received financial assistance under one 
of several Federal student aid programs (the Federal Pell Grant, FSEOG, 
or FWS programs)), since these data are not available in IPEDS.
    Core Expenses per FTE Student: For each of the following programs, 
an institution should compare its base year 2023-2024 Core Expenses per 
FTE student to the average Core Expenses per FTE student for its 
category of comparable institutions using the 2023-2024 Median Pell 
Grant and Average Core Expenses per FTE Student Table in this notice 
for certain programs under section 312 of the HEA. An institution 
satisfies the program eligibility requirement if its Core Expenses for 
the 2023-2024 base year are less than the average Core Expenses of its 
comparable institutional category.
    The IPEDS definition of Core Expenses is used for eligibility 
purposes. ``Core Expenses'' are defined as the total expenses for the 
essential education activities of the institution. Core Expenses for 
public institutions reporting under the Governmental Accounting 
Standards Board (GASB) requirements include expenses for instruction, 
research, public service, academic support, student services, 
institutional support, operation and maintenance of plant, 
depreciation, scholarships and fellowships, interest, and other 
operating and non-operating expenses. Core Expenses for institutions 
reporting under the Financial Accounting Standards Board (FASB) 
standards (primarily private, not-for-profit, and for-profit 
institutions) include expenses for instruction, research, public 
service, academic support, student services, institutional support, net 
grant aid to students, and other expenses. Core Expenses do not include 
Federal student aid for the purposes of eligibility. For both FASB and 
GASB institutions, Core Expenses do not include expenses for auxiliary 
enterprises (e.g., bookstores, dormitories), hospitals, and independent 
operations.
    The following table identifies base year 2023-2024 median Federal 
Pell Grant percentages and average Core Expenses per FTE student for 
the four categories of comparable institutions:

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                                                                    Base year 2023-2024    Base year 2023-2024
                       Type of institution                           median Pell Grant    average core expenses
                                                                        percentage           per FTE student
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2-year Public Institutions.......................................                    44                  $19,004
2-year Nonprofit Private Institutions............................                    48                   17,453
4-year Public Institutions.......................................                    37                   39,350
4-year Nonprofit Private Institutions............................                    36                   50,027
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    In accordance with 34 CFR 607.3(d), the Department publishes the 
following table identifying the low-income levels (at 150 percent of 
the poverty level) for various family sizes:

                                          2024 Annual Low-Income Levels
----------------------------------------------------------------------------------------------------------------
                                                  Family income for the 48
                                                   contiguous states, DC,   Family income for  Family income for
              Size of family unit                       and outlying              Alaska             Hawaii
                                                       jurisdictions
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1..............................................                 $22,590.00         $28,215.00         $25,965.00
2..............................................                  30,660.00          38,310.00          35,250.00
3..............................................                  38,730.00          48,405.00          44,535.00
4..............................................                  46,800.00          58,500.00          53,820.00

[[Page 14005]]

 
5..............................................                  54,870.00          68,595.00          63,105.00
6..............................................                  62,940.00          78,690.00          72,390.00
7..............................................                  71,010.00          88,785.00          81,675.00
8..............................................                  79,080.00          98,880.00          90,960.00
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    Note: We use the 2024 annual low-income levels because those are 
the amounts that apply to the family income reported by students 
enrolled for the fall 2023 semester. For family units with more than 
eight members, add the following amount for each additional family 
member: $8,070 for the contiguous 48 States, the District of Columbia, 
and outlying jurisdictions; $10,095 for Alaska; and $9,285 for Hawaii.
    The figures shown under family income represent amounts equal to 
150 percent of the family income levels annually established by the 
U.S. Census Bureau for determining poverty status. For 2024, the 
poverty guidelines were published in the Federal Register on January 
17, 2024, by the U.S. Department of Health and Human Services (89 FR 
2961), with an effective date of January 11, 2024.
    Applicable Regulations: (a) The Education Department General 
Administrative Regulations (EDGAR) in 34 CFR parts 75, 77, 79, 82, 84, 
86, 97, 98, and 99. (b) The Office of Management and Budget Guidelines 
to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) 
in 2 CFR 180, as adopted and amended as regulations of the Department 
in 2 CFR part 3485. (c) The Guidance for Federal Financial Assistance 
in 2 CFR part 200, as adopted and amended as regulations of the 
Department in 2 CFR part 3474. (d) The regulations for certain programs 
under section 312 of the HEA in 34 CFR part 607.
    Note: The regulations in 34 CFR part 79 apply to all applicants 
except federally recognized Indian Tribes.
    Note: The regulations in 34 CFR part 86 apply to institutions of 
higher education only.

II. Other Information

    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document and a copy of the application package in an 
accessible format. The Department will provide the requestor with an 
accessible format that may include Rich Text Format (RTF) or text 
format (txt), a thumb drive, an MP3 file, braille, large print, 
audiotape, compact disc, or other accessible format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at <a href="http://www.govinfo.gov">www.govinfo.gov</a> and <a href="http://www.federalregister.gov">www.federalregister.gov</a>.

David Barker,
Assistant Secretary for Postsecondary Education.
[FR Doc. 2026-05689 Filed 3-23-26; 8:45 am]
BILLING CODE 4000-01-P


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