FAMU lauds debt relief; mayor calls on Congress to expand COVID-19 aid: 'Much more is needed'

Tallahassee officials are celebrating a debt forgiveness package included in a massive congressional spending bill that offers $111 million in relief to Florida A&M University. But Mayor John Dailey is calling on Congress for more help navigating the coronavirus pandemic.

FAMU was among many HBCUs on the receiving end of $1.34 billion in total funding through the HBCU Capital Financing Loan. Locally, that translated into $56 million for construction financing and $55 million in refinanced housing bonds.

“This is game-changing for HBCUs. It is an unprecedented gift to FAMU and comes during a very challenging year,” said FAMU President Larry Robinson in a statement. “We are extremely grateful to our supporters in Washington for crafting this stimulus legislation.” 

In 2019, FAMU borrowed $126 million from the HBCU Capital Finance Program to construct new dorms and refinance debt on its residence halls.

The legislation, the Omnibus Appropriations and Emergency Coronavirus Relief Act, also brings the largest expansion in a decade for the Pell grant program and restores eligibility for incarcerated people. It also simplifies the Free Application for Federal Student Aid (FAFSA).

U.S. Congressman Al Lawson, D-Tallahassee, said the debt relief is an opportunity for HBCUs across the country to have a fresh start.

“I’m proud to have worked with my colleagues in the House and the Senate to eliminate the federal debt, not only at FAMU, but all HBCUs that have been hard hit by the coronavirus pandemic,” Lawson said in a statement.  “As COVID-19 has severely impacted the higher education community, particularly low-resourced HBCUs, we felt cancelling their debt would give them a fresh start and allow them to focus more resources on educating students.”

Hours before Congress passed the $900 billion spending bill, Tallahassee Mayor John Dailey urged the city’s congressional delegation to approve a federal COVID-19 relief component that would bring $600 in checks to many Americans.

“This assistance is welcomed and necessary, but much more is needed,” Dailey wrote. “A one-time, $600/per person relief check does nothing more than scratch the surface of the need.”

On Tuesday, President Donald Trump agreed and called the relief package a “disgrace” and called for direct relief of at least $2,000.

The relief package is also light on direct aid for local governments, which have been hammered by revenue losses due to the pandemic.

Dailey cited the 12,000 utility customers past due on their bills, noted that local governments have spent roughly $10 million in direct relief and that the city has sustained a $20-million revenue shortfall.

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He noted that cities and counties with populations less than 500,000 have received no federal relief. Only 36 municipalities have received direct assistance, he said.

“Cities and counties have been proactively and creatively addressing the needs of our communities, but it is unclear how long we can maintain this posture without additional relief,” Dailey wrote. “Put simply, I am calling on Congress to pass a relief bill equal to the need. Anything less will stunt our national recovery and needlessly prolong suffering.”

Contact Karl Etters at ketters@tallahassee.com or @KarlEtters on Twitter.

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