Congresswoman Alma S. Adams’ HBCU Capital Financing Improvements Bill Passed by the House of Representatives
WASHINGTON, DC— Today, Congresswoman Alma S. Adams (NC-12) announced that the Historically Black College and University (HBCU) Capital Financing Improvements Act (H.R. 5530) was passed out by the House of Representatives. This legislation makes important changes to the HBCU Capital Improvement Program to increase access to capital for HBCUs which often is a major challenge for these institutions.
“I am excited to be a part of the solution for HBCUs. Access to federal funding is a challenge that most HBCUs are faced with, but under the HBCU Capital Financing Program the playing field is leveled. This program will allow HBCUs to better respond to localized needs and support their students,” Congresswoman Adams stated.
The HBCU Capital Financing Act (H.R. 5530):
- Reclassifies the “escrow account” as a “bond insurance fund.” HBCUs participating in the Capital Financing Program currently pay a fee that is assembled into an “escrow account” to pay for any loan defaults or delinquencies. This change would allow more public institutions to participate in the program.
- Provides additional support to institutions interested in participating, but unable to meet the program’s financial requirements. The bill will allow the Department of Education to offer financial counseling, in addition to the technical assistance already provided.
As founder and co-chair of the Bipartisan Historically Black Colleges and Universities (HBCU) Caucus, Congresswoman Adams remains passionate about advocating for the needs of HBCUs. Increased access to capital, counseling, and financing will allow these institutions to grow and better serve the needs of their communities. With passage of the HBCU Capital Financing Improvements Act (H.R. 5530), this brings the total number of bills Rep. Adams has passed out the House to four.