Daily Labor Report®

Pell Grants Alone Don’t Make a College a Contractor, DOL Says

June 3, 2019, 6:02 PM

Colleges that participate in the Federal Pell Grant program, a federally funded education subsidy plan, aren’t considered federal contractors by that criterion alone, the Labor Department’s Office of Federal Contract Compliance Programs said in its first legal opinion letter.

The letter, dated May 23, clarified that those grants aren’t an agreement “for the purchase, sale, or use of personal property or non-personal services.” Unless it has other covered contracts with the federal government, a college that merely acts as a conduit for Pell Grants is excluded from the jurisdiction of the OFCCP and the federal equal employment opportunity laws...

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