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Sen. Appropriations Committee Finishes Its Work, Clears Last 4 Bills

By clearing the last four bills yesterday, the Senate Appropriations Committee has reported out all 12 spending bills for a fiscal year for the first time in five years.  The committee reported out favorably yesterday the following FY2024 spending measures:  Labor-HHS-Education; Defense; Interior and the Environment; and Homeland Security.  Unlike the situation in the House, where the leadership had to pull the Agriculture spending bill from a floor vote because it lacked enough support even among the Republicans, the committee process in the Senate yesterday was very bipartisan.  The Interior bill passed by a vote of 28 – 0, the Defense bill was approved 27 – 1, the Labor-HHS bill was adopted 26 – 2, and the vote was 24 – 4 on the Homeland Security legislation.  

Labor-HHS-Education

HEALTH AND HUMAN SERVICES

  • NIH

The Senate legislation would fund the National Institutes of Health at a total of $47.8 billion, an increase of $943 million above the current level.  The total includes $1.5 billion for ARPA-H, which represents level funding under the Senate version of the bill.  Within the NIH, the bill would increase, among other programs, mental health and Alzheimer’s research by $100 million each and while cancer research would see an increase of $60 million.

  • Title VII Health Professions and Title VIII Nursing Programs

The legislation proposes to fund the Title VII Health Professions programs at a total of $529 million, an increase of $20 million.

At the same time, the Title VIII Nursing programs would see a total of $302.5 million, a $2-million increase over this year.

DEPARTMENT OF EDUCATION

  • Student Aid and Higher Education
    • Pell Grant– The maximum award would increase by $250 to $7,645
    • SEOG– $900 million (a decrease of $10 million)
    • Federal Work Study– $1.22 billion (a decrease of $10 million)
    • International Education– $85.7 million (level funded)
    • TRIO– $1.19 billion (level funded)
    • GEAR UP– $338 million (level funded)
    • GAANN– $23.5 million (level funded)
  • Institute of Education Sciences (IES)
    • IES would be funded at $793 million, a cut of $14.5 million

Interior

USGS

  • Climate Adaptation Science Centers– $63.1 million (level funded)
  • ShakeAlert– $29.6 million (level funded)

NATIONAL ENDOWMENT FOR THE HUMANITIES

  • $207 million (level funded)

Defense

Under the committee-approved bill, defense basic research would be see an increase of 10.5 percent for a total of $3.22 billion.

  • Army basic research:  $672.5 million (an increase of 5.8%)
  • Navy basic research:  $793.5 million (an increase of 15.2%)
  • Air Force basic research:  $711.9 million (an increase of 16.3%)
  • Defense-wide basic research:  $862.3 million (a decrease of 7.0%)
  • DARPA:  $4.1 billion (0.7% increase)

Both chambers are now in recess until after Labor Day. 

SCOTUS Rejects Loan Forgiveness Plan

Following up on yesterday’s ruling on ending explicit use of race in admissions, the U.S. Supreme Court struck down earlier today the Biden Administration’s loan cancellation proposal.  In a 6 – 3 decision, the court’s majority ruled that the Education Department did not have the authority to cancel loans.  The decision is available here.  

You can read more about the decision here, here, and here

Much-Awaited Omnibus Spending Bill Finally Released

 

Nearly three months into the new fiscal year and after months of seemingly little-to-no negotiations,

Congressional leaders released the much-awaited FY2023 omnibus appropriations package late yesterday.  Coming in at more than 4,100 pages, it contains all 12 spending bills for FY2023.  The current short-term government funding measure expires at midnight Saturday and Congressional leaders are working to get the new measure passed before then.

The Office of Federal Relations is in the process of digging through the package and details will emerge throughout the process.  We will share new information contained in the bill along the way.  In the meantime, we wanted to highlight a few of the initial highlights from the bill below:

  • The Pell Grant maximum would increase by $500 and the new maximum would increase to $7,395 for the next academic year.
  • NIH would be funded at $47.5 billion, an increase of $2.5 billion.
  • ARPA-H would see a total of $1.5 billion, which is also authorized, an increased of $500 M. ARPA-H will be administratively within NIH, but the bill prohibits ARPA-H, including its headquarters, from being physically located on any part of the existing NIH campus, and it requires ARPA-H to have offices or facilities in not less than 3 geographic areas. Further, in determining the location of these offices or facilities, the director is required to make “fair and open consideration” of the characteristics of the intended location and the extent to which the location will facilitate the advancement of the goals and functions of the agency.
  • NSF would be funded at $9.87 billion for FY2023, with the appropriators acknowledging that expectations were set for the agency by the CHIPS and Science Act, passed earlier this year.
    • Of the funds allocated to NSF, approximately $7.8 M would be for the Research and Related Activities Account while $1.37 billion would be for the Education and Human Resources Account.
  • Within NASA, which would be funded at $25.4 billion, $7.8 billion would go to Science. Space Grant would be funded at $58 million.
  • NOAA Oceanic and Atmospheric Research would be funded at $661.3 million, which would include funding of $104 million for the cooperative institutes.
  • Base Sea Grant would be funded at $80 million while Sea Grant Aquaculture would see a funding level of $14 million.

With respect to a provision that applies to a host of programs across different departments and agencies, the bill would wave “PAYGO” rules, which would implement mandatory sequester cuts to various programs, for FY2023 and FY2024.

As we said above, we will continue to dig through the legislation and the accompanying reports.  Both are available on the Senate Appropriations Committee webpage here.


 

Student Loan Forgiveness Application Now Live

This week, President Biden announced the formal launch of the application for federal student loan relief which should take under 5 minutes to complete. To access the application, go to studentaid.gov and click “Apply Now”. From there, you will need to fill out basic information including your name, birth date, social security number, phone number, and email address, but you will not need to attach any documentation. After filling out the personal information, you will have to acknowledge that you meet the income eligibility requirements and then you are ready to submit. The Education Department may reach out to you directly if they require any additional information. Both undergraduate and graduate students are eligible for federal loan forgiveness as long as they meet the income requirements, and all applicants can expect to see the relief within 4-6 weeks of submitting the application form.

Details on the Student Loan Forgiveness Application, Set To Officially Launch This Month

The application for student loan forgiveness has not officially launched yet, but the Education Department recently released more details on the application, which should be available in October. The White House said it will not start canceling loans until after October 23rd due to legal challenges, but borrowers should expect to get the relief within four to six weeks of applying. It is recommended that borrowers fill out the application by November 15 to receive relief by January when the payment pause expires, which reduces the possibility of confusion or errors when payments begin again.

According to a preview of the application, applicants will need to fill in basic information including name, birth date, phone number, email address, and social security number and will not require any documentation. The application can be done on a desktop computer or a mobile phone and will be available in English or in Spanish. While it won’t require proof of income, borrowers will need to self-attest that they fall under the income threshold (see below).

The income threshold considers a person’s adjusted gross income (AGI) which can be found on line 11 of your federal tax return. To qualify for relief, a borrower’s AGI in 2020 or 2021 must have been:

  • under $125,000 for a single borrower or
  • under $250,000 for a married couple or heads of households

The Education Department said they will notify about 8 million people by email who will have their debt canceled automatically without having to apply because their income data is already filed: borrowers who filed a FAFSA for the 2022-2023 school year and borrowers who are enrolled in income-driven repayment programs. It is still recommended that all borrowers who qualify for forgiveness fill out the official application to avoid any errors.

Anyone who made payments on their federal student loans during the payment pause from March 13, 2020 to now is eligible to request a refund from their loan servicer. To request a refund, the Department of Education recommends contacting the borrower’s specific loan servicer and following their instructions.

The office will post when the applications go live. A preview of what the loan forgiveness application will look like on both a computer and mobile device can be found here and more information about student loan relief can be found here.