Skip to content
News and updates

Category: Budget

Pell Grant Funding on Post-Election Agenda

Posted on

On November 15th, it is expected that Members of Congress will return to DC to address unfinished legislation before adjourning for the year. Several items of note are likely to considered, including additional funding to fill a shortfall in the Pell grant program. The anticipated $5.7 billion shortfall was created by increased student eligibility for the program. Without funds to close the shortfall, 9 million Pell recipients could see a 15% reduction in their awards at the beginning of next school year. However, the popularity of the Pell grant program has many on the Hill expecting the shortfall to be addressed before cuts to student awards are necessitated. What remains uncertain is exactly how and when the problem will be dealt with. Several efforts to fill the hole in the Pell grant program, by attaching provisions to larger pieces of legislation, have come up short this past year.

Aides to the current congressional leadership have indicated a desire to address the Pell grant shortfall during the post-election “lame duck” session. The session is likely to be devoted largely to completing the spending bills for FY11, of which Pell is a component. However, it’s possible that the spending bills could be tabled until a new Congress is seated in January. The House and Senate that begin work in January are likely to be significantly more inclined to hold or reduce spending levels, so the endgame for the FY11 appropriations process and Pell remain far from clear at this time.

Associations Convey FY 12 Higher Ed Priorities to OMB

Posted on

This week two higher education associations – the Association of American Universities (AAU), and the Association for Public and Land Grant Universities (APLU) sent collaborative letters to the Obama Administration asking the White House to make higher education a priority in their FY 12 budget.

The first letter called for the administration to again propose an expanded Perkins Loan Program. The associations also thanked the administration for it’s support of the Pell Grant Program.

The second letter pushes to continue sustained growth for all federal basic research programs. The letter acknowledges the strained federal budget, but states that “steady growth in federally sponsored basic research provides the essential foundation for scientific progress and training and for ensuring our nation’s continued competitiveness.”

Links to the full letters follow:

Basic Research Letter

Student Aid Letter

Short-term CR Advances, Pell Shortfall Left Out

Posted on

With fiscal year 2011 set to begin on Friday October 1st and none of the 12 spending bills yet signed into law, Congress will need to pass a continuing resolution (CR) in order to keep the government functioning. A CR typically funds government operations on a temporary basis, at the previous year’s spending levels, in order to give Congress and the President additional time to complete the process.

Today, the Senate voted to advance its CR in the legislative process. During the past week, speculation circulated that Congress might add language to the CR that would fill a shortfall in the Pell Grant program. However, early indications from the Senate Appropriations Committee are that funding for Pell will not be included in the CR. The $5.7 billion Pell shortfall was created largely by increased student eligibility for the program during the economic downturn. If Congress does not address the Pell shortfall, it would result in significant decreases in student award amounts for next academic year. However, most higher education observers believe that it is not a question of whether Congress will address the shortfall, but rather through which legislative vehicle. The Pell Grant program generally enjoys wildespread support, so a significant cut in award levels seems unlikely at this point.

A summary of the special provisions added to the Senate’s CR is available below. Continue reading “Short-term CR Advances, Pell Shortfall Left Out”

Congress Comes Back to Work

Posted on

Congress returns to work this week for a final few weeks of work before the November elections.  While there is plenty of legislating to do, I don’t expect that we’ll see much action with most major issues being delayed until the post-election lame-duck session.  The only thing that Congress MUST act on before October 1st is to pass a continuing resolution (CR) to fund government for the next couple of months.  Appropriators are now working on the CR, which could run until the middle of next month or after Thanksgiving.  A second CR may also be needed to buy time as lawmakers work to clear the spending package before the end of the year.

Appropriations

No separate floor action on additional FY11 appropriations bills is currently expected in either the House or Senate, but the Senate may try to complete committee action on their three remaining bills:  Defense, Interior, and Legislative Branch.  All 12 of the House spending bills have been approved by subcommittee, with MilCon-VA and Transportation-HUD also receiving full committee approval.  

Small-Business Aid

The first priority for the Senate appears to be to pass the small-business lending bill.  The bill (HR 5297) would establish a $30 billion lending fund for small businesses, provide $12 billion in tax breaks, and enhance federal programs that support small businesses.  After the Senate passes the bill, the measure will go back to the House for consideration.  The version passed earlier by that chamber includes a smaller tax package, and thus fewer revenue-raising offsets.

Tax Cuts

Extension of the Bush tax cuts is the only other major budget-related legislation that may be considered in the next few weeks.  Senate leadership has indicated their desire to move on extending the 2001 and 2003 tax cuts for the middle class before the Senate adjourns for October but it may be difficult to get enough votes for that proposal.  This mirrors the President’s proposal to allow the tax cuts for individuals making more than $200,000 and families making more than $250,000 a year to expire.  Others believe that all rates to be extended thus preventing any tax increases during these tough economic times.

Climate Change & Energy

The Senate has dropped plans to consider energy or climate legislation before November.  Senate leadership has indicated that they would like to take up in the lame-duck session either all or a portion of an oil spill and energy bill.

Immigration

There is almost no chance Congress will act on any legislation to assist the illegal immigrant population this year, but congressional aides expect lawmakers to at least talk about the issue over the next several weeks.  There is some pressure on the Senate to take action on a bill that allows children of illegal immigrants who go to college to earn citizenship (the DREAM Act) but it is still unlikely that this measure will move before November – at the earliest.  

Stem Cells

Thanks to a federal court’s decision last week to temporarily lift a judge’s ban on embryonic stem cell funding, a House vote on the volatile issue of government funding for stem cell research might be put off until after the midterm election.

Murray Amendment Advances Crucial State Funding

Posted on

The Senate today passed a crucial amendment that will help states avoid education job losses, and provides desperately needed Federal Medical Assistance Percentage (FMAP) payments to states . The FMAP/Teacher Jobs Bill passed the senate on a vote of 61-39 and will now be sent to the House where most expect it to pass and then sent to the President for his signature. The Amendment, which was attached to the Aviation Safety and Investment Act of 2010, will send more than $26 billion in aid to states and its costs are fully offset, largely due to spending reductions made in other areas. Patty Murray, was a driving force behind this bill and worked to achieve a solution that would draw bipartisan support.

The legislation provides $16.1 billion for FMAP, and will keep the level of federal Medicaid assistance (which was increased by a minimum of 6.2% in the Recovery Act) consistent for the next 6 months and then gradually decrease the contribution level for the following 6 months. The amendment will also provide $10 billion for additional support to local school districts to prevent imminent layoffs. Nationwide it is estimated that this fund will help to save the jobs of nearly 140,000 educators.

If the legislation passes the House, the State of Washington would realize approximately $546.3 million in FMAP funds. The bill will also prevent the layoffs of up to 3,000 teachers within our state and allow the State legislature to avoid conducting a costly special session. In the words of Senator Murray, “This amendment will allow Washington State to avoid layoffs, service cuts, or tax increases—and it will make sure our children don’t walk through the schoolhouse doors this September to larger class sizes and fewer subjects”.

In an uncommon move, House Speaker Nancy Pelosi called the House back from its August recess to vote on the measure. They are expected to take up the issue next Tuesday the 10th.