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Category: Higher Education

Department of Education Rule Change Rebuked in Bipartisan Vote

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Today the Senate voted 53-42 to block a rewrite from the Department of Education overturning the “borrower defense” rule. The rule was put in place during the Obama Administration and governs the process for wiping out student debt when the student has been defrauded by a predatory for-profit college.

Ten Republican senators broke with the Trump administration to vote in favor of the resolution, which now heads to President Trump to be signed into law. The legislation does not have a veto-proof majority, so the President can opt to veto.

The Details Are Not Pretty (Part I)

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The details of the President’s FY2021 budget requests for various agencies of interest to UW are not pretty.  Let’s start with some of the details related student aid and higher education programs at the Education Department.

Programs Slated for Elimination

  • Federal Supplemental Education Opportunity Grants (FSEOG)– Currently funded at $865 million
  • GEAR UP– Currently funded at $365 million
  • Title VI/ International Education Programs– Currently funded at $76 million
  • Graduate Assistance in Areas of National Need (GAANN)– Currently funded at $23 million.

Other Education Department Proposals

  • The Pell Grant maximum would remain at $6,345.  The proposal seeks to fold the Iraq and Afghanistan Service Grant program into the Pell program.
  • In addition to eliminating the SEOG program, the budget proposals also seeks to cut the Federal Work-Study program from $1.18 billion to $500 million while also changing the allocation formula.
  • The president’s budget calls for turning the various TRIO programs into a single block grant program that would be administered by states.  The proposal calls for the total funds for this new block grant to be cut from $1.09 billion to $950 million.

Student Loans

  • On the loans front, all subsidized loans would be eliminated, meaning all federal student loans would become unsubsidized loans, including undergraduate loans.  The Public Service Loan Forgiveness program would be eliminated as well.
  • The department proposes to consolidate five income-driven repayment (IDR) into a single IDR program, with the repayment rate set at 12.5 percent of discretionary income.  The standard repayment cap would be repealed.  For those borrowers with only undergraduate loan debt, the remaining balance would be forgiven after 180 months of repayment, while those with graduate debt would have their balances forgiven after 30 years of repayment.
  • Loan limits would change under the budget proposal as well.  It calls for Parent PLUS loan limits for undergraduate students to be set at $26,500.  Graduate students would see their annual loan limits capped at $50,000 and the aggregate limits capped at $100,000 under this proposal.
  • In addition, the Administration wants to study the idea of turning the Office of Federal Student Aid into a separate, non-governmental entity.
  • The Administration also wants to explore the concept of requiring “postsecondary institutions that accept taxpayer funds to share in the financial responsibility associated with student loans.”

Institution of Education Sciences

The Administration proposes to cut IES by $58 million below the FY2020 level to $565 million for FY2021.  Within its budget, it is calling for the elimination of both the Regional Education Laboratories and the Statewide Longitudinal Data Systems.

 

House Passes FY2020 Appropriations Measures

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The House passed two spending packages of nearly $1.4 trillion to fund federal agencies through FY20. The current federal funding continuing resolution expires at midnight Friday.

The Senate is expected to clear the pair of bills for President Donald Trump’s signature later this week.

The bipartisan agreement provides $49 billion in extra funding across the government and includes sweeping policy provisions, including to raise the legal age of tobacco purchases to 21, reauthorize PCORI, extend the Ex-IM bank for seven years, and repeal of several health taxes in Obamacare.

The FY2020 Deal

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After weeks of negotiations, Congressional leaders released last evening the long-awaited texts of the FY2020 appropriations bills.

As we noted before, the 12 bills were combined into two massive legislative packages.  The first package is the “defense” package and consists of the Defense, Commerce-Justice-Science (CJS), Financial Services-General Government, and Homeland Security measures.  The second “non-defense” package consists of the remaining spending bills—Labor-HHS-Education (LABOR-HHS), Agriculture, Energy and Water, Interior, Legislative Branch, Military Construction, State-Foreign Operations, and Transportation-Housing and Urban Development—and a host of other bills and provisions of policy importance but not directly related to appropriations.

The House is expected to vote and pass the measures today, and the Senate is expected to pass both measures by Thursday, prior to the Continuing Resolution expiring.

The President is expected to sign the measures.

We will provide additional details throughout the week.  Here is an initial breakdown of how various agencies and programs would fare in FY2020 under this package of bills. This post will be updated.

LABOR-HHS

National Institutes of Health

  • Overall: $41.7 billion (including $492 million from 21st Century Cures Act)—increase of $2.6 billion
    • $2.8 billion for Alzheimer’s research
    • $3.1 billion for HIV/AIDS research
    • $500 million for Precision Medicine
    • $500 million for BRAIN Initiative
    • $195 million for Cancer Moonshot
  • Fogerty: $80.76 million and increase of $2.65 million

HRSA

  • Title VII Health Professions and Title VIII Nursing workforce development programs receive  $684.5 million — a $42.8 million (7%) increase.
    • The legislation includes first-time funding for the Loan Repayment Program for Substance Use Disorder Treatment Work and Mental and Substance Use Disorder Workforce Training Demonstrations within the Behavioral Health Workforce Education and Training program

CDC

  • Overall:  $8 billion – increase of $636 million
  • NIOSH: $342 million– increase of $6.5 million

Other HHS items of note:

  • The Patient-Centered Outcomes Research Trust Fund, which funds the Patient-Centered Outcomes Research Institute (PCORI), is reauthorized through FY2029.
  • Agency for Healthcare Research and Quality (AHRQ) is level funded at $338 million.
  • The Administration is prohibited from lowering F&A rates.
  • NIH salary caps remain at Executive Level II.
  • $25 million for gun research. Out of the $25 million set aside, $12.5 will be from the CDC and the other $12.5 will come from the NIH. The Dickey amendment language remains in place and CDC cannot use the funding to lobby in favor of gun control.
  • Delay scheduled Medicaid DSH allotment reductions through May 22, 2020

Department of Education

  • Pell Grants: maximum award of $6,345 – increase of $150
  • SEOG: $865 million – increase of $25 million
  • Federal work study: $1.18 billion – increase of $50 million
  • TRIO: $1.09 billion – increase of $30 million
  • GEAR-UP: $365 million – increase of $5 million
  • GAANN: $23 million – level funded
  • Institute for Education Sciences: $623.5 million – increase of $8 million
  • International Education/ Title VI programs: $76.1 million – increase of $4 million

Also, the measure would require the Department of Education to brief Congress on how they are administering of the Public Service Loan Forgiveness and Temporary Extended Public Loan Forgiveness programs.

Institute of Museum and Library Services (IMLS): $252 million — increase of $10 million

CJS

National Science Foundation

  • Overall: $8.278 billion – increase of $203 million
  • Research and Related Activities: $6.737 billion – increase of $217 million
  • Major Research Equipment and Facilities Construction: $243.23 million – decrease of $52.5 million
  • Education and Human Resources: $940.0 million – increase of $30 million

NASA

  • Overall: $22.63 billion – an increase of$1.13 billion
  • Space Grant: $48.0 million – increase of $4 million

NOAA

  • Overall: 3.76 billion – increase of $167 million
  • NOAA Climate Research: $169.5 million – increase of $10.5 million
    • Climate Research Cooperative Institutes: $66.5 M – increase of $5.5 million
  • Integrated Ocean Observing System Regional Operations: $39.5 million—increase of $0.5 million
  • Sea Grant: $87 million total, including Aquaculture – increase of $6 million
    • Aquaculture: $13 million – increase of $1 million

 

INTERIOR

  • Overall: $13.5 billion – increase of $545 million
  • USGS (part of Interior):  $1.27 billion increase – of $110.4 million 
  • Climate Adaptation Science Centers: $38.3 million – increase of $13.0 million
  • Cooperative Research Units: $24 million – increase of $5.5 million
  • ShakeAlert Earthquake Early Warning: $19 million – increase of $2.9 million, plus an additional $6.7 million for infrastructure
  • EPA: $9.06 billion  – increase of $208 million
  • EPA Science: $716.4 million
    • EPA Science to Achieve Results (STAR) grant program: $6 million
    • $6 million for Harmful Algal blooms
  • National Endowment for the Arts: $162.25 million – increase of $7.25 million
  • National Endowment for the Humanities: 162.25 million – increase of $7.25 million

 

ENERGY

  • Overall: $38.586 billion – increase of $2.9 billion
  • Advanced Research Projects Agency – Energy: $425 million – increase of $59 million
  • Energy Efficiency and Renewable Energy: $2.79 billion – increase of $411 million
  • Office of Science: $7 billion – increase of $415 million
    • $71 million for Artificial Intelligence and Machine Learning across the six Office of Science programs
    • $195 million for Quantum Information Sciences including
      • $120 million to carry out a basic research program on quantum information science
      • $75 million for the establishment of up to five National Quantum Information Science Research Centers
  • Fusion Energy Sciences Research: $414 million — reduction from $432 million

 

Other Items of Note:

  • Repeal of the parking tax: The Tax Cuts and Jobs Act (TCJA) tax on employer provided parking and transportation benefits as unrelated business income.
  • Repeal of the “kiddie” tax: (taxing nonqualified scholarship amounts for minors at the higher, trust rate rather than nominal tax rate).  This glitch in TCJA caused a child’s unearned income over $2,100 to subsequently be taxed at the trusts and estates rate instead of their parents’ top marginal tax rate, including taxable scholarship amounts.
  • Retroactive reinstatement and extension of the above-the-line tuition deduction, which expired at the end of 2017.  The bill reinstates the deduction from 12/31/2017 until 12/31/2020.