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Category: Student Aid

McMahon confirmed as Secretary of Education

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The Senate voted along party lines on Monday evening to confirm Linda McMahon as the next Secretary of Education. McMahon, a former professional wrestling executive and wealthy Republican donor, served as the administrator of the Small Business Administration in the first Trump Administration. She now leads a department that President Trump has proposed eliminating.

A former CEO of World Wrestling Entertainment and chairman of America First Action, a pro-Trump Super PAC, McMahon has been a longtime ally of President Trump. She launched two unsuccessful campaigns to represent Connecticut in the Senate and previously served on the Connecticut State Board of Education for one year. She has also served as a trustee at Sacred Heart University for over a decade.

McMahon told reporters during her confirmation process that she “wholeheartedly” agrees with President Trump’s mission to dismantle the “bureaucracy in Washington” and return education to the states. She added that her goal is to make the Education Department “operate more efficiently,” not to defund programs. Her confirmation, however, comes in the midst of an aggressive government overhaul project, led by Elon Musk, that has targeted the department and its employees. On Friday, employees in the department were given an offer of up to $25,000 if they agreed to retire or resign by the end of the day. President Trump has also told reporters that he hopes McMahon will “work herself out of a job.”

McMahon will now take over leadership of the department of over 4,200 employees in charge of sending federal money to schools, administering college financial aid, and managing federal student loans.

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

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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

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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

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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

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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.