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FY15 Appropriations Released

Last night, House and Senate Appropriators unveiled a $1.1 trillion spending package that is a combination of all but one of the Fiscal Year 2015 (FY15) appropriations bills rolled into an omnibus for the remainder for FY15, plus a continuing resolution (CR) funding the Department of Homeland Security through February 2015. The FY15 appropriations package, dubbed the “Cromnibus,” would provide new funding for all government agencies and programs, except the Department of Homeland Security, and is designed to gain bipartisan support and avert both a government shut down or another continuing resolution, as was seen in FY 2014. The current CR runs through tomorrow (December 11, 2014). 

The deal is a victory for appropriators, who have insisted that spending caps set under the 2013 budget agreement would allow them to move most of the annual measures for FY15. The Homeland Security stopgap portion is an effort by Republicans leaders to force a showdown with the White House on immigration in the new Congress, when Republicans will control both chambers of Congress.

The Cromnibus will move as HR 83, a previously considered piece of energy legislation. By using a previously considered bill, House and Senate leadership is trying to overcome Senate procedural hurdles so that measure could be cleared as early as Friday. Regardless, with the current stopgap funding expiring on tomorrow, the House will likely pass a two- or three-day CR to guarantee there is no shutdown before the Senate takes action and sends the “cromnibus” to the President.

For domestic agencies, flat funding is the norm, with some spending tradeoffs made to build political support. For example, the bill’s education programs are almost level funded at $70.5 billion, only $100 million less than last year. Democrats, however, will be pleased with level funding of $8.5 billion for Head Start and $22.5 billion for Pell grants, an amount that would raise the maximum grant award by $100 to $5,830.

Overall, Appropriators said the entire Labor-HHS-Education section of the spending bill would contain $156.8 billion in discretionary money, roughly the same level enacted last year. The title is always among the most contentious of the annual spending bills because of the wide reach of the programs under its jurisdiction and has become even more of a lightning rod since passage of the health care overhaul in 2010.

Additionally, the bill would provide $100 million, a $1.6 million increase, for the Office of Civil Rights, which is responsible for investigating Title IX complaints of inappropriate campus response to sexual violence. Moreover, the Student Aid Administration received a $230 million increase from last year to $1.4 billion with part of that funding going to increased enforcement and data collection under the Clery Act. The Committee commended the Education Department for its emphasis on campus sexual assault prevention.

The Defense Department, however, would see its base budget rise $3.3 billion over current funding to $490.2 billion, an amount still $500 million less than what was requested by the Pentagon.

Of note in the Cromnibus:

  • National Institutes of Health received $30.1 billion, which is $150 million more than FY14.
  • National Science Foundation received $7.34 billion, which is $172.3 million above the 2014 enacted level. NSF’s MREFC received $200.8 million.
  • The Department of Education was cut by $166 million overall. Pell grants, however, received a net increase for ED of $137 million increasing the maximum award to $5,830. Federal Work Study received an increase of $15 million. The Student Aid Administration received an increase of $230.924 million. Race to the Top was eliminated.
  • National Aeronautics and Space Administration (NASA) received $18.01 billion for which is $363.7 million more than the 2014 enacted level.
  • National Oceanic and Atmospheric Administration (NOAA) received $5.4 billion, which is $126.4 million more than the 2014 enacted level.  Big winners at NOAA were Weather, which received $90.8M, which is $9.6M above the FY14 enacted level. Climate accounts remained relatively level with previous funding. Sea Grant received level funding of $62 million. NOAA Cooperative Labs and Institutes received $60 million, which is level funding. The bill provides $60 for Climate Competitive Research, Sustained Observations and Regional Information, the same as the FY14; $38M for Regional Climate Data and Information; $8.5M for Integrated Ocean Acidification, which is $1.5M above the FY14 enacted level; $41.3 for Sustained ocean observations and monitoring, which is comparable to the FY14 enacted level
  • National Weather Service operations received $954.2 million for, which is $526,000 above the 2014 enacted level.
  • The US Geological Survey received $5 million in additional funding Early Earthquake Warning funding on the Pacific Coast.
  • The Department of Defense’s S&T programs generally enjoyed increases in funding (6.1: $2.279 billion (+$112 million over FY14); 6.2: $4.605 billion (-$38 million below FY14);  6.3: $5.530 billion ($155 million above FY14)

The House is expected to pass the measure on Thursday and send to the Senate. The Senate is expected to pass it Thursday or Friday. The President is expected to sign it into law Friday.

Federal Relations will continue to update information on the Cromnibus as it move through the Congress and becomes law.

Senate Passes VA and Transportation Bill

The Senate has passed two key pieces of legislation clearing them for the President’s signature.

The Senate has passed legislation overhauling the scandalized Department of Veterans Affairs, by a vote of  91-3. The House considered the measure earlier in the week. The measure contains provisions expanding Graduate Medical Education at VA Hospitals as well as requiring public universities to offer in-state tuition to active duty servicemembers, their spouses, and dependents. 

Also, the Senate has cleared, by a vote of 81-13, an $11 billion bill to keep highway and transit programs funded through May, acting quickly following House passage of the bill earlier today. Tonight’s vote heads off the possibility of states having federal money for transportation projects throttled starting tomorrow.

House Considers VA Conference Report

Both the House and Senate intend to bring to the floor this week a conference agreement to reform the Veterans Health Administration (VHA) and increase transparency and services in the Department of Veterans Administration (VA). The House will be the first to consider, what has been a delicate and sometimes contentious agreement to create, the conference committee report this afternoon. 

The legislation (conference report to accompany H.R. 3230, the Veterans’ Access to Care through Choice, Accountability, and Transparency Act of 2014) primarily deals with care at veteran medical facilities.

Provisions of interest to UW include:

  • The conference report requires the VA to establish medical residency programs, or to ensure that sufficient residency positions exist at facilities with programs in specialties facing a shortage of physicians or located in a community that is designated as a health professional shortage area. It increases by up to 1,500 the number of graduate medical education residents over a five-year period, with a priority for primary care, mental health and other specialties as VA determines is appropriate.
  • It also expands certain educational benefits to the spouses of servicemembers who die in the line of duty, including those who died since the 9/11 terrorist attacks, and it requires colleges and universities to provide in-state tuition to veterans under the Post-9/11 GI Bill regardless of how long they have lived in the state.

After whistleblowers revealed that some employees of the Veterans Affairs (VA) Department were falsifying wait-time records for medical appointments and keeping many patients on unofficial waitlists to create the appearance that they were reaching wait time targets, there has been nearly universal Congressional support to make the VA more accountable.

A Congressional Budget Office estimate released late Tuesday stated the agreement would be a net increase to the deficit by about $10 billion through FY 2024.

The House is expected to pass the measure today and the Senate is expected to consider it later in the week.

Rep. Ryan Anti-Poverty Plan and Higher Education

On Thursday, House Budget Committee Chairman Rep. Paul Ryan (R-WI) announced what he is calling  a new anti-poverty plan that proposes sweeping changes to the safety net through a state-led pilot program. Announced at the the conservative American Enterprise Institute, Ryan’s plan calls for streamlining the student-aid system, capping federal loans to parents and graduate students, a database for tracking recipients of federal aid, and further consolidation of federal job-training programs.

Big focus points that impact higher education include:

  • Simplify the Free Application for Federal Student Aid.
  • Modernize and reform the Pell program.
  •  Cap federal loans to graduate students and parents.
  • Consider reforms to the TRIO programs.
  • Expand funding for federal Work-Study programs.
  • Build stronger partnerships with post-secondary institutions.
  • Reform the accreditation process.

Some of the proposals in Thursday’s plan mirror ideas in the House Republican road map for reauthorization, including replacing the current patchwork of federal student-aid programs with one grant, one loan, and one work-study program. Both plans would make Pell Grants available year-round, creating “flex” funds that students could draw from until they graduated or exhausted their eligibility for aid. Also, both would remake federal college-access programs, with Mr. Ryan’s plan suggesting a single program.

But the Ryan plan offers more specifics than does the House Republican list, particularly when it comes to accreditation. His plan would make it easier for new accreditors to gain federal approval and would allow accreditors to recognize specific courses, not just colleges or programs.

The plan also calls for the creation of a “Commission on Evidence-Based Policy Making” that would explore whether, and how, to create a federal clearinghouse that could link anonymous participants across programs to provide a more complete picture of their effectiveness. The clearinghouse might also contain state, local, and educational data sets, like National Student Clearinghouse.

As this proposal and others continue to be introduced and move through Congress, the Office of Federal Relations will continue to monitor and update this issue.

Student Loan Interest Rates Rise

Annual student loan interest rates increase tomorrow, July 1st. This represents the first full year loan rates will be tied to the 10-year Treasury note under the deal struck by Congress last summer. Rates will rise from 3.86 to 4.66 percent for undergraduate Stafford loans, 5.41 to 6.21 percent for graduate Stafford loans and 6.41 to 7.21 percent for parent and graduate PLUS Loans. The maximum Pell Grant will also increase tomorrow by $85 to $5,730. The Institute for College Access and Success offers a helpful fact sheet breaking down the changes.