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The funding in the reconciliation is on the mandatory side and is not subject to the annual (discretionary) appropriations process. If the discretionary total remains the same till 2012, the total maximum will be $5,400.
In addition, the bill does the following:
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Increases the Income Protection Allowance for independent students;
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Provides funding increases for Historically Black Colleges and Universities, Hispanic Serving Institutions, Predominately Black Institutions, Tribal Colleges and Universities, Alaska/Hawaiian Native Institutions, and Asian American Pacific Islander Institutions;
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Creates a competitive loan auction pilot program;
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Creates the TEACH grants, to provide funds to students who commit to teach in high-need schools for four years;
September 5, 2007 - The Budget Reconciliation Conference Committee released the finalized version of H.R. 2669, the College Cost Reduction and Access Act. The signature piece of the bill is its historic funding increase for the Pell Grant program. In total, over $15 billion would be distributed to Pell Grant students. The funding for the programs within the bill is supported by cuts to payments to student loan providers and agencies.
Previously, the Administration had issued a veto threat to the House version of H.R. 2669. The compromise bill is expected to garner Administration support because the modified bill addresses one of the chief complaints from the Administration, the lack of funding for need based aid. The compromise bill provides significantly more funds for Pell Grants than the previous House version.
The bill provides significant funding for the Pell Grant program and would increase the Pell Grant maximum. Here are the allocation levels:
$490 in 2008-09 and 2009-10
$690 in 2010-11 and 2011-12
$1,090 in 2012-13
The funding in the reconciliation is on the mandatory side and is not subject to the annual (discretionary) appropriations process. If the discretionary total remains the same till 2012, the total maximum will be $5,400.
In addition, the bill does the following:
-
Increases the Income Protection Allowance for independent students;
-
Provides funding increases for Historically Black Colleges and Universities, Hispanic Serving Institutions, Predominately Black Institutions, Tribal Colleges and Universities, Alaska/Hawaiian Native Institutions, and Asian American Pacific Islander Institutions;
-
Creates a competitive loan auction pilot program;
-
Creates the TEACH grants, to provide funds to students who commit to teach in high-need schools for four years;
The bill is now slated to be considered by the House and Senate in the coming days. The bill is expected pass and be sent to the President’s desk for his signature.
Budget Reconciliation Conference Committee Holds Meeting
September 5, 2007 - The Budget Reconciliation Conference Committee held a largely pro-forma meeting to begin the process of creating a final version of the budget reconciliation. The Committee voted House Education and Labor Chairman George Miller (D-CA) as Chairman for the conference committee. Chairman Miller noted that he wanted to finalize the process quickly.
Sen. Mike Enzi (R-WY) noted that the Senate had finalized its version of the Higher Education Act (HEA) with unanimous support. Sen. Enzi urged Chairman Miller to move HEA so that the bill could be completed. Chairman Miller stated that the House Committee was considering No Child Left Behind (NCLB) and would take up HEA after NCLB’s consideration.
The Committee is expected to release a compromise bill shortly.