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Author: jnurse

Pell Grant Fix in House CR (Updated)

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**12/9 Update A year-long CR passed the House on 12/8. The legislation includes $5.7 billion to close a shortfall in the Pell Grant program. The process now continues in the Senate. CR Summary**

The House of Representatives is preparing two options for a closeout of the FY11 appropriations process. One option is a year-long continuing resolution (CR) that would fund most government operations at FY10 levels. The CR would generally be a negative outcome for the research agencies and programs that UW depends on. If an amendment to the CR now under consideration in the House is successful, at least one positive outcome is possible for the higher education community. The amendment contains exceptions to level funding, including $5.7 billion to fill a shortfall in the Pell Grant program. Inclusion of the Pell exception in a CR would prevent an estimated 15% cut in award levels for the 2011-12 academic year. The second — more desirable — option for concluding the FY11 process is completion of the spending measures that Congress has been working on this year through a packaging of the bills. The package, known as an omnibus, would allow for increases to agencies of interest such as NIH and NSF. Some reports from the Hill indicate that NIH stands to receive a $750 million increase in an omnibus package. Additionally, the Pell shortfall could also be addressed through an omnibus. The ultimate decision rests with the Senate and will likely be known by December 18th when the current temporary CR expires.

A recently released CR Fact Sheet captures the Pell provision: Continue reading “Pell Grant Fix in House CR (Updated)”

2011 House Schedule Released

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Leaders in the House have released a tentative schedule for calendar year 2011. However, the endgame for the current Congress and the FY11 appropriations process remains uncertain. Passage of appropriations bills for the current fiscal year now rest on the ability of the Senate leadership to garner the necessary 60 votes. It is expected that an outcome on FY11 appropriations will be clear by December 18th, by which time Congress will be required to act in order to continue government operations.

Expected 2011 Congressional Schedule Continue reading “2011 House Schedule Released”

Second Temporary Spending Measure Likely (Updated)

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**12/3 Update: Congress has approved a CR (referenced below) that will last through 12/18, allowing lawmakers additional time to attempt an omnibus spending bill that would closeout the FY11 appropriations process.**

The House of Representatives is close to a vote on a second continuing resolution (CR) that would continue the level funding of government operations through December 18th. The first CR, which expires on Friday 12/3, was necessitated on October 1st when Congress failed to pass appropriations bills in time for the beginning of the new fiscal year. A CR typically provides temporary level funding to allow Congress more time to complete the appropriations process.

At this point, Senate leaders are still pushing to complete the FY11 appropriations process with an omnibus spending bill before Congress adjourns for the year. Such a move would preserve expected increases for research agencies such as NSF and NIH, as well as congressionally directed appropriations (also knows as earmarks) for this cycle. However, emboldened by election wins and increased numbers in the next Congress, Republicans are far less interested in moving forward with FY11 appropriations bills that do not reflect their priorities.  It remains possible that Democratic attempts to pass an omnibus spending bill will be filibustered in the Senate, requiring the issue to be punted to the new Congress -where agency/program increases and funding for special projects will be met with significant skepticism.

First Week of Lame Duck Session Answers Little

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Members of Congress returned to DC last week for a lame-duck session intended to address pressing issues, namely the need to finish the fiscal year 2011 appropriations process as well as to extend various tax cut provisions that expire at the end of the calendar year. Members spent the first week of the session largely in party caucuses, electings leaders of the Congress that will be seated in January 2011. Very little was accomplished on any of the substantive issues identified by the current leadership as under consideration. Congress will return from a week-long Thanksgiving recess on November 29th. Given the many issues to address and the intense political maneuvering underway, it is now expected that the lame-duck session will last well into December.

The federal government is currently funded through a continuing resolution (CR) that expires on December 3rd. A CR was required when Congress failed to pass a new budget in time for the beginng of fiscal year 2011 back on October 1st. The CR provides Congress additional time to produce a budget, and temporarily funds agencies/programs at last year’s levels. After the holiday, it appears that Congress will need to pass either a second short-term CR that temporarily continues government operations and rests the final outcome with the new Congress, or pass a year-long CR that essentially ends the FY11 appropriations process. The latter scenario would result in lost opportunities for research agencies (e.g. NIH, NSF) expecting increases over last year’s allocation. Further, a longterm CR would likely provide another setback to attempts to plug a $5.7 billion shortfall in the Pell Grant program. A year-long  CR would also result in the removal of all congressionally directed appropriations from the spending bills. Completion of the FY11 appropriations process through an omnibus spending bill remains a remote possibility.

The extension of Bush era tax cuts seems to be one area drawing some consensus on Capitol Hill. However, the details of a so called “tax extenders” bill remain uncertain. Several provisions of interest to the higher education community are part of the tax debate, though generally less controversial. The items include an extension of the research and development tax credit, IRA charitable rollover that would facilitate giving to our institutions, and the above the line tuition and fees deduction.

At present, Congress also seems likely to pass another fix on physician Medicare reimbursements. On November 18th, the Senate approved an extension of current reimbursement rates through December, which would provide more time to approve a longer-term solution. 

Majority Leader Reid (D-NV) is pushing to fulfill a campaign promise to bring the DREAM Act to a vote. The legislation would provide a path to citizenship for some individuals who entered the country illegally with their parents. Despite support from a majority in the current Senate, and broad backing by the higher education community, the legislation is not likely to garner the 60 votes necessary to break an expected fillibuster.

Post-Election Legislative Agenda Uncertain

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The mid-term congressional elections that took place on Tuesday, resulting in a Republican House majority and diminished Democratic Senate majority, will have a significant impact on issues of concern to the higher education community (FY11 appropriations, DREAM Act, COMPETES Act, tax policy) that were previously slated for consideration during the coming “lame-duck” session. The current Democratic leadership on Capitol Hill may decide, or be forced, to punt many legislative items to the new Congress. It is expected that the new Congress will increase efforts to constrain federal spending. How deeply those efforts impact research and student aid remains to be seen.

The Office of Federal Relations is gathering information on the likely leadership structure of the incoming 112th Congress, as well as on prospects for legislation of interest. A Federal Report will be produced and available on this website during the week of November 7th.