Author: jnurse

On November 15th, it is expected that Members of Congress will return to DC to address unfinished legislation before adjourning for the year. Several items of note are likely to considered, including additional funding to fill a shortfall in the Pell grant program. The anticipated $5.7 billion shortfall was created by increased student eligibility for the program. Without funds to close the shortfall, 9 million Pell recipients could see a 15% reduction in their awards at the beginning of next school year. However, the popularity of the Pell grant program has many on the Hill expecting the shortfall to be addressed before cuts to student awards are necessitated. What remains uncertain is exactly how and when the problem will be dealt with. Several efforts to fill the hole in the Pell grant program, by attaching provisions to larger pieces of legislation, have come up short this past year.

Aides to the current congressional leadership have indicated a desire to address the Pell grant shortfall during the post-election “lame duck” session. The session is likely to be devoted largely to completing the spending bills for FY11, of which Pell is a component. However, it’s possible that the spending bills could be tabled until a new Congress is seated in January. The House and Senate that begin work in January are likely to be significantly more inclined to hold or reduce spending levels, so the endgame for the FY11 appropriations process and Pell remain far from clear at this time.

With fiscal year 2011 set to begin on Friday October 1st and none of the 12 spending bills yet signed into law, Congress will need to pass a continuing resolution (CR) in order to keep the government functioning. A CR typically funds government operations on a temporary basis, at the previous year’s spending levels, in order to give Congress and the President additional time to complete the process.

Today, the Senate voted to advance its CR in the legislative process. During the past week, speculation circulated that Congress might add language to the CR that would fill a shortfall in the Pell Grant program. However, early indications from the Senate Appropriations Committee are that funding for Pell will not be included in the CR. The $5.7 billion Pell shortfall was created largely by increased student eligibility for the program during the economic downturn. If Congress does not address the Pell shortfall, it would result in significant decreases in student award amounts for next academic year. However, most higher education observers believe that it is not a question of whether Congress will address the shortfall, but rather through which legislative vehicle. The Pell Grant program generally enjoys wildespread support, so a significant cut in award levels seems unlikely at this point.

A summary of the special provisions added to the Senate’s CR is available below. Continue reading “Short-term CR Advances, Pell Shortfall Left Out”