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Pell Grant Levels Announced

The Department of Education announced the maximum Pell grant levels for 2015-2016 today. The agency said the maximum award amount will be $5,775, which is an increase of $45 over the 2014-2015 award maximum.

The amount is affected by the Student Aid and Fiscal Responsibility Act (SAFRA), which was incorporated as part of Public Law 111-152. SAFRA provides for an automatic annual increase, based on changes in the Consumer Price Index—through award year 2017-2018—to the appropriated Federal Pell Grant maximum award. This change has resulted in a 2015-2016 maximum award of $5,775. The corresponding maximum Pell Grant eligible expected family contribution (EFC) for 2015-2016 will be 5198.

Read the announcement here.

What We’re Reading this Week, January 26

Here’s a selection of articles the Office of Federal Relations is reading this week.

NCLB? – The first item on the agenda for the Senate Health, Labor, Education and Pensions (HELP) Committee is the reauthorization of ESEA or No Child Left Behind. New HELP Committee Chair Lamar Alexander (R-TN) talks about how his views on the reauthorization and what might be coming for NCLB. Read it in Time.

$ Today for $$ Tomorrow – An op-ed on the changing nature of federal student loans, and the student loan landscape generally, and why higher education is becoming increasingly funded by the federal government, rather than state government. Read it at The New York Times.

Meet Our Demands! – As states try to fill the gaps in their budgets, many have started increasing the costs of licensing fees on applicants. Licensing discourages some applicants from pursuing those careers, which leaves nearly 3 million unfilled jobs. Additionally, many states require applicants to have taken certain courses to be eligible to apply for the programs, and these courses must be accredited. Read about it at The Washington Post.

Initial Offer – The President’s Budget Request for FY16 is expected to be $74 billion over budget levels set by the Sequester. Read about the budget at The Washington Post.

Plan B – The House Republican caucus is tossing around alternative ideas to stopping the Administration from implementing any immigration reform. The current idea is to sue the President. Read about it at Roll Call.

Out of State? – A recent study has found a correlation between falling state funding and public universities admitting more out of state students. Read it at The Chronicle.

Senate HELP Committee Approves Education Research Act

The Senate Health, Education, Labor and Pensions (HELP) Committee today approved S227, the Strengthening Educational through Research Act, which would reauthorize the Education Sciences Reform Act (ERSA). A nearly identical measure was passed by the full House and the Senate HELP Committee last year but, unfortunately, was not considered by the full Senate for approval to be sent to the President for signature into law.

ERSA authorizes funding for the research activities of the Department of Education, including the Institute for Education Sciences. The measure helps improve the quality of education research in the US and make research more relevant and usable for teachers, principals, school districts and states. The bill would authorize ERSA programs through 2021.

For more information, a copy of the legislation is here.

What We’re Reading This Week, January 19

Here’s a selection of articles Federal Relations is reading this week:

Meetings! – A guide on how to make the most of your DC visit. From Roll Call.

Due North – President Obama has issued an Executive Order on creating an Arctic Executive Steering Committee to eliminate overlapping areas of responsibility within the federal government and better focus efforts on the arctic. Read about it at USA Today.

Kickstarter Research – With ever shrinking federal research budgets, scientists are getting innovative and that includes crowdsourcing research. Read about it in The Washington Post.

Personal Medicine – In the State of the Union, the President called for a more personalized approach to cure diseases like cancer and diabetes. Read about it in The New York Times.

Changes to 529 – To pay for the two years of community college, the Obama Administration has proposed taxing 529 accounts. Read about it in The New York Times.

Athletics Scholarships – Schools and athlete representatives from the NCAA’s five wealthiest conferences voted 79-1 to expand what Division I schools can provide under an athletic scholarship. Read about it in USA Today.

State of The Union

Tonight at 9 pm Eastern, 6 pm Pacific, President Obama is scheduled to give his 6th State of the Union address to Congress. The White House has been previewing certain initiatives, such as two years of free community college and paid sick leave, in advance of the speech tonight.

Tonight, however, the crux of his speech is expected to center around his economic proposals to promote the middle class and make a case for increasing federal spending on education and technology priorities. It is unclear, however, how his proposal to handle the largest funding issue confronting this last two years in office, the return of the Sequester spending cuts, will be received. The President is expected to propose increasing federal spending above the Budget Control Act levels in part by increasing taxes for the rich – his starting position in negotiations with Republicans that will ultimately determine the size of the budget for FY16.

Obama is unlikely to call for specific increases in stringent sequesters spending caps that start again in 2016, but he could call for ways to re-direct funds within those caps or come up with new revenues. As a remedy for past sequesters, the President has suggested maintaining funding for his priorities by increasing corporate taxes mainly by closing loopholes. That plan now would almost certainly be a non-starter on Capitol Hill with Republicans controlling both chambers.

The President did preview his tax increase proposals over the weekend, which included imposing a fee on financial institutions, closing the capital gains tax loophole on inherited assets, and raising the top rate of capital gains and dividends back to the Reagan rate of 28% among others. Additionally, Obama will propose increased and streamlined tax credits for the middle class for child care, two-earner families, and retirement savings.

For higher education, the President will propose consolidating the six overlapping education provisions into just two, while improving the American Opportunity Tax Credit (AOTC) to provide more students up to $2,500 each year over five years as they work toward a college degree. This move would likley make the AOTC permanent, index it to inflation, increase refundability, and resolve a significant problem of coordination with Pell grants that disadvantages low-income students. However, it is unclear how the  Lifetime Learning Credit would be handled and the impact on graduate students.

Read more about the President’s tax proposal here.

Watch the State of the Union at 9pm EST, 6 pm Pacific on most television stations tonight.