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Fisher v. University of Texas Ruling

Today, the Supreme Court came out with its ruling on the case Fisher v. University of Texas at Austin that lower courts did not apply a sufficiently high level of scrutiny to the University of Texas’s use of race in admissions decisions, sending the case back to one of those lower courts to be reconsidered.

In a 7-1 ruling, the court found that the U.S. Court of Appeals for the Fifth Circuit erred in not applying “strict scrutiny” to the policies of the University of Texas at Austin (UT). The Supreme Court left intact its precedent that diversity can be a compelling government interest.The case has been sent back to the Fifth Circuit Court of Appeals. Writing the majority opinion was Justice Kennedy, who was joined by all of the conservative members of the court and Justice Sotomayer. Justice Ginsberg wrote the lone dissent. Justice Kagan recused herself because of her work on the case as Solicitor General.

The case was brought by Abigail Fisher, a white woman, who was rejected for admission by the UT. Fisher said that her rights were violated by UT’s consideration of race and ethnicity in admissions decisions. Fisher’s lawyers argued that UT need not consider race because it has found another way to assure diversity in the student body.

The decision said that “good faith” by the university would not be enough to justify the consideration of race. However, the decision does not offer an opinion on whether UT can produce sufficient evidence. Rather, it faults the appeals court for not reviewing that question using the high bar of “strict scrutiny” for the consideration of race.

It is likely that today’s ruling could mean that — after another round at the Fifth Circuit — the case could return to the Supreme Court.

 

Senate Reports Student Loan Progress

Senate Democrats, Republicans and the White House are reporting progress in negotiations to a student loan interest rate fix. A group of Democratic senators, including Jack Reed RI), Joe Manchin III (WV), and Elizabeth Warren of Massachusetts, along with independent Angus King (ME), have been conferring with Senate Republicans over the past 24 hours.

The plan, which is broadly based on the president’s budget proposal, may be finalized as soon as this week, according to one of the principal negotiators. All that is known at this time is that the proposal calls for shifting from the current 3.4 percent fixed interest rate to a market-driven variable interest rate. While the White House, including Education Secretary Arne Duncan and chief economic advisor Gene Sperling, have been kept in the loop about the negotiations, there is no word that the Senate is talking to the House.

Meanwhile, the House continues to debate both the Farm Bill and an abortion measure.

 

House Proceeds on Farm Bill as White House Threatens Veto

The House will begin consideration of the Farm Bill (HR 1947) today and finish consideration on Thursday. While the House Rules Committee is still determining which amendments will be made in order, 220 amendments have been submitted to the Rules Committee.The House Rules Committee has proceeded with a rare two day consideration of the rule to determine which amendments should be made in order. The bulk of these amendments pertain to the SNAP program.

Continue reading “House Proceeds on Farm Bill as White House Threatens Veto”

Federal Update

Congress has just two weeks before the July 4th recess week to tackle several major legislative issues. This week, the House will try to pass a five-year farm bill that contains controversial dairy policies and cuts to food stamps. It will also revive the abortion debate over a bill to ban certain abortions. In the Senate, appropriators will decide allocation levels for their twelve FY14 spending bills, and the full Senate will look for a compromise on border security that could improve prospects for immigration reform legislation (S 744).

Both the House and Senate will also continue to debate the best way to deal with student loan interest rates and the rates for subsidized Stafford student loans is scheduled to increase from 3.4 percent to 6.8 percent on July 1st. There are several proposals out there but none that have the support necessary to get approval in both chambers.

CBO on Student Loan Interest Rate Change and Proposals

Today, the Congressional Budget Office (CBO) released a report on the impacts and costs of the student loan interest rate going from 3.4 to 6.8 percent. The CBO analyzes the impact to Direct (subsidized and unsubsidized) and PLUS loans.  The report also broadly touches on the impacts to students and the nation if student loans have an adjustable interest rate.

A copy of the CBO report can be found here.

The CBO is a nonpartisan agency created to produce independent analyses of budgetary and economic issues to support the Congressional budget process.

The Office of Federal Relations is continuing to monitor this issue and will provide updates as available.