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Graduate and Professional Loan Subsidy Restored by House

Yesterday, the House Education and Labor Committee passed HR 3221, Student Aid and Fiscal Responsibility Act of 2009, which was introduced last week. The legislation eliminates the Federal Family Education Loan (FFEL) program and utilizes the $87 billion saved to fund increased Pell grant levels for students (indexed to inflation plus 1%, but subject to appropriations), as well as a number of other K-12/community college/ 4 year higher education programs. A provision of the legislation, strongly opposed by the higher education community, to eliminate the graduate and professional student loan subsify was stripped from the legislation.

The Senate is expected to consider its own version of the legislation after the August congressional recess.

Student Aid and Fiscal Responsibility Act of 2009 Summary

Week at a Glance on Capitol Hill, July 20-24

The House continues to work its way through fiscal 2010 appropriations bills, with votes on Labor-HHS-Education and Transportation-HUD bills this week.

The Senate is expected to spend the week debating its defense authorization bill.

The Senate Judiciary Committee is scheduled to vote Tuesday on the nomination of Judge Sonia Sotomayor to be a Supreme Court justice.

House
MONDAY

Convenes 2 p.m. for legislative business. Continue reading “Week at a Glance on Capitol Hill, July 20-24”

Update from Washington, DC

In two short weeks, Members of Congress will flee Washington, DC and return to their home states for a 5-week summer break.  The Senate will work one week longer, starting their summer recess period on August 7th.  Both the House and the Senate have set lofty goals for the next two (or three) weeks, which makes this stretch one of the most intense periods so far in this session of Congress.  

The House democrats just last week unveiled major portions of their health care reform proposal and have been moving at a pretty fast clip to approve the measures in three different committees before moving it to the floor for action sometime in the next two weeks.  The Education & Labor and the Ways & Means committees both approved their portions of the bill last week, while the Energy & Commerce Committee will continue to debate their portions of the bill this coming week.                        

The Senate meanwhile has approved their health care reform proposal in the Health, Education, Labor and Pensions (HELP) Committee, but the Finance Committee has not yet been able to come to agreement on how to finance the package.  After failing to meet their deadline last week, they will try again to move legislation out of that committee this week.  The sticking point appears to be how to find more Medicare and Medicaid cost-cutting measures and a mix of tax increases to pay for reform.

In addition to the efforts on health care reform, the House and Senate continue to make progress on their FY10 spending measures.  The House has approved seven of the twelve bills, and will take up the Labor-HHS-Education and Transportation-HUD bills this week.  The Senate has only approved two of the twelve bills, and will use the next three weeks to finish work on their remaining measures.  Both the House and Senate seem motivated to complete work on the twelve bills before the August recess. 

On Tuesday, the House Education and Labor Committee will begin marking up higher education legislation that would end a major student loan program.  The bill, released last week, would end the Federal Family Education Loan program and originate all federally backed student loans through the Education Department’s Direct Lending Program.  Some of the savings from this action would go toward increasing the amount of aid available to eligible students, as well as funding the President’s recently announced community college initiative.

Two different Senate committees – Agriculture and Environment & Public Works – will continue working on their portions of a climate and energy plan in anticipation of floor debate this fall (after the August recess).  They will hear this week from Obama administration officials and governors – including WA State Governor Chris Gregoire.

With so much action in so many different subject areas, the Office of Federal Relations will be busy working with our congressional friends to push for those issues that will benefit the University — particularly as they relate to appropriations measures and competitive grant opportunities in the climate, energy, and health care bills.  As we move through the next two to three weeks, please stay in touch and let us know if there are issues or bills that you’d like us to watch for you.

Christy Gullion, Director

Obama Administration Announces $85 Million in ARRA Funding for Early Career Scientists’ Research

WASHINGTON, DC– U.S. Energy Secretary Steven Chu announced today that up to $85 million in funding under the American Recovery and Reinvestment Act will be awarded in early 2010 to support at least 50 early career researchers for five years at U.S. academic institutions and DOE national laboratories. 

To be eligible for the competition, a researcher must be an untenured, tenure-track assistant professor at a U.S. academic institution or a full-time employee at a DOE national laboratory.  The applicant must also have received a Ph.D. within the past ten years. 

Each university award will be at least $150,000 per year for five years to support summer salary and other research expenses.  For DOE national laboratories, awards will be at least $500,000 per year for five years to support year-round salary and expenses.

Early career researchers may apply to one of six Office of Science program offices: Advanced Scientific Computing Research; Biological and Environmental Research; Basic Energy Sciences; Fusion Energy Sciences; High Energy Physics; or Nuclear Physics.  Proposed research topics must fall within the programmatic priorities of DOE’s Office of Science, which are provided in the program announcements.  Funding will be competitively awarded on the basis of peer review. 

Letters of intent will be due on August 1, 2009, and proposals will be due on September 1, 2009.    

Read more about DoE grant opportunities.

House Budget Reconciliation Package Taking Shape

Today, the House of Representatives will introduce a budget reconciliation package designed to achieve components of the President’s agenda. Budget reconciliation is a special procedure, not subject to a fillibuster in the Senate, that was intended to serve as a deficit reduction tool by forcing spending cuts or tax increases to meet the targets set forth at the beginning of an appropriations cycle in a budget resolution.

The legislation, The Student Aid and Fiscal Responsibility Act of 2009, advances President Obama’s goal of making the Pell Grant program an entitlement -not subject to annual appropriations debates. As has been discussed on this site, the Pell Grant entitlement would be funded by eliminating the Federal Family Education Loan program (FFEL)-which utilizes banks and guarantee agencies- in favor of the Direct Lending (DL) program. Financial institutions, Members of Congress with a heavy presence of financial institutions in their states/districts, and many conservatives have been against the elimination of the FFEL program. Just a few weeks ago, it appeared likely that a compromise would be stuck that fell short of a full Pell entitlement. However, the legislation offered today supports a Pell entitlement and a number of other student aid items.

Provisions of the bill:  Continue reading “House Budget Reconciliation Package Taking Shape”