Cassandria Dortch, Coordinator
Analyst in Education Policy
David P. Smole
Specialist in Education Policy
Shannon M. Mahan
Specialist in Education Policy
The FY2010 budget resolution (S.Con.Res. 13) includes two reconciliation instructions directing the House Committee on Education and Labor to report changes in laws within their jurisdictions to reduce the deficit by $1 billion each for the period of fiscal years (FY) 2009 through 2014. The reconciliation instructions specifically note that $1 billion of the reduction from the House Committee on Education and Labor should be related to education.
On October 7, 2009, in response to the FY2010 budget reconciliation instructions, the House Committee on Education and Labor submitted H.R. 3221 to the House Budget Committee as education-related reconciliation instructions. On March 21, 2010, the House passed H.R. 3590, the health care reform measure as passed by the Senate, and H.R. 4872, the House version of health care and education reconciliation. H.R. 4872 would change several controversial elements in H.R. 3590 and otherwise amend the underlying legislation. The Senate is expected to consider H.R. 4872.
Several of the provisions in H.R. 3221 were deleted or amended in H.R. 4872. Title II, Part A of H.R. 4872 would terminate authority under the Higher Education Act (HEA) of 1965, as amended, to make loans under the Federal Family Education Loan (FFEL) program after June 2010. The Congressional Budget Office (CBO) estimates that this would reduce mandatory spending by $28.6 billion over the FY2010-FY2014 period, and by $61.0 billion over the FY2010-FY2019 period. These savings would be large enough to achieve the $1 billion reduction in spending specified in S.Con.Res. 13, while offsetting increases in mandatory spending that would result from the expansion of other HEA programs. Overall, CBO estimates that Title II, Part A of H.R. 4872 would reduce mandatory spending by $5.1 billion over the FY2010-FY2014 period, and by $19.1 billion over the FY2010-FY2019 period.
In addition to terminating the authority to make loans under the FFEL program, Title II, Part A of H.R. 4872 would fund expansions of existing HEA programs and benefits, including the Federal Pell Grant program, the William D. Ford Federal Direct Loan (DL) program, programs serving Historically Black Colleges and Universities (HBCUs) and other Minority-Serving Institutions, and the College Access Challenge Grant program. It would also amend the income-based repayment (IBR) plan.
Title I of H.R. 4872 contains provisions regarding health coverage, Medicare, Medicaid, and various tax revenues. Title I would also amend and fund the Department of Labor's Community College and Career Training Grant Program.
This report reviews and briefly describes the proposals contained in H.R. 4872, particularly those which amend programs authorized under HEA.
For Further Information: http://pennyhill.net/?p=60
Date of Report: March 23, 2010
Number of Pages: 20
Order Number: R41127
Price: $29.95
Document available electronically as a pdf file or in paper form.
To order, e-mail sales@pennyhill.com or call us at 301-253-0881.
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