Education Jobs Fund Proposals in the 111th Congress

Rebecca R. Skinner
Specialist in Education Policy

Steven Maguire
Specialist in Public Finance

During the 111th Congress, both the House and Senate have considered various pieces of legislation that would provide funds to prevent teacher layoffs. These proposals have generally been referred to as proposals to create an Education Jobs Fund. The first Education Jobs Fund was included by the House in H.R. 2847, the Jobs for Main Street Act. It was not retained in the final bill. More recently, the Education Jobs Fund was included in the Supplemental Appropriations Act, 2010 (H.R. 4899) by the House, but the domestic spending provisions added by the House through amendment were not agreed to by the Senate. Ultimately, the FY2010 Supplemental Appropriations bill did not include funding for an Education Jobs Fund. 

On July 29, 2010, Senator Reid proposed an amendment (S.Amdt. 4567), on behalf of Senator Murray, to add the Education Jobs Fund and a state Medicaid package as a substitute amendment to the FAA Air Transportation Modernization and Safety Improvement Act (H.R. 1586). The substitute amendment was scheduled for a cloture vote on August 2, 2010. The vote was tabled after the Congressional Budget Office determined that the amendment would increase the deficit over both the five-year and 10-year budget intervals. Subsequently, Senator Reid filed a cloture motion on August 2, 2010, to consider S.Amdt. 4575 as a substitute amendment to H.R. 1586. The cloture motion passed by a vote of 61-38 on August 4, 2010. The Senate also voted 61-38 to waive a budgetary point of order brought against the amendment by Senator Gregg. On August 5, 2010, the Senate passed S.Amdt. 4575 by a vote of 61-38. The House agreed to H.R. 1586, as amended by S.Amdt. 4575, on August 10, 2010. H.R. 1586 was signed into law by the President later that day (P.L. 111-226). 

Under H.R. 1586, the Education Jobs Fund will be administered generally under the terms and conditions that applied to the State Fiscal Stabilization Fund under the American Recovery and Reinvestment Act (ARRA; P.L. 111-5, Sections 14001 through 14013). For example, funds will be distributed to states using the same formula used to distribute funds under the State Fiscal Stabilization Funds. States are required to distribute funds to local educational agencies (LEAs). Under H.R. 1586, LEAs can only use funds for compensation and benefits and other expenses (e.g., support services) necessary to retain existing employees, to recall or rehire former employees, and to hire new employees in order to provide early childhood, elementary, and secondary educational and related services. 

This report includes a summary of key provisions contained in H.R. 1586. Estimated state grants based on the amendment's provisions are also included. It also discusses two issues related to the proposed amendment with respect to the timing of the funds and reporting requirements regarding the use of the funds. The report concludes with a brief discussion of the legislative history of Education Jobs Fund proposals during the 111th Congress.


Date of Report: August 13, 2010
Number of Pages: 18
Order Number: R41353
Price: $29.95

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The Post-9/11 Veterans Educational Assistance Improvements Act of 2010

Cassandria Dortch
Analyst in Education Policy

Since enactment of the Post-9/11 Veterans Educational Assistance Act of 2008 (Post-9/11 GI Bill; P.L. 110-252; Title 38 U.S.C., Chapter 33), there has been discussion of problems and possible enhancements to improve the program's implementation, administration, and benefits. This report summarizes provisions in the Post-9/11 Veterans Educational Assistance Improvements Act of 2010 (S. 3447), as reported by the Senate Committee on Veterans' Affairs on August 5, 2010, for full Senate consideration. 

Major provisions of S. 3447 would amend the Post-9/11 GI Bill (except as otherwise noted) to 

• allow National Guard members to include full-time duty under Title 32 toward their qualifying active duty service; 

• provide full tuition and fees to individuals eligible at the 100% benefit level attending public institutions of higher learning (IHLs); 

• provide the national average of tuition and fees to individuals eligible at the 100% benefit level attending private or foreign IHLs, subject to actual charges; 

• reduce the monthly housing allowance received by an eligible individual attending an IHL more than half-time but less than full-time; 

• provide a monthly housing allowance to eligible individuals enrolled more than half-time at an IHL through distance learning on more than a half-time basis; 

• Expand the eligible programs of education to include most programs approved under the Montgomery GI Bill-Active Duty (MGIB-AD; Title 38 U.S.C., Chapter 30), such as on-the-job and apprenticeship, flight, and correspondence training; 

• allow eligible individuals on active duty to receive the books and supplies stipend in the same manner as individuals not on active duty; 

• remove the limit on the number of licensing and certification tests; 

• allow eligible individuals entitled to supplemental educational assistance for additional service under the MGIB-AD to receive remaining payments if the individual elects to receive benefits under the Post-9/11 GI Bill; 

• allow eligible individuals to designate dependents to which benefits would be transferred after the eligible individual is separated from the Armed Forces; 

• allow commissioned officers in the Public Health Service (PHS) and National Oceanic and Atmospheric Administration (NOAA) to transfer Post-9/11 GI Bill benefits to their dependents; 

• require the Secretaries concerned to reimburse the Department of Veterans Affairs (VA) for Post-9/11 GI Bill benefits transferred to dependents and supplemental educational assistance; and 

• amend the Vocational Rehabilitation and Employment (VR&E; Title 38 U.S.C., Chapter 31) program to allow eligible individuals to elect to receive the national average of the monthly basic allowance for housing (BAH) for a member of the Armed Forces with dependents in pay grade E-5 in lieu of the monthly subsistence allowance currently authorized.


Date of Report: August 13, 2010
Number of Pages: 18
Order Number: R41356
Price: $29.95

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Education Jobs Fund Proposals in the111th Congress

Rebecca R. Skinner
Specialist in Education Policy

During the 111th Congress, both the House and Senate have considered various pieces of legislation that would provide funds to prevent teacher layoffs. These proposals have generally been referred to as proposals to create an Education Jobs Fund. The first Education Jobs Fund was included by the House in H.R. 2847, the Jobs for Main Street Act. It was not retained in the final bill. More recently, the Education Jobs Fund was included in the Supplemental Appropriations Act, 2010 (H.R. 4899) by the House, but the domestic spending provisions added by the House through amendment were not agreed to by the Senate. Ultimately, the FY2010 Supplemental Appropriations bill did not include funding for an Education Jobs Fund. 

On July 29, 2010, Senator Reid proposed an amendment (S.Amdt. 4567), on behalf of Senator Murray, to add the Education Jobs Fund and a state Medicaid package as a substitute amendment to the FAA Air Transportation Modernization and Safety Improvement Act (H.R. 1586). The substitute amendment was scheduled for a cloture vote on August 2, 2010. The vote was tabled after the Congressional Budget Office determined that the amendment would increase the deficit over both the five-year and 10-year budget intervals. Subsequently, Senator Reid filed a cloture motion on August 2, 2010, to consider S.Amdt. 4575 as a substitute amendment to H.R. 1586. The cloture motion passed by a vote of 61-38 on August 4, 2010. The Senate also voted 61-38 to waive a budgetary point of order brought against the amendment by Senator Gregg. On August 5, 2010, the Senate passed S.Amdt. 4575 by a vote of 61-38. The House will return from its scheduled recess to consider whether to agree to H.R. 1586, as amended by S.Amdt. 4575, on August 10, 2010. If the House does agree to the Senate amendment without further amendment, H.R. 1586, as amended, could be sent to the President. 

Under H.R. 2847, H.R. 4899, and S.Amdt. 4575, the Education Jobs Fund would be administered generally under the terms and conditions that applied to the State Fiscal Stabilization Fund under the American Recovery and Reinvestment Act (ARRA; P.L. 111-5, Sections 14001 through 14013). For example, funds would be distributed to states using the same formula used to distribute funds under the State Fiscal Stabilization Funds. States would then be required to distribute funds to local educational agencies (LEAs). The specific uses of funds at the LEA level have varied across H.R. 2847, H.R. 4899, and S.Amdt. 4575. Under the most current proposal, LEAs could only use funds for compensation and benefits and other expenses (e.g., support services) necessary to retain existing employees, to recall or rehire former employees, and to hire new employees in order to provide early childhood, elementary, and secondary educational and related services. 

This report includes a summary of key provisions contained in S.Amdt. 4575. Estimated state grants based on the amendment's provisions are also included. It also discusses two issues related to the proposed amendment with respect to the timing of the funds and reporting requirements regarding the use of the funds. The report concludes with a brief discussion of the legislative history of Education Jobs Fund proposals during the 111th Congress.


Date of Report: August 5, 2010
Number of Pages: 15
Order Number: R41353
Price: $29.95

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Administration’s Proposal to Reauthorize the Elementary and Secondary Education Act: Comparison to Current Law

Rebecca R. Skinner
Specialist in Education Policy

Erin D. Caffrey
Analyst in Education Policy

Cassandria Dortch
Analyst in Education Policy

Jeffrey J. Kuenzi
Specialist in Education Policy

Gail McCallion
Specialist in Social Policy

On March 13, 2010, the U.S. Department of Education (ED) released A Blueprint for Reform: The Reauthorization of the Elementary and Secondary Education Act (hereafter referred to as the Blueprint). The Elementary and Secondary Education Act (ESEA), particularly its Title I-A program for Education for the Disadvantaged, is the primary source of federal aid to K-12 education. The ESEA was initially enacted in 1965 (P.L. 89-10), and was most recently amended and reauthorized by the No Child Left Behind Act of 2001 (NCLB; P.L. 107-110). 

The Blueprint indicates that it builds on reforms already being implemented, which are supported through funding initiatives that were included in the American Recovery and Reinvestment Act (ARRA; P.L. 111-5). The Blueprint outlines five areas of key priorities: 

1. College- and Career-Ready Students includes a focus on improving standards for all students, supporting the development of better assessments, and providing students with a well-rounded education. 

2. Great Teachers and Leaders in Every School focuses on effective teachers and principals, the distribution of effective teachers and leaders, and teacher and leader preparation and recruitment. 

3. Equity and Opportunity for All Students includes a focus on rigorous and fair accountability, meeting the needs of diverse learners, and resource equity. 

4. Raise the Bar and Reward Excellence focuses on achieving these goals through continuing Race to the Top, supporting public school choice, and promoting a "culture of career readiness and success." 

5. Promote Innovation and Continuous Improvement includes a focus on "fostering innovation and accelerating success," supporting local innovations, and supporting student success. 

This report examines ED's ESEA reauthorization proposal and, where appropriate, draws comparisons between the proposal and current law. The report is organized around the broad themes used to organize the detailed discussion of ED's reauthorization proposal, beginning with College- and Career-Ready Students and ending with Additional Cross-Cutting Priorities. Comparisons between the proposal and the ESEA are drawn only for proposals included in the Blueprint. As this report mirrors the Blueprint discussion, it in many ways also reflects the level of detail provided by ED on any given element in the Blueprint. In general, the discussions in this report of the individual elements of the proposal vary substantially in length and detail depending on the amount of detail ED provided about a particular element in the Blueprint. In some instances, other relevant data sources, such as the FY2011 budget request, were used to provide additional information and analysis of a particular part of the proposal. 

The analysis of the Blueprint is followed by several tables. These tables present information on the similarities and differences between key proposals included in the Blueprint and current law; the consolidation of programs proposed by the Administration's FY2011 budget request; the funding for ESEA programs not subject to consolidation under the FY2011 budget request; and ESEA programs slated for elimination under the FY2011 budget request.


Date of Report: August 3, 2010
Number of Pages: 80
Order Number: R41355
Price: $29.95

Document available via e-mail as a pdf file or in paper form.
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Education Jobs Fund Proposals in the111th Congress

Rebecca R. Skinner
Specialist in Education Policy

During the 111th Congress, both the House and Senate have considered various pieces of legislation that would provide funds to prevent teacher layoffs. These proposals have generally been referred to as proposals to create an Education Jobs Fund. The first Education Jobs Fund was included by the House in H.R. 2847, the Jobs for Main Street Act. It was not retained in the final bill. More recently, the Education Jobs Fund was included in the Supplemental Appropriations Act, 2010 (H.R. 4899) by the House, but the domestic spending provisions added by the House through amendment were not agreed to by the Senate. Ultimately, the FY2010 Supplemental Appropriations bill did not include funding for an Education Jobs Fund. On July 29, 2010, Senator Reid proposed an amendment (S.Amdt. 4567), on behalf of Senator Murray, to add the Education Jobs Fund and a state Medicaid package as a substitute amendment to the FAA Air Transportation Modernization and Safety Improvement Act (H.R. 1586). The substitute amendment is schedule for a cloture vote on August 2, 2010.

Under H.R. 2847, H.R. 4899, and S.Amdt. 4567, the Education Jobs Fund would be administered generally under the terms and conditions that applied to the State Fiscal Stabilization Fund under the American Recovery and Reinvestment Act (ARRA; P.L. 111-5, Sections 14001 through 14013). For example, funds would be distributed to states using the same formula used to distribute funds under the State Fiscal Stabilization Funds. States would then be required to distribute funds to local educational agencies (LEAs). The specific uses of funds at the LEA level have varied across H.R. 2847, H.R. 4899, and S.Amdt. 4567. Under the most current proposal, LEAs could only use funds for compensation and benefits and other expenses (e.g., support services) necessary to retain existing employees, to recall or rehire former employees, and to hire new employees in order to provide early childhood, elementary, and secondary educational and related services.

This report includes a summary of key provisions contained in S.Amdt. 4567. Estimated state grants based on the amendment's provisions are also included. It also discusses two issues related to the proposed amendment with respect to the timing of the funds and reporting requirements regarding the use of the funds. The report concludes with a brief discussion of the legislative history of Education Jobs Fund proposals during the 111th Congress.


Date of Report: August 2, 2010
Number of Pages: 14
Order Number: R41353
Price: $29.95


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Federal Student Loans Made Under the Federal Family Education Loan Program and the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers

David P. Smole
Specialist in Education Policy

The William D. Ford Federal Direct Loan (DL) program, authorized under Title IV, Part D of the Higher Education Act of 1965 (HEA), as amended, is the primary federal student loan program administered by the U.S. Department of Education (ED). The program makes available loans to undergraduate and graduate students and the parents of dependent undergraduate students to help them finance their postsecondary education costs. Several types of loans are offered through the DL program: Subsidized Stafford Loans and Unsubsidized Stafford Loans for undergraduate and graduate students; PLUS Loans for graduate students and the parents of dependent undergraduate students; and Consolidation Loans through which borrowers may combine their loans into a single loan. For FY2011, ED estimates that 24.3 million loans (not including Consolidation Loans) totaling $116.4 billion will be made to students and their parents through the DL program.

Until July 1, 2010, Subsidized Stafford Loans, Unsubsidized Stafford Loans, PLUS Loans, and Consolidation Loans were also available through the Federal Family Education Loan (FFEL) program, authorized under Title IV, Part B of the HEA. The SAFRA Act, part of the Health Care and Education Reconciliation Act of 2010 (HCERA; P.L. 111-152), terminated the authority to make new loans under the FFEL program after June 30, 2010. While new loans may no longer be made through the FFEL program, approximately $450 billion in FFEL program loans are outstanding and are due to be repaid over the coming years.

Under the DL program, which has effectively replaced the FFEL program, loans are made with capital provided by the federal government. Under the FFEL program, loans were made with capital provided by private lenders, and the federal government guaranteed lenders against loss through borrower default, death, permanent disability, or, in limited instances, bankruptcy. When both programs were authorized and making available essentially the same types of loans, institutions of higher education (IHEs) were permitted to select the program of their choice.

The loans made through the FFEL and DL programs are low-interest loans, with maximum interest rates for each type of loan established by statute. Subsidized Stafford Loans are unique in that they are only available to students demonstrating financial need. The Secretary of Education pays the interest that accrues on Subsidized Stafford Loans while borrowers are in school, during a six-month grace period, and during authorized periods of deferment. Unsubsidized Stafford Loans and PLUS Loans are available to borrowers irrespective of their financial need; and borrowers are responsible for paying all the interest that accrues on these loans.

FFEL and DL program loans have terms and conditions that may be more favorable to borrowers than private and other non-federal loans. These beneficial terms and conditions include interest rates that are often lower than rates that might be obtained from other lenders, opportunities for repayment relief through deferment and forbearance, loan consolidation, and several loan forgiveness programs.

In recent years, numerous changes to the terms and conditions of FFEL and DL program loans have been made under the College Cost Reduction and Access Act (P.L. 110-84), the Ensuring Continued Access to Student Loans Act (P.L. 110-227), the Higher Education Opportunity Act (P.L. 110-315), the 2009 technical corrections to the HEA (P.L. 111-39), and the SAFRA Act. This report describes the terms and conditions of loans currently available to borrowers through the DL program and of loans made in recent years through the FFEL and DL programs.


Date of Report: July 16, 2010
Number of Pages: 66
Order Number: R40122
Price: $29.95

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