September 2005

1. Fiscal Year 2006 Budget and Appropriations
2. Higher Education Act Reauthorization
3. Congressional Response to Katrina
4. Higher Education Commission

Fiscal Year 2006 Budget and Appropriations

While the House of Representatives has completed action on its version of the Labor, Health and Human Services, and Education Appropriations bill for fiscal year 2006, the Senate has yet to consider the bill in the full Senate. With the end of the current fiscal year on September 30, the House and Senate are poised to pass a continuing resolution that would keep the federal government funded until appropriations bills can be finished later this fall. The continuing resolution is expected to fund programs at the levels included in the House-passed bill. Read a table detailing the House funding levels .

Higher Education Act Reauthorization

The House Education and the Workforce Committee has completed consideration of H.R. 609, the College Access and Opportunity Act, which reauthorizes most of the Higher Education Act including teacher preparation, institutional assistance, and student financial assistance programs. The bill has yet to be considered by the full House of Representatives.

The Senate Health, Education, Labor and Pensions Committee also finished consideration of reauthorization of the HEA. The Committee passed §1614, the Higher Education Amendments of 2005, on September 8, 2005. §1614 makes some significant changes to the Higher Education Act. Major provisions include:

• Increases the maximum Pell Grant to $5,100 for the 2006-07 academic year and by $300 per year for the following five years (the current maximum grant is $4,050).
• Raises the income limit for automatic Pell Grant eligibility from $15,000 to $25,000.
• Increases the loan limit for first-year college students to $3,500 (up from $2,625) and for second-year students to $4,500 (up from $3,500).
• Provides $1 billion over five years in grants (up to $1,500 per year for juniors and seniors) to low-income students who major in math, science, or certain foreign languages.
• Requires institutions to annually report their tuition and other costs of attendance and the percentage of students receiving federal and state aid. It does not include the House provision creating an institution watch list.
• Requires institutions to report a variety of information, including the number of graduates obtaining employment after graduation, transfer of credit policies, and graduate school enrollment.
• Maintains the current formula for the distribution of campus-based aid.
• Maintains current definition of an institution of higher education.

Congressional Response to Katrina

As a result of the impact of Hurricane Katrina on colleges and universities in the Gulf Coast, Congress has been debating legislation to address the needs of displaced students. To date, two bills have been passed by Congress and signed into law by the President:

• The Pell Grant Hurricane and Disaster Relief Act (H.R. 3169), authored by Rep. Ric Keller (R-FL), allows the Secretary of Education to waive Pell Grant repayment requirements for students impacted by natural disasters.
• The Student Grant Hurricane and Disaster Relief Act (H.R. 3668), introduced by Rep. Bobby Jindal (R-LA), protects students from having to repay other types of grant aid under Title IV of the Higher Education Act such as Supplemental Educational Opportunity Grants (SEOG) and funds through the TRIO and GEAR UP programs.

The Department of Education has a great deal of information available on its website for schools accepting students impacted by Hurricane Katrina and for the students themselves.

Higher Education Commission

The Department of Education recently announced the formation of the Commission on the Future of Higher Education. This Commission, according to the Department, is tasked with “with developing a comprehensive national strategy for postsecondary education that will meet the needs of America’s diverse population and also address the economic and workforce needs of the country’s future.” The Commission includes members of academia and the business community and will submit a final report by August 1, 2006 with specific findings and recommendations for improving higher education.

Cassidy & Associates is a government relations firm located in Washington D.C. For more information on Cassidy and its services, contact Lisa Bos at 202/585-2885 or lbos {at} cassidy(.)com