Cassidy & Associates Higher Education Policy Update
April 2005
- Higher Education Act Reauthorization
- Fiscal Year 2006 Appropriations
- National and Community Service News
- Other House and Senate Activities
Higher Education Act Reauthorization
Both the House and the Senate are in the process of developing legislation to reauthorize the Higher Education Act. Several bills have been introduced in the House of Representatives, including H.R. 609, the College Access and Opportunity Act, which reauthorizes Title IV and teacher training programs. If some outstanding issues can be resolved, it is possible that these bills will be considered on the House floor as early as April or May. More information on the reauthorization bills can be found on the Committee on Education and the Workforce website. The Senate has not introduced any substantial reauthorization bills and likely will wait until the House competes action on its legislation.
Contentious issues:
- William D. Ford Federal Direct Loan Program (FDLP) – there is disagreement, even among Republicans, on the role of direct lending in higher education. Some argue that direct lending is a less costly way of providing student loans, while opponents note that many schools have dropped out of the program and that it has hidden costs. As reauthorization moves forward, there will likely be an effort to expand direct lending.
- Variable Interest Rates for Student Loans – H.R. 609 includes a provision moving the consolidation loan program to a variable interest rate. A recent letter from the Government Accountability Office noted that this change would result in savings of $2.6 billion over 10 years
. - For-Profit Colleges – H.R. 609 eliminates what Chairman Boehner has called unfair treatment of for-profit schools under the Higher Education Act, such as the “90-10” rule that requires for-profit schools to show that at least 10 percent of their revenue comes from non-federal sources. Committee Democrats argue that the elimination of these provisions will lead to increased fraud and abuse.
Fiscal Year 2006 Appropriations
The House and Senate both considered their Fiscal Year 2006 Budget Resolutions the week of March 14. The House Budget Resolution, H.Con.Res. 95, set a cap of $92 billion in funding for education. The Senate Budget Resolution, S.Con.Res. 18, set a cap of $97.3 billion in funding for education. This number assumes an increase in Pell Grant funding of $1.3 billion. The budget resolutions for both chambers will now have to have differences reconciled before a final budget can be adopted.
The Budget Resolutions set an overall spending cap for the Appropriations Subcommittees. The various Subcommittees will use the next several months to determine funding levels for programs within this cap.
National and Community Service News
On March 8th, the U.S. Court of Appeals for the District of Columbia ruled 3-0 that the Establishment Clause permits AmeriCorps members to teach secular subjects in needy religious schools. The ruling reversed a lower court’s decision that would have prevented AmeriCorps members teaching secular subjects in religious schools.
The Corporation for National and Community Service also recently issued a report on the impact of CNCS programs on students who serve in them. Read the full report .
Other House and Senate Activities
The House of Representatives has been very active in moving forward with legislation reauthorizing education programs. The House recently passed H.R. 27, reauthorizing job training programs, and is expected to consider H.R. 366, legislation reauthorizing vocational and technical education programs, in April. The House is also in the process of planning hearings on the reauthorization of the Higher Education Act in preparation for considering legislation.
There has not been a great deal of Senate activity related to education legislation. The Senate recently passed S. 250, reauthorizing vocational and technical education programs, but no other Senate action has taken place on other legislation.
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
