Federal Legislative Update #3

8/4/03

House and Senate Adjourn for Summer Recess

Both the House and Senate have adjourned for their August recess with the House having approved 11 of the 13 Appropriation bills and the Senate only four. On the House side, appropriations bills included $138 billion Labor, Health and Human Services and Education package as well as $368 billion in defense funding, and $29.4 billion for Homeland Security. The Senate side includes a $28.5 billion homeland security bill and $368.6 billion in defense funding, with Labor, Health and Human Services to be taken up after recess.

When Congress returns to work after Labor Day, there will be less than one month until the start of the new fiscal year. With two bills still under debate in the House, and nine more bills to be taken up in the Senate, negotiators will have less than a month to finish their business, negotiate differences, send compromises back to the chambers for approval and secure the president's signature. While greater progress has been made this year compared to last year, Washington politics continues to be at play with the Democratic Membership feeling pressured to pass under-funded budgets, Republicans claiming to be the watchdogs for the taxpayer's purse and fiscal conservatives complaining that there has not been enough spending restraint shown by either side. Expectations are low that they will be able to complete their work by the Oct. 1 deadline.

Senate Staff to Work on WIA Reauthorization during August Recess

The Senate committee considering WIA reauthorization legislation left for recess without bringing up a bill up for a vote. Staff reaffirmed that internal negotiations are driven by senators' commitment to bipartisanship, which will govern staff work in developing a Senate bill throughout the month of August. The Senate draft bill will start from the current WIA, not the House-passed bill. The committee will schedule a mark‑up session after the Senate returns after Labor Day from its summer recess.

The End of Appropriation Earmarks?

Legislation introduced by Sen. John McCain (R‑AZ) would reduce "pork‑barrel" spending by ending appropriations earmarks ‑ items that are not specifically authorized by law and skirt the normal congressional review process. The resolution would allow any Senator to object to an earmark in an Appropriations Bill by raising a point of order. Once a point of order has been raised, the earmark would need 60 votes in order to remain in the pending bill. A promise was made to filibuster S. Res. 173 if it reaches the Senate floor.

President Bush Lauds Community Colleges

President Bush answered a question on worker displacement by technology at a July 30th press conference by saying, "I know the community colleges provide a very important role in worker training, worker retraining. I look forward to working with our community colleges through the Department of Education, coordinate closely with states, particularly in those states in which technology is changing the nature of the job force. I've always found the community college-and this is from my days as the Governor of Texas-found the community college to be a very appropriate place for job training programs because they're more adaptable, their curriculums are easier to change, they're accessible. Community colleges are all over the place."

Perkins Update

The House Education and the Workforce Committee plans to begin their work on Perkins reauthorization toward the end of September or early October. The preliminary proposal floated by OVAE did not receive the necessary support from Congress to build momentum for passage. OVAE will now be focusing on reaching consensus on principles and will leave the details for a later time. It's been confirmed that Susan Scalafani will be the next Assistant Secretary for OVAE, pending completion of the appointment process.

Other U.S. Department of Education appointments:

Secretary Paige announced that President Bush intends to designate Under Secretary of Education Gene Hickok to be acting deputy secretary of education and Ronald Tomalis to be acting assistant secretary for elementary & secondary education and the Institute of Education Sciences Director Grover (Russ) Whitehurst announced that Phoebe Cottingham has been named commissioner of the National Center for Education Evaluation & Regional Assistance.

State Department Releases New Website and Grant Programs To Promote International Exchange

The Department of State has established a new Website, which it is calling "Destination USA: Secure Borders, Open Doors." The site aims to provide straightforward information for international visitors on the steps necessary for doing business and studying in the U.S.

Some Bills to Watch

Thomas.loc.gov is the web source to look up federal legislation in the House and Senate, including the status of Appropriation Bills.

HR 12 - The FED UP Higher Education technical Amendments Act of 2003 incorporates provisions from last session's failed attempt plus some new provisions to reduce red tape and improve access to higher education.

Affordability

HR 129 - Increases the Lifetime learning tax credit index from $5,000 to $10,000, directs the Comptroller general to determine if schools are raising their tuition rates in response to the increase, and expresses the sense of the House that the maximum Pell Grant should be $4,700.

HR (not yet introduced) - College affordability in Higher Education Act of 2003 proposes to place a flexible federal cap on the annual increase in the cost of education at institutions of higher education that is equal to twice the rate of inflation. The bill also proposes to provide regulatory relief to institutions that develop and implement "innovative approaches to delivering higher education while increasing college affordability".

Student Loan Forgiveness Programs:

HR 438/HR647/S4 - Increases the student loan forgiveness amount for math, science, and special education teachers to $17,500.

HR 510 - Establishes a student loan forgiveness program for nurses up to a total of $17,000 over five years.

HR 734 - Establishes a student loan forgiveness program for social workers who work in child protective service capacities.

HR 789 - Expands eligibility for student loan forgiveness for teachers to teachers who work in economically depressed rural areas of the country.

HR1306 - Provides student loan forgiveness of up to $17,500 for student loan borrowers who are employed in public service jobs in shortage areas, including teachers, child care workers, nurses, and child welfare workers.

HR 685 - Repeals the provisions prohibiting persons convicted of drug offenses from receiving federal student financial aid.

HR 838 - Repeals the National Advisory Committee on Institutional Quality and Integrity and provisions that relate to the use of accrediting agencies to designate school as eligible to participate in the federal student financial aid programs, and directs the Education department to develop competitive methodologies to assess institutional eligibility.

S8 (also refer to HR 2504 and 2505 for Loan Fairness and Consolidation) - Proposes to increase authorized funding levels for a variety of education programs including TRIO and GEAR UP programs and Pell Grants. The bill also repeals student loan origination fees and makes Hope and Lifelong Learning tax credits refundable.