House Passes H.R. 3221

Today, the House of Representatives passed H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, by a 253-171 vote. H.R. 3221 represents the largest single federal investment in community colleges in history, totaling $9.5 billion. The bill authorizes President Barack Obama’s American Graduation Initiative which provides funding for community college academic, developmental and job-training programs and community college modernization and construction. The bill also provides $40 billion to increase the Pell Grant maximum over the next ten years.

During the debate on H.R. 3221, the House defeated two efforts to eliminate funding for community colleges. The House defeated an amendment by Rep. Peter Hoekstra (R-MI), which would have eliminated funds for community college modernization, by a 161-262 vote. The House also defeated an amendment by Rep. Virginia Foxx (R-NC), which would have eliminated the American Graduation Initiative and its funding, by a 126-301 vote. The roll call votes on the bill and the amendments can be found at: http://clerk.house.gov/evs/2009/index.asp. ACCT would like to thank all the community college leaders who took the time to write or call their representatives in support of H.R. 3121.

The Senate is expected to introduce and consider its own version of the education budget reconciliation within the next four weeks. The Senate Health, Education, Labor and Pensions Committee will need to report out the legislation by October 15th.

In other news, President Obama is expected to visit Hudson Valley Community College in New York on September 21st.

ACCT’s H.R. 3221 summary of community college related items within the bill can be found at: http://www.acct.org/HR3221-Summary.pdf. For more information, contact Jee Hang Lee at jhlee@acct.org or (202) 775-4450. Read more!

House Set to Consider H.R. 3221 and Two Glaring Amendments

Today, the House will begin consideration of H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009. The House will consider the bill along with 24 amendments. Therefore, it is unclear whether the House will be able to complete action today or tomorrow.

ACCT wanted to alert community college supporters about two problematic amendments. First, Rep. Virginia Foxx (R-NC) will offer an amendment to strike the entire American Graduation Initiative, Title V, (but maintains the community college modernization section) and put the savings toward deficit reduction. The Foxx amendment would eliminate $7 billion in funding over ten years for community college academic, remedial and job training programs. Second, Rep. Peter Hoekstra (R-MI) is offering an amendment to eliminate Title III, this would eliminate Section 351, which provides $2.5 billion for community college modernization and construction. ACCT is opposed to both of these amendments and encourages each community college leader to voice their opposition to these two amendments.

A letter can be sent directly to your representatives through ACCT’s Policy Center online at http://www.congressweb.com/cweb4/index.cfm?orgcode=acct. Additionally, you should also make phone calls to your representatives in support of H.R. 3221. Representatives may be reached utilizing the Capitol Switchboard, 202-224-3121.

ACCT’s H.R. 3221 summary of community college related items within the bill can be found at: http://www.acct.org/HR3221-Summary.pdf. For more information, contact Jee Hang Lee at jhlee@acct.org or (202) 775-4450.


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Senate Subcommittee Passes Education Funding Bill

Yesterday, the Senate Appropriations Subcommittee on Labor, Health and Human Services and Education passed by voice vote its FY2010 Labor, Health and Human Services and Education spending bill at $163.1 billion.

The Senate Subcommittee bill is $2.4 billion more than the House bill.

The Senate Appropriations Committee is expected to consider the bill later this week, but Senate floor consideration is unlikely until September.

The Senate bill is $7.6 billion over last year’s funding level and more than what President Obama requested.

The bill maintains the maximum Pell Grant at $4,860; combined with the mandatory funding of $690 for the Pell Grant program, this equals a $5,550 maximum.

The Subcommittee has not disclosed all of the funding levels within the bill, but will release the funding numbers during the full committee’s consideration.

For more information, visit: http://appropriations.senate.gov.

In other significant news, the House will not consider H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, before they adjourn for the August Congressional recess.

The House will likely consider the bill in early September. Read more!

House Committee Passes Student Aid and Fiscal Responsibility Act of 2009

Today, the House Education and Labor Committee led by Chairman George Miller (D-CA) passed H.R. 3221, the “Student Aid and Fiscal Responsibility Act of 2009,” by a 30-17 vote. The bill eliminates the Federal Family Education Loan Program and originates all new federal student loans through the Direct Loan Program starting in 2010. In total, this conversion generates $87 billion in savings. While there were a number of amendments offered and debated, the intent of the bill and the funding levels for Pell Grants, community college modernization and President Obama’s American Graduation Initiative (no significant changes to the community college programs) were left unchanged.

The bill provides significant funding increases in two key areas:

• Investing $40 billion to increase the annual Pell Grant maximum to $5,550 in 2010 and to $6,900 by 2019. Starting in 2010, the maximum will be linked to match rising costs-of-living by indexing it to the Consumer Price Index plus 1 percent; and
• Providing $9.5 billion for President Obama’s American Graduation Initiative, with $2.5 billion in FY2011 for community college infrastructure and $7 billion (over ten years) for competitive grants to community colleges and states. The funding is broken down to three distinct programs:

1. 2.5 billion in FY2011 for grants to community colleges to modernize,
   renovate, and repair their facilities.
2. $6.3 billion over ten years for community college and state competitive
   grants. The first four years are geared towards community colleges and
   states. The remaining six years are targeted towards states. Prior
   to the markup, ACCT worked to include language within the state grant program
   stipulating that no less than 90% of funds to states be allocated to community
   colleges.
3. $700 million for competitive grants for national activities, including
   grants to develop free online training and courses.

Additionally, the funds other programs including:

• Providing $3 billion to bolster college access and completion support programs for students;
• Strengthening the Perkins Loan Program;
• Keeping interest rates low on need-based – or subsidized – federal student loans by making the interest rates on these loans variable beginning in 2012. These interest rates are currently set to jump from 3.4 percent to 6.8 percent in 2012;
• Simplifying the FAFSA form;
• Providing $2.5 billion for Historically Black Colleges and Universities and Minority-Serving Institutions;
• Providing $8 billion for Early Learning Programs; and
• Providing $10 billion to pay down the federal deficit.

With the Committee process complete, the bill has been referred to the House Budget Committee. There is some discussion about bringing the bill to the floor next week. Meanwhile, the Senate is expected to consider its budget reconciliation bill in early September.

To see the letter of support for H.R. 3221 by ACCT and AACC, visit: http://www.acct.org/Final%20HR3221Support%20Letter.pdf

For more information visit: http://edlabor.house.gov/newsroom/2009/07/legislation-to-make-landmark-i.shtml

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ACCT/AACC Joint Statement on H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009

Today, the Association of Community College Trustees (ACCT) and American Association of Community Colleges (AACC) today issued the following official joint statement on H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009.

Click here to read the statement. Read more!

Student Aid and Fiscal Responsibility Act of 2009

Yesterday, Chairman George Miller (D-CA) introduced H.R. 3221, “Student Aid and Fiscal Responsibility Act of 2009.” The eliminates the Federal Family Education Loan program and originates all new federal student loans through the Direct Loan program starting in 2010. In total, this conversion generates $87 billion in savings.

In turn, the bill provides significant funding increases for a number of programs, including:

• Investing $40 billion to increase the annual Pell Grant maximum to $5,550 in 2010 and to $6,900 by 2019. Starting in 2010, the maximum will be linked to match rising costs-of-living by indexing it to the Consumer Price Index plus 1 percent;
• Providing $9.5 billion for community colleges, with $2.5 billion in FY2011 for community college infrastructure and $7 billion (over ten years) for competitive grants to community colleges and states;
• Providing $3 billion to bolster college access and completion support programs for students;
• Strengthening the Perkins Loan program;
• Keeping interest rates low on need-based – or subsidized – federal student loans by making the interest rates on these loans variable beginning in 2012. These interest rates are currently set to jump from 3.4 percent to 6.8 percent in 2012;
• Simplifying the FAFSA form;
• Providing $1.2 billion for Historically Black Colleges and Universities and Minority-Serving Institutions;
• Providing $10 billion for Early Learning programs; and
• Providing $10 billion to pay down the federal deficit.

Most importantly for community colleges, the initiative is broken down to three distinct programs:

1. $2.5 billion in FY2011 for grants to community colleges to modernize, renovate, and repair their facilities.
2. $6.3 billion over ten years for the Community College Challenge Grant Program, which will provide competitive grants. The first four years are geared towards community colleges and states. The remaining six years are targeted towards states.
3. $700 million for competitive grants for national activities, including grants to develop free online training and courses.

ACCT is working with Chairman George Miller’s office to refine the legislation. The House Education and Labor Committee is expected to consider the bill next Tuesday. ACCT will provide updates as further information becomes available.

To see the full press release, visit: http://edlabor.house.gov/newsroom/2009/07/chairman-miller-introduces-leg.shtml

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