Government Relations Archive

Congress will be back in session and there will be a flurry of legislative activity on issues of interest to the higher education community.

The reconciliation bill will be at the top of the legislative agenda. The bill cuts student loan subsidies to lenders then uses them to increase funding for student aid. It is the first part of the HEA reauthorization, but it was done as a separate budget bill to speed its consideration in both chambers.

Congress will also take up the FY 2008 education appropriations bills. The National Association of Independent Colleges and Universities (NAICU) supports the House version, which includes a $390 increase in the Pell Grant maximum to $4,700, increases the TRIO and GEAR UP Programs and does not cut SEOG and LEAP. The Senate bill has not been to the floor yet, but maintains the Pell Grant maximum – the Senate hopes to further need-based aid through the reconciliation bill.

There is also a tax higher education bill that will receive consideration this fall. NAICU reports that it is a “$20-$25 billion tax package that would combine popular higher education tax incentives – Hope and Lifetime Learning credits and tuition deduction – into a single super credit.”

Lastly, the House education staff is working on their version of the Higher Education Act (HEA) reauthorization.

Bill to Increase Sunshine on Earmark Recipients Approved by Congress

Last Thursday, Congress approved legislation entitled the Honest Leadership and Open Government Act of 2007 to overhaul rules governing college lobbyists and to increase public disclosure about academic earmarks. The bill generally bans gifts to lawmakers from lobbyists, but protects existing rules that provide no limit on the value of gifts from state universities. The bill also allows members to remove individual earmarks that are inserted into final versions of appropriations bills that were not included in the original House or Senate versions. Senior members of Congress often drop in additional earmarks in final versions so that there is little time for debate or examination.

It remains to be seen how much new disclosure will be required under the bill. Traditionally, Congressional appropriations committees have released no comprehensive information about the sponsors or intended recipients of earmarks, in an effort to avoid public scrutiny. The bill would now require that lawmakers sponsoring each earmark be identified publicly.

The Chronicle of Higher Education has reported that earmarks for colleges increased six-fold from 1996 to 2003. The new Democratic Congressional leadership did order a one-year hiatus on most earmarking for 2007. Congressional leaders have restarted the practice again in 2008, although they have pledged to cut total earmark spending in half. Many believe that given all the scandals, many lawmakers who had originally opposed the bill voted in support of it.

President Bush is expected to sign the measure into law.

Congress Approves Competitiveness Bill

Last week Congress also approved HR. 2272 to authorize more spending on science research and science education at colleges and universities to improve America’s global economic competitiveness. Even though it increases spending, Congress would have to appropriate funds through separate bills.

Among other things, the bill calls for an increase in spending for the National Science Foundation and the Department of Energy’s Office of Science during the next three years.

On July 26 the Senate passed the Higher Education Act reauthorization bill (S. 1642) by a vote of 95-0. There were few changes made to the bill during the two days of debate.

Among other things, the Senate bill:

• Raises the maximum Pell Grant to $6,300, and sets the minimum Pell Grant at 10 percent of the maximum award – an increase from the minimum now of $400.

• Restricts the use of preferred lender lists, places strict limits on what lenders and guarantee agencies may offer colleges to obtain their business, and creates a national code of conduct.

• Prohibits the Department of Education from establishing a national unit record database, although it does authorize a pilot program for states and consortiums.

• Streamlines the federal student aid application process and asks the Advisory Committee on Student Financial Aid to assess the regulatory burden on colleges and universities.

• Requires institutions to publish their policies on transfer of credit and disclose any plans they have for improving their academic program.

Language offered by Sen. Lamar Alexander (R-Tenn.) struck provisions of the bill that would have imposed rigid measures of student learning through the accreditation system.

A provision offered by Sen. Tom Coburn (R-OK) and amended by language created by Sen. Edward M. Kennedy (D-MA) would ensure that federal grant and student aid funds are not used by colleges to pay any person to lobby a federal agency or Congress.

Other approved amendments include proposals to create a student loan clearinghouse; require teacher-preparation programs to set goals for increasing the number of teachers in math, science and special education; and require the GAO (Government Accountability Office) to study the feasibility of collecting data on the employment of college graduates.

Another controversial amendment offered on peer-to-peer file sharing by Senate Majority Leader Harry Reid (D-NV) was withdrawn. In place of the Reid Amendment, language was inserted by Kennedy into the manager’s package that asks colleges to disclose their policy on copyright infringement to students and make them aware of the consequences of illegal downloading.

The House has yet to act on its version of a Higher Education reauthorization bill. Given that the Senate has now completed its work, the House is expected to unveil a proposal shortly after Congress reconvenes following the August recess.