Latest FY2012 Budget News

Congress is negotiating spending levels for fiscal year (FY) 2012, including spending levels for federal student aid programs like the Pell Grant. The following is NASFAA's coverage of these negotiations and the implications it has for federal student aid programs.
Policy Brief Highlights Adverse Effect of Eliminating Title IV Eligibility for Ability-to-Benefit
The "open door enrollment philosophy" of community colleges is not being rewarded by policy makers, according to a new policy brief, Why Access Matters: The Community College Student Body, by the American Association of Community Colleges (AACC). The organization says that lawmakers are too focused on "completion rate...
ED Contemplating 2012 Budget Act Provisions
The U.S. Department of Education is expected to issue a Dear Colleague Letter (DCL) in the near future to explain the provisions of the 2012 budget agreement signed into law shortly before Christmas. NASFAA has raised a number of questions regarding effective dates, which may be addressed in the DCL.
NASFAA Summary of Student Aid Changes in FY 2012 Budget Bill
Congress reached a deal on the fiscal year (FY) 2012 budget last night after several days of disagreement and stalemate. The deal included the nine remaining appropriations bills needed to fund the federal government for the rest of FY 2012. The bill includes award year 2012-13 funding levels for the federal student a...
Budget Deal Stalls Increasing Chances of Government Shutdown
Political wrangling on payroll tax breaks has stalled the release of a fiscal year (FY) 2012 budget bill that was expected to be released yesterday.  A day after reports that Congress had reached a deal on legislation to fund federal programs for the remainder of the 2012 fiscal year, the budget bill has stalled indef...
Congress Reaches FY 2012 Budget Deal to Maintain Max. Pell, with Likely Caveats
Lawmakers in the House and Senate reportedly reached a deal yesterday on nine appropriations bills to fund government programs through the rest of fiscal year (FY) 2012.  The final FY 2012 budget bill is expected to be released sometime today and will set 2012-13 award year spending levels for the federal student aid ...
Stop-Gap Spending Bill Will Fund Federal Programs Through Dec. 16
Congress passed and President Obama signed another stop-gap spending bill -- known as a continuing resolution (CR) -- last week to keep the government funded through Dec. 16. The CR passed by a vote of 298-121 in the House and 70-30 in the Senate. Federal agencies have been operating under a a CR that expired on Nov. ...
House, Senate and White House Student Aid Proposals
This chart summarizes student aid changes proposed by the House, Senate and the Obama administration in 2011 and the status of those proposals.
Congress Passes Stop-Gap Spending Bill to Prevent Shutdown
The House approved a stop-gap spending bill known as a continuing resolution (CR) Tuesday to maintain funding for federal programs through Nov. 18 and give Congress more time to the finalize fiscal year (FY) 2012 budget. President Obama plans to sign the CR today. The CR buys Congress a few more months to settle the f...
House's Draft FY2012 Spending Bill Would Restrict Pell Eligibility
Eligibility for Pell Grants would be restricted to reduce program costs by $3.6 billion next year under a draft spending bill for fiscal year (FY) 2012 released by the House Appropriations Subcommittee on Labor, Health, Human Services and Education.
Senate Spending Bill Trims Undergrad Loan Subsidy to Fund Pell
The Senate Appropriations Committee's fiscal year (FY) 2012 Labor-H spending bill protects the maximum $5,550 Pell Grant for award year 2012-13 by eliminating the in-school interest subsidy on undergraduate federal student loans for the six-month grace period and redirects those savings into the Pell program. All othe...
Continuing Resolution Would Give Congress More Time to Debate 2012 Budget
With only weeks until the end of fiscal year (FY) 2011 on Sept. 30 and Congress far from completing the FY 2012 budget, lawmakers are again looking to pass a Continuing Resolution to give them more time to finalize the FY 2012 budget. In compliance the Budget Control Act of 2011 passed this summer to raise the debt ce...
Obama’s Jobs Plan Includes Renovations for Community Colleges
President Obama proposed a new plan to stimulate the economy through job growth in front of a joint session of Congress last evening. The price tag associated with the package is a projected $447 billion, all of which would be paid for as part of the president's long-term deficit reduction plan. While the President on...
CRS Report: More Funding Needed to Maintain Pell Awards
"Additional funding may still be required in order to maintain the current eligibility parameters of the [Pell Grant] program in FY2012," according to a new Congressional Research Service (CRS) report. Congress provided $17 billion in mandatory funding to shore up the Pell Grant program as part of the Budget Control A...
House Republicans Cite Pell Grant Spending as Reason to Delay House Vote
The House postponed its vote on Speaker of the House John Boehner’s debt reduction plan Thursday. According to reports, House Republicans were unhappy that the House bill included $17 billion in supplemental spending for Pell Grants, which some compare to welfare. NASFAA strongly urges lawmakers to reject any proposal...
Obama: Eliminate Tax Breaks for the Wealthy, Don't Cut Student Aid
President Obama said that student aid would need to be cut in order to maintain tax breaks for the wealthy at a press conference.
Community College Associations Launch Advocacy Campaign to Preserve Pell
  Two community college associations convened a webinar conference call Tuesday to encourage members of the higher education community to take action to prevent cuts to the Pell Grant program, amid a budget-cutting climate and increasing concern in Congress over the recent growth of the program. Congress is consideri...
Lawmakers Considering Proposals to Reform Pell Grant Program
May 31 -- Congress is considering proposals to create a more sustainable maximum award level, roll back some of the need analysis changes enacted in previous legislation and set stricter lifetime time limits on eligibility for Pell Grant aid, according to a May 2011 Congressional Research Service (CRS) report. The rep...
Senate Votes Down House Budget Resolution
May 26 -The Senate rejected the House-passed budget resolution yesterday that would have reduced Pell Grant funding to fiscal year (FY) 2008 levels. As expected, the vote fell primarily along party lines, with all Democrats voting against the measure, along with five Republicans. The Budget Resolution passed in the Ho...
House Appropriations Committee Approves $18 Billion Cut to Labor, HHS and Education Programs
In the next step of the fiscal year (FY) 2012 budget process, the The House Appropriations Committee voted Tuesday to approve House-set FY 2012 spending limits for the 12 appropriations subcommittees.  The spending limit for the Labor, HHS, and Education Appropriations Subcommittee - known as the 302(b) allocations - ...
Senate to Vote on House FY 2012 Budget Resolution
May 24 -- The Senate is expected vote down the House-passed fiscal year (FY) 2012 budget resolution that would slash funding for Pell Grants and other federal student aid programs.
Student Aid Alliance Issues FY 2012 Budget Request for Aid Programs
May 18 -- NASFAA joined nearly 80 other higher education organizations that make up the Student Aid Alliance to request spending levels for federal student aid programs for the fiscal year (FY) 2012 budget.
House GOP FY2012 Budget Outline Would Deny Pell Grants to 1.4M Students
April 19, 2011 -- New data from the U.S. Department of Education (ED) shows that 1.4 million students would be denied Pell Grants in 2012-13 under a fiscal year (FY) 2012 budget proposal passed last week by Republicans in the U.S. House of Representatives.
House Passes FY2012 Budget Resolution That Slashes 2012-13 Pell Grants
April 15 -- The U.S. House of Representatives approved a Republican fiscal year (FY) 2012 budget resolution that would roll back the 2012-13 maximum Pell Grant to FY2008 levels.
House GOP FY2012 Budget Proposal Would Reduce Pell Grant to Pre-Stimulus Levels
April 6 -- House Budget Committee Chairman Paul Ryan (R-WI) released a fiscal year (FY) 2012 budget proposal -- known as a budget resolution -- Tuesday that would reduce Pell Grant award levels to pre-stimulus levels as part of an effort to reduce the deficit by $1.65 trillion over a period of ten years.
GOP and Dems Clash on FY2012 Pell Spending Again
Department of Education Under Secretary Martha Kanter made her case for maintaining the maximum Pell Grant before a divided House appropriations subcommittee Tuesday. Kanter testified before the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, as Congress debates ...
Lawmakers Clash on Pell Spending at Senate Budget Committee Hearing
Education Secretary Arne Duncan backed the president's Pell Grant proposal that was included in the administration's fiscal year (FY) 2012 budget request before members of the Senate Budget Committee Tuesday. "The overall goal of our Pell Grant proposal is to protect the $5,550 maximum Pell Grant award and put the pro...
To Maintain $5,550 Maximum Pell, Obama's FY2012 Budget Proposes Cuts to Other Aid Programs
President Obama's fiscal year (FY) 2012 Budget Request would maintain the $5,550 maximum Pell Grant award for 2012-13 by modifying federal student aid programs to save $100 billion over the next decade.
Deficit Reduction Proposals & Student Aid Funding
Both House and Senate leadership have revealed their own versions of deficit reduction plans that they hope to see pass. After analyzing the legislative language of both proposals, NASFAA developed a side-by-side comparison to show were the bills share similarities and differences.