Senate Votes Down House Budget Resolution
The Senate rejected the House-passed budget resolution yesterday by a vote of 40 to 57. 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 House on April 15, and proposes deep cuts to all non-defense discretionary programs.
The resolution calls for Pell Grant funding to be pulled back to pre-stimulus (also known as the American Recovery and Reinvestment Act) levels, and the elimination the administrative cost allowance. The Congressional Budget Office (CBO) estimates that this would result in a maximum Pell Grant of $3,040 for the 2012-13 academic year -- down from the current $5,550 maximum award. Additionally, the House-passed budget resolution calls for the repealing and defunding of the Healthcare and Education Reconciliation Act (HCERA), which includes mandatory funding for the Pell Grant program.
NASFAA sent a letter to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) earlier this week urging them to oppose the budget resolution. The Senate has yet to release its version of a budget resolution.
To help you track funding levels for student aid programs, NASFAA has created a table that lists FY 2010 and 2011 funding levels and proposed FY 2012 funding levels. We will update the table as the budget process progresses.