House and Senate appropriators on June 25 and 26 (respectively) approved spending bills that would provide no increases in federal student aid programs for fiscal year 2004, which begins October 1.
Under the bill approved Wednesday by the House Appropriations Committee, the Pell Grant maximum would remain at the 2003 spending level of $4,050. That is slightly more than the $4,000 maximum requested by President Bush in his FY2004 budget proposal, but considerably less than the $4,200 proposed by Rep. David Obey (D-Wisc.) in an amendment offered in committee markups. That amendment was defeated by House Republicans.
House lawmakers approved slight increases for GEAR UP ($6.92 million more than the FY03 appropriation) and TRIO (a $7.91 million increase). FSEOG, Federal Work-Study, Perkins Loans, and LEAP were all funded at FY03 levels.
Obey also presented House appropriators with another amendment, also defeated along party lines, that would have blocked a change in calculating the state need analysis tax tables.
In a letter sent to Senate appropriators prior to Thursday's full committee markup, the Committee for Education Funding (CEF) warned that "at a time when states are facing the worst education crisis in history, the bill provides only a $1.5 billion, or 2.8%, increase over FY03 funding levels, the lowest increase in eight years, and freezes numerous programs, which result in cuts in current services levels when inflation and enrollment growth are taken into account."
"Substantial increases for education funding are especially needed in light of the immediate crisis in education resources at the state level, the escalating costs of federal mandates on elementary and secondary schools, and the explosion of enrollments of needy postsecondary students," CEF officials wrote.
Despite urgings from the higher education community, Senate appropriators on Thursday approved a bill that's almost identical to the June 19 subcommittee bill, and contains little in the way of good news for the financial aid programs.
Like the House bill, the Senate's Labor, HHS, Education and Related Agencies Appropriations bill provides no increase for the Pell Grant maximum award and level-funds the campus-based programs. All other Senate figures (with the exception of a $12.91 million increase over FY03 for TRIO) also mirror the House appropriations bill.
For reference, a complete list of 2002 appropriations, 2003 appropriations, and the President's 2004 budget request can be viewed on the NASFAA Web site. While no date has been scheduled, the full House and full Senate are expected to debate the FY04 appropriations bills after the July 4 recess.
By Elizabeth B. Guerard
NASFAA Assistant Director of Communications
Posted June 27, 2003 on
www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
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