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FY 2006 Appropriations Bill For Student Aid and Extension of Higher Education Act Pass Senate

After a contentious and sometimes bitter debate over oil drilling in the Artic National Wildlife Refuge where cloture was not invoked, the Senate passed the FY 2006 Defense Appropriations bill. After the Alaska oil drilling plan was scuttled, the successful Unanimous Consent agreement that cleared the way for floor consideration of the Defense Department funding bill provided for approval of the FY 2006 Appropriation bill that funds the Departments of Labor, HHS, and Education. The Unanimous Consent agreement provided that if the Department of Defense Appropriations bill was passed by the Senate, then the Labor, HHS, Education Departments funding bill would be "deemed" to be approved. But, the Defense Appropriations bill had a provision reducing all government spending, except that for veterans, by 1%.

The chart below, in the last column on the right, shows the student aid funding for FY 2006. Please note that the Pell Grant maximum award is frozen for the fourth year in a row and is not affected by the 1% across-the-board cut. Note further that once again the rest of Title IV funding is cut below last years appropriation, except for the Pell Grant maximum award and the total program amount.

Program

FY2005 Final Appropriations

President's
Request FY2006

House-Passed
FY2006

Senate-Passed FY2006

Conference Agreement*

Pell Grant

$12.364 B

$13.199 B

$13.383 B

$13.177 B

$13.045 B

Pell Grant Maximum Award

$4,050

$4,150

$4,100

$4,050

$4,050

FSEOG

$778.720 M

$778.720 M

$778.720 M

$804.763 M

$770.93 M

FWS

$990.257 M

$990.257 M

$990.257 M

$990.257 M

$980.35 M

Perkins Loan FCC

-0-

-0-

-0-

-0-

-0-

Perkins Loan Cancellations

$66.132 M

-0-

$66.132 M

$66.132 M

$65.47 M

LEAP

$65.643 M

-0-

$65.643 M

$65.643 M

$64.98 M

Javits

$9.797 M

$9.797 M

$9.797 M

$9.797 M

$9.69 M

GAANN

$30.371 M

$30.371 M

$30.371 M

$30.371 M

$30.06 M

*All numbers except Pell Grant maximum award reflect 1% reduction from Conference Report agreement; unofficial numbers.

It is expected that the House today will approve the Defense Department FY 2006 Appropriations bill and will send it and the Education funding bill approved yesterday to the White House for the President's expected signature.

Higher Education Act Extension Cleared for President

H.R. 4525, the "Second Higher Education Extension Act of 2005," passed the House on Saturday. The bill extends program and spending authority under the Higher Education Act until March 31, 2006. The Senate passed the bill yesterday under Unanimous Consent; it was the final bill passed by the Senate last night before that body passed its adjournment resolution. The President will sign the measure. A short-term HEA extension passed by the Congress in September expires on December 31.

By Larry Zaglaniczny
NASFAA Director for Congressional Relations

Posted December 22, 2005 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2005. Redistribution to non-NASFAA institutions is prohibited
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