In a victory for Democrats, the Senate passed by a 75 to 19 vote the 2008 spending bill (H.R. 3043) that provides funding for the Departments of Labor, Health and Human Services and Education. The 75 votes for the bill give the Senate more than a two-thirds majority, which is what the Senate needs to overturn a veto by the president.

President Bush has threatened to veto the bill because it spends roughly $9.6 billion more than his 2008 budget request. The Labor-HHS-Education spending bill is likely to be the first 2008 spending bill sent to the president.

It would take a two-thirds majority in the House and Senate to overturn the president's veto. Unlike the Senate, the House was not able to pass the bill with a two-thirds majority. The House voted 276 to 240 to pass the bill on July 19. That leaves them nine votes short of a two-thirds majority. During the July 19 vote, 15 representatives did not vote including 5 Democrats. It remains unknown if the House would be able to garner enough support to override a presidential veto.

Many fear that if Congress is unable to overturn the president's veto, then Congress will have to accede to the administration's wishes and reduce spending for some programs, eliminate increases in their spending bills, or settle with another continuing resolution that sets spending levels at 2007 levels.

The Senate and House must now meet to negotiate the differences between the two versions of the bill. The House bill spends roughly $2 billion more than the Senate bill. The Senate bill sets the maximum Pell Grant at $4,310 since a FY 2007 spending measure already increased the maximum by $260. The House bill sets the maximum Pell Grant at $4,700, but many expect that to be reduced when the two chambers negotiate. In contrast, the President's budget set the maximum Pell grant at $4,050.

If the Congress gets its way, the Pell Grant maximum award would be increased automatically by $490 to $4,800 because of provisions in the College Cost Reduction and Access Act ($4,310 from discretionary appropriations and $490 from a mandatory spending add-on). If President Bush wins the veto fight, the maximum Pell Grant will be $4,540 since the administration asked for a lower Pell base in his budget request ($4,050 in discretionary appropriations and $490 from a mandatory spending add-on). The result will likely be a $490 increase in the maximum award of over last year if Congress' FY 2008 spending bill becomes law or a $230 increase if the president's veto holds and Congress is forced to back down.

The Senate bill provides a total of $606 billion, with $149.9 billion in discretionary spending. This is a $5.4 billion increase over 2007 spending levels. The bill provides an additional $858 million for TRIO (a 3.6 percent increase) and $313 million more for GEAR UP (a 3.3 percent increase). Other federal aid programs are funded at last year's level.

NASFAA thanks all its members who contacted their Senators and urged them to support the bill.

Media Coverage

• Defying President Bush, Senate Passes Spending Bill for Health and Education Programs (The Chronicle of Higher Education) A paid subscription may be required.

• Dems Test Bush's Pledge to Veto Budget-Busters (NPR)

• Senate passes health funds that Bush opposes (Reuters)

• Stage set for clash over bill (Associated Press)