"The Senate today passed the $410 billion omnibus spending bill that critics say also includes billions of dollars of political pork," The Los Angeles Times reports. "The bill, which will fund most Cabinet departments and some other federal agencies for 2009, passed in a voice vote after senators voted 62-35 to end debate. White House Press Secretary Robert Gibbs said earlier that the president will sign the bill despite questions about spending priorities. The administration considers it old business that should have been resolved before Obama took over the Oval Office."

You can read the complete March 10, 2009 Los Angeles Times article on-line.

What's in the Bill

Federal Pell Grants
The bill includes nearly $17.3 billion for Pell Grants. The funding provided in this bill, combined with funding in the recently enacted economic stimulus package, will provide a maximum Pell Grant of $4,860 for the 2009-10 award year. As a result of the CCRAA, Pell Grant funding now comes from two sources - regular appropriations bills (discretionary funding) that provide for a maximum grant and an automatic add-on (through mandatory funding) that boosts the final maximum award. For the next two award years there is a third factor in determining the Pell Grant maximum award - money provided by the recently-passed Stimulus bill. For the 2009-10 award year, the maximum award will be $5,350 when you combine funding from all three sources.

How is that determined? First, the Omnibus Appropriations bill that the House will take up this week provides for a $119 increase in the maximum award to bring the 2008-09 maximum to $4,360; this is the appropriated amount. Next, the automatic CCRAA add-on is $490, bringing the maximum award to $4,850. Then, the latest wrinkle is added in--i.e., the $500 increase provided by the Stimulus bill--bringing the grand total is $5,350.

ACG and SMART Grants
The bill defers $887 million from unobligated balances under the Academic Competitiveness and SMART grant programs. These funds are not needed to pay ACG and SMART Grant awards in the 2009-10 award year and will be used to offset additional costs in the Pell Grant program.

FSEOG, Perkins, LEAP, and Other Aid
The bill would provide $1.9 billion for federal student aid programs including Federal Supplemental Educational Opportunity Grants (FSEOG), Perkins Loans, and the Leveraging Educational Assistance Partnerships (LEAP) programs. The bill provides funding at FY 2008 levels (no increases or cuts) for:

• FSEOG ($757.465 M)
• Perkins Loans FCC ($0 Note: there has not been new FCC funds for several years now)
• LEAP ($63.852 M)

The bill provides increased funding for the following programs:

• Perkins Loan Cancellations is increased $2.837 M to $67.164 M for FY 2009
• Javits Fellowships is increased $157,000 to $9.687 M for FY 2009
• Graduate Assistance in Areas of National Need (GANN) is increased $1.488 M to $31.030 M for FY 2009
• Byrd Honors Scholarships is increased $358,000 to $40.642 M for FY 2009;
• Child Care Access Means Parents In School is increased $500,000 to $16.034 M for FY 2009
• Thurgood Marshall Legal Education Opportunities is increased $105,000 to $3 M for FY 2009

Federal Work Study
The Stimulus bill provides an increase in the FWS program next year of $200 million bringing the total to $1,180.492 M. The bill directs the Department to provide the same funding in FY 2009 for the Work Colleges program from the Federal Work-Study Program's funding.

TRIO and GEAR UP
The bill provides small increases for the TRIO and GEAR UP programs.

• TRIO is increased $19.911 M to $848.089 M for FY 2009
• GEAR UP is increased $9.789 M to $313.212 M for FY 2009

Additional Media Coverage

Congress Sends $410 Billion Spending Bill to Obama for Signing Bloomberg

Senate Passes $410 Billion Spending Bill The New York Times

Senate Approves $410 Billion Bill to Fund Federal Government The Washington Post

Senate Passes Spending Bill With Increases for NIH and Pell Grants The Chronicle of Higher Education

Obama to sign spending bill, push for new rules Associated Press

Highlights of $410 billion spending bill Associated Press

Posting of "Financial Aid in the News" does not imply endorsement or support by NASFAA. If you attempt to access an article and receive a "not found" message, it is likely that the article has been removed from the site. Posted 03/11/09 to www.NASFAA.org. Please submit Web Site questions or comments to Web@NASFAA.org.