The House and Senate yesterday passed their respective versions of the 2010 fiscal year Budget Resolution - which outlines spending levels for the upcoming fiscal year. Negotiators from the two chambers must now iron out the differences between the two budget outlines and then both chambers must approve the compromised version.
The reconciliation instructions in the House's Budget Resolution are expected to be major sticking points during these negotiations. The House's outline includes reconciliation instructions to accommodate the Obama administration's proposal to eliminate the Federal Family Education Loan Program (FFELP) and use the savings to increase Pell Grants and make them a true entitlement program by moving the program from discretionary spending to mandatory spending. The reconciliation process would make it easier for the Senate to pass legislation enacting Obama's proposals because it limits debate and amendments and only requires 51 (instead of 60) votes to avoid a filibuster.
While supporters of Obama's proposals are getting closer to enacting his changes, there have been some signs of hope for those opposed to eliminating the FFELP. Before passing its version of the Budget Resolution, the Senate adopted a nonbinding (and mostly symbolic) amendment by Sen. Lamar Alexander (R-TN) to express support for 'a competitive student-loan program that provides students and institutions of higher education with a comprehensive choice of loan products and services.'
The Senate approved its version of the Budget Resolution by a 55 to 43 vote.
Posted 04/03/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.
