President-elect Barack Obama provided some insight into how an economic stimulus package that could provide as much as $1 trillion in government funding will likely be distributed in a speech delivered yesterday at George Mason University.
The speech indicated some new investment in higher education, but did not outline specific areas to be funded. This leaves the higher education field speculating how much they will receive from the stimulus package and what areas of higher education will benefit.
The most specific example of how the economic stimulus package would benefit higher education came when Obama said, "To give our children the chance to live out their dreams in a world that's never been more competitive, we will equip tens of thousands of schools, community colleges, and public universities with 21st century classrooms, labs, and libraries."
There was no specific mention of any planned efforts to increase student aid, but there is a possibility that the economic stimulus package could include a Pell Grant increase. NASFAA and other higher education associations have been advocating for Pell funding to be included in the package.
Obama was clear that the government must act to minimize the current economic downturn.
"If we don't take dramatic action as soon as possible. If nothing is done, this recession could linger for years," he said. "We could lose a generation of potential and promise, as more young Americans are forced to forgo dreams of college or the chance to train for the jobs of the future."
He also recognized that an effective economic stimulus package would have a large price tag.
"There is no doubt that the cost of this plan will be considerable," he said. "It will certainly add to the budget deficit in the short-term. But equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes, and confidence in our economy."
The plan outlined by Obama suggested that it would include short-term investments to jump-start the economy and longer-term investments to ensure that the U.S. will remain competitive in the global market in the future.
"we'll invest in priorities like energy and education; health care and a new infrastructure that are necessary to keep us strong and competitive in the 21st century," he said. "The American Recovery and Reinvestment Plan won't just throw money at our problems - we'll invest in what works."
Media Coverage
Obama Suggests Infrastructure Support for (Public) Colleges (Inside Higher Ed)
Obama's Stimulus: Jump-Starting His Long-Term Agenda (Time)
Posted 01/09/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
