The Senate passed by a 61 to 37 vote a nearly $14 billion increase for Pell Grants as part of its version of an $838 billion economic stimulus package yesterday.

The vote was largely along party lines, but Senate leaders managed to sway three moderate Republicans to vote for the bill by adopting an amendment negotiated by moderate Democrats and Republicans to cuts the cost of the bill by roughly $100 billion. The Pell Grant spending in the bill was one area some Senators wanted to cut, but Pell funding was ultimately preserved in the bill.

NASFAA joined others in the higher education community in commending the Senate for passing the bill with significant investments in student aid.

"We are truly grateful for all the hard work of Senators and their staff who fought to get this bill passed and would not tolerate attempts to strip financial aid funding from the bill," said NASFAA President and CEO Dr. Phil Day in a press release. "The financial aid funding in this bill will pay for itself many times over by enabling students to afford college and receive the education and training they need to succeed in the increasingly competitive global economy."

After the bill was passed, the House and Senate appointed negotiators to work out the differences between the two bills. Representatives David Obey (D-WI), Charles Rangel (D-NY), Henry Waxman (D-CA), Jerry Lewis (R-CA), and Dave Camp (R-MI) were selected to negotiate for the House. Senators Max Baucus (D-MT) Daniel Inouye (D-HI), Harry Reid (D-NV), Charles Grassley (R-IA), and Thad Cochran (R-MS) will represent the Senate's interests in the negotiations.

"As House and Senate negotiators develop a compromise bill, I urge them to keep in mind the countless families struggling to put their children through college and those adults returning to college to gain the skills needed to succeed in the workforce," Day said. "Their success is intrinsically tied to the success of the nation. We can't afford to let them down."

NASFAA is working to ensure the negotiated bill that comes from this conference committee includes the provisions from each bill that provide the greatest assistance to students and parents paying for college. NASFAA issued a letter highlighting the provisions in both versions of the stimulus package that should be included in the final bill. NASFAA encourages members to contact negotiators in the conference committee and urge them to include financial aid provisions in the final bill.

Spending on education should be a hot topic as the House and Senate negotiate the two versions of the bill. The Senate bill would eliminate the House's $18.5 billion for school construction and reduces - from $79 billion to $40 billion - the state stabilization fund that could be used for education. The House bill also includes a greater investment in Pell, increases unsubsidized Stafford Loan limits by $2,000 and provides $490 million for Federal Work Study. House Democrats and education advocates are preparing to defend billions of dollars in education spending authorized by the House but eliminated in the Senate bill.

However, drastically changing the Senate bill could threaten moderate Republican support in the Senate. Unlike the House, the Senate needs to win over a few Republicans to pass the final version of the bill by a two-thirds majority and avoid a filibuster. Media Coverage

Senate Approves Stimulus Plan The New York Times

States Counting on Stimulus Aid to Balance Budgets The Washington Post

Senate, House Begin Talks on Stimulus The Washington Post

Posted 02/11/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.