Editor’s note: This weekly update from the government relations office at the American Association of Community Colleges (AACC) provides the latest on what’s happening in Washington and how AACC is advancing policies to support community colleges and students. Send questions, feedback and more to: kgimborys@aacc.nche.edu.
- Congressional leaders reach deal to avert a partial government shutdown, CR includes student aid provisions
- Bipartisan Workforce Pell Act pulled from floor consideration
Congressional leaders reach deal to avert a partial government shutdown, CR includes student aid provisions
On Wednesday, Congress put forth a short-term continuing resolution (CR) to extend current funding deadlines and avert a partial government shutdown this weekend. Under the new deal, funding for the departments of Agriculture, Transportation, Housing and Urban Development, and Veterans Affairs will be extended through March 8. The rest of the government, including funding for the departments of Education and Labor, will be funded through March 22. The House and Senate are expected to vote on the CR before the week’s end. Leadership has indicated that this will be the last temporary extension and simultaneously announced bipartisan agreement on six funding bills for Fiscal Year 2024 (FY 24): Agriculture-FDA, Commerce-Justice and Science, Energy and Water Development, Interior, Military Construction-VA, and Transportation-HUD. No such deal has been reached yet for the FY 24 Labor-HHS-Education bill.
The CR also included new student aid provisions related to the implementation of the FAFSA Simplification Act and funding for the Pell Grant program. Earlier this week, the Department of Education (ED) announced a change to their interpretation of the FAFSA Simplification Act as it relates to the measure to allow for a negative Student Aid Index (SAI; the measure replacing the “Expected Family Contribution”) for certain students. Up until this week, the Department had applied an SAI floor of -$1,500 for both independent and dependent students. After reviewing the statute, ED announced that the -$1,500 floor only applied to independent students and that applying any floor to dependent students would be “inconsistent with the letter of the law.” In response, Congressional leaders included a measure that rescinds the Department’s announcement. The provision restores a floor of -$1,500 for dependent students for the 2024-25 award year so as to not cause any additional delays to the processing of financial aid information, and a $0 floor for the 2025-26 award year and each year moving forward.
Finally, the CR includes an additional $7.7 billion in mandatory funding to shore up the Pell Grant program. This comes amid concerns that the new SAI and increased aid eligibility will accelerate a shortfall of the Pell Grant Reserve Fund.
Bipartisan Workforce Pell Act pulled from floor consideration
On Wednesday night, the Bipartisan Workforce Pell Act (BWPA) was removed from the floor calendar. The bill, which expands Pell Grant eligibility for high-quality short-term workforce programs, was scheduled to be voted on by the full House on Thursday under “suspension of the rules.”
The latest update comes after new opposition to the bill’s controversial “pay for,” which institutes risk-sharing for wealthy universities subject to the endowment tax. These groups include the nation’s two largest teachers’ unions – the National Education Association and the American Federation of Teachers. These groups are incredibly influential, particularly with many House Democrats.
The American Association of Community Colleges (AACC) strongly supports the BWPA and remains committed to enacting Pell Grant eligibility for these programs. While AACC opposes risk-sharing and hopes to work with policymakers to find alternative language before the bill is signed into law, the Association is disappointed that the bill was pulled from consideration. The Office of Government Relations is carefully monitoring the bill’s outlook and will keep members informed.