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federal budget

For-profit regulations, Pell Grants survive budget compromise

Experts expect lawmakers to keep Pell Grant funding at its current level.

Washington’s last-minute budget deal did not include a provision that would have killed a stringent for-profit college regulation, and Pell Grants remained intact despite deep cuts in education spending over the next six months.

The for-profit regulations pushed by the Obama administration for more than two years would impact some of the nation’s largest online colleges, such as the University of Phoenix and Kaplan University, by stripping schools of federal loan money if too many of their students maintain high loan debt-to-income ratios, among other provisions.

Although the anti-regulation provision was pushed primarily by Congressional Republicans, a bipartisan letter was submitted April 4 that would have barred the U.S. Department of Education (ED) from implementing the new regulations on for-profit programs.…Read More

Eleventh-hour budget deal cuts $13B from health, education, labor

Though a federal government shutdown would have been more of an inconvenience than a disaster for education, some schools and students would have been affected.

A last minute budget deal for the remainder of the 2011 fiscal year, forged amid bluster and tough bargaining, averted an embarrassing government shutdown and cut billions of dollars in federal spending, including $13 billion from the health, education, and labor budget—the first major test of the divided government voters ushered in five months ago.

Working late into the evening April 8, congressional and White House negotiators struck an agreement to pay for government operations through the end of September while cutting $38.5 billion in federal spending overall. Lawmakers then approved a days-long stopgap measure to keep the government running while the details of the new spending plan were written into legislation.

Actual approval of the deal is expected to come later this week.…Read More

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Obama calls for more school funding

Education was a key part of President Obama's State of the Union address.
Education was a key part of President Obama's State of the Union address.

Education is one of the few areas of the federal budget that would not see a spending freeze, if President Barack Obama gets his way this year.

In his State of the Union speech on Jan. 27, Obama said his administration will work with Congress to expand school improvements across the country, saying the success of children cannot depend on where they live.

As he prepares to ask Congress for billions of dollars in new spending for education, the president said the nation’s students need to be inspired to succeed in math and science, and that failing schools need to be turned around.…Read More

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