June 16, 2006

• Congressional Democrats Unveil Priorities for 110th Congress; Highlights of the FY07 Labor, HHS, Education Appropriations Bill as Reported from the House Appropriations Committee

---

Congressional Democrats Unveil Priorities for 110th Congress; Highlights of the FY07 Labor, HHS, Education Appropriations Bill as Reported from the House Appropriations Committee

Anticipating a possible Democratic majority House and/or Senate next year, the House and Senate Democratic leadership has released their "New Direction for America" platform for the next Congress which will convene in January.

At the top of their short list of priorities is passage of HR 5150/S 2573 — The Reverse the Raid on Student Aid — along with legislation to increase the federal minimum hourly wage by $2.10 to $7.25, grant authority to the Secretary of Health and Human Services to negotiate with pharmaceutical companies for lower prescription drug prices, enact the recommendations submitted to the Congress by the 9/11 Commission, and rollback some of the 2001 and 2003 tax reductions enacted by the 107th and 108 Congresses.

Additional information can be accessed at http://democraticleader.house.gov.

HR 5150/S 2573 proposes to reduce the 6.8 percent fixed rate on new subsidized Stafford student loans and 8.5 percent fixed rate on new PLUS loans by half, increase and fund the maximum annual Pell Grant to $4,500 in 2007, $4,800 in 2008, $5,200 in 2009, $5,600 in 2010, and $6,000 in 2011, authorize in-school loan consolidation, and repeal the "single holder rule" for loan consolidation.

This last provision is repealed in HR 4939 — The Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery which is awaiting signatures to become law. The proposal to increase minimum wage to $7.25 per hour is included in the Committee-passed House version of the FY 2007 appropriations bill for Labor, Health and Human Services, and Education.

This seemingly confirms that HR 5150/S 2573 (along with S 3255 — The Student Loan Borrower Bill of Rights) will be the vehicle for a Democrat controlled 110th Congress' Higher Education Act reauthorization, assuming the current Congress does not reauthorize the Act.

Included in S 3255, are provisions that propose to:

• increase transparency in the student loan program transactions:
• cap the total amount of student loan debt a borrower must repay indexed to the federal poverty line;
• reduce collection fees;
• allows consolidation into the Federal Direct Loan Program and reconsolidation in both the FFELP and FDLP with an income contingent repayment plan;
• repeal the "single holder rule";
• liberalize the definition of "permanently and totally disabled" to qualify for loan discharge;
• allow the Secretary to pay a subsidy to the lender in cases in which the borrower's monthly payment is less than the interest.

On a related topic, the House Appropriations Committee has approved its version of the FY 2007 appropriations bill for Labor, Health and Human Services, and Education. The bill is expected to be taken up by the full House next week.

Responding to pressure from moderate Republicans and the 200 Democratic House Members, the Appropriations Subcommittee on Labor, HHS, and Education has in effect rejected the Administration's proposed cuts to education and health and human service programs and either restored, or increased, proposed appropriations to most of the programs under its jurisdiction.

Maximum Pell Grants are increased by $100 to $4150, after remaining at $4,050 for the past four years.

Proposed appropriations for the SEOG ($771 million), College Work-Study ($980.4 million), Perkins Loans ($65.5 million), GEARUP ($303.4 million), LEAP ($65 million), Title III ($296 million), and Title V ($94.9 million) programs are level funded at current levels — which are the same as 2001 levels.

TRIO funding is restored to last year's level of $828 million, rejecting the $448 million cut proposed in the President's budget.

The bill directs all states that offer in-state resident public postsecondary education tuition and fee rates to "non-citizens" to offer the same to non-resident students from the other 49 states or, otherwise, lose their eligibility to receive federal funds.

The bill terminates 56 programs for a savings of $1.66 billion, provides approximately $1 billion for Member projects, and maintains current law on all abortion restrictions.

The bill earmarks $540 million — a $70 million increase — to assist states to immunize poor children through the Centers for Disease Control and Prevention.

The bill earmarks $2 billion — a $206 million increase — to expand access to community-based health care.

Centers for Disease Control funding is $6.2 billion, within those funds, resources were increased for emerging infectious diseases, including HIV/AIDS and immunization activities.

Health Professions Training — The bill restores cuts in the budget request to critical programs that improve the availability of well-trained health care professionals to underserved areas. The bill earmarks $313 million, $154 million above the request and $18 million above last year. The bill also restores a major cut to programs that provide scholarships to disadvantaged students. The bill earmarks $47 million for this purpose, the same as last year's level and $37 million above the President's requests.

Funds to support graduate level medical programs at Children's hospital are increased by $3 million over last year and $201 million over the budget request.

Rural Health Programs — In addition to providing increased levels of funding for Community Health Centers, the bill rejects many of the Administration's budget cuts to critical rural health programs and earmarks funds that will expand health care opportunities for rural communities.

Area Health Education Centers — The bill provides $29 million to level fund efforts which establish community-based training programs in rural and underserved areas. The budget request zero funded for this program.

National Health Service Corps — The bill earmarks $132 million to ensure that health professionals are serving in areas where they are needed most. This is a $6 million increase to both the FY06 and the requested level.

Rural Outreach Grants — The bill earmarks $40 million to improve health care services to rural Americans which $1 million above last year and $30 million above the request.

Rural Hospital Flexibility Grants — The bill provides $40 million for these grants, rejecting the Administration's proposal to eliminate funding for this important program.

Rural Health Research — The bill fully funds the requested level of $9 million to support rural health centers of research. In addition, the bill rejects the administration's attempts to terminate the Rural and Community Access to Emergency Devices programs by earmarking $2 million for this initiative.

State Offices of Rural Health — In order to better coordinate a national strategy for rural health care challenges, State Offices of Rural Health are funded at $8 million, slightly above last year and the budget request.

Rural Community Facilities program — This program is fully restored to last year's level of $7 million.

Telehealth — The bill includes an increase of $3 million for a funding level of $10 million for telehealth activities.

Domestic HIV/AIDS — For the Ryan White AIDS program, the bill provides an increase of $70 million over last year and $25 million below the request with total funding of $2.1 billion. In addition, the Committee includes $63 million for a new testing initiative at CDC to help stop the spread of this disease through increased levels of testing.

National Institutes of Health — Medical research at the National Institutes of Health is funded at a program level of $28.3 billion, slightly above last year's level and equal to the budget request. This represents a 120 percent increase from a decade ago.

Child Care and Development Block Grant — The bill fully funds the administration's $2.1 billion request for this program.

Low Income Home Energy Assistance Program (LIHEAP) is essentially level funded at $2 billion, $329 million above the budget request.

Abstinence Education — Provides level funded of $13 million for community-based abstinence education program.

Social Services Block Grant is level funded at $1.7 billion, an increase of $500 million over the President's request.

Special Education State Grants are funded at $11.6 billion, $150 million above FY06 and $50 million above the request — almost four times the amount provided in 1995.

Title I grants to States are maintained at $12.7 billion. This funding has increased almost 50 percent since FY01. The bill also provides $200 million for a new School Improvement program to help schools that have not been successful in raising the academic performance of disadvantaged children.

Reading Programs — Reading programs are level funded at $2 billion, the same as the President's request.

Teacher Incentive Fund — The bill continues a promising new program to develop and implement innovative ways to provide financial incentives for teachers and principals who raise student achievement and close the achievement gap in some of our Nation's highest-need schools.

Competitiveness — Responding to the President's request, the bill increases funding for math/science partnerships by $43 million and the advanced placement program by $48 million. Overall, $322 million has been provided for American Competitiveness programs courses.

Vocational Education grants — The bill restores $1.3 billion for State vocational education grants that the President's budget proposed to eliminate. This program is a component of the competitiveness initiative.

Impact Aid is funded at the requested level of $1.23 billion, the same as last year's level.

Head Start is level funded at $6.8 billion, $3 million above the request.

Safe and Drug Free Schools State Assistance is funded at $310 million which restores these programs from their proposed elimination the budget request.

Bill details can be accessed at http://appropriations.house.gov and http://appropriations.house.gov/_files/LH_Detail_SCWEB.pdf.

Back to Top

For more information, contact:

TG Congressional and Legislative Relations
(512) 219-4503
P.O. Box 83100
Round Rock, TX 78683-3100