August 30, 2006

• Congressional Update

---

Congressional Update

"The issue matrix and political dynamics are not going good for us. Only some big national or international event before the election can change that"
    Congressman Tom Davis (R-VA)

"If we can't win in this environment, we have to question the whole premise of the party."
    James Carville, Democratic strategist

---

The major national polls (Zogby, Rasmussen, Gallup, Cook, Rothenberg) show a potential 18-35 seat pickup for Democrats in the US House of Representatives (with a 15 seat pick up needed for a Democratic majority) and a 2-6 seat pick in the US Senate (with a 6 seat pickup needed for a Democratic majority) in the November 7th general election.

With this in mind, House Democrats are beginning to consider the structure and agenda for a Democratic controlled House of Representatives next year.

Chief among these considerations are the leadership and committee chairmanships.

Current Democratic House leaders — Democratic Leader Nancy Pelosi, Minority Whip Steny Hoyer, Caucus Chair, James Clyburn, and senior ranking committee members — will determine how committee chairs and leadership positions will be filled. At this time, in addition to seniority, factors such as legislative record, diversity, and ideology may be considered.

One slot that is fairly assured under a Democratic majority House of Representatives, is the chairmanship of the Education and Workforce Committee.

The ranking member, George Miller, will assume the chair if the Democrats gain the 15 seats they need on November 7th.

This is significant because included in the planned platform published by the House and Senate Democratic caucuses on which the 110th Congress would focus — lobby reform, homeland security, energy independence, economic prosperity and educational excellence healthcare reform, and retirement security — S 2573/HR 5150 (Reverse the Raid on Student Aid), S 3255 (The Student Loan Borrower Bill of Rights), and S 3593 (The Student Debt Relief Act — are included under the economic prosperity and educational excellence plank.

Representative Miller is the House sponsor of HR 5150 which currently has 61 cosponsors and will introduce House companion bills for the other two Senate bills.

These bills propose to:

• repeal changes made to the federal student loan programs enacted and implemented by this year's Higher Education Reconciliation Act;
• increase authorized and actual funding for the Pell Grant program enough to achieve an annual maximum grant of $5,100 in 2007, increasing to $6,300 in 2011;
• enact the Student Aid Reward (STAR) Act;
• reduce the subsidized student loan interest rate to 3.4 percent and the PLUS interest rate to 4.25 percent;
• index monthly student loan repayments to borrower's income level and cap payments at 15 percent of borrower's income;
• increase transparency of the student loan process;
• reduce collection fees on student loans charged to borrowers; and,
• extend and expand the college tuition tax deduction.

The proposals are paid for by implementation of the STAR Act and other proposed savings as estimated by the White House's Office of Management and Budget and the Congressional Budget Office.

It is also anticipated that recommendations concerning student financial aid submitted to the Congress by the Secretary of Education's Commission on the Future of Higher Education and Congress' own Advisory Committee on Student Financial Assistance will have an impact on the reauthorization of the Higher Education Act.

Sara Martinez Tucker, a member of the Federal Commission on the Future of Higher Education, was nominated by President Bush on Tuesday to take over the number three position at the U.S. Department of Education. She is president and chief executive officer of the Hispanic Scholarship Fund.

Back to Top

For more information, contact:

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