Editor’s note: This new 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.
Debt-ceiling pressures
Last week, House Republicans passed the Limit, Save, and Grow Act. The bill would approve a debt ceiling increase, but with conditions that would significantly reduce spending:
- Caps discretionary spending at fiscal year 2022 levels, in effect, slashing funding for programs across agencies. Those cuts could be more dramatic for domestic programs if not applied to defense spending, as Republicans have signaled would be the case. This puts downward pressure on community college funding priorities.
- Cancels President Joe Biden’s student debt relief plan.
- Blocks the implementation of the Biden administration’s revised, extremely generous Income-Driven Repayment (IDR) plan.
- Constrains the education secretary’s authority to make changes to the student loan program that would result in increased costs.
The bill is considered dead-on-arrival in the Senate, and Biden has already indicated that he would veto the bill. With the debt-ceiling deadline looming, the bill is a first gambit from House Republicans as Democrats and the White House come to the negotiating table.
Transparency and tax fairness
A group of bipartisan lawmakers, led by Senate HELP Committee ranking member Sen. Bill Cassidy (R-Louisiana), reintroduced the College Transparency Act (CTA). A longtime priority of AACC, CTA would create a student-level data system to streamline reporting requirements while providing a more accurate picture of students’ college access, progression and success.
Another top AACC priority, Tax-Free Pell Grant Act, was reintroduced in the House on a bipartisan basis, led by Rep. Lloyd Doggett (D-Texas). The bill would end the taxation of Pell grants, allowing low-income students attending the lowest-cost institutions to receive their full grant amount tax-free and more fully access the American Opportunity Tax Credit (AOTC).
Revised College Scorecard
Last week, the Education Department announced new improvements to the College Scorecard, which now features enhanced loan debt data, more information on the diversity of students and faculty, and, for the first time, earnings for graduates four years after program completion.
Funding opportunities
Applications are open for key community college funding opportunities:
- Strengthening Institutions Program (SIP) – Due May 22
- Asian American and Native American Pacific Islander-Serving Institutions (AANAPISI) Program – Due May 30
- Native American-Serving Nontribal Institutions (NASNTI) Program – Due June 12
- Building Pathways to Infrastructure Jobs Grant Program – Due July 7 for the first round
For more detailed information on these issues, visit the Community College Advocacy Updates page on our website.
