March 11, 2022
Student Aid Programs See Significant Increases in Final Funding Bill; $400 Increase for Pell
Almost six months into the fiscal year, Congress finally reached a bipartisan, bicameral agreement on FY 2022 spending, which both the House of Representatives and Senate approved this week.
The $1.5 trillion package includes increases for the federal student aid programs and higher education grant programs, including a $400 increase to the Pell Grant maximum that will bring nearly all qualifying students and the institutions that serve them a more then 6% increase in their federal grant support this fall. This represents the largest single year increase in the Pell Grant maximum since 2009. For the private, nonprofit sector, this increase will result in nearly $300 million in additional aid for low-income students and families.
Both chambers and both parties claimed victory for finalizing the package, which covers all 12 spending bills government-wide. Democrats praised the increases provided for domestic programs, while Republicans praised the parity between increases for defense and nondefense programs. Overall, defense spending would rise by $42 billion, to $782 billion, a 5.6%, over last year’s level, while nondefense spending would increase by $46 billion, to $730 billion, a 6.7% increase year-over-year.
For the Department of Education, the bill provides a total of $76.4 billion in discretionary appropriations, which is $2.9 billion above the FY 2021 enacted level. From this, $24.58 billion in new appropriations is provided for student aid funding. Federal student aid is anchored by the $400 increase in the Pell Grant maximum, bringing it to $6,895 starting July 1, 2022. The campus-based aid programs, in which colleges match federal dollars to provide additional grant aid and work study to low-income students, were also increased. Supplemental Educational Opportunity Grants (SEOG) increased $15 million, to $895 million and Federal Work-Study increased $20 million, to $1.21 billion. Together these three programs will provide increases to the base for a low-income student’s financial aid package.
Federally-funded student support programs are also increased in the bill. TRIO is funded at $1.137 billion, a $40 million increase over last year. GEAR UP is funded at $378 million, a $10 million increase over last year. These programs together span cohorts from middle school to graduate school to help low-income students prepare for college, get into college, and persist to graduation and the workforce.
The Title III and Title V Strengthening Institutions Programs are increased across the board with a total of $885 million, an increase of $96 million over last year. These programs help minority-serving institutions and institutions with high Pell enrollment and low expenditures, including many private, nonprofit colleges. Specifically, the funding proposals break down as follows:
The report language for the bill also indicates additional funding for several pilot programs, two of which are the Augustus C. Hawkins Center for Excellence for teacher preparation programs at HBCUs (funded at $8 million) and the Basis Needs Grant for institutions to help low-income students with additional assistance for basic needs like food and housing (funded at $8 million).
The bill also includes $249.4 million in congressionally-directed community-based projects, formerly known as “earmarks,” many of which go to private colleges. This bill marks a return to this type of funding for the first time in eleven years. The package also includes $13.6 billion in emergency spending assistance for Ukraine but Congress punted on $15.6 billion in additional funding for the pandemic response by moving that to a separate piece of legislation that will be considered next week.
More than $1.8 billion was rescinded from the Pell Grant reserve fund (or surplus) to help balance the ledger for education funding.
The same pot of funding that provides appropriations for education also funds the Department of Health and Human Services (HHS). The big program of interest for colleges at HHS is the National Institutes of Health (NIH). The bill provides a total of $45 billion for NIH, an increase of $2.25 billion above the FY 2021 enacted level, which will carry over to increases across the individual institutes.
As with many must-pass bills in Congress, unrelated measures are often attached before final votes. In this case, the bipartisan reauthorization of the Violence Against Women Act (VAWA) is included in the omnibus package and will have significant impact on higher education.
The $1.5 trillion package includes increases for the federal student aid programs and higher education grant programs, including a $400 increase to the Pell Grant maximum that will bring nearly all qualifying students and the institutions that serve them a more then 6% increase in their federal grant support this fall. This represents the largest single year increase in the Pell Grant maximum since 2009. For the private, nonprofit sector, this increase will result in nearly $300 million in additional aid for low-income students and families.
Both chambers and both parties claimed victory for finalizing the package, which covers all 12 spending bills government-wide. Democrats praised the increases provided for domestic programs, while Republicans praised the parity between increases for defense and nondefense programs. Overall, defense spending would rise by $42 billion, to $782 billion, a 5.6%, over last year’s level, while nondefense spending would increase by $46 billion, to $730 billion, a 6.7% increase year-over-year.
For the Department of Education, the bill provides a total of $76.4 billion in discretionary appropriations, which is $2.9 billion above the FY 2021 enacted level. From this, $24.58 billion in new appropriations is provided for student aid funding. Federal student aid is anchored by the $400 increase in the Pell Grant maximum, bringing it to $6,895 starting July 1, 2022. The campus-based aid programs, in which colleges match federal dollars to provide additional grant aid and work study to low-income students, were also increased. Supplemental Educational Opportunity Grants (SEOG) increased $15 million, to $895 million and Federal Work-Study increased $20 million, to $1.21 billion. Together these three programs will provide increases to the base for a low-income student’s financial aid package.
Federally-funded student support programs are also increased in the bill. TRIO is funded at $1.137 billion, a $40 million increase over last year. GEAR UP is funded at $378 million, a $10 million increase over last year. These programs together span cohorts from middle school to graduate school to help low-income students prepare for college, get into college, and persist to graduation and the workforce.
The Title III and Title V Strengthening Institutions Programs are increased across the board with a total of $885 million, an increase of $96 million over last year. These programs help minority-serving institutions and institutions with high Pell enrollment and low expenditures, including many private, nonprofit colleges. Specifically, the funding proposals break down as follows:
- Strengthening Institutions Program: (SIP Title III, A) $110 million;
- Hispanic Serving Institutions: $182 million;
- Historically Black Colleges and Universities: $362.8 million;
- Historically Black Graduate Institutions: $93 million;
- Predominantly Black Institutions: $17 million;
- Asian American and Native American Pacific Islander Serving Institutions: $10.9 million;
- Alaska Native and Native Hawaiian Serving Institutions: $21 million;
- Native American Non-Tribal Institutions: $7.8 million;
- Tribal Colleges: $43.8 million; and
- HBCU Masters Programs: $14 million
The report language for the bill also indicates additional funding for several pilot programs, two of which are the Augustus C. Hawkins Center for Excellence for teacher preparation programs at HBCUs (funded at $8 million) and the Basis Needs Grant for institutions to help low-income students with additional assistance for basic needs like food and housing (funded at $8 million).
The bill also includes $249.4 million in congressionally-directed community-based projects, formerly known as “earmarks,” many of which go to private colleges. This bill marks a return to this type of funding for the first time in eleven years. The package also includes $13.6 billion in emergency spending assistance for Ukraine but Congress punted on $15.6 billion in additional funding for the pandemic response by moving that to a separate piece of legislation that will be considered next week.
More than $1.8 billion was rescinded from the Pell Grant reserve fund (or surplus) to help balance the ledger for education funding.
The same pot of funding that provides appropriations for education also funds the Department of Health and Human Services (HHS). The big program of interest for colleges at HHS is the National Institutes of Health (NIH). The bill provides a total of $45 billion for NIH, an increase of $2.25 billion above the FY 2021 enacted level, which will carry over to increases across the individual institutes.
As with many must-pass bills in Congress, unrelated measures are often attached before final votes. In this case, the bipartisan reauthorization of the Violence Against Women Act (VAWA) is included in the omnibus package and will have significant impact on higher education.