House Budget Committee Writes FY 2024 Budget Resolution and Highlights Higher Education

Amid the House Republican intraparty chaos and the hand-wringing about a potential government shutdown, the House Budget Committee held a mark up to write a FY 2024 budget resolution, which included policy language about the federal role in higher education. 

Writing the budget resolution is a step in the budget process that usually takes place in March after Congress receives the President’s budget request in February.  This process has been much-delayed this year because of negotiations over the debt ceiling. 

The proposed FY 2024 budget resolution is a follow up to the Fiscal Responsibility Act debt ceiling deal that puts in place deficit reduction and spending cuts for the 10-year budget period. In addition to spending limits and deficit reduction proposals, the resolution includes a policy statement on higher education that highlights the need for federal aid to be targeted, and for colleges to provide more accountability for the government’s return on investment. Specifically, the language says: 

POLICY STATEMENT ON HIGHER EDUCATION AND THE AMERICAN WORKFORCE. 
(a) FINDINGS ON HIGHER EDUCATION—The House finds the following: 

1. A well-educated, high-skilled workforce is critical to economic, job, and wage growth. 
2. Average published tuition and fees have increased consistently above the rate of inflation across all types of colleges and universities.
3. With an outstanding student loan portfolio of $1.5 trillion, the Federal Government is the largest education lender to undergraduate and graduate students, parents, and other guarantors. 
4. Students who do not complete their college degree are at a greater risk of defaulting on their loans than those who complete their degree. 
5. Because Federal income-driven repayment plans offer loan balance forgiveness after a repayment period, increased use of these plans portends higher projected costs to taxpayers.

 (b) POLICY ON HIGHER EDUCATION—It is the policy of this concurrent resolution to promote college affordability, access, and success by—

1. reserving Federal financial aid for those most in need and streamlining grant and loan aid programs to help students and families more easily assess their options for financing post-secondary education; 
2. removing regulatory barriers to reduce costs, increase access, and allow for innovative teaching models; and 
3. increasing accountability for colleges and universities and ensuring students and taxpayers receive a return on investment.

While the House budget resolution will not go much further than committee mark-up, it is important to see what fiscal parameters are being proposed. The resolution would: 

• Cut discretionary spending by $4.6 trillion over 10 years, with an immediate reduction of the FY 2024 spending cap to FY 2022 levels.
• Reduce mandatory spending by $8.7 trillion over 10 years by making changes to Medicare, Medicaid, SNAP and TANF.
• Reduce the deficit by $16.3 trillion over 10 years, which in turn lowers interest payments on the debt.
• Assume 3% inflation, which is higher than current estimated rates.
• Achieve $130 billion surplus by FY 2033.

The congressional budget resolution is a guide and budget enforcement mechanism for Congress and is not signed into law by the president. For it to have teeth, the House and Senate must vote in favor of identical versions of a budget resolution, which is not expected to happen this year.