Pell Funding, Education Tax Credits Still Up in the Air As Congress Breaks for Election


September 26, 2008
by Scholarships.com Staff
Congress will be in session only a few more days before breaking for the November election.  While a lot has already been accomplished this session in terms of educational spending, such as the passage and renewal of ECASLA and the reauthorization of the Higher Education Act, some education funding concerns still need to be addressed.  Primary among these is the education and research spending bill that will fund research and federal student financial aid programs for fiscal year 2009, which remains on the Congressional to do list.

Congress will be in session only a few more days before breaking for the November election.  While a lot has already been accomplished this session in terms of educational spending, such as the passage and renewal of ECASLA and the reauthorization of the Higher Education Act, some education funding concerns still need to be addressed.  Primary among these is the education and research spending bill that will fund research and federal student financial aid programs for fiscal year 2009, which remains on the Congressional to do list.

When Congress reconvenes either in November or January, one of the most pressing financial issues they will have to contend with is finding the money to cover a projected $6 billion shortfall in the budget for the Federal Pell Grant program.  Lobbyists still worry that Congress may wind up having to cut the maximum grant award, as they did last year when the bill exceeded Bush's budgetary requests.  However, given the popularity of the program, such cuts are unlikely, especially after all of the attention financial aid has been receiving this election season.

Another issue Congress may contend with is whether to combine higher education tax credit programs, such as the Hope and Lifetime Learning credits into a single, partially refundable credit.  The idea has received widespread support and is expected to come up during the next Congressional session.

You can read more about the educational issues still on Congress's plate in today's Chronicle of Higher Education.

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