NACAC Legislative Update

President Obama Releases FY 2013 Budget Proposal

On Monday, President Obama unveiled his budget proposal for the federal government for fiscal year (FY) 2013. The President indicated that postsecondary education and training is a priority of his Administration by unveiling the budget for the year that begins October 1, 2013 at North Virginia Community College in Annandale.

The budget includes selective increases to education programs, amounting to a $1.7 billion (or 2.5 percent) increase over last year’s appropriation for the Department of Education. Secretary Duncan explained the reasoning for increasing education funding despite the ongoing economic recovery, stating that “In these tough budget times, the Obama Administration is making a clear statement that high-quality education is absolutely critical to rebuilding our economy. If we want to strengthen the American workforce, we must continue to invest in education.”

NACAC’s priority programs generally fare well under the President’s budget. Funding proposals are as follows:

• Continue to invest in the Pell Grant program by increasing the maximum award to $5,635. (The maximum Pell is scheduled to increase automatically under the College Cost Reduction and Access Act of 2007.)
• Maintain flat funding for Supplemental Educational Opportunity Grants ($734.6 million), GEAR UP ($302.2 million), and TRIO ($839.9 million).
• Increase the funding for the Work Study program by $150 million, bringing the funding request to $1,126.7 million.
• Consolidate the Elementary and Secondary School Counseling Program (ESSCP) into a larger funding stream with five other programs called Successful, Safe, and Healthy Students (SSHS). The funding request for SSHS is $195.9 million, though the program does not prioritize the hiring of school counselors. (NACAC advocates for the continuation of targeted funding for counseling professionals under ESSCP.)

The Administration also requested funding for new programs designed to improve college affordability and quality. These include a Race to the Top: College Affordability and Completion program to reward states that improve the efficiency of postsecondary education and a competitive grant program for institutions of higher education, known as First in the World, which would fund efforts to increase completion rates.  The Administration’s budget would further provide for the President’s college affordability initiatives by increasing the funding for the Perkins Loan program from $1 billion to $8.5 billion, making the American Opportunity Tax Credit permanent, and freezing student loan interest rates for subsidized Stafford loans at 3.4 percent. (That rate is set to double in July.)

Additional information about the Obama Administration's FY 2013 Budget Request is available at the U.S. Department of Education online. NACAC's priority programs funding chart includes funding totals from 2008 to 2012, as well as President Obama's FY 2013 proposal. NACAC's work on budget and appropriations can be found on the Budget and Appropriations page.