An appropriations bill proposed by House Republicans would keep the Pell Grant maximum at $5,550 for fiscal year 2012, but part-time students would no longer be eligible for the grants.
The proposal crafted by Rep. Denny Rehberg (R-Mont.), chair of the Labor, Education, Health and Human Services Appropriations Subcommittee, would include other changes to Pell to reduce program costs by $2.3 billion in FY12. They include:
- limiting the lifetime eligibility for Pell Grants to 12 semesters, down from 18
- eliminating eligibility for students who do not have a high school diploma or GED
- changing income protection allowances and lowering the income level (from $30,000 to $15,000) that results in an expected family contribution of zero
The scaling back on eligibility drew immediate criticism from Democrats on the subcommittee. Rep. Rosa DeLauro (D-Conn.)—who has introduced legislation that mirrors the president’s American Jobs Act, including $5 billion for community college renovations—said the change would target students who are working while going to college and appears likely to reduce Pell Grant assistance for many in this group by hundreds of dollars.
“That seems exactly the wrong step to be taking when so many people are relying on Pell Grants to go back to school or stay in school to gain the education and skills they need for jobs in the new economy,” she said.
DeLauro noted that some of the proposed Pell changes “may have merit, as a means of improving the long-term viability of the program,” but she would like input from education experts once they have reviewed the Republican proposal.
Community college advocates were disappointed with the Republican proposal, noting they expected reforms to Pell funding last year would cover costs for the next fiscal year. In addition, changes to eligiblity would disproportionately affect community college students, many of whom attend college part time.
"We're not happy with these proposed changes and cuts," said David Baime, senior vice president for government relations and research at the American Association of Community Colleges (AACC).
A Senate appropriations bill passed earlier in September would also preserve the Pell maximum with no changes to eligiblity. When both chambers approve their respective bills, leaders from the House and Senate will negotiate on a compromise bill.
The background on Pell
Data from the U.S. Department of Education shows that community college students were bear the brunt of the cuts. In award year 2009-10, more than half of the 497,414 half-time students receiving Pell Grants attended community colleges. Of the 48,300 students receiving Pell who attended less than half time, 32,802 were community college students.
The Pell program has seen unprecedented growth over the last five years. In 2007-08, 5.5 million students received Pell Grants. Two years later, the program was serving more than 8 million students—a 46 percent increase. As a result, the cost of the program doubled over the same time period to $30 billion.
According to a recent AACC policy brief on Pell Grants, the growth is driven by several intertwined factors: increased maximum grant levels, expanded eligibility, the sluggish economy and an increased demand to attend college.
Other cuts
Aside from changes to Pell, the House appropriations bill would eliminate funding for other programs that serve community colleges, including:
• Tribal colleges ($26.8 million)
• Alaska native and native Hawaiian-serving institutions ($13.4 million)
• Predominantly black institutions ($9.6 million)
• Asian American Pacific islander ($3.2 million)
• Native American-serving nontribal institutions ($3.2 million)
In addition, the bill would significantly cut funding for Hispanic-serving institutions (from $104 million to $17 million, a cut of $87 million) and historically black colleges (from $237 million to $152 million, a cut of $85 million).
On the positive side, the bill would keep funding for Perkins basic state grants at current levels, although the Obama administration actually requested a cut of $123.7 million for the program.
"It's a pleasant surprise," said James Hermes, director of government relations at AACC.
Concerns about job training
The Republican bill would also cut funding for federal job training programs, and—similar to Republicans' proposal last year—it would not provide advanced funding for the programs, which run on a program year that doesn't align with the fiscal year. Typically, Congress provides advance funding to help cover part of the costs of the programs' following year.
Delaureo said she was “deeply disturbed” by the proposed change, noting job training funding would be vulnerable to cuts when budget leaders look to cut spending as part of the 2011 Budget Control Act.
“If the amount in the Rehberg bill is actually intended as only part-year funding, how can the majority plausibly claim that they will restore the cut and go back to the full year amount next year, when the Budget Control Act will continue to tightly constrain spending?” she said.
Education advocates noted that bill did not alter the funding schedule for Perkins, which also has traditionally included advance appropriation to cover the following program year.
The bill also would require the Government Accountability Office to evaluate the cost-effectiveness of job training programs and to determine why there is a “skills-mismatch problem” with employers in some industries scrambling to find qualified workers.