No AGI, but bill offers $2 billion for community colleges
By CC Times, Published March 18, 2010

Congress on Thursday released a budget reconciliation bill that does not include the much-anticipated American Graduation Initiative (AGI), which would have provided community colleges with about $9 billion. But there is some good news for community colleges: The bill does include $2 billion specifically for public two-year colleges for training and education.

As expected, the reconciliation bill contains the controversial health care reform package and student loan reform legislation, which would end the Federal Family Education Loan program and move all institutions to the Direct Loan program by July 1. 

The shift would save the federal government about $61 billion over the next 10 years. The savings would go toward additional funding for the Pell Grant program and other priorities. 

“The American Association of Community Colleges (AACC) strongly supports the reconciliation legislation and urges its member colleges to communicate this support to their members of Congress,” AACC said in an alert to member colleges. “By providing substantial funds to needy students and to our colleges, we believe this support is merited.”

Congress had originally estimated that the move to direct lending would save $87 billion. Because the projected savings were rescored for a lower amount and the cost of the Pell Grant program has increased significantly, recent reports had indicated that several programs in the House version of the student loan reform bill, including AGI, would not be included in final legislation. 

However, AACC, the Obama administration and congressional allies continued to push in recent days for resources for community colleges. Many community college leaders also contacted congressional lawmakers in support of the bill and its principles.

As a result, the bill includes $2 billion in funding for community colleges’ education and training programs. Specifically, the bill contains funding for the Community College and Career Training Grant Program, a new federal Trade Adjustment Assistance (TAA) program that was authorized last year in the federal stimulus legislation but never funded. 

The proposed reconciliation bill would provide $500 million annually over fiscal years 2011-14 for the program for dislocated workers and those who may be laid off, according to AACC.

Grants would be awarded to two-year colleges in all 50 states on a competitive basis, but colleges in each state would receive at least $2.5 million each year. The U.S. Department of Labor would administer the program in line with principles outlined by the Obama administration in its proposed Community College Challenge Grants, which was part of the original AGI. 

“It is our understanding that the programs will not have to serve only TAA-eligible workers or workers who may become unemployed, but they will have to be tailored to their needs,” according to AACC.

The reconciliation bill will also provide crucial funds for the Pell Grant program. The bill would retain a maximum grant of $5,550, which is scheduled to take effect this July 1. For award years 2013-14 through 2017-18, the bill provides a mandatory annual increase to the maximum award by the rate of inflation.

The legislation would also provide $13.6 billion to help fill a large shortfall in the Pell Grant program that has developed because of booming enrollments, which in turn have resulted in more students qualifying for grants. The Pell increase falls short of the original Pell proposal, which would have provided a mandatory increase of the inflationary rate plus one percentage point through 2020. 

“Nonetheless, these resources will help Congress avoid making substantial cuts in the Pell Grant maximum in future years,” according to AACC.

In addition, the bill would provide $2.55 billion of additional funding for historically black colleges and universities, Hispanic-serving institutions and other minority-serving institutions over the next 10 years. It would also continue to fund the College Access Challenge Grants originally authorized in the College Cost Reduction and Affordability Act.

The House plans to vote on the bill on Sunday. Published reports indicate that House Democrats are still working to secure the 216 votes they will need to pass the bill. 

If and when the House passes the legislation, the Senate will then take up the bill. It would need a simple majority of 51 votes to pass. Senate Republicans are expected to offer numerous amendments in an effort to delay or derail the legislation.