Spending bill would increase Pell Grants, worker training
By Matthew Dembicki, Published December 11, 2009
Appropriators from the U.S. House and Senate have crafted a compromise spending bill that would set the maximum Pell Grant at $5,550 and provide $1.4 billion for worker training.

The bill would provide $17.5 billion to maintain the discretionary portion of the maximum Pell Grant award at $4,860, which, combined with a mandatory supplement of $690, would increase the Pell maximum by $200.

About $603 million (a $96 million increase) would go toward strengthening minority-serving institutions to boost capacity of historically black colleges and universities, Hispanic-serving institutions, tribal colleges and other institutions.

TRIO would see a $5 million increase, receiving $853 million, and GEAR UP would see a $10 million increase, to $323 million, to assist about 1.6 million disadvantaged and first-generation students to prepare for and complete college.

The bill would also provide $628 million for adult basic literacy education, a $74 million increase. The state formula grants will enable more than 3 million adults to acquire basic literacy skills, complete a secondary education and become more employable. The extra funding will enable such program to serve 316,000 more adults than last year, according to appropriators.

Funding for training programs would also see an increase. Dislocated worker training programs would receive $1.4 billion, a $71 million increase, for training and supportive services to workers affected by mass layoffs and plant closures. More than 2.6 million workers lost their jobs through October because of mass layoffs, the highest number since the Bureau of Labor Statistics began collecting such data in 1995, according to federal officials.

Appropriators would also set aside $45 million for a new initiative based on a proven employment strategy to help workers who face substantial barriers to entering the workforce, including substance abuse, poor mental and physical health, disability and low educational attainment.

The bill would also provide $40 million to prepare workers for careers in energy efficiency and renewable energy. The new initiative would help 8,000 workers enter careers in emerging green industries.

The bill would level-fund appropriations for the Career Pathways Innovation Fund at $125 million. The fund provides competitive grants to community colleges and partnerships with local adult education providers to prepare workers for careers in high demand and emerging industries. The bill directs that roughly half of these funds, $65 million, be used to train workers for careers in the health care sector.

Lawmakers also tried to address shortages in health care professions by providing $498 million—a $105 million increase over 2009—to support the training of students across health professions and nursing fields. Lawmakers noted that some of the programs are specifically targeted to disadvantaged, underserved populations. The bill would also provide $244 million ($73 million increase) specifically to train nurses.

“This substantial increase is essential because the U.S. is in the midst of a nursing shortage that is expected to intensify as baby boomers age and the need for health care grows,” according to a congressional outline of the bill. It noted that the Health Resources and Services Administration estimates that the nation's nursing shortage will grow to more than one million nurses by the year 2020.

Training program targeting older workers would receive $825 million, $254 million above 2009, to provide community service opportunities for approximately 125,000 low-income seniors The program places low-income, unemployed adults over age 55 in training and subsidized employment with community service organizations.

“With the recession’s impact on older workers, these additional funds are needed to provide income-producing opportunities for eligible individuals,” according to the outline of the bill. Veterans employment and training programs would receive $256 million, $23 million above 2009, to help veterans transitioning to the civilian workforce.

In addition, the bill would set aside $6 million for the Centers of Excellence for Veterans Success, a new U.S. Department of Education initiative to establish college and university-based support centers for veterans seeking to obtain a postsecondary education.