Yesterday the Senate passed the final version of the FY 2009 budget conference report by a vote of 48 to 45 along party lines. The bill now moves to the House where it is expected to be taken up today. During the appropriations process Congress will use the budget resolution as a guide when constructing spending bills for the coming fiscal year. Among other things, the budget resolution includes an amendment from Senator Ted Kennedy (D-MA) that would allow the chairman of the Senate Budget Committee to increase reserve funds to raise federal student loan limits. Kennedy introduced the amendment back in March.
Kennedy's amendment adds "increasing federal loan limits" to the list of items the Senate Budget Committee chairman could make to the higher education reserve fund to "make higher education more accessible or more affordable." Currently the Budget Committee Chairman can revise the higher education reserve fund to increase funding for the Pell Grant, facilitate modernization of school facilities, or decrease the cost of teachers' out-of-pocket expenses for school supplies.
Whether loan limits will increase under Kennedy’s amendment is speculative since the recently passed "Ensuring Continued Access to Student Loans Act" (H.R. 5715) has already raised federal loan limits for undergraduate students with loans first disbursed on or after July 1.
The budget resolution also includes significant investments in energy, education, and infrastructure. Even with these investments, the overall spending level is very close to the President’s proposed level. There is only a one percent difference in total spending in 2009 between the budget and the President’s fiscal plan, according to a press release from Senate Budget Committee Chairman Kent Conrad (D-ND).
This may be the first time Congress has adopted a budget resolution during an election year since 2000. But given that the president has already threatened a veto, it is doubtful that any spending requests over the president’s budget will be approved this year, leaving spending levels frozen until the next president takes office in 2009.
By Justin Draeger
NASFAA Associate Director for Communications
Posted 06/05/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
