FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Sr. Director, Strategic Communications
(202) 785-6954
[email protected]

WASHINGTON, D.C., JUNE 26, 2024 — On Wednesday, the House Appropriations Committee released its fiscal year 2025 bill for the Labor, Health and Human Services, Education, and Related Agencies Subcommittee.

The bill, which is awaiting consideration by the full House Appropriations Committee, contains an overall request of $68.1 billion to the Department of Education (ED), a reduction of $11 billion from the fiscal year 2024 enacted level and $14.5 billion less than the president’s budget request. The measure would flat-fund the Pell Grant program and cut funding in half for the campus-based aid programs — the Federal Supplemental Educational Opportunity Grant (FSEOG) program and Federal Work-Study (FWS). The GOP proposal also decreases funding for student aid administration to $1.5 billion, a 26% cut from fiscal year 2024 and more than 44% lower than the Biden administration’s request of $2.7 billion.

In response to this news, NASFAA Vice President of Public Policy & Federal Relations Karen McCarthy released the following statement:

"Cutting funding for programs that provide financial assistance to students pursuing a postsecondary education is short-sighted and will only harm our nation in the long-run. 

After this year’s chaotic rollout of the Free Application for Federal Student Aid, or FAFSA, many low-income students are left scrambling to figure out how or if they can pay for college — and many others have likely given up on attending college altogether. Certainly, curbing funding for the very programs that in many cases make all the difference for financially needy students is not the way to encourage talented students to pursue a postsecondary degree or credential.

NASFAA stands opposed to the proposed steep funding decreases for the Federal Supplemental Educational Opportunity Grant (FSEOG) program, which helps students from the lowest income backgrounds, and the Federal Work-Study program, which allows needy students to contribute to financing their education. We are also alarmed by the proposed 26% cut to student aid administration, particularly when we cannot afford a repeat of this year’s mishaps with the FAFSA.

We appreciate that there continues to be bipartisan commitment to preserving both the Pell Grant program and the program reserve fund, and look forward to working with lawmakers to restore the program’s purchasing power by doubling the maximum award. However, level funding for the Pell Grant for the second straight year combined with cuts to complimentary programs would — in the aggregate — leave students further behind.

Just this week, the Congressional Budget Office projected that more than 1 million fewer students than previously estimated will receive a Pell Grant for the coming school year. That’s not due to a decrease in need, but rather due to issues with the rollout of the FAFSA application that have most acutely impacted the students and families with the fewest resources. 

Now is the time to be investing in federal financial aid for college-bound students, and at a minimum maintaining funding for the office that administers the FAFSA application, not slashing it."

NASFAA policy experts are available to speak to members of the media about the impact of proposed budget cuts. To set up an interview, please email [email protected] or call (202) 785-6954.

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About NASFAA

The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.