Final Federal Spending Bill Backs Off Earlier Student Aid Increases

A massive federal spending bill signed into law Dec. 26 by President Bush contains reduced funding levels for several major federal student aid programs, as compared with an appropriations bill originally approved by the U.S. Congress.

The president vetoed the earlier spending measure. After failing to override the veto, members of Congress constructed a compromise consolidated fiscal 2008 spending bill that combines 11 separate appropriations.

The consolidated spending bill includes more than $16 billion in support for federal student assistance programs, a $539 million increase over fiscal 2007 levels.

The measure provides discretionary funding to support a $4,241 maximum Pell Grant for the 2008-2009 award year. Including mandatory Pell Grant funding provided by the College Cost Reduction and Access Act, the actual maximum Pell Grant will be $4,731, a $421 increase over the 2007-2008 maximum.

The Federal Work-Study Program will receive a modest $138,000 increase. On the other hand, funding for Federal Supplemental Educational Opportunity Grants will be reduced by $13.5 million to $757.5 million. Funding for Perkins loan cancellation and Leveraging Educational Assistance Partnership grants will be reduced by approximately $1.1 million for each program, to $64.3 million and $63.9 million respectively.

Funding for Federal TRIO and GEAR UP programs will be the same as for the last fiscal year.