Policy Papers: Federal Education Budget Project

Each year, the federal government guarantees billions of dollars in loans disbursed through the Federal Family Education Loan (FFEL) Program, a public-private partnership that provides financial aid to students attending institutions of higher education. Despite the significant investment of taxpayer dollars, the actual  administration of the FFEL Program is largely handled by participating lenders and a group of 35 non-federal guaranty agencies across the country. Guaranty agencies perform a number of administrative functions, such as disbursing federal default insurance provided… more

On Monday, June 8, the New America Foundation's Federal Education Budget Project released "Equitable Resources in Low Income Schools: Teacher Equity and the Federal Title I Comparability Requirement" at an event on Capitol Hill. This event featured representatives from the White House, Representative George Miller's committee staff, and the National Education Association to discuss teacher equity and the comparability requirement in the law. Education Policy Program MaryEllen McGuire introduced the issue using this PowerPoint presentation.

Teachers with the least experience and fewest credentials teach in our poorest schools, putting low-income students at a disadvantage. School finance disparities in teacher spending within school districts are a major cause of this problem. However, school district budgeting techniques mask these intra-district disparities, allowing administrators and policymakers to ignore them.

In May of 2008, Congress passed the Ensuring Continued Access to Student Loans Act (ECASLA) in response to concern that credit market conditions could disrupt federal student loan availability. The law gives the U.S. Department of Education temporary authority to purchase federally backed student loans made by private lenders, effectively providing a secondary market for the loans. Congress opted to leave the new purchase authority largely undefined in statute, giving the Department considerable discretion to design and administer it.

President Barack Obama submitted his first budget request to Congress on May 7, 2009. This request follows the initial summary budget request he submitted in February that included only aggregate funding levels for federal programs and agencies.

President Barack Obama submitted his first budget request to Congress on Thursday, May 7, 2009. This request follows the initial summary budget request he submitted in February that included only proposed funding levels for federal programs and agencies in aggregate. The detailed budget request includes proposed funding levels for federal programs and agencies in aggregate for the upcoming five to ten fiscal years, and specific fiscal year 2010 funding levels for programs subject to appropriations. The president's 2010 budget request… more

It is a stark, indisputable fact that many of America's high school graduates are not ready for the rigors of college. Fewer than half of the high school juniors and seniors who took the ACT national college admissions test in 2008 met its college readiness benchmark in mathematics.[1] Of the 40,000 freshmen admitted into the California State University system in 2007, more than 60 percent needed remediation in English or math.[2] Nationwide, nearly a… more

The budget resolution put forward by Congress each year sets out a budget plan for the next five to ten years. The budget resolution and the ensuing budget process itself can have significant effects on education funding. The arcane procedures Congress uses to produce and act upon the budget resolution, however, are often confusing to the media and education advocates alike. This confusion is made worse by political rhetoric and partisan spin.

Congress completed the fiscal year 2009 appropriations process on March 10th, 2009, finalizing annual funding for nearly all federal education programs through September 2009 at $62.6 billion, up $3.4 billion from the prior year. Making sense of the federal education budget and the appropriations process can be a frustrating task for education advocates, state and local policymakers, the media, and the public. The now concluded fiscal year 2009 appropriations process is no exception due to numerous stopgap funding measures and… more

Far too many students leave high school unprepared for the rigors of college and the workplace. Nearly a third of all incoming freshmen- 42 percent of first-year students at public two-year colleges-require remediation. At some postsecondary institutions, more than 90 percent of first-time freshmen need to take remedial classes before enrolling in courses that count toward their degrees. Remedial courses are offered at 99 percent of public two-year colleges and more than 75 percent of public four-year institutions.

An updated version of this paper can be found here.

In May of 2008, Congress passed the Ensuring Continued Access to Student Loans Act (ECASLA) in response to concern that credit market conditions could disrupt federal student loan availability. The law gives the U.S. Department of Education temporary authority to purchase federally backed student loans made by private lenders, effectively providing a secondary market for the loans. Congress opted to leave the new purchase authority largely undefined in statute, giving… more

When Congress resumes consideration of the reauthorization of the No Child Left Behind Act, strengthening the federal role in supporting high school reform will be a key issue on the agenda, and with good reason. While elementary school students, on whom most of NCLB’s funding and accountability requirements focus, have made significant achievement gains in recent years, high school achievement has stagnated. Only 70 percent of high school freshmen graduate within four years. Among those who do make it to… more

In an ongoing debate about the relative costs of the federal government’s direct and guaranteed student loan programs, some budget experts and private lenders have argued for the use of “market cost” estimates. They assert that official government cost estimates for federal student loans differ from what private entities would likely charge taxpayers to deliver the benefits and services the program provides. A market cost estimate would take such information into account.

The budget resolution put forward by Congress each year -- which sets out the congressional budget plan for the next five years -- and the ensuing budget process itself are enormously significant for education funding. However, the arcane procedures under which Congress produces and acts upon the budget resolution are often confusing to the media and education advocates alike. This confusion is made worse by political rhetoric and partisan spin. This brief by the New America Foundation’s Federal Education Budget… more

President George W. Bush submitted his eighth and final budget request to the Congress on Monday. Under the proposal, fiscal year 2009 discretionary spending—spending subject to annual appropriations—would be at the same level as in the prior year for domestic programs and agencies not involved in homeland security efforts. The budget request for the Department of Education fits this general theme. Fiscal year 2009 discretionary spending at the Department of Education would total $59.2 billion, the same level of funding… more

1) The administration proposes increasing No Child Left Behind (NCLB) Title I grants to school districts by 2.9 percent, essentially an increase matching inflation. It also proposes redirecting a greater proportion of Title I funds to high schools. Does this mean that school districts will have to cut Title I funding for K-8 schools, since districts will effectively receive the same level of funding as in the previous year? How will this affect the student achievement in grades 3… more

Next week, President George W. Bush will submit his eighth and final budget request to the Congress. How has he fared with respect to education budget proposals thus far? Answer: although President Bush made the No Child Left Behind Act, which deals with elementary and secondary education, the hallmark of his education policy, from a federal education budget standpoint, the Bush administration’s most lasting legacy thus far is in higher education. The New America Foundation’s Federal Education Budget Project evaluated all… more

The Congressional Democratic majority has made increasing education funding a priority in its fiscal year 2008 spending plan. Their Labor, Health and Human Services, Education and Related Agencies (Labor-H) appropriations conference agreement proposes increases in education for fiscal year 2008 that, if enacted, would result in one of the largest year-over-year increases (in nominal terms) in Department of Education funding since the No Child Left Behind Act was passed in 2002.

The White House and Congress are approaching a major budget debate that could markedly influence federal education funding. This is the first budget cycle since 2000 during which different political parties control the Executive Branch and both chambers of Congress. The federal budget and appropriations process is rarely without acrimony, but this year’s battle may be especially rancorous.

The Federal Education Budget Project finds that although Congress plans a significant increase in federal spending on schools, teachers, and students --… more

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America's financial aid system imposes too much debt on college graduates, provides too much taxpayer support to banks making college loans, and demands too little of students assuming them. A new "College Access Contract" would allow low-income students to graduate with zero federal student loan debt -- and middle-class students to graduate with interest-free… more