Education Funding

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.

In April, the states and school districts began receiving the first installment of more than $48 billion in federal economic stimulus funds for education and child care appropriated under the American Reinvestment and Recovery Act (ARRA). This unprecedented federal investment in education—from early childhood through college—is a tremendous opportunity for state and local investments to improve our nation's schools. The danger is that states and school districts may squander these funds on ill-conceived projects or use them simply to maintain… more

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.

Barack Obama wants to give families a refundable $4,000 tax credit for college, if their children complete a required amount of community service. It's a fine, conventional Democratic idea. It could be a lot more powerful, though, if Obama coupled it with an old Republican favorite - depositing his $4,000 credit into private accounts like the so-called 529 plans that so many upper-income families use to save for college.

Today the New America Foundation's Federal Education Budget Project released "A Primer on the Budget Resolution's Impact on Education Funding," by the project's Research Director Jason Delisle. The primer serves as an insightful guide to this confusing and often partisan process by which federal education funding is determined. Last week the Congressional budget committees adopted the first drafts of the fiscal year 2009 budget resolution, marking the start of the annual Congressional budget… more

Senate Budget Would Boost Advance Approps By $4 Billion (CongressDaily PM, subscription only)

. . . "There's no reason to do it other than to increase spending," said Jason Delisle, an education analyst at the New America Foundation. Backers "want the money by any means necessary, but the trade-off is the debate gets confused and the budget lacks transparency." Advance funding for education grew out of a timing quirk whereby the academic year… more

The New America Foundation released a paper today providing a detailed analysis of the current budget battle and its implications for education funding. The report finds that education funding has not been a driver of recent increases in federal spending and proposed increases are relatively minor compared to the overall budget.

“One can sincerely argue against education funding increases because of concerns about program effectiveness, efficiency, or value; but to suggest that education spending is the main culprit… more

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

On Monday, the ACLU of Southern California and Public Advocates Inc. released an upbeat progress report on the results of the settlement of Williams vs. California, a class-action suit brought on behalf of the state’s most-neglected students. In the lowest-performing schools, there are more textbooks, adequate facilities and teachers with proper credentials. However, the report, like the settlement, failed to address the bigger issue: achieving "teacher equity" across the state.

And Democrats who voted for the [No Child Left Behind] law five years ago in the glow of post-September 11 bipartisanship are unlikely to do so again now that Bush has failed to deliver the hefty budget increases for education that they expected would accompany it. For the president to persuade a Democratic Congress to reauthorize No Child Left Behind without dismantling it, the bottom line may very well be the bottom line.

"The reason he's still relevant is money,"… more