Federal funding for student aid and education to hold steady until after Nov. 7 elections

Federal funding for student aid, education and health programs will continue at fiscal year (FY) 2006 levels, at least until mid-November.

That's because the U.S. Congress has recessed until Nov. 13 -- after the Nov. 7 elections -- without resolving most of its important spending and policy decisions, including the FY07 Labor-HHS-Education appropriations bill. Funding continues under a continuing resolution through Nov. 17.

The Labor-HHS-Education budget has been a major bone of contention since February, when President George W. Bush proposed cutting almost $1 billion from the student loan program and not increasing funding for the National Institutes of Health (NIH) for the second year in a row. In response, lawmakers promised to shift $7 billion to Labor-HHS-Education from other spending bills to avoid exceeding the president's budget caps.

Before recessing last month lawmakers tried to shift $5 billion from defense programs, but Bush pushed back. Rather than risk a veto, Congress restored $1 billion before passage, clearing the way for significant increases in defense-funded university research programs.

The defense cut gave them an additional $4 billion to shift to Labor-HHS-Education when they return in November, but they have said they will to try to find another $3 billion to fulfill their original $7 billion promise. That is expected to be difficult.

It is unclear how much of this gap Congress will address in the post-election session, with many questions hanging on the outcome of the elections. Along with appropriations -- which are considered "must do" legislation -- the chambers may consider a package to extend such popular tax breaks as the research and development tax credit, the tuition deduction and the state sales tax deduction. The fate of a disaster-assistance package for farmers hit hard by droughts and flooding is less certain.

Because Congress approved a nine-month extension of the Higher Education Act (HEA), which sets education policies and programs and guides the distribution of student financial aid, the pressure is off to enact a broader reauthorization measure this year. Along with the HEA, other items that are likely to wait until next year include immigration reform and measures to enhance American competitiveness supported by the higher education community.

The House may, however, take up the Animal Enterprise Terrorism Act in the post-election session. The legislation, passed by the Senate in late September and strongly supported by the academic research community, strengthens penalties against animal rights advocates who conduct violent or threatening activities against animal researchers and those who care for animals used in research.

Jacquie Powers is manager of federal relations in the Office of the Vice President for Government and Community Relations, and Dianne Miller is a legislative associate in government affairs.

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