Impact of Federal Budget Process on Higher Education Funding

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The Federal Budget Process has a significant effect on Higher Education Funding, as shown through data on appropriations limits, Pell Grant funding cliffs, and total education appropriations from FY 2008 to FY 2022. The graphs illustrate the challenges and fluctuations in funding levels over the years, highlighting the need for additional appropriations to sustain current policies.

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What the Federal Budget Process Does to Higher Ed Jason Delisle Director, Federal Education Budget Project New America Foundation Delisle@newamerica.org

The Budget Fights: Appropriations Limits Pre- and Post-Sequestration 1300 1250 1200 1150 1100 $ in billions 1050 1000 950 900 850 800 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Pre-Sequestration Trigger Post-Sequestration Trigger Bipartisan Budget Act Sources: New America Foundation, Congressional Budget Office

Total Education Appropriation & All Appropriations FY 2008-FY 2014 180 1.60 160 Dept. of Ed Appropriation: $ in billions 1.50 Total Appropriations: $ in trillions 140 120 1.40 100 1.30 80 60 1.20 40 1.10 20 0 1.00 2008 2009 2010 2011 2012 2013 2014 ED Appropriation Sequester Total Appropriations Sources: New America Foundation, White House Office of Management and Budget

What is the Pell Grant funding cliff?

Pell Grant Funding Cliff: Additional Appropriation to Sustain Current Policy, FY 2008-FY 2021 50.0 45.0 $104.9 billion 40.0 35.0 $ in billions 30.0 25.0 20.0 15.0 10.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 March 2011 2020 2021 Total Funding Funding Cliff CBO Baseline [After CR] Sources: New America Foundation, Congressional Budget Office

Pell Grant Funding Cliff: Additional Appropriation to Sustain Current Policy, FY 2008-FY 2021 50.0 45.0 40.0 $77.5 billion 35.0 $ in billions 30.0 25.0 20.0 15.0 10.0 2008 Total Funding 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 March 2011 2020 2021 Funding Cliff CBO Baseline [Jan. 2012] Sources: New America Foundation, Congressional Budget Office

Pell Grant Funding Cliff: Additional Appropriation to Sustain Current Policy, FY 2008-FY 2022 50.0 45.0 40.0 $68.7 billion 35.0 $ in billions 30.0 25.0 20.0 15.0 10.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 March 2012 CBO Baseline 2021 2022 Total Funding Funding Cliff Sources: New America Foundation, Congressional Budget Office

Pell Grant Funding Cliff: Additional Appropriation to Sustain Current Policy, FY 2008-FY 2023 50.0 45.0 40.0 $47.5 billion 35.0 $ in billions 30.0 25.0 20.0 15.0 10.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Aug 2013 CBO Baseline Total Funding Funding Cliff Sources: New America Foundation, Congressional Budget Office

Pell Grant Funding Cliff: Additional Appropriation to Sustain Current Policy, FY 2008-FY 2024 50.0 45.0 40.0 $38.6 billion 35.0 $ in billions 30.0 25.0 20.0 15.0 10.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 April 2014 CBO Baseline 2023 2024 Total Funding Funding Cliff Sources: New America Foundation, Congressional Budget Office

Federal Student Loans Interest Rates, Refinancing, and Profits

Sen. Elizabeth Warren (D-MA) Photo licensed Creative Commons by Flickr user New America Foundation

Tax Benefits for Higher Ed Do Those Cost Money?

Higher Ed Tax Benefits, FY 2008 - FY 2014 $30.0 $28.23 $28.00 $27.42 $25.0 $21.96 $20.26 $20.0 $ in billions $15.0 $10.85 $8.94 $10.0 $5.0 $0.0 2008 2009 2010 2011 2012 HOPE Tax Credit 2013 2014 American Opportunity Tax Credit Sources: New America Foundation, President s Budget Requests FY 2009 FY 2015 Lifetime Learning Tax Credit Tuition and Fees Deduction Student Loan Interest Deduction 529 (State Tuition) Plans Coverdell Accounts (Edu IRAs)