SENATE

On Thursday, the Senate Judiciary Committee began to mark up the immigration bill released by the Gang of 8. The bill includes several education-related provisions such as the DREAM Act, STEM education funding, English language skills and education visa requirements. The Committee posted a list of amendments that were considered on May 9, and a full list of amendments. The mark up is expected to continue for several weeks.

The Senate Health, Education, Labor and Pensions Committee delayed the vote on the nomination of Secretary of Labor-Designate Thomas E. Perez for the second time. The vote was scheduled for this past Thursday, but was postponed to Thursday, May 16 at 9:15 a.m.

HOUSE
Several Congressmen introduced bills this week that address the scheduled doubling of the student loan interest rate on July 1:

• Chairman Kline (R-MN) and Rep. Foxx (R-NC) introduced a student loan interest rate bill on Thursday. H.R. 1911, The Smarter Solutions for Students Act, would establish a variable rate structure for Stafford and Parent PLUS student loans (with such rate resetting once each year for new loans and loans made after July 1 of this year) based on the 10-year Treasury Note plus 2.5% for Stafford Loans and 4.5% for Parent PLUS Loans.  The interest rate would be capped at 8.5% for Stafford Loans and 10.5% for PLUS Loans. The bill is reported to save $3.7 billion over 10 years.
• Rep. Tierney (D-MA) and Rep. Courtney (D-CT) introduced a bill, the Responsible Student Loan Solutions Act of 2013.  A similar bill was also introduced in the Senate by Senator Reed (D-RI) and Durbin (D-IL).  These bills would also establish a variable interest rate structure for Stafford and Parent PLUS loans, with the student interest rate being set once a year and remaining fixed for the life of a borrower’s loan.  The variable rate structure would be based on the 91-day Treasury Note plus an add-on determined by the U.S. Department of Education based on the cost of operating the student loan programs.  In addition, this legislation would increase loan limits for subsidized Stafford Loans and allow individuals with existing high rate Federal student loans to “refinance” their loans under the new variable rate structure.

The House Education and Workforce Committee held a full committee hearing  titled “Raising the Bar: Exploring State and Local Efforts to Improve Accountability” on May 7. Witnesses included the Louisiana State Superintendent of Schools, a district superintendent from MN, the CEO of the Cleveland Metropolitan School District, and the Chief Development Officer of EdisonLearning. Education Week reported that during the hearing, Chairman Kline stated that the committee will act on reauthorizing the Elementary and Secondary Education Act “in the coming months.”

ADMINISTRATION
It was publicly reported that Jane Oates, the Assistant Secretary for Employment and Training at the U.S. Department of Labor, intends to leave her post effective June 1.

The U.S. Department of Education announced that Alejandra Ceja has been appointed Director of the White House Initiative on Educational Excellence for Hispanics.

GRANT OPPORTUNITIES
Penn Hill Group provides a weekly list of grant opportunities, and summaries for select grants. Please visit our website for more information.

SENATE
The Senate was in recess last week.

On May 9 at 9:30 a.m., the Senate Judiciary Committee will begin to mark up the immigration bill released by the Gang of 8. The bill includes several education-related provisions such as the DREAM Act, STEM education funding, English language skills and education visa requirements. Politico reports that subsequent markup dates have been scheduled on May 14, May 16, and May 20, due to the many amendments the Chairman expects to be filed. All amendments must be filed by 5:00 p.m. on Tuesday, May 7, and the amendments will be posted online.

The Senate Health, Education, Labor and Pensions Committee will vote on the nomination of Secretary of Labor-Designate Thomas E. Perez on May 8 at 10:00 a.m.

HOUSE
The House was in recess last week.

A group of House Republicans, including Labor/HHS/Education Appropriations Subcommittee Chairman Jack Kingston, sent a letter to Education Secretary Arne Duncan last week, expressing concern with the Department’s No Child Left Behind waiver process, and the Department’s practice of tying Race to the Top funds to states’ implementation of the Common Core State Standards.  The letter further expresses concern about the Department’s regulatory changes to the Family Education Rights and Privacy Act (FERPA) in 2011 and the connection between the common core and the implementation of the Statewide Data Systems program. The letter urged the Secretary to work with Congress on a reauthorization of the Elementary and Secondary Education.

The House Education and Workforce Committee will hold a full committee hearing  titled “Raising the Bar: Exploring State and Local Efforts to Improve Accountability” on May 7 at 10:00 a.m. Witnesses include the Louisiana State Superintendent of Schools, a district superintendent from MN, the CEO of the Cleveland Metropolitan School District, and the Chief Development Officer of EdisonLearning.

ADMINISTRATION
The U.S. Department of Education announced the beginning of the Investing in Innovation competition for scale-up and validation grants. Applications are due July 2, 2013.

The Department of Education announced recalculated sequester related reductions for the amount of aid students would receive under TEACH grants (7.1%) and Iraq/Afganistan Service Grants (10%) for this award year and next award year.

GRANT OPPORTUNITIES
Penn Hill Group provides a weekly list of grant opportunities, and summaries for select grants. Please visit our website for more information.

Penn Hill Group Principal Vic Klatt recently spoke at a U.S. Chamber of Commerce- Institute for a Competitive Workforce conference titled “Upgrade America,” which explored ways to upgrade America’s education system for the modern economy. Klatt gave an overview of federal activity on education and workforce issues. The conference included sessions with various education leaders, including U.S. Secretary of Education Arne Duncan, Council of Chief State School Officers Executive Director Chris Minnich, and Governor Robert Wise, former Governor of West Virginia and President of the Alliance for Excellent Education.

SENATE
The Senate Judiciary Committee announced that it will mark up the immigration bill released by the Gang of 8 on May 9. The bill includes several education-related provisions such as the DREAM Act, STEM education funding, and education visa requirements.

The Senate Health, Education, Labor and Pensions Committee was scheduled to vote on the nomination of Secretary of Labor-Designate Thomas E. Perez last week, but they have postponed the vote to May 8 to allow more time for committee members to request additional information they need. The committee held a confirmation hearing for Secretary of Labor-Designate Thomas E. Perez last week. Secretary of Labor-Designate Perez received questions about Job Corps and job training programs as well as questions regarding his actions on civil rights matters at the Justice Department.

The Senate will be in recess this week.

HOUSE
The House Education and Workforce Committee, on a bipartisan basis, has asked for public input into the reauthorization of the Higher Education Act. To submit feedback, email HEA.Reauth@mail.house.gov.

The House Education and Workforce Committee held a Higher Education and Workforce Training Subcommittee hearing titled “Keeping College Within Reach: Enhancing Transparency for Students, Families, and Taxpayers.”

The House will be in recess this week.

ADMINISTRATION
The U.S. Department of Education released a new blueprint for the RESPECT initiative (Recognizing Educational Success, Professional Excellence, and Collaborative Teaching), included in their 2014 Budget Request.

The U.S. Department of Education announced that Brenda Dann-Messier will be Acting Assistant Secretary for Postsecondary Education, in addition to maintaining her role as Assistant Secretary for Vocational and Adult Education.

BUDGET
The U.S. Department of Education posted its final FY 2013 funding table on Friday.

Both the House and Senate Appropriations Committees held subcommittee hearings on the FY2014 President’s budget request for the Department of Health and Human Services, with HHS Secretary Kathleen Sebelius testifying.

GRANT OPPORTUNITIES
Penn Hill Group provides a weekly list of grant opportunities, and summaries for select grants. Please visit our website for more information.

BUDGET
Acting Labor Secretary Seth D. Harris testified at a House Labor, Health and Human Service, Education and Related Agencies Subcommittee hearing on the budget for the Department of Labor on Tuesday, April 16. Acting Secretary Harris was asked several questions about job training and the Job Crops program, among other things.

The Senate Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies held a hearing on Wednesday, April 17 on the FY 2014 Budget Request for the Department of Education, with Education Secretary Arne Duncan testifying. Many of the Senators were concerned with the emphasis on competitive funding in the President’s budget request.

Both the House and Senate Appropriations Committees will hold subcommittee hearings on the FY2014 President’s budget request for the Department of Health and Human Services, with HHS Secretary Kathleen Sebelius testifying. The Senate Appropriations hearing is scheduled for April 24 at 10:00 a.m., and the House Appropriations hearing is scheduled for April 25 at 10:00 a.m.

SENATE
The Mental Health Awareness and Improvement Act, a bill that expands mental health services in school, including expanding the use of positive behavior support services, and increasing early-intervention services, was to be offered as an amendment to gun control legislation that was debated by the Senate this week, but Senate Majority Leader Harry Reid has pulled the gun control measure after a failed vote on increasing background checks for gun buyers. There is discussion among some Senators about trying to move the Mental Health Awareness and Improvement Act as a separate bill in the coming weeks.

A bipartisan group of senators (the Gang of 8) unveiled a comprehensive immigration bill that include several education-related provisions such as the DREAM Act, STEM education funding, and education visa requirements.

The Senate Health, Education, Labor, and Pensions Committee held a full committee hearing on Tuesday, April 16 titled “The Challenge of College Affordability: The Student Lens.” Witnesses include two college students, a representative of the US Public Interest Research Group, and a professor from the University of Wisconsin-Madison.

The Senate Health, Education, Labor and Pensions Committee held a confirmation hearing for Secretary of Labor-Designate Thomas E. Perez on Thursday, April 18. Secretary of Labor-Designate Perez received questions about Job Crops and job training programs as well as questions regarding his actions on civil rights matters at the Department of Justice.

HOUSE
The House Education and Workforce Committee held a Higher Education and Workforce Training Subcommittee hearing on Tuesday, April 16 titled “Keeping College Within Reach: The Role of Federal Student Aid Programs.”

ADMINISTRATION
The U.S. Department of Education announced a second round of the Race to the Top – Early Learning Challenge competition, as well as a Race to the Top competition for districts. There is $120 million available for the district competition, and $370 million for early-learning initiatives. The Department is currently accepting comments on their proposed priorities for the district competition, and more details will be announced at a later point.

On Friday April 19, the Departments of Labor and Education announced that $474.5 million will be available for a new round of the Trade Adjustment Assistance Community College and Career Training (TAACCCT) grant program. The program strengthens training partnerships between community colleges and employers.

Department of Education Secretary Arne Duncan met with business leaders on Tuesday, April 16 and asked them to continue their support of the Common Core State Standards.

The Department of Education announced an agenda for a new round of negotiated rule-making on postsecondary education. The Department will revisit state authorization and gainful employment, as well as address other HEA Title IV integrity issues including Pell Grant issues.   The Department also indicated future negotiated rule-making would take place on college affordability and quality of higher education issues.

GRANT OPPORTUNITIES
Penn Hill Group provides a weekly list of grant opportunities, and summaries for select grants. Please visit our website for more information.

BUDGET
President Obama’s fiscal 2014 budget, released on Wednesday, proposes $71.2 billion in discretionary spending for the U.S. Department of Education, which is an increase of $3.1 billion or 4.5 percent over the fiscal year 2012 level (OMB summary of ED budget, ED materials on the budget). The proposal includes $75 billion over 10 years for a new Preschool for All initiative aimed at assisting states in providing preschool for 4-year-olds from low- and moderate-income families. It also includes $300 million for a new High School Redesign program, calls for the adoption of a variable interest rate structure for Federal student loan programs, funds several new STEM related initiatives and renews a proposal from last year’s budget for a $1 billion Race to the Top initiative focused on college affordability and completion. Lastly, the budget continues the trend of the last few years in Administration budget requests by calling for an increase in funding for IES programs.

The President’s budget request provides a $20 million increase for the Department of Labor discretionary programs compared to FY 2012, for a total of $12.1 billion for FY 2014 (DOL materials on the budget). Included in the DOL budget materials is a call to consider additional consolidation of job training programs.

The President’s budget request proposes a $3.9 billion increase for the Department of Health and Human Services compared to FY 2012, for a total of $80.1 billion for FY 2014 (HHS materials on the budget). Included in the HHS budget is $1.4 billion to expand Early Head Start and $200 million in increased funding for the Child Care Development Block Grant.

The House Appropriations Committee held a Labor, Health and Human Services, Education and Related Agencies Subcommittee hearing on the FY2014 budget request for the Education Department. Education Secretary Arne Duncan testified. The hearing focused much attention on the President’s preschool proposal.

Acting Labor Secretary Seth D. Harris will testify at a House Labor, Health and Human Service, Education and Related Agencies Subcommittee hearing on the budget for the Department of Labor. The hearing is set for Tuesday, April 16 at 10:00 a.m.

The Senate Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies will hold a hearing on Wednesday, April 17, at 10:00 a.m. on the FY 2014 Budget Request for the Department of Education, with Education Secretary Arne Duncan testifying.

SENATE
Senators Harkin (D-IA) and Alexander (R-TN) introduced S. 639, the Mental Health Awareness and Improvement Act of 2013. The bill passed the Senate HELP Committee on Wednesday. The bill expands mental health services in schools, including expanding the use of positive behavior support services, and increasing early-intervention services.  It is likely that this bill is offered as an amendment to the legislation presently being debated by the full Senate on gun control.

Senators Alexander (R-TN), Coburn (R-MD), and Burr (R-NC) introduced legislation last week to institute a variable interest rate structure for federal student loans.

The Senate Health, Education, Labor, and Pensions Committee will hold a full committee hearing on Tuesday, April 16 at 10:00 a.m. titled “The Challenge of College Affordability: The Student Lens.” Witnesses include two college students, a representative of the US Public Interest Research Group, and a professor from the University of Wisconsin-Madison.

The Senate Health, Education, Labor and Pensions Committee will hold a confirmation  hearing for Secretary of Labor-Designate Thomas E. Perez on Thursday, April 18 at 10:00 a.m.

HOUSE
The House Education and Workforce Committee will hold a Higher Education and Workforce Training Subcommittee hearing titled “Keeping College Within Reach: The Role of Federal Student Aid Programs” on Tuesday, April 16 at 11:00 a.m. Witnesses will be Terry Hartle, Senior Vice President, American Council on Education; Moriah Miles, Minnesota State University Student Association; Patricia McGuire, President, Trinity Washington University; Dan Madzelan, Former Employee, US Department of Education.

ADMINISTRATION
Deputy Secretary Tony Miller announced he will be leaving the U.S. Department of Education in May. The Secretary has recommended that Jim Shelton, currently the Assistant Secretary for Innovation and Improvement, replace him.

HOUSE and SENATE
Both Houses were in recess last week.

The House Education and Workforce Committee will hold a Higher Education and Workforce Training Subcommittee field hearing titled “Reviving Our Economy: The Role of Higher Education in Job Growth and Development” on April 9 at 9 a.m. in Monroe, Mich.

The House Education and the Workforce Committee will hold an Early Childhood, Elementary, and Secondary Education Subcommittee hearing titled “Raising the Bar: Reviewing STEM (Science, Technology, Engineering, and Mathematics) Education in America” on April 10 at 10 a.m. in 2175 Rayburn.

On April 11, the House Appropriations Committee will hold a Labor, Health and Human Services, Education and Related Agencies Subcommittee hearing on the FY2014 budget request for the Education Department at 10 a.m. in 2358-C Rayburn. Education Secretary Arne Duncan will testify.

The deadline for Members to submit appropriations requests to the House Labor, HHS, Education Appropriations Subcommittee is April 22 (full list of subcommittee deadlines).  The deadline was extended from its original date of April 15. The deadline for the counterpart subcommittee in the Senate is April 26.

ADMINISTRATION
The White House announced last week it will release the President’s FY2014 Budget on April 10.

BUDGET
President Obama signed the $984 billion appropriations measure that will fund the federal government through the end of the fiscal year in September. The bill passed both the Senate and House the week of March 18. The Office of Management and Budget has determined that an additional 0.2% across the board cut must be made to non-security programs because the overall spending in the bill was above the caps for FY 2013.  This 0.2% cut will impact all programs, including those that are not impacted by sequestration (such as Pell Grants).  Including the cuts made due to sequestration, non-exempt programs will be cut approximately 5.2% from their 2012 levels.  As we have reported previously, an additional $30 million was made available for Job Corps from unobligated DOL funding.

The Senate passed an FY14 budget resolution on March 23rd by a vote of 50-49. The budget resolution calls for $975 billion in increased tax revenues and for replacing the sequester with a mix of tax revenues, and cuts to defense and non-defense spending at about half the amount that are scheduled to occur under the sequester.

HOUSE and SENATE
Both Houses are in recess this week.

ADMINISTRATION
The U.S. Department of Education announced the fourth round of the Investing in Innovation (i3) fund competition, which begins with a pre-application process for development grants. The deadline for pre-applications is April 26, 2013, after which the Department will announce a list of highly rated pre-applications who will be invited to apply for the development grant. The timeline for validation and scale-up grants will be announced at a later date.

The U.S. Department of Education released a statement on a request for an ESEA waiver from a consortium of California school districts. The Department said that while it prefers to work with states, because California does not currently have an application, and because the consortium serves a large number of students, the Department will consider the district-level request.  In this statement, the Department said that it has moved the application to the peer review stage.

BUDGET
The Senate approved a $984 billion appropriations measure on Wednesday, by a vote of 73-26, which would fund the federal government through the end of the fiscal year in September. The House followed suit, passing the measure with a 318-109 vote on Thursday, and the bill now heads to the President. Department of Education and Labor programs were almost entirely funded at 2012 levels, minus a 5% cut due to sequestration.  An additional $30 million was made available for Job Corps from unobligated DOL funding.

The House passed the FY14 budget resolution offered by Budget Committee Chairman Paul Ryan by a 221-207 vote on Thursday. The budget resolution includes reconciliation instructions for eight House Committees, including the Education and the Workforce Committee, to produce legislation generating savings of $1 billion each over the next 10 years.

Votes on the Senate FY14 budget resolution, which was passed by the Senate Budget Committee, began on Friday afternoon. The Senate budget resolution calls for $975 billion in increased tax revenues and for replacing the sequester with a mix of tax revenues, and cuts to defense and non-defense spending at about half the amount that would be necessary under the sequester.

HOUSE and SENATE
Both the House and the Senate will be in recess March 25 through April 5.

ADMINISTRATION
The U.S. Department of Education issued guidance to institutions of higher education regarding the use of competency based approaches in awarding federal student aid.

The U.S. Department of Education announced that it will allow the 12 Race to the Top winning states an extra year to finish their work. The Department will consider requests from states on a project-by-project basis. The original deadline to spend Race to the Top funds was July, 2014. This would potentially extend the deadline to July, 2015.

During an event with Council of Chief State School Officers last week, Education Secretary Arne Duncan confirmed that he is open to granting district-level ESEA waivers and specifically stated that the Department is in discussion with a group of California school districts.

A federal judge ruled against the U.S. Department of Education last week, on a motion to reinstate the Department’s “gainful employment” provisions that were invalidated last year.

BUDGET
The Senate began debate last week on their version of a year-end appropriations measure.  The Senate action follows the House passage of similar legislation.  The Labor/HHS/Education section of the Senate bill is funded via a continuing resolution with a few anomalies related to funding for Job Corps and student safety.  The House version for Labor/HHS/Education provides 2013 funding at the 2012 level, minus the 5% sequestration cut and an additional .098% reduction.  The Senate version funds Labor/HHS/Education programs at the 2012 level minus the 5% sequestration cut.  Education-related amendments offered during Senate consideration included:

• Senator Tom Harkin (D-IA) offered a full-year Labor-HHS-Education appropriations bill as an amendment to the Senate bill during debate on Thursday, but the amendment failed by a vote of 54-45 (60 votes were needed for the amendment to pass).
• Senators Alexander (R-TN), Bennet (D-CO), and Burr (R-NC) have filed an amendment asking for a set-aside of $1 million from the Fund for the Improvement of Postsecondary Education for a National Research Council study on the impacts of Federal regulations and reporting requirements on institutions of higher education.

The current continuing resolution expires on March 27.

Both Republicans and Democrats released FY14 budget proposals.  The House Budget Committee marked up the Ryan budget resolution on Wednesday, approving the plan by a vote of 22-17.  The Senate Budget Committee also passed their budget resolution by a vote of 12 to 10 on Thursday.  Of note, the House Budget Resolution calls for reconciliation instructions for eight House Committees, including the Education and the Workforce Committee, to produce legislation generating savings of $1 billion each. In contrast, the Senate Budget Resolution only requires reconciliation by the Finance Committee, calling for $975 billion in increased tax revenue.

HOUSE and SENATE
The House of Representatives passed the Education and the Workforce Committee’s Workforce Investment Act reauthorization bill (H.R. 803, the SKILLS Act) last week by a 215 to 202 vote.

ADMINISTRATION
The Consumer Financial Protection Bureau announced last week that it will extend its oversight of student loan servicers to nonbank student loan servicers. This will apply to any nonbank student loan servicer that handles more than 1 million borrower accounts.