August 2, 2011
updated
Funding for HSIs threatened under the Debt Deal
Congress has finally approved, and the President has signed, legislation that would raise the nation’s debt ceiling in time to prevent defaulting. It appears that the deal includes mandates on reduction of federal spending, starting in FY 2012 through FY 2021, that could have a devastating impact on programs that serve Hispanic-Serving Institutions (HSIs) and the nation’s neediest communities.
One of the most controversial mandates in the law is that it requires more than $900 billion in savings over 10 years by capping discretionary spending. Since most federal programs for HSIs, including Title V, are discretionary programs, they are at risk of significant cuts beginning in FY 2012.
“While we are relieved to see Congress defer the threat of default, we are greatly concerned that federal programs that support minority-serving institutions are at risk,” said HACU President & CEO Antonio R. Flores. “Any cuts to HSIs would cause a major setback to these institutions that have suffered from chronic underfunding for years and are now struggling to absorb drastic cuts from state legislatures. Such additional federal cuts would have a negative impact on the education of generations of minority students.”
While the law includes funding to keep the maximum Pell grant award at $5550 until 2013, lawmakers secured funding to keep the program running by eliminating subsidies on graduate Stafford loans.
HACU will continue to oppose cuts to federal programs for HSIs and will be seeking the active participation of its membership.
For additional information, please contact Laura Maristany, Executive Director of Legislative Affairs, (202) 261-2090.