Oct. 4, 2012

Lupe Flores


Funding for HSI-related programs facing possible mandatory cuts in 2013

On the return of Congress from the current recess, several budgetary matters that directly concern Hispanic-Serving Institutions will need to be addressed. Appropriations for fiscal year 2013, which began Oct. 1, have not been passed and a six-month Continuing Resolution is in place to allow government operations to continue. The resolution extended fiscal year 2012 levels with a mandatory increase to the top line calculations of .061% through March 27, 2013, which means a slight increase in operational expenses for HSI programs.

However, as a result of the Budget Control Act of 2011 and the failure of the Joint Committee on Deficit Reduction and of Congress to find a way to cut $1.2 trillion by November 11, a sequestration process will impose mandatory cuts beginning January 2013.  The Office of Management and Budget on Sept. 14 outlined the projected mandatory cuts should sequestration go into effect:

  • 8.2% cut to discretionary non-defense programs (that would apply to all discretionary HSI programs, i.e. Title V, Parts I and II, and the USDA HSI program)
  • 7.6% cut non-defense mandatory programs (STEM grants for HSIs would be affected; Pell grants are exempt)
  • 9.6% cut to Defense programs (veterans education benefits are excluded from these cuts)

For additional information, contact Laura Maristany, Executive Director of Legislative Affairs, at lmaristany@hacu.net.