BUDGET RECONCILIATION NEWS
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Richest U.S. Colleges Would See Relief under Democrats’ Tax Plan
A tax on the richest private U.S. college endowments would be curtailed under a plan by House Democrats, provided the schools address tuition costs. The provision would reduce the tax through a calculation that weighs revenues from undergraduate tuition and fees against undergraduate financial aid, according to Liz Clark, a vice president at the National Association of College and University Business Officers. The language is included in the text of a bill released late Friday by the House Ways and Means Committee, which will resume debate on its portion of President Joe Biden’s $3.5 trillion economic agenda next week. A group of higher-education trade groups asked for the tax to be repealed in a letter in June. The 1.4% tax on investment earnings affected roughly three dozen private colleges with endowments of at least $500,000 per student, including major research universities like Harvard and Princeton as well as small liberal-arts colleges such as Williams and Amherst. ( Bloomberg - Sept. 11, 2021)
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AAU, Associations Express Appreciation for Pell Grant Increase in Budget Reconciliation Bill; Emphasize That More is Needed
AAU joined ACE and more than 20 other higher education organizations in a letter to House Education and Labor Committee leaders expressing appreciation for the committee’s draft reconciliation bill including substantial investments in students, educators, and institutions. These investments include a proposed $500 increase to the Pell Grant maximum award. However, the letter also emphasizes that the proposed Pell increase falls short of what is needed to help more lower-income Americans go to college, and it commits the signing organizations to working to increase the amount as the bill moves forward in the legislative process. ( Association of American Universities - Sept. 10, 2021)
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‘Dreamers’ Await Senate Parliamentarian’s Ruling on Reconciliation Package
The fate of young immigrants brought to the country illegally as children has become wedded to Democrats’ sprawling $3.5 trillion social-welfare package, with a key decision on its Senate path expected within days. Seeking to include green cards for the so-called Dreamers and other immigrants in the package, benefiting as many as eight million people, could allow Democrats to avoid making any concessions to Republicans amid deep divisions in immigration policy. The imminent hurdle facing the legalization effort is whether it fits within the Senate rules on what types of measures can be included in the budget process. That determination rests with one official, Senate Parliamentarian Elizabeth MacDonough, who is expected to provide her guidance soon. In order to qualify for inclusion under budget reconciliation, any change must have a significant impact on the federal budget that is more than incidental to the policy change being sought. ( The Wall Street Journal - Sept. 11, 2021)
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HBCU Advocates Urge Congress to Deliver on Biden’s Promises
When Congress reached a compromise on the infrastructure bill this summer, historically Black college and university advocates were struck by the absence of President Biden’s proposals to support the schools. Gone was any mention of money for research incubators, laboratory upgrades or repairing aging facilities produced by decades of state and federal underfunding. But the White House assured Black colleges that the ambitious agenda Biden set for their schools would be part of a larger legislative package. As lawmakers released pieces of that package this week, HBCU advocates learned that much of the proposed investments in the sector were either jettisoned or scaled back. And what remains would require Black colleges with limited resources to compete with well-heeled institutions for grant funding. The bill would cover two years of tuition for many students attending historically Black colleges and universities, tribal colleges and other minority-serving institutions. ( The Washington Post - Sept. 10, 2021)
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Institutions Will Be Impacted by Biden Vaccine Mandate
President Biden announced new actions the administration is taking to get unvaccinated individuals to take the COVID-19 shot, and while Thursday's announcement is bound to impact colleges and universities, the extent to which is still unclear. Biden announced the Department of Labor is developing new emergency regulations that will require all private sector businesses with more than 100 employees to require their workforce to get vaccinated. Employers will have to provide paid time off for employees to get vaccinated. If an employee still chooses to remain unvaccinated, they must produce a negative COVID-19 test at least once a week. Businesses will be subject to a $14,000 fine per violation. That's because Biden also signed an executive order requiring all employees of businesses who contract with the federal government to be vaccinated —and they won't be able to submit a weekly negative test in lieu of a vaccination. This directive will include many colleges and universities, such as those who manage a federal research lab. ( Inside Higher Ed - Sept. 13, 2021)
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Groups Make Final Push for Kvaal Confirmation
Over a dozen higher education associations and organizations sent a letter to members of Congress Friday, once again urging senators to vote in favor of James Kvaal to serve as under secretary of education ahead of the first vote on his nomination happening today. The letter was sent by Ted Mitchell, president of the American Council on Education, on behalf of nineteenth other groups, including the American Association of Community Colleges, the American Association of State Colleges and Universities, the Association of American Universities, the Association of Public and Land-grant Universities and the National Association of Independent Colleges and Universities. A vote to confirm Kvaal has been held up for months, despite bipartisan support for his nomination to the top higher education post in the Department of Education. ( Inside Higher Ed - Sept. 13, 2021)
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