BUDGET RECONCILIATION NEWS
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Dems Reveal $3.5T Budget That Sidesteps Debt Ceiling
Senate Democrats released a $3.5 trillion budget on Monday morning that doesn't tackle the imminent need to raise the debt ceiling, setting the stage for a dramatic standoff with Republicans this fall. The exclusion of debt limit language amounts to a political gamble by President Joe Biden's party, with the Treasury Department expected to run dry on its borrowing limit in the coming weeks. Senate Republicans have already warned that they won't give Democrats the votes needed to approach the issue on a bipartisan basis, which means that the debt limit's omission from the budget tees up a future cross-aisle fight over the debt. The budget also marks Democrats’ first step toward bypassing the filibuster . . . in order to fund initiatives like expanded Medicare, free community college and green cards for some immigrants. The framework instructs a slew of committees to draft their pieces of Biden’s spending package by Sept. 15, officially kicking off the reconciliation process that Democrats can use to pass the measure without GOP votes. ( Politico - Aug. 9, 2021)
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Budget Package Includes Plan for Pathway to Citizenship, Green Cards for Millions
Democrats’ $3.5 trillion budget resolution package instructs lawmakers to chart a pathway to citizenship for millions of people while investing in border security. The bill text unveiled Monday includes some $107 billion for the Senate Judiciary Committee to spend on each, giving lawmakers a soft deadline of Sept. 15. House Democrats have floated a plan that would cover not only Dreamers brought to the U.S. as children but also migrant farmworkers, workers deemed essential during the pandemic and those who already hold Temporary Protected Status after being unable to return to their countries. In all, Democrats could make around 10 million people eligible for a path to citizenship—just shy of the 11 million people who would be affected by a bill from Biden that has stalled in Congress. The inclusion of immigration in the budget reconciliation package comes shortly after President Biden last month forcefully backed the idea. ( The Hill - Aug. 9, 2021)
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China’s STEM Workforce a Challenge for US Policymakers
As Congress and the Biden administration seek to rival China’s push for dominance in science and technology, policymakers are grappling with how to compete in an area where Beijing is seen as wielding a major advantage: its high-skilled workforce. In 2000, American colleges and universities awarded about 503,500 bachelor’s degrees in science and engineering fields, according to a National Science Board study released in January. The same year, China awarded about 359,500, the report found. Fifteen years later, the report said, the U.S. had boosted its output by nearly 50 percent, awarding more than 750,000 degrees. China, following more than a decade of targeted investments in its high-skilled workforce, awarded 1.7 million, nearly a 400 percent jump. The sharp increase is one metric that underscores the uphill climb the U.S. government faces as it tries to carve out space in the market for emerging technologies like advanced manufacturing, quantum computing and 5G. ( Roll Call - Aug. 10, 2021)
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Biden Administration Rolls Back DeVos Rule Limiting State Authority over Student Loan Companies
The Education Department on Monday scrapped a Trump-era policy of shielding companies that manage its $1.5 trillion student loan portfolio from state regulation. Instead, the department is encouraging states to work with the federal agency to protect borrowers and hold loan servicers accountable. The agency issued guidance clarifying that while federal law does preempt state regulation in some instances, states can go after servicers for deceptive practices, payment errors and other consumer protection matters. Cardona’s position is a departure from his predecessor Betsy DeVos, who backed student loan servicers in their effort to avoid what they’ve called a regulatory maze of state and federal laws. ( The Washington Post - Aug. 9, 2021)
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Affordable Broadband for Low-income Students
Tucked into a nearly 2,700-page bipartisan infrastructure package currently under consideration by the Senate is a provision that would ensure low-income college students can continue to have their broadband needs met, even when campuses reopen and the COVID-19 pandemic comes to an end. A provision in the Infrastructure Investment and Jobs Act would create the "Affordable Connectivity Program," an extension of the temporary "Emergency Broadband Benefit" passed by Congress last December to provide discounted broadband service to eligible low-income households, including Pell Grant recipients. The new program retains the eligibility of Pell recipients for monthly $30 subsidies toward purchasing high-speed internet —down from $50 in the Emergency Broadband Benefit —and makes the program permanent. Considerably more funding has been appropriated for the Affordable Connectivity Program —$14.2 billion, up from $3.2 billion for the emergency program. ( Inside Higher Ed - Aug. 10, 2021)
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