July 13, 2005

The "chairman’s mark" – the revised Higher Education Act reauthorization that House Subcommittee on 21st Century Competitiveness Chairmen Buck McKeon (R-CA) introduced in the Subcommittee on 21st Century Competitiveness today calls for the reauthorization (continuing) the Perkins Loan Program. The bill is basically the same as the previous versions of H.R. 609, reauthorizing Perkins, modifying the allocation formula for the capital contribution (perhaps making it more likely to get it restored eventually) and increasing Perkins Loan limits. It has the other changes to Perkins that were in the previous version of the bill. We will provide a detailed analysis shortly.

The bill will be voted on in subcommittee on Thursday, but there have not been, nor do we anticipate amendments that would call for eliminating the Perkins Loan Program in order to fund something else, but we’ll certainly be watching. The full Education and Workforce Committee markup is planned for next Wednesday, and it should be long and contentious, with some of the more controversial issues debated there. Again, we are not aware of planned attempts to amend the bill in committee to hurt Perkins, but we will remain vigilant.

During the Subcommittee mark up, Representatives Kind (D-WI) and Tierney (D-MA) offered an amendment that would change the allocation formula for all campus-based aid programs, including the Perkins Loan Program’s Federal Capital Contribution. The amendment would not change H.R. 609’s new allocation formula, but would hold harmless schools that would see a decrease in their allocation if the new formula becomes law – meaning that no school would lose money. The amendment will be voted on Thursday, July 14.

The Senate Committee on Health Education, Labor and Pensions is working on development of a reauthorization bill, but it has not been introduced.

Andrew Stringer
Legislative Associate
Washington Partners, LLC
(P) 202-289-3903
(F) 202-371-0197
astringer@wpllc.net