September 29, 2004

Today, the House of Representatives is considering legislation that will enact a continuing resolution (CR) to fund all programs beyond the end of the fiscal year on September 30.

Attached to this legislation will be a provision that will extend the Higher Education Act (HEA), which expires tomorrow. The extension is needed because Congress has not completed the HEA reauthorization process and some programs covered by the act would cease to be authorized to continue without the extension. The provision that is to be attached to the CR is generic, covering all programs in the HEA, including Perkins Loans and other student financial assistance.

Congress must pass a CR in order to keep all of the federal government operating after the end of the federal fiscal year, also tomorrow. Not all of the FY2005 appropriations bills have been enacted, including the Labor, Health and Human Services and Education bill, which funds the Perkins Loan Program capital contribution and cancellation reimbursements. The CR, in its present form, will last through November 20, 2004, as will the extension of the HEA. The CR is expected to pass the House today and pass the Senate soon thereafter. A one-year HEA extension is expected to be passed by Nov. 20.

A CR allows programs to continue to receive funding at rates equivalent to FY2004 levels. Therefore, the Perkins Loan Capital Contribution and Loan Cancellation Fund will continue to receive funding equivalent to their respective $98.8 million and $66.7 million annual appropriations until a new budget is enacted or November 20, whichever comes first.

If the FY2005 Labor, Health and Human Services and Education Appropriations bill is not enacted by November 20, another CR will be enacted either until the next legislative session starting in 2005 or, as was the case last year, for the entire 2005 fiscal year.

COHEAO will continue to provide updates as the appropriations process continues.

Harrison: hwadsworth@wpllc.net
Andrew: astringer@wpllc.net