FY 1999 Labor, Health and Human Services and Education Appropriations

To date, only the House has acted on legislation to appropriate funds for programs at the Departments of Labor, Health and Human Services and Education. The House FY 1999 Labor, Health and Human Services and Education Appropriations bill (H.R. 4274) has been approved by both the Subcommittee with jurisdiction over spending for these departments, as well as the full House Appropriations Committee. The House has yet to consider the measure, due in large part to the controversial politics surrounding the legislation. Moderate Republicans oppose some of the cuts in domestic spending. Controversial legislative riders attached to the bill, in particular one related to family planning, have raised questions about the ability of the bill to win passage.

The measure directs spending of $296.4 billion across the three agencies. Overall, the bill would increase discretionary spending at the Department of Education by $1.112 billion, or 3.8%.

One of the programs that received a large increase for FY 1999 is the Pell Grant program, winning an increase of $878 million. However, the higher education community points out that the increase is far short of the pace of escalating college costs, forcing students to increase their reliance on loans, as has been the trend for many years.

Related to federal student aid programs, Pell Grant and TRIO programs received funding increases, while the Federal Perkins Loan Program’s Federal Capital Contribution was zeroed out, as was the State Student Incentive Grant Program--two programs that have been targeted for elimination several times in recent years.

• The Pell Grant Program would be funded at $8.2 billion, an increase over last year’s $7.3 billion, with an accompanying increase in the maximum grant award of $150--to $3,150.
• Federal Supplemental Educational Opportunity Grants would be funded at $614 million, the same level as last year.
• The Federal Work Study program would receive an increase for the third year, and would be funded at $20 million more than last year--$850 million.
• The Federal Perkins Loan Program’s Federal Capital Contribution would receive no funds. Last year the program received $135 million.
• State Student Incentive Grants would receive no funds, down from last year’s allocation of $25 million.
• The Graduate Assistance in Areas of National Need program would receive no funds, unlike last year, when it received $30 million. The Javits and Harris fellowships also received no funds under the Chairman’s mark. These programs received $12 million last year.

The Senate is scheduled to mark up its bill on September 1st. Senator Arlen Specter (R-PA), Chair of the Senate Labor, Health and Human Services and Education Appropriations Subcommittee, underwent heart surgery earlier this year, which postponed action on the measure. The Senate is expected to include some funding for the Federal Perkins Loan Program’s Federal Capital Contribution fund in its bill.

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