NASFAA Washington Update: Why Are We Being Legislated?? Megan McClean NASFAA

Agenda Washington Political Climate The Role of the Budget 150 percent example Reauthorization Update Role of Negotiated Rulemaking

Washington Political Climate

Partisanship, Brinkmanship, and “Blame Game” Deficit Reduction Budget Politics Dictating Policy 2016 Election!

Impact of the Election New 114 th Congress began Monday, January 5 th Republican control in BOTH chambers Major changes on Education Committees: Senate: New Chairman, Senator Alexander (R-TN) & Retirement of previous Chairman, Senator Harkin (D-IA) House: Congressman John Kline (R-MN) remains and Chairman & Retirement of prior Ranking Member Congressman George Miller (D-CA). New ranking member Congressman Bobby Scott (D-VA)

What Does This Mean for Us? Productivity = Likely the same (minimal) Focus on halting many of the Obama Administration’s initiatives: healthcare, ratings, new “free” community college plan Ramping up for 2016 elections starts NOW!

What Does Congress Think of Higher Ed? AKA, why are we being legislated? Congress is VERY interested Administration is VERY interested (College Scorecard, Shopping Sheet, Ratings System, 2-years free CC, tax reform) General public concern, rises to the electorate Rise in consumer media interest as well

What Does Congress Think of Higher Ed? AKA, why are we being legislated? 150 percent example Driven by cost-savings, budget Done last minute Very frustrating!

Student Aid & the Budget Funding for student aid falls into the Labor, Health, Human Services, and Education Appropriations Subcommittee (Labor-H) This is always a very complex bill because so many important programs share the same pot of funds Most student aid funds are“forward funded” meaning they fund the following award year Ex: FY 2016 funds the award year

Where Are We With Sequestration? Still in effect—ten year cutting mechanism Technically in the third year Unlikely that it will be repealed—more likely to be replaced Continues to impact origination fees

Future Funding Outlook: More Cliffs! CR Funding Department of Homeland Security Expires (2/27) Debt Ceiling reinstatement & subsequent expiration (3/15 & Fall) Congress must pass FY 16 budget by new fiscal year (10/1)

Update on Ratings Framework released in fall Comment due in Feb Likelihood? Main concerns?

Reauthorization Update Three main efforts: 1)Bipartisan bill from Senator Alexander (R-TN) and Senator Bennet (D-CO). 2)Bill from Senator and Chairman of the Health, Education, Labor and Pensions Committee, Tom Harkin (D-IA) 3)Three bills from House Committee on Education and the Workforce

Negotiated Rulemaking Process by which new regulations are debated, negotiated, and developed: Key stakeholders at the table Represent different opinions Consensus must be reached in order for ED to develop regs everyone agrees upon If not consensus, ED can develop their own regs

Neg Reg PAYE ED held public hearings to set the agenda this fall: Washington, DC and Anaheim, CA ED announced it will hold PAYE Neg Reg this spring Feb Mar 31-Apr. 3 Apr NASFAA currently soliciting negotiators; nominations due 1/20

Let’s Work Together Role of NASFAA Collaborative Efforts Opportunity to Get Involved!

QUESTIONS? or