Stimulus Bill Includes Billions of Dollars in Help for Students and College
By SARA HEBEL
Washington
Higher-education lobbyists gushed over the legislation, which includes billions of dollars for scientific research, university facilities, and need-based student aid. It also sets aside money for states to limit the cuts that budget downturns might otherwise cause them to make to key services, including public colleges.
The stimulus bill seeks to ease the nation’s financial troubles by creating jobs, bolstering key programs and infrastructure, and supporting efforts to improve the economy through science and technology. Congressional leaders have said they plan to try to approve a final version of a stimulus bill and send it to incoming President Barack Obama by some time next month. The president-elect has urged legislators to pass such a measure.
“These proposed investments in research, in students, and in infrastructure will not only create jobs right away but also jump-start the nation’s effort to produce more of the people, ideas, and technologies that will help build a foundation for energy security, a cleaner environment, and ultimately a sustainable prosperity,” Robert M. Berdahl, president of the Association of American Universities, said in a written statement.
Help for Students
On student aid, the legislation proposes to increase the maximum Pell Grant to $5,350 for 2009-10, from its current level of $4,731, and raise the limit on the amount of money students can borrow in unsubsidized Stafford Loans by $2,000, an increase that would particularly help middle-income families. The current loan limit varies, depending on a student’s year in college and other factors.
The House leaders’ plan also would provide $490-million more for the federal Work-Study program, and it includes a $2,500 tax credit for college expenses, including tuition and textbooks. People who do not owe taxes would be able to claim a credit worth $1,000.
The tax provision would effectively replace two existing benefits for tuition, according to Rep. Lloyd Doggett, Democrat of Texas, who advocated the new credit. The $2,500 credit would be more advantageous for families, he said, than both the current Hope tax credit, which allows families to take a credit of up to $1,800 per year against taxes they otherwise would owe, and a provision that allows people to deduct up to $4,000 in higher-education expenses from their taxable incomes.
Money for Science
The House measure also includes billions of dollars for science and technology that could benefit universities. Among the funds are $3-billion for the National Science Foundation, two-thirds of which would be set aside for expanding opportunities for jobs in science and engineering that seek to meet environmental challenges and improve America’s ability to compete in the global economy.
In addition, $2-billion would go to the National Institutes of Health for biomedical research, and $1.5-billion would be allocated to the NIH to help universities renovate research facilities and compete for biomedical research grants.
The Department of Energy would get $1.9-billion for basic research into the physical sciences.
The measure also calls for $6-billion to provide broadband and wireless services in underserved areas and $70-million to finance a Technology Innovation Program that is designed to support research on technologies that have the potential to fuel significant job growth.
Funds for States and Facilities
The stimulus package includes money for states to help them limit cuts in their allocations for key services. The funds include $39-billion for states to give to public-school districts and public colleges, and $25-billion for states to spend on “other high-priority needs,” which could include education.
Colleges would receive $6-billion to modernize, renovate, and repair their facilities, with priority to be given to institutions that serve large numbers of minority students, that have been affected by a “major disaster,” or that are proposing energy-efficiency improvements.
The measure also provides $300-million in grants for construction of science-research buildings at colleges and other research organizations.