The federal budget provides nearly 30% of state revenue, making it the
largest single source of funds for many states. FFIS analysts help states
manage their federal funds by providing timely analysis of the impact that
federal actions have on states.
President Signs Student Loan Bill
Yesterday, President Bush signed H.R. 5715, the "Ensuring Continued Access to Student Loans Act of 2008," which is intended to ensure access to federally backed student loans for the coming academic year. See FFIS Issue Brief 08-24 for a description of the bill.
House Approves HEA Extension
On May 6, the House of Representatives passed S. 2929, a one-month extension of the Higher Education Act of 1965. The Senate approved the extension April 29. The previous extension expired April 30; the House-passed extension is retroactive to that date. Congress now has until May 31 to resolve differences between the House- and Senate-passed bills currently in pre-conference. A primary point of contention is the "maintenance of effort" mandate that would dictate state higher education spending (see Issue Brief 07-55).
CMS Issues New Letter on SCHIP Crowd-Out Policy
Yesterday, the Centers for Medicare & Medicaid Services (CMS) sent a letter to state health officials regarding the State Children's Health Insurance Program (SCHIP) to clarify several issues raised in the agency's earlier directive, issued August 17, 2007. The current letter reiterates that SCHIP covers the lowest-income children first and prevents substitution of public health benefits over private insurance coverage. In addition, it states that the August 17, 2007, guidance does not require states to apply the crowd-out policies to current enrollees or to SCHIP coverage for unborn children. It also notifies states that they may seek approval to apply certain exceptions to crowd-out policies.
FAA Bill Pulled from Senate Floor
H.R. 2881, which would reauthorize the Federal Aviation Administration (FAA) through 2011, was pulled from the Senate floor yesterday. An extension of the current authorization through the fall of 2009 is now expected. The current extension (P.L. 110-190) expires on June 30, 2008.
Senate Committee Approves FY 2009 Defense Authorization
Last Wednesday (April 30), the Senate Armed Services Committee completed its markup of the FY 2009 National Defense Authorization Act. The bill will be filed publicly on May 15, and Senate floor consideration could come the week of May 19. The bill provides a 3.9% pay raise for uniformed personnel.
Consolidated Federal Funds Report Released
The Census Bureau has released the Consolidated Federal Funds Report for FY 2006. It is available at the following website: http://www.census.gov/govs/www/cffr06.html.
House Passes Student Loan Bill
Yesterday, the House passed H.R. 5715, as amended by the Senate. The bill would increase federal student loan limits by $2,000 per year, allow parents to defer payment on federal PLUS loans for six months after their student leaves school and ensure that parents hit by the mortgage crisis can still qualify for PLUS loans. It would allow the Department of Education to: 1) provide capital for loans to state guaranty agencies under its "lender of last resort" program and 2) temporarily inject liquidity into the market by buying up federally guaranteed student loans that lenders are unable to sell as securitized debt. The Senate modifications clarify that lenders of last resort are bound by the same conflict-of-interest rules as traditional lenders and prohibit them from offering discounts that traditional lenders cannot match, as well as expand eligibility for Academic Competitiveness and SMART Grants.
FAA Bill Stalled in Senate
Tax provisions addressing the shortfall in the Highway Trust Fund (HTF) that are included in the tax portion of the Federal Aviation Administration (FAA) reauthorization bill (HR 2881) have stalled its progress. The Senate will vote next Tuesday on whether to invoke cloture and limit debate on a substitute amendment to the bill, but without a compromise on the HTF provisions, the outlook of that vote is uncertain. The current authorization for aviation programs and taxes will expire on June 30, 2008, while contract authority for the Airport Improvement Program will expire on September 30, 2008.
CMS Issues Letter on State High-Risk Pool Funding
The Centers for Medicare & Medicaid Services (CMS) relayed a letter to state health officials regarding grant funding for the 2008 high-risk pool initiative. More than $49 million is available to support the operation of state high-risk insurance pools. States that have established a qualified high-risk pool that has incurred losses and meets certain standards may apply for funding. Applications are due June 9, 2008 and awards will be announced around July 1, 2008. More information is available at www.grants.gov.
Senate Passes Student Loan Bill
Yesterday, the Senate passed H.R. 5715, the "Ensuring Continued Access to Student Loans Act of 2008." The Senate version is similar but not identical to the House-passed measure, thus requiring the House to take up the bill again before it is sent to the president. The Senate bill would increase federal student loan limits by $2,000 per year, allow parents to defer payments on federal PLUS loans for six months after their student leaves school and ensure that parents hit by the mortgage crisis can qualify for PLUS loans. The measure also would allow the Department of Education to provide capital for loans to state guaranty agencies under its "lender of last resort" program that could be used for both students and institutions facing loan shortages. It also would allow the department to buy federally guaranteed student loans that lenders are unable to sell as securitized debt.
House Passes Highway Technical Corrections Bill
Yesterday, the House passed the Senate version of H.R. 1195, which includes technical corrections to the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). The bill includes a provision that instructs the Department of Justice to investigate how an earmark was included in SAFETEA-LU after both chambers voted on the final version of the bill, but before the president signed it. The bill increases the minimum proportion each state would receive in federal grants for highway safety programs, changes the factors that the Federal Transit Administration must take into account when evaluating new starts proposals and provides flexibility to sates in imposing penalties on drunk drivers. The president is expected to sign the bill.
For previous federal actions, go to Today's News Archives.
Federal Funds Information for States
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