The Obama Administration released its FY17 budget request on February 9. The proposal includes requests for new investments, including investments in research and higher education.
The Administration opted to use a budgetary device that Congressional leadership may not consider in the crafting of its budget request: the Administration has labelled funding that is accounted for through offsets (decreases in other spending or increases in revenue) as “mandatory funding.” In the Administration’s view, since the funding is already “paid for”, it falls into mandatory spending. This mandatory funding is different from mandatory entitlement spending because it is not required by current law. The novel approach has been met with skepticism by some policy makers and stakeholders.
One the subject of research funding in the Administration’s proposal, Association of American Universities president Hunter Rawlings said the budget “does not live up to the President’s long-time commitment to funding research.”
Below is a summary of selected elements of the Administration’s proposal:
Pell Grant expansions
- The Pell for Accelerated Completion program would make year-round Pell Grant funds available to students who take a full course load and have used up their existing award.
- The On-Track Pell Bonus would provide an additional $300 for students who stay on course to complete college on time by taking at least 15 credit hours per semester.
- The Second Chance Pell proposal will provide incarcerated individuals who have served their time and are about to re-enter society with access to Pell funds to help pay for the college and training opportunities that lead to new skills and new opportunities.
- The president’s budget would provide maximum funding for Pell Grant awards, adjusted for inflation beyond 2017.
Perkins loans
- Reformation and expansion of the Perkins program into an unsubsidized loan program, to provide $8.5 billion annually.
FAFSA
- The FAFSA would be available earlier, and simplified by eliminating burdensome and unnecessarily complex questions to make it easier for students and families to access federal student aid and afford a postsecondary education.
Improving College Opportunity and Graduation Rates
- The College Opportunity and Graduation Bonus program would reward institutions with specified outcomes around enrolling and graduating a significant number of low and moderate income students on time. The program would use $547.8 million in mandatory funding.
Loan Caps
- The President’s budget request streamlines income-driven repayment plans that cap loan payments at a reasonable price for borrowers and helps borrowers manage their debt more effectively.
Research and Development
The Administration has proposed $125.3 billion in research and development, a $6.2 billion (4.2 percent) increase from FY16. However, $4 billion of the increased funding is mandatory, meaning it requires new legislation to implement and must be deficit-neutral. This is a departure from the “normal” appropriations process.
- The National Institute of Health would receive an increase of $825 million (2.6 percent). However, $1.8 billion would be mandatory funding, so that the base discretionary budget would actually be cut by $1 billion.
- The total National Science Foundation budget would increase 6.7 percent from FY 2016 levels, but the discretionary budget would only increase by 1.3 percent.
- The Office of Science would receive a 4.2 percent increase, with the largest gains for Advanced Computing and Environmental Research. Energy efficiency and renewables are prioritized, and the President’s 21st Century Clean Transportation Plan would be under mandatory funding. Domestic fusion research would be cut again, and the internal fusion energy project would receive a $10 million (8.7 percent increase).
- The U.S. Geological Survey would receive a $106.8 million (10 percent) increase over FY16. The Climate and Land Use Change account would receive a 22.4 percent hike.
- NOAA’s Office of Oceanic and Atmospheric Research would receive a $31.5 million (6.8 percent) increase, including a 20 percent boost for climate research.
- The intramural Agricultural Research Service would receive a $100 million cut, while research activities would receive a 2 percent increase. The Agriculture and Food Research Initiative’s (AFRI) discretionary budget would rise by 7.1 percent, with an additional $325 million via a mandatory proposal. AFRI is USDA’s competitive research program.
- The EPA would receive a $127.3 million (1.6 percent) increase over FY16. The Clean Air and Climate Science & Technology account would be given a 10 percent increase.