A New Opportunity Agenda for Higher Education:
Making Critical Investments in Education and Training
February 16, 2000
The President's FY2001 budget includes new critical investments in
higher education, training, and youth opportunities as part of his New
Opportunity Agenda. These initiatives include:
I. Significant Increases in Programs for Historically Black Colleges
and Universities and Historically Black Graduate Institutions.
II. Nearly $1 Billion for College Completion Challenge Grants, Pell
Grants, and Other Initiatives to Help Students Afford and Stay in
III. A $30 Billion College Opportunity Tax Cut to Provide Tax Relief
for Millions of Families Struggling to Make College More Affordable.
IV. Over $400 Million in Increases in Initiatives to Keep Young
People on the Track to Success.
I. SIGNIFICANT INCREASES IN PROGRAMS FOR HISTORICALLY BLACK COLLEGESAND UNIVERSITIES AND HISTORICALLY BLACK GRADUATE INSTITUTIONS.
The President has proposed that the base Title III program for
historically black colleges and universities receive $169 million in the
FY2001 budget, an increase of more than $20 million over last year.
Average awards to institutions would increase to $1.7 million, up from
$1.5 million in 2000.
The President also has proposed that the Title III program for
historically black graduate institutions receive $40 million in the
FY2001 budget, an increase of $9 million over the FY2000 budget.
Average awards to institutions would increase to $2.2 million, up from
$1.7 million in 2000.
II. NEARLY $1 BILLION IN INCREASES TO PELL GRANTS, SEOG, WORK STUDY,AND THE NEW COLLEGE COMPLETION AND DUAL DEGREE INITIATIVES
College Completion Challenge Grants. The FY2001 budget creates a new
initiative within the TRIO program called College Completion Challenge
Grants (CCCG). Although college enrollment rates have risen, 37 percent
of students who go on to post-secondary school drop out before they get
a certificate or a degree [Source: U.S. Department of Education, The
Condition of Education: 1999]. The problem is especially acute for
minorities: 29 percent of African Americans and 31 percent of Hispanics
drop out of college after less than one year, compared to 18 percent of
whites. The CCCG program is designed to address this problem with a
comprehensive approach including pre-freshman summer programs, support
services and increased grant aid to students. This $35 million
initiative will improve the chances of success for nearly 18,000
Dual Degree Programs for Minority-Serving Institutions. The FY 2001
budget proposes a new program to increase opportunities for students at
minority-serving institutions. Students would receive two degrees
within five years: one from a minority-serving institution, and one from
a partner institution in a field in which minorities are
underrepresented. This new $40 million program will serve an estimated
Pell Grants. The Pell Grant program provides grants to economically
disadvantaged young people to help pay the cost of a postsecondary
education. The maximum Pell Grant in FY2000 is $3,300. The President's
FY2001 budget increases the maximum to $3,500, more than 50 percent
larger than the maximum grant in 1993, to make a college education more
affordable for the nearly 4 million Pell Grant recipients. Funding for
the Pell Grant program is increased by over $716 million, bringing the
total Pell Grant appropriation to $8.356 billion.
SEOG. SEOG, the Federal Supplemental Educational Opportunity Grant
program, provides campus-based grant assistance to needy undergraduate
students. Generally, this program supplements the aid students receive
from other sources, and leverages institutional aid by at least one
dollar for every three federal dollars. The FY2001 budget provides $691
million for SEOG, a $60 million increase, the largest increase in 10
years. An estimated 1.2 million students (over 60,000 more than in
2000) will receive awards in 2001.
Work Study. Work Study provides students the opportunity to work
their way through college. The FY 2000 budget achieved the goal of
giving one million students the opportunity to participate in Work
Study. The FY2001 budget includes $1.011 billion for Work Study, an
increase of $77 million to continue this commitment to serve one million
III. COLLEGE OPPORTUNITY TAX CUT TO MAKE COLLEGE MORE AFFORDABLE FORMORE AMERICANS
The President proposes a College Opportunity Tax Cut of $30 billion over
10 years to provide tax relief for millions of families struggling to
make college more affordable. When fully phased in, the President's
proposal would give families the option to claim a tax deduction or a
tax credit on up to $10,000 of tuition and fees for any post-secondary
education including college, graduate study, or training courses. In
general, the proposal would provide up to $2,800 annually in tax relief
per family. In order to expand this tax cut to more families, the
College Opportunity Tax Cut would phase out for married filers with
incomes between $100,000 and $120,000. The College Opportunity Tax Cut
builds on the Lifetime Learning tax credit that the President signed
into law in 1997. In addition, the President's FY2001 budget contains
other education tax incentives that were originally proposed in the
FY2000 budget, including $1 billion over 10 years to provide tax-free
treatment for employer-provided graduate education and increased
deductibility of student loan interest.
IV. OVER $400 MILLION IN INCREASES TO KEEP YOUNG PEOPLE ON THE TRACK TOSUCCESS
GEAR UP. GEAR UP is a nationwide initiative to encourage more
disadvantaged young people to have high expectations, stay in school,
study hard, and take the right courses to go to and succeed in college.
GEAR UP is funded at $200 million in FY 2000, enough to provide services
to over 750,000 students. The FY 2001 budget provides a 62.5% increase
to $325 million, enough to provide services to 1.4 million students.
TRIO. The TRIO programs seek to motivate and prepare students to go
to and stay in college. The FY 2001 budget provides $725 million for
TRIO, an increase of $80 million to help provide assistance to over
760,000 students, 37,000 more than in 2000.
Youth Opportunity Grants and Youth Training Formula Grants. These
competitive grants provide comprehensive employment and training
assistance to youth, primarily out-of-school youth in high poverty
areas. The President's FY2001 budget provides a 50 percent increase in
funding to $375 million, enough to serve 85,000 youth in high poverty
areas. In addition, the FY2001 budget provides a $22 million increase
(to $1.022 billion) for the Youth Activities formula grant program.
This level will provide job training and summer job opportunities to
about 612,000 disadvantaged young people.
Youthbuild. The Youthbuild program is targeted to 16-24 year old
high school dropouts and provides disadvantaged young adults with
education and employment skills through rehabilitating and building
housing for low-income and homeless people. The program also helps to
expand the supply of housing in these categories. Funded at $42.5
million, the Youthbuild programs will provides opportunities for
approximately 2,000 trainees in 2000. The FY2001 increases funding by
76% to $75 million, enough to serve approximately 3,330 trainees.
Job Corps. Job Corps is the nation's largest and most comprehensive
residential education and job training program targeted at impoverished
young people. The FY2001 budget increases Job Corps funding by $35
million, bringing the total Job Corps budget to $1.393 billion.