Update Nov. 19, 2021: The U.S. House of Representatives passed the Build Back Better Act along party lines. The Democrats’ social spending bill, and centerpiece of President Biden’s domestic agenda, represents a $1.7 trillion package. The bill will now be referred to the U.S. Senate, where it will be considered after the holiday recess next week.
After weeks of negotiations, President Joe Biden announced yesterday a new framework for the Democrats’
spending package focused on social programs and policies – the Build Back Better agenda. In remarks given after the framework’s release, the president expressed confidence that the new $1.75
trillion proposal could get over the finish line and be enacted into law.
The framework proposes $40 billion in postsecondary education and workforce development spending. This includes a $550 increase to the maximum Pell Grant; expanded federal student aid eligibility; investments in programs to support college retention and
completion; and funding for Historically Black Colleges and Universities (HBCUs), Hispanic Serving Institutions (HSIs), Minority Serving Institutions (MSIs) and Tribal Colleges and Universities (TCUs).
“This proposed investment in higher education would provide vital support to build back better for students of color, students who are first in their families to go to college, students from low-income backgrounds, and DREAMers,” said Kim Cook, NCAN’s
CEO. “Students will also benefit from the framework’s commitment to funding initiatives and programs that support college completion and an increase in funding for HBCUs, MSIs, and TCUs.”
Cook also said: “Specifically, the $550 increase in the Pell Grant is a down payment toward President Biden’s commitment to double the maximum Pell Grant. NCAN's recommendation is that the Pell Grant purchasing power should cover 50% of tuition, fees,
room, and board at a four-year, public institution. Doubling the Pell Grant would meet that goal. If coupled with a $400 increase in appropriations, the total $950 investment would increase the purchasing power of the Pell Grant from 29% of these
costs currently to 32% for the next academic year.”
Pell Grants and Federal Student Aid Eligibility
As proposed, the $550 increase to the maximum Pell Grant would be extended to students enrolled at public and private nonprofit colleges and universities. Students who attend for-profit institutions would not benefit from this increase.
A $550 bump to the maximum Pell Grant would be the largest single-year increase in over a decade.
Further, the framework extends Pell Grant eligibility to undocumented students who are protected under the Obama-era Deferred Action for Childhood Arrivals (DACA) program and those with Temporary Protected Status, through the year 2030. NCAN applauds
this extension of Pell Grant eligibility as an essential change towards a more equitable student aid system.
College Retention and Completion Grants
The framework proposes investments in evidence-based initiatives and practices to improve student outcomes and increase degree attainment. In all, the Department of Education would have the authority to carry out a five-year “retention and completion
grant” program totaling at least $500 million.
Funding for HBCUs, MSIs, and TCUs
The framework proposes an estimated $10 billion in investments in HBCUs, MSIs, and TCUs. More specifically, these dollars would support institutional research and development infrastructure as well as need-based financial aid for students.
What the Framework Leaves Out
While the framework makes investments in community colleges through workforce development and training initiatives, the notable omission from the new proposal is the creation of a nationwide free community college program and associated new federal-state
partnership. As a strong proponent of tuition-free community college, the president has expressed that he will work to find other
opportunities during this term to pass such priorities.
Next Steps
While the release of this framework is a promising development, the proposal and its details do not represent a finalized piece of legislation. Policymakers in the House or Senate could request changes through amendments before all is said and done.
Next, the House will take up legislation on the Build Back Better agenda before advancing it to the Senate for consideration. If it passes both houses of Congress, the president will then sign the bill into law.
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