Federal Education Budget Update

newamericafoundationNew America’s education experts have deciphered the 2013 and 2014 budget actions, with a particular view to how they affect education. In the report, “Federal Education Budget Update: Fiscal Year 2013 Recap and Fiscal Year 2014 Early Analysis,” Jason Delisle and Clare McCann explore congressional budget actions over the past year and describe the effects on federal education programs.

Congress is operating within a new budgeting regime, created by the Budget Control Act of 2011, that included across-the-board spending cuts mid-2013 and that, absent legislative action, imposes lower spending limits next year. Now is an opportune time to assess how federal education programs have been, and likely will be, affected by these developments.

This report includes:

  • An explanation of the Budget Control Act of 2011 and its implications for education programs
  • Details on key 2013 budget developments, including the “fiscal cliff” and sequestration
  • An examination of the president’s 2014 education budget request and a comparison between the president’s request and the House and Senate budget resolutions
  • A preliminary analysis of budget issues in 2014 and the years ahead, including student loan interest rate reform

As the fiscal year 2014 budget process advances, it is essential that education policymakers, advocates, researchers, and others understand the broader budget picture and how it may affect key education programs. This report provides a simple, comprehensive resource for such stakeholders.

Following is the conclusion to the report:

The fiscal year 2014 budget process is shaping up to be contentious and unpredictable. Although the process will not be interrupted by sequestration this year, further reduced spending caps set forth in the Budget Control Act of 2011 will likely influence both budget negotiations and the final outcome. The biggest issue before lawmakers with respect to the fiscal year 2014 appropriations process thus far is whether to follow the limits in place under the Budget Control Act or roll back those spending reductions, either completely or in part. That decision will likely be the first of many that significantly influence funding for education programs.

For more information, including the link to the full report, please visit: