Legislative Update

By Clifton Walker


Student Loans
$85 Billion. That’s the size of the U.S. student loan industry. Hidden within that figure is a whopping $21 billion that the federal government pays in direct subsidies not to students, whom we ultimately wish to help, but to lenders. That changed last month with the passage and ratification of the College Cost Reduction Act. Upon passage, money will be diverted largely in order to incrementally increasing the maximum Pell Grant from the present $4,310 to $5400 in 2012. Conversely, subsidized Stafford loan rates will drop incrementally from the present 6.8% to 3.4% in 2011. A new loan repayment schedule that limits monthly payments to 15% of monthly income will be available to cash-strapped recent graduates. Finally, the bill reallocates money to grant programs offering incentives (TEACH grants) of up to $16,000 to would-be teachers, encouraging them to take up high-demand subjects (math, special education, etc.) in areas where teachers are short.

Children’s Health Coverage
Citing the Cold War spectre of the sneaking infiltration of Socialism (gasp!), President Bush has threatened to veto the considerably bipartisan State Children’s Health Insurance Programs Bill (SCHIP). After the House settled upon a compromise version with the Senate, the bill was so popular in the Senate that they reached a vetoproof majority of 68 votes in approving the measure. Still, after the hundreds of billions of dollars spent in war of choice – now widely viewed as a “quagmire” – and large unprecedented tax cuts for the wealthiest Americans in a time of war, President Bush has decided to play “budget hawk” to demonstrate his fiscal responsibility by vetoing health coverage for kids. So much for compassionate conservatism. If 14 House Republicans reconsider and flip their votes, the President’s veto will be overridden.

Iraq
The Iraq Occupation Since the surge began, Americans have been advised to wait until General David Petraeus’s September report before making final judgments about how best to proceed. The reaction has been clear; according to several polls conducted immediately after General Petraeus’s testimony, support for continuing the occupation has declined. Nevertheless, last week, when the Senate reconsidered an amendment offered by Senator Jim Webb (D-VA) which would have required that troops spend as least as much time at home training (“dwell time”) as abroad, the vote count (56) remained unchanged from the amendment’s debut in July. Many who oppose the occupation are feeling the frustration inherent in the dynamic of the Senate, where the support of a simple majority does not ensure a bill’s passage. At 56 votes, the Democratic caucus, all of whom voted for the measure except Sen. Joe Lieberman (I-DE), is still short of the 60 votes needed to override a filibuster, and well short of the 67 votes needed to override a presidential veto. Senator Webb’s amendment, attracting 6 Republican votes, represents the closest thing to a compromise, so, sadly, it is very unlikely that Congress will force the President’s hand to change course any time soon.