    [Appendix]
    [Other Materials]
    [Supplemental Proposals]
    [From the U.S. Government Printing Office, www.gpo.gov]

    [[Page 1193]]

    ________________________________________________________________________

                                 OTHER MATERIALS

    ________________________________________________________________________

                         THE BUDGET FOR FISCAL YEAR 2003

                              SUPPLEMENTAL PROPOSALS

    [[Page 1195]]

                       PROPOSED CHANGES TO 2002 ESTIMATES

        This Budget contains proposals that would increase 2002 spending by
    $1.3 billion, which would be completely offset by reductions.

                                    SUMMARY OF SUPPLEMENTAL PROPOSALS
                                        [In millions of dollars]               Outlays
                                                    2002 Budget
                                                      Authority     2002        2003        2004
      Supplemental Proposals:
      Department of Education.......................       1,276       1,276
      General provision.............................      -1,276      -1,276
                                                    ------------------------------------------------
          Total, Supplemental Proposals.............
                                                    ================================================
    [[Page 1197]]

                             SUPPLEMENTAL PROPOSALS

        The following information concerns supplemental appropriations
    requests for 2002 proposed for congressional consideration.

                             Department of Education

                     OFFICE OF STUDENT FINANCIAL ASSISTANCE

                          Student financial assistance

               (Supplemental now requested, existing legislation)

        For an additional amount for ``Student financial assistance,''
    $1,276,000,000, to remain available through September 30, 2003.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-1-1-502      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Federal Pell grants...............                   1,276
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                   1,276
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                   1,276
    23.95 Total new obligations.............                  -1,276
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                   1,276
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                               1,276
    73.10 Total new obligations.............                   1,276
    73.20 Total outlays (gross).............                              -1,276
    74.40 Obligated balance, end of year....                   1,276
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................                               1,276
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                   1,276
    90.00 Outlays...........................                               1,276
    ---------------------------------------------------------------------------

        This supplemental request would provide supplemental funding for
    Pell grants to support a $4,000 maximum award in 2002. The 2002
    appropriations act created a serious fiscal problem by under-funding the
    Pell grant program. While the act mandated a Pell grant maximum award of
    $4,000, it failed to provide resources for the Pell grant program
    commensurate with the maximum award. The act provided only enough
    funding to pay for a maximum award of $3,600, creating a shortfall of
    nearly $1.3 billion. This supplemental request would fully fund the
    mandated maximum award for 2002.

                                GENERAL PROVISION

               (Supplemental now requested, existing legislation)

        Of the amounts made available in the Departments of Labor, Health
    and Human Services, and Education, and Related Agencies Appropriations
    Act, 2002, $1,276,000,000 is hereby canceled: Provided, That such
    amounts shall be derived from amounts appropriated for projects or
    activities that were not included in the President's Budget transmitted
    to Congress on April 9, 2001.

        This provision would cancel funding for amounts appropriated for
    unrequested earmarks and low-priority programs in the 2002
    appropriations for the Departments of Labor, Health and Human Services,
    and Education. The 2002 appropriations act provided over $2 billion for
    programs and projects that were not requested by the Administration in
    the President's Budget, while under-funding the Pell grant program. The
    Administration will provide Congress with a listing of such programs and
    projects and expects that Congress will select from this list in
    enacting a cancellation of $1,276 million to offset the Pell grant
    shortfall.