[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Education]
[From the U.S. Government Printing Office, www.gpo.gov]


                     THE BUDGET FOR FISCAL YEAR 2006

[[Page 343]]

 
                         DEPARTMENT OF EDUCATION



              OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

                              Federal Funds

General and special funds:

                     Education for the Disadvantaged

    For carrying out title I and part D of title V of the Elementary and 
Secondary Education Act of 1965 (``ESEA'') [and section 418A of the 
Higher Education Act of 1965, $14,963,683,000], $16,397,204,000, of 
which [$7,382,995,000] $8,677,136,000 shall become available on July 1, 
[2005] 2006, and shall remain available through September 30, [2006] 
2007, and of which $7,383,301,000 shall become available on October 1, 
[2005] 2006, and shall remain available through September 30, [2006] 
2007 for academic year [2005-2006, and of which $25,000,000 shall become 
available on October 1, 2004 and shall remain available until September 
30, 2006] 2006-2007: Provided, That [$7,037,592,000] $6,934,854,000 
shall be [available] for basic grants under section 1124: Provided 
further, That up to $3,500,000 of these funds shall be available to the 
Secretary of Education on October 1, [2004] 2005, to obtain annually 
updated educational-agency-level census poverty data from the Bureau of 
the Census: Provided further, That $1,365,031,000 shall be [available] 
for concentration grants under section 1124A: Provided further, That 
[$2,219,843,000] $2,822,581,000 shall be [available] for targeted grants 
under section 1125: Provided further, That $2,219,843,000 shall be 
[available] for education finance incentive grants under section 1125A: 
Provided further, That each State, as a condition of receiving funds 
under part A of title I of the ESEA for fiscal year 2006 or any fiscal 
year thereafter shall participate in biennial State academic assessments 
of 12th grade reading and mathematics under the National Assessment of 
Educational Progress carried out under section 303(b) of the National 
Assessment of Educational Progress Authorization Act, if the Secretary 
pays the costs of administering those assessments: Provided further, 
That [$25,000,000, available until September 30, 2006, shall be for a 
striving readers initiative authorized under section 1502 of the ESEA: 
Provided further, That $9,500,000] $9,424,000 shall be [available] to 
carry out part E of title I: [Provided further, That from the funds 
available to carry out part E of title I, up to $1,000,000 shall be 
available to the Secretary of Education to provide technical assistance 
to State and local educational agencies concerning part A of title I:] 
Provided further, That [$207,000,000 shall be available for 
comprehensive school reform grants under part F of the ESEA] $1,240,000 
shall be available under part D of title V, first for continuation 
awards for grants made under title IV, part A, subpart 2, chapter 2 and 
sections 402B and 402C of the Higher Education Act of 1965, and the 
remainder for formula grants to States to support competitive awards to 
local educational agencies to enable them to implement targeted 
interventions in high-need secondary schools: Provided further, That the 
Secretary may reserve a portion of such funds for research, evaluation, 
and technical assistance (Department of Education Appropriations Act, 
2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0900-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to local educational 
        agencies........................      14,008      12,755      13,342
00.02 Reading first State grants........       1,013       1,105       1,042
00.03 Early reading first...............          94         104         104
00.04 Striving readers..................                      25         200
00.05 Even start........................         226         247
00.06 Literacy through school libraries.          40          20          20
00.07 High school intervention..........                               1,240
00.08 State agency programs.............         447         447         440
00.09 Comprehensive school reform.......         236         213
00.10 Evaluation........................           9           9           9
00.11 Migrant education projects........          35          34
                                           ---------   ---------  ----------
10.00   Total new obligations...........      16,108      14,959      16,397
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       2,376         115
22.00 New budget authority (gross)......      13,846      14,844      16,397
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      16,223      14,959      16,397
23.95 Total new obligations.............     -16,108     -14,959     -16,397
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         115
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       7,145       7,581       9,014
40.35   Appropriation permanently 
          reduced.......................         -82        -120
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       7,063       7,461       9,014
55.00   Advance appropriation...........       9,027       7,383       7,383
55.35   Advance appropriation 
          permanently reduced...........      -2,244
                                           ---------   ---------  ----------
55.90     Advance appropriation (total 
            discretionary)..............       6,783       7,383       7,383
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      13,846      14,844      16,397
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       7,289      10,896      11,218
73.10 Total new obligations.............      16,108      14,959      16,397
73.20 Total outlays (gross).............     -12,486     -14,637     -14,822
73.40 Adjustments in expired accounts 
        (net)...........................         -14
73.45 Recoveries of prior year 
        obligations.....................          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..      10,896      11,218      12,793
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       4,607       6,648       6,726
86.93 Outlays from discretionary 
        balances........................       7,879       7,989       8,096
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      12,486      14,637      14,822
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      13,846      14,844      16,397
90.00 Outlays...........................      12,486      14,637      14,822
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2004 actual  2005 est.   2006 est.
Enacted/requested:
  Budget Authority..................      13,846      14,844      16,397
  Outlays...........................      12,486      14,637      14,822
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                  34
  Outlays...........................                                   2
                                    ------------------------------------
Total:
  Budget Authority..................      13,846      14,844      16,431
  Outlays...........................      12,486      14,637      14,824
                                    ====================================

                        SUMMARY OF PROGRAM LEVEL

                        (in millions of dollars)

                                     2004-2005 
                                      academic 
                                        year      2005-2006 
                                                academic year 2006-2007 
                                                            academic year
New Budget Authority................       7,063       7,461       9,048
Advance appropriation...............       7,383       7,383       7,383
                                    ------------------------------------
      Total program level...........      14,446      14,844      16,431
                                    ====================================
Change in advance appropriation from 
the previous year...................        +600

    Grants to local educational agencies.--Funds are allocated through 
four formulas--Basic Grants, Concentration Grants, Targeted Grants and 
Education Finance Incentive Grants--for local programs that provide 
extra academic support to help raise the achievement of eligible 
students in high-poverty schools or, in the case of schoolwide programs, 
help all stu

[[Page 344]]

dents in high-poverty schools to meet challenging State academic 
standards. States must annually assess participating students in at 
least reading and mathematics, and school districts must identify for 
improvement, and provide assistance to, schools that for two consecutive 
years do not make adequate yearly progress toward helping all groups of 
students reach the proficient level on the State assessments. Districts 
must provide students attending such schools the choice of attending 
another public school that is not identified for improvement. After 
three or more years of a school not making adequate progress, students 
who remain in the school are permitted to obtain supplemental 
educational services from a public- or private-sector provider. Schools 
that do not improve are subject to progressively stronger corrective 
actions and, after six years of not making adequate yearly progress, 
reconstitution under a restructuring plan.

    Reading first State grants.--Funds provide assistance to State and 
local educational agencies in establishing reading programs for students 
in grades K-3 that are grounded in scientifically based reading 
research, in order to ensure that every student can read at grade level 
or above by the end of third grade.

    Early reading first.--Funds provide assistance to support local 
efforts, through competitive grants, to enhance the school readiness of 
young children, particularly those from low-income families, through 
scientific, research-based strategies and professional development that 
are designed to enhance the verbal skills, phonological awareness, 
letter knowledge, pre-reading skills, and early language development of 
children ages three through five.

    Striving readers.--Funds support the development, implementation, 
and evaluation of scientifically based reading interventions for middle 
school or high school students reading significantly below grade level. 
The program complements the Reading First program, which improves 
reading in elementary schools.

    Literacy through school libraries.--Funds support competitive grants 
to local educational agencies to provide students with increased access 
to up-to-date school library materials and certified professional 
library media specialists.

    High School Interventions.--This new initiative would support 
formula grants to States that wold in turn award the funds competitively 
to local educational agencies to enable those entities to implement 
targeted interventions in high-need secondary schools in order to 
increase student achievement and narrow achievement gaps between 
students from different ethnic and racial groups and between 
disadvantaged students and their more advantaged peers.

    State agency migrant program.--Funds support formula grants to 
States for educational services to children of migratory farmworkers and 
fishers, with resources and services focused on children who have moved 
within the past 36 months.

    State agency neglected and delinquent program.--Funds support 
formula grants to States for educational services to children and youth 
under age 21 in State neglected, delinquent, or adult correction 
facilities.

    Evaluation.--Funds support a series of impact studies designed to 
identify effective reading interventions in Title I and studies of the 
implementation of key No Child Left Behind requirements including 
assessments, accountability systems, school improvement requirements, 
public school choice, and supplemental educational services.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0900-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
24.0  Printing and reproduction.........           1           1           1
25.1  Advisory and assistance services..          13          11          13
25.2  Other services....................          45          42          46
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           5           5           5
41.0  Grants, subsidies, and 
        contributions...................      16,044      14,900      16,332
                                           ---------   ---------  ----------
99.9    Total new obligations...........      16,108      14,959      16,397
---------------------------------------------------------------------------

                     Education for the Disadvantaged

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0900-2-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.11 Migrant education projects........                                  34
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  34
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  34
23.95 Total new obligations.............                                 -34
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                  34
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                                  34
73.20 Total outlays (gross).............                                  -2
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                                  32
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                   2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  34
90.00 Outlays...........................                                   2
---------------------------------------------------------------------------

    The resources in this schedule are proposed for later transmittal 
under proposed legislation to revise and reauthorize programs currently 
authorized under the Higher Education Act.

    Migrant education projects.--Funds support grants to institutions of 
higher education and other nonprofit agencies that assist migrant 
students to earn a high school equivalency certificate or to complete 
their first year of college.

                                

                               Impact Aid

    For carrying out programs of financial assistance to federally 
affected schools authorized by title VIII of the Elementary and 
Secondary Education Act of 1965, [$1,253,893,000] $1,240,862,000, of 
which [$1,083,687,000] $1,075,018,000 shall be for basic support 
payments under section 8003(b), [$50,369,000] $49,966,000 shall be for 
payments for children with disabilities under section 8003(d), 
[$48,936,000] $45,544,000 shall be for construction under section 8007 
and shall remain available through September 30, [2006, $63,000,000] 
2007, $62,496,000 shall be for Federal property payments under section 
8002, and [$7,901,000] $7,838,000, to remain available until expended, 
shall be for facilities maintenance under section 8008: Provided, That 
[$3,000,000 of the funds for section 8007 shall be available for the 
local educational agencies and in the amounts specified in the statement 
of the managers on the conference report accompanying this Act: Provided 
further, That, notwithstanding any other provision of law, these funds 
shall remain available until expended: Provided further, That] for 
purposes of computing the amount of a payment for an eligible local 
educational agency under section 8003(a) of the Elementary and Secondary 
Education Act (20 U.S.C. 7703(a)) for school year [2004-2005] 2005-2006, 
children enrolled in a school of such agency that would other

[[Page 345]]

wise be eligible for payment under section 8003(a)(1)(B) of such Act, 
but due to the deployment of both parents or legal guardians, or a 
parent or legal guardian having sole custody of such children, or due to 
the death of a military parent or legal guardian while on active duty 
(so long as such children reside on Federal property as described in 
section 8003(a)(1)(B)), are no longer eligible under such section, shall 
be considered as eligible students under such section, provided such 
students remain in average daily attendance at a school in the same 
local educational agency they attended prior to their change in 
eligibility status. (Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0102-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Payments for federally connected children:

00.01   Basic support payments..........       1,063       1,075       1,075
00.02   Supplemental payments for 
          children with disabilities....          50          50          50
                                           ---------   ---------  ----------
00.91   Subtotal, payments for federally 
          connected children............       1,113       1,125       1,125
01.01 Facilities maintenance............           7           8           8
02.01 Construction......................          46          48          46
03.01 Payments for Federal property.....          62          62          62
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,228       1,243       1,241
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          35          37          38
22.00 New budget authority (gross)......       1,230       1,244       1,241
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,265       1,281       1,279
23.95 Total new obligations.............      -1,228      -1,243      -1,241
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          37          38          38
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,237       1,254       1,241
40.35   Appropriation permanently 
          reduced.......................          -7         -10
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,230       1,244       1,241
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         293         281         194
73.10 Total new obligations.............       1,228       1,243       1,241
73.20 Total outlays (gross).............      -1,239      -1,330      -1,264
73.40 Adjustments in expired accounts 
        (net)...........................          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         281         194         171
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,075       1,090       1,089
86.93 Outlays from discretionary 
        balances........................         164         240         175
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,239       1,330       1,264
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,230       1,244       1,241
90.00 Outlays...........................       1,239       1,330       1,264
---------------------------------------------------------------------------

    Impact Aid helps to replace the lost local revenue that would 
otherwise be available to educate federally connected children. The 
presence of certain students living on Federal property, such as 
students who are military dependents or who reside on Indian lands, can 
place a financial burden on local educational agencies that educate 
them. The property on which the children live and their parents work is 
exempt from local property taxes, denying local educational agencies 
access to the primary source of revenue used by most communities to 
finance education.

    Basic support payments.--Payments will be made on behalf of 
approximately 1.0 million federally connected students enrolled in about 
1,250 local educational agencies to assist them in meeting their 
operation and maintenance costs. Average per-student payments will be 
approximately $1,036.

    Payments for children with disabilities.--Payments in addition to 
those provided under the Individuals with Disabilities Education Act 
will be provided on behalf of approximately 57,000 federally connected 
students with disabilities in about 860 local educational agencies. 
Average per-student payments will be approximately $881.

    Facilities maintenance.--Funds are used to provide emergency repairs 
for school facilities that serve military dependents and are owned by 
the Department of Education. Funds are also used to transfer the 
facilities to local educational agencies.

    Construction.--Formula payments will be provided to approximately 
180 local educational agencies with large proportions of federally 
connected students. Payments will be made on behalf of about 140,000 
students who are military dependents or who reside on Indian lands. In 
addition, approximately 25 construction grants will be awarded 
competitively to local educational agencies.

    Payments for Federal property.--Payments will be made to 
approximately 200 local educational agencies in which real property 
owned by the Federal Government represents 10 percent or more of the 
assessed value of real property in the local educational agency.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0102-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           2           2           2
41.0  Grants, subsidies, and 
        contributions...................       1,226       1,241       1,239
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,228       1,243       1,241
---------------------------------------------------------------------------

                                

                       School Improvement Programs

    For carrying out school improvement activities authorized by 
[titles] section 1502 of part E of title I, title II, part B of title 
IV, part A [and subparts 6 and 9 of part D] of title V, parts A and B of 
title VI, and parts B and C of title VII of the Elementary and Secondary 
Education Act of 1965 (``ESEA''); the McKinney-Vento Homeless Assistance 
Act; section 203 of the Educational Technical Assistance Act of 2002; 
the Compact of Free Association Amendments Act of 2003; and the Civil 
Rights Act of 1964, [$5,664,977,000] $5,332,219,000, of which 
[$4,034,196,000] $3,736,482,000 shall become available on July 1, [2005] 
2006, and remain available through September 30, [2006] 2007, and of 
which $1,435,000,000 shall become available on October 1, [2005] 2006, 
and shall remain available through September 30, [2006] 2007, for 
academic year [2005-2006] 2006-2007: Provided, That [funds made 
available to carry out part B of title VII of the ESEA may be used for 
construction, renovation and modernization of any elementary school, 
secondary school, or structure related to an elementary school or 
secondary school, run by the Department of Education of the State of 
Hawaii, that serves a predominantly Native Hawaiian student body: 
Provided further, That from the funds referred to in the preceding 
proviso, not less than $1,000,000 shall be for a grant to the Department 
of Education of the State of Hawaii for the activities described in such 
proviso, and $600,000 shall be for a grant to the University of Hawaii 
School of Law for a Center of Excellence in Native Hawaiian law: 
Provided further, That funds made available to carry out part C of title 
VII of the ESEA may be used for construction: Provided further, That 
from the funds referred to in the preceding proviso, $2,000,000 shall be 
provided to the Yuut Elitnaurviut Vocational Learning Center in Bethel, 
Alaska for construction; $1,000,000 shall be provided to the University 
of Alaska Anchorage for high school enrichment programs of the UAA 
Native Science and Engineering program; and notwithstanding any other 
provision of law, of the funds available to the Alaska Native Heritage 
Center, up to $1,000,000 may be used for repair and renovation of 
buildings on its campus: Provided further, That $415,000,000] 
$411,680,000 shall be for State assessments and related activities 
authorized under sections 6111 and 6112 of the ESEA: Provided further, 
That [the amount made available in the Department of Education 
Appropriations Act, 2004, under the heading School Improvement Programs 
and including any funds transferred by the Secretary of Education 
pursuant to section 304 of that Act for State assessment grants 
authorized under section 6111 of the Elementary and Secondary Education 
Act of 1965, shall not be less than $390,000,000: Provided further, 
That, notwithstanding any

[[Page 346]]

other provision of law, including any across-the-board reduction that 
would otherwise apply, the funds made available for fiscal year 2005 
under the heading School Improvement Programs for State assessment 
grants under section 6111 of the Elementary and Secondary Education Act 
of 1965 shall not be less than $400,000,000: Provided further, That 
$57,283,000] $56,825,000 shall be available to carry out section 203 of 
the Educational Technical Assistance Act of 2002: Provided further, That 
[$29,111,000 shall be available to carry out part D of title V of the 
ESEA: Provided further, That no funds appropriated under this heading 
may be used to carry out section 5494 under the ESEA: Provided further, 
That $12,230,000] $18,183,000 shall be available to carry out the 
Supplemental Education Grants program for the Federated States of 
Micronesia[,] and [$6,100,000 shall be available to carry out the 
Supplemental Education Grants program] for the Republic of the Marshall 
Islands: Provided further, That up to 5 percent of these amounts may be 
reserved by the Federated States of Micronesia and the Republic of the 
Marshall Islands to administer the Supplemental Education Grants 
programs and to obtain technical assistance, oversight and consultancy 
services in the administration of these grants and to reimburse the 
United States Departments of Labor, Health and Human Services, and 
Education for such services: Provided further, That notwithstanding 
section 2202(a)(2) of the ESEA, $120,000,000 of the funds for part B of 
title II of the ESEA shall be for competitive grants that are designed 
to improve the achievement of secondary school students in mathematics, 
of which up to $1,000,000 may be used for technical assistance and 
evaluation: Provided further, That $250,000,000 shall be available under 
section 1502 of the ESEA for grants to States to develop additional 
reading/language arts and mathematics assessments for secondary school 
students: Provided further, That each State receiving assistance under 
part A of title I of the ESEA for the fiscal year 2006 or any fiscal 
year thereafter shall develop such assessments and shall incorporate 
them into the assessment system that it administers under section 
111(b)(3) of the ESEA, under such conditions as the Secretary may 
establish (Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1000-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Improving teacher quality:

00.01   Improving teacher quality State 
          grants........................       2,655       2,935       2,916
00.02   Early childhood educator 
          professional development......          15          15          15
00.03   Mathematics and science 
          partnerships..................         150         180         269
00.04 Educational technology State 
        grants..........................         692         511
00.05 21st Century community learning 
        centers.........................       1,005       1,002         991
00.06 State grants for innovative 
        programs........................         582         199         100
00.07 Javits gifted and talented 
        education.......................          11          11
00.08 Foreign language assistance.......          17          18
00.09 State assessments.................         396         412         412
00.10 High school assessments...........                                 250
00.11 Education for homeless children 
        and youth.......................          60          63          62
00.12 Education for Native Hawaiians....          33          34          33
00.13 Alaska Native education equity....          33          34          31
00.14 Training and advisory services....           7           7           7
00.15 Rural education...................         168         171         171
00.16 Supplemental education grants.....                      18          18
00.17 Comprehensive centers.............                      57          57
00.18 Troops-to-teachers................          11
00.19 Smaller learning communities......         135
00.20 Comprehensive school reform.......           1
00.21 Safe and drug-free schools and 
        communities State grants........         336
00.22 Safe and drug-free schools and 
        communities national programs...                      14
                                           ---------   ---------  ----------
10.00   Total new obligations...........       6,307       5,681       5,332
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         263          61
22.00 New budget authority (gross)......       6,131       5,620       5,332
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       6,395       5,681       5,332
23.95 Total new obligations.............      -6,307      -5,681      -5,332
23.98 Unobligated balance expiring or 
        withdrawn.......................         -27
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          61
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       4,399       4,230       3,897
40.35   Appropriation permanently 
          reduced.......................         -34         -45
42.00   Transferred from other accounts.           1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       4,366       4,185       3,897
55.00   Advance appropriation...........       1,765       1,435       1,435
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       6,131       5,620       5,332
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       9,581       8,641       7,233
73.10 Total new obligations.............       6,307       5,681       5,332
73.20 Total outlays (gross).............      -7,283      -7,089      -5,952
73.40 Adjustments in expired accounts 
        (net)...........................         -27
73.45 Recoveries of prior year 
        obligations.....................          -1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          63
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       8,641       7,233       6,613
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         913         973         968
86.93 Outlays from discretionary 
        balances........................       6,370       6,116       4,984
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       7,283       7,089       5,952
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -63          -3
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          63           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       6,131       5,620       5,332
90.00 Outlays...........................       7,219       7,086       5,952
---------------------------------------------------------------------------

                        SUMMARY OF PROGRAM LEVEL

                        (in millions of dollars)

                                     2004-2005 
                                      Academic 
                                        Year      2005-2006 
                                                Academic Year 2006-2007 
                                                            Academic Year
New Budget Authority................       4,365       4,185       3,897
Advance Appropriation...............       1,435       1,435       1,435
                                    ------------------------------------
      Total program level...........       5,800       5,620       5,332
                                    ====================================
Change in advance appropriation over 
previous year.......................           0           0           0

    Improving teacher quality.--
            Improving teacher quality State grants.--Funds support State 
        and school district activities to prepare, train, and recruit 
        high-quality teachers to improve student achievement.
            Early childhood educator professional development.--Funds 
        support competitive grants to improve the knowledge and skills 
        of early childhood educators who work in communities that have 
        high concentrations of children living in poverty.
            Mathematics and science partnerships.--Funds support State 
        and local efforts to improve students' academic achievement in 
        mathematics and science by promoting strong teaching skills for 
        elementary and secondary school teachers, including integrating 
        teaching methods based on scientifically-based research and 
        technology into the curriculum.

    21st Century community learning centers.--Funds support formula 
grants to States, which award subgrants to communities to provide 
academic enrichment opportunities and related services to students, 
primarily students who attend high-poverty schools, and their families 
during before-school, after-school, weekend, and summer hours.

    State grants for innovative programs.--Funds support formula grants 
to States and local educational agencies to help

[[Page 347]]

implement innovative strategies for improving student achievement.

    State assessments.--Funds support formula grants to States to 
develop and implement the assessments, and related accountability 
efforts, that States use to test children in reading, mathematics, and 
science.

    High school assessments.--Funds would support formula grants to 
States for the development of reading/language arts and mathematics 
assessments for high school students.

    Education for homeless children and youth.--Funds support formula 
grants to States to provide educational and support services that enable 
homeless children and youth to attend and achieve success in school.

    Education for Native Hawaiians.--Funds provide supplemental 
education services to Native Hawaiians in areas such as family-based 
education, special education, gifted and talented education, higher 
education, curriculum development, teacher training and recruitment, and 
community-based learning.

    Alaska Native education equity.--Funds provide supplemental 
education services to Alaska Natives in areas such as educational 
planning, curriculum development, teacher training, teacher recruitment, 
student enrichment, and home-based instruction for pre-school children. 
Grants also go to organizations specified in the law.

    Training and advisory services.--Funds support grants to regional 
equity assistance centers that provide technical assistance to school 
districts in addressing equity in education related to issues of race, 
gender, and national origin.

    Rural education.--Funds support formula grants under two programs: 
Small, Rural Schools Achievement and Rural and Low-Income Schools. Funds 
under the Small, Rural Schools Achievement program, which provides rural 
local educational agencies with small enrollments with additional 
formula funds and flexibility in the use of other Federal formula funds, 
are allocated by formula directly from the Department to eligible local 
educational agencies. Funds under the Rural and Low-Income Schools 
program, which targets rural local educational agencies that serve 
concentrations of poor students, are allocated by formula to States, who 
in turn allocate funds to eligible local educational agencies within the 
States.

    Supplemental education grants.--Funds support grants to the 
Federated States of Micronesia and to the Republic of the Marshall 
Islands in place of grant programs discontinued by the Compact of Free 
Association Amendments Act of 2003.

    Comprehensive centers.--Funds support no fewer than 20 comprehensive 
centers, with at least one center in each of 10 geographic regions, to 
provide technical assistance, training, and professional development in 
reading, mathematics, science, and technology to States, districts, and 
schools.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1000-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..           7           7           7
25.2  Other services....................          27          27          27
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           7           7           7
25.5  Research and development contracts           9           9           9
41.0  Grants, subsidies, and 
        contributions...................       6,257       5,631       5,282
                                           ---------   ---------  ----------
99.9    Total new obligations...........       6,307       5,681       5,332
---------------------------------------------------------------------------

                                

                           Reading Excellence

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0011-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         226          67
73.20 Total outlays (gross).............        -159         -67
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          67
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................         159          67
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         159          67
---------------------------------------------------------------------------

    Reading Excellence.--This program has been replaced by the Reading 
First program in the Education for the Disadvantaged account. Amounts in 
these schedules reflect balances that are spending out from prior-year 
appropriations.

                                

                            Education Reform

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0500-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         226         120
73.20 Total outlays (gross).............         -75        -120
73.40 Adjustments in expired accounts 
        (net)...........................         -31
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         120
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................          75         120
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          75         120
---------------------------------------------------------------------------

    Programs in this account have been transferred to the School 
Improvement Programs account or discontinued. Amounts in this schedule 
reflect balances that are spending out from prior-year appropriations.

                                

                      Chicago Litigation Settlement

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0220-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

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

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

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

    Funds made available under this account were reappropriated by the 
Supplemental Appropriations Act, 1987 (Public Law 100-71) from funds 
enjoined in United States of America v. Board of Education of the City 
of Chicago. The funds were reappropriated for the specific purpose of 
settling this case. The funds are used by the Chicago Board of Education 
to implement Project CANAL (Creating A New Approach to Learning), the 
project approved by the court to support the Board's desegregation 
efforts.

[[Page 348]]

                                


 
                       OFFICE OF INDIAN EDUCATION

                              Federal Funds

General and special funds:

                            Indian Education

    For expenses necessary to carry out, to the extent not otherwise 
provided, title VII, part A of the Elementary and Secondary Education 
Act of 1965, [$120,856,000] $119,889,000. (Department of Education 
Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0101-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to local educational 
        agencies........................          96          95          96
00.02 Special programs for Indian 
        children........................          20          20          20
00.03 National activities...............           5           5           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         121         120         120
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         121         120         120
23.95 Total new obligations.............        -121        -120        -120
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         122         121         120
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         121         120         120
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         147         151         141
73.10 Total new obligations.............         121         120         120
73.20 Total outlays (gross).............        -114        -130        -120
73.40 Adjustments in expired accounts 
        (net)...........................          -3
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         151         141         141
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2           6           6
86.93 Outlays from discretionary 
        balances........................         112         124         114
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         114         130         120
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         121         120         120
90.00 Outlays...........................         114         130         120
---------------------------------------------------------------------------

    The Indian Education program supports the efforts of local 
educational agencies and tribal schools to improve teaching and learning 
for the Nation's American Indian and Alaska Native Children.

    Grants to local educational agencies.--Formula grants support local 
educational agencies in their efforts to reform elementary and secondary 
school programs that serve Indian students, with the goal of ensuring 
that such programs assist participating students in meeting the same 
academic standards as all other students. In 2004, the Department made 
1,166 formula grants to local educational agencies and tribal schools 
serving more than 458,000 students.

    Special programs for Indian Children.--The Department makes 
competitive awards for demonstration projects in early childhood 
education, professional development grants, American Indian Teacher 
Corps grants, and grants for the American Indian Administrator Corps. 
The professional development awards in this activity are designed to 
improve the quality of teachers and administrators in school districts 
with concentrations of Indian students.

    National activities.--Funds support research, evaluation, data 
collection, and related activities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0101-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.2  Other services....................           5           5           4
41.0  Grants, subsidies, and 
        contributions...................         116         115         116
                                           ---------   ---------  ----------
99.9    Total new obligations...........         121         120         120
---------------------------------------------------------------------------

                                


 
                  OFFICE OF INNOVATION AND IMPROVEMENT

                              Federal Funds

General and special funds:

                       Innovation and Improvement

    For carrying out activities authorized by [parts] part G [and H] of 
title I, subpart 5 of part A and parts C and D of title II, and parts B, 
C, and D of title V[, and section 1504] of the Elementary and Secondary 
Education Act of 1965 (``ESEA''), [$1,101,454,000] $1,307,871,000: 
Provided, That [$17,000,000 shall be available to carry out section 
2151(c) of the ESEA, of which not less than $10,000,000 shall be 
provided to the National Board for Professional Teaching Standards, and 
not less than $7,000,000 shall be provided to the American Board for the 
Certification of Teacher Excellence] from funds for subpart 4, part C of 
title II, up to 3 percent shall be available to the Secretary for 
technical assistance and dissemination of information: Provided further, 
That [$37,279,000] $36,981,000 shall be for subpart 2 of part B of title 
V: Provided further, That [$417,418,000] $656,296,000 shall be available 
to carry out part D of title V of the ESEA[: Provided further, That 
$246,963,000 of the funds for subpart 1, part D of title V of the ESEA 
shall be available for the projects and in the amounts specified in the 
statement of the managers on the conference report accompanying this 
Act], of which $500,000,000 of the funds for subpart 1 shall become 
available on July 1, 2006 and remain available through September 30, 
2007, and shall be for grants to States and local educational agencies 
to provide financial incentives for teachers and schools that raise 
student achievement, for teachers who teach in low-income schools, and 
to develop performance-based teacher compensation systems. (Department 
of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0204-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Recruiting and training high quality teachers 
          and principals:

00.01   Teacher incentive fund..........                                 500
00.02   Troops-to-teachers..............          15          15          15
00.03   Transition to teaching..........          45          45          45
00.04   National writing project........          18          20
00.05   Teaching American history.......         119         119         119
00.06   School leadership...............          12          15
00.07   Advanced credentialing..........          18          17           8
      School choice and flexibility:

00.08   Charter schools grants..........         219         217         219
00.09   Credit enhancement for charter 
          school facilities.............          37          37          37
00.10   Voluntary public school choice..          27          27          27
00.11   Magnet schools assistance.......         109         108         108
00.12   Choice incentive fund...........                                  50
00.13 Advanced placement................          24          30          51
00.14 School dropout prevention.........           5           5
00.15 Close Up fellowships..............           1           1
00.16 Ready to learn television.........          23          23          23
00.17 FIE programs of national 
        significance....................         281         257          29
00.18 Adjunct teacher corps initiative..                                  40
00.19 State scholars capacity building..                                  12
00.20 Reading is fundamental/Inexpensive 
        book distribution...............          25          25          25
00.21 Star schools......................          20          21
00.22 Ready to teach....................          14          14
00.23 Exchanges with historic whaling 
        and trading partners............           8           9
00.24 Excellence in economic education..           1           1
00.25 Mental health integration in 
        schools.........................                       5
00.26 Foundations for learning..........                       1
00.27 Arts in education.................          35          36
00.28 Parental information and resource 
        centers.........................          42          42
00.29 Womens educational equity.........           3           3
                                           ---------   ---------  ----------
01.00   Total direct program............       1,101       1,093       1,308
09.01 DC School Choice..................          14          14          14
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,115       1,107       1,322
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       1

[[Page 349]]

22.00 New budget authority (gross)......       1,116       1,106       1,322
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,116       1,107       1,322
23.95 Total new obligations.............      -1,115      -1,107      -1,322
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,110       1,101       1,308
40.35   Appropriation permanently 
          reduced.......................          -7          -9
41.00   Transferred to other accounts...          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,102       1,092       1,308
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          14          14          14
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,116       1,106       1,322
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                   1,041       1,380
73.10 Total new obligations.............       1,115       1,107       1,322
73.20 Total outlays (gross).............         -74        -768      -1,059
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       1,041       1,380       1,643
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          74          56          66
86.93 Outlays from discretionary 
        balances........................                     712         993
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          74         768       1,059
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -14         -14         -14
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,102       1,092       1,308
90.00 Outlays...........................          60         754       1,045
---------------------------------------------------------------------------

    Recruiting and training high quality teachers and principals.--
        Teacher incentive fund.--Funds will reward teachers and schools 
    that are raising student achievement and closing the achievement 
    gap, provide incentives for effective teachers who choose to teach 
    in low-income schools, and provide funds for the development of 
    performance-based teacher compensation systems.
        Troops-to-teachers.--Funds assist eligible members of the armed 
    forces to obtain certification as teachers and to become highly 
    qualified teachers.
        Transition to teaching.--Funds support competitive grants to 
    establish programs to recruit and retain highly qualified mid-career 
    professionals and recent college graduates as teachers in high-need 
    schools.
        Teaching American history.--Funds support competitive grants to 
    school districts for activities to improve history instruction and 
    provide professional development for teachers of American history.
        Advanced credentialing.--Funds support the development of an 
    advanced credential based on the content expertise of master 
    teachers. Funds also support related activities to encourage and 
    support teachers seeking advanced certification or advanced 
    credentials.

    School choice and flexibility.--
        Charter schools grants.--Funds support competitive grants to 
    State educational agencies and charter schools to support the 
    planning, design, initial implementation, and dissemination of 
    information regarding charter schools. These schools are created by 
    teachers, parents, and members of the community, and are exempt from 
    certain local, State, and Federal regulations.
        Credit enhancement for charter school facilities.--Funds support 
    competitive grants to State and local governments, nonprofit 
    entities, and public and nonprofit consortia, to assist charter 
    schools in acquiring, leasing, and renovating school facilities. 
    Funds above $200 million are used for the Per-Pupil Facilities Aid 
    program, which provides funds to States to assist charter schools in 
    obtaining facilities.
        Voluntary public school choice.--Funds support competitive 
    grants to State educational agencies and local educational agencies 
    to implement programs that provide students, particularly students 
    who attend low-performing schools, with expanded public school 
    choice options.
        Magnet schools assistance.--Funds support competitive grants to 
    local educational agencies to establish and operate magnet school 
    programs that are part of an approved desegregation plan.
        Choice incentive fund.--Funds will support grants to States, 
    local educational agencies, and community-based nonprofit 
    organizations with a proven record for securing educational 
    opportunities for children. These grants will support efforts to 
    increase the capacity of high-quality public and private schools to 
    serve additional students.

    Advanced placement.--Funds support grants to States to pay test fees 
for low-income students if they are enrolled in an Advanced Placement 
course and competitive grants to State educational agencies, local 
educational agencies, and national nonprofit educational entities to 
expand access for low-income individuals to Advanced Placement classes.

    Ready-to-learn television.--Funds support the development, 
distribution, and production of educational video and accompanying 
materials and services for preschool children, elementary school 
children, and their parents to facilitate student academic achievement.

    FIE programs of national significance.--Funds support nationally 
significant projects to improve the quality of elementary and secondary 
education in order to help all children meet challenging State content 
and student achievement standards.

    Adjunct teacher corps.--Funds will support partnerships between 
school districts and appropriate public and/or private institutions to 
enable well-qualified professionals to teach specific high-school 
courses in the core academic subjects, particularly in mathematics and 
science.

    State scholars capacity building.--Funds will support business and 
education partnerships in every State to encourage high school students 
to complete a rigoroous curriculum in the core academic subjects.

    Reading is fundamental/Inexpensive book distribution.--Funds support 
reading motivation activities, including the distribution of free books 
to children.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0204-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

25.1    Advisory and assistance services           2           2           2
25.2    Other services..................          32          32          38
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          16          16          19
25.5    Research and development 
          contracts.....................           5           1
41.0    Grants, subsidies, and 
          contributions.................       1,046       1,042       1,249
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,101       1,093       1,308
99.0  Reimbursable obligations..........          14          14          14
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,115       1,107       1,322
---------------------------------------------------------------------------

                                


 
                  OFFICE OF SAFE AND DRUG-FREE SCHOOLS

                              Federal Funds

General and special funds:

                 Safe Schools and Citizenship Education

    For carrying out activities authorized by [subpart 3 of part C of 
title II,] part A of title IV[,] and subparts [2,] 3 and 10 of part D of 
title V of the Elementary and Secondary Education Act of 1965 
(``ESEA''), [title VIII-D of the Higher Education Amendments

[[Page 350]]

of 1998, and Public Law 102-73, $867,713,000, of which $467,908,000, 
shall become available on July 1, 2005 and remain available through 
September 30, 2006: Provided, That of the amount available for subpart 2 
of part A of title IV of the ESEA, $850,000 shall be used to continue 
the National Recognition Awards program under the same guidelines 
outlined by section 120(f) of Public Law 105-244] $396,767,000: Provided 
[further], That [$440,908,000 shall be available for subpart 1 of part A 
of title IV and $236,472,000] $317,274,000 shall be available for 
subpart 2 of part A of title IV, of which $5,000,000, to remain 
available until expended, shall be for the Project School Emergency 
Response to Violence program to provide education-related services to 
local educational agencies in which the learning environment has been 
disrupted due to a violent or traumatic crisis: Provided further, That 
[$133,691,000] $79,493,000 shall be available to carry out part D of 
title V of the ESEA[: Provided further, That of the funds available to 
carry out subpart 3 of part C of title II, up to $12,292,000 may be used 
to carry out section 2345 and $3,050,000 shall be used by the Center for 
Civic Education to implement a comprehensive program to improve public 
knowledge, understanding, and support of the Congress and the State 
legislatures: Provided further, That $27,000,000 shall be for Youth 
Offender Grants, of which $5,000,000 shall be used in accordance with 
section 601 of Public Law 102-73 as that section was in effect prior to 
enactment of Public Law 105-220: Provided further, That of the funds 
available to carry out subpart 10 of part D of title V, up to $2,000,000 
may be used to support the Special Olympics National Summer Games]. 
(Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0203-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Safe and drug-free schools and communities:

00.01   State grants....................         437         441
        National programs:
00.02     Alcohol abuse reduction.......          30          33
00.03     Mentoring program.............          50          49          49
00.04     Other national programs.......         154         153         269
                                           ---------   ---------  ----------
00.91   Subtotal, Safe and drug-free 
          schools and communities.......         671         676         318
01.01 Character education...............          25          24          24
02.01 Elementary and secondary school 
        counseling......................          34          35
03.01 Physical education program........          69          73          55
04.01 Civic education...................          28          29
05.01 State grants for incarcerated 
        youth offenders.................          20          22
06.01 Literacy program for prisoners....                      10
09.00 Reimbursable program..............          68
                                           ---------   ---------  ----------
10.00   Total new obligations...........         916         869         397
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       8
22.00 New budget authority (gross)......         924         861         397
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         924         869         397
23.95 Total new obligations.............        -916        -869        -397
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           8
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         863         868         397
40.35   Appropriation permanently 
          reduced.......................          -7          -7
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         856         861         397
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                      68
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          68         -68
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          68
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         924         861         397
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                     827       1,212
73.10 Total new obligations.............         916         869         397
73.20 Total outlays (gross).............         -21        -552        -784
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -68          68
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         827       1,212         825
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          21          17           8
86.93 Outlays from discretionary 
        balances........................                     535         776
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          21         552         784
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                     -68
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -68          68
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         856         861         397
90.00 Outlays...........................          21         484         784
---------------------------------------------------------------------------

    Safe and drug-free schools and communities.--
        Mentoring program.--Funds provide grants to local educational 
    agencies and community-based organizations for mentoring programs 
    serving at-risk youth.
        Other national programs.--Funds support the drug testing 
    initiative and other national activities to prevent violence and the 
    illegal use of drugs among, and to promote safety and discipline 
    for, students.

    Character education.--Funds provide grants to support the design and 
implementation of character education programs in the Nation's 
elementary and secondary schools.

    Physical education program.--Funds provide grants to local 
educational agencies and community-based organizations to initiate, 
expand, or improve physical education programs for students.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0203-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

24.0    Printing and reproduction.......                       1           1
25.1    Advisory and assistance services           1           2           2
25.2    Other services..................          13          14          15
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           2           2           2
25.5    Research and development 
          contracts.....................           2
41.0    Grants, subsidies, and 
          contributions.................         830         850         377
                                           ---------   ---------  ----------
99.0      Direct obligations............         848         869         397
99.0  Reimbursable obligations..........          68
                                           ---------   ---------  ----------
99.9    Total new obligations...........         916         869         397
---------------------------------------------------------------------------

                                


 
                 OFFICE OF ENGLISH LANGUAGE ACQUISITION

                              Federal Funds

General and special funds:

                      English Language Acquisition

    For carrying out part A of title III of the ESEA, [$681,215,000, of 
which $595,715,000] $675,765,000, which shall become available on July 
1, [2005] 2006, and shall remain available through September 30, [2006: 
Provided, That funds reserved under section 3111(c)(1)(D) of the ESEA 
that are not used in accordance with section 3111(c)(2) may be added to 
the funds that are available July 1, 2005, through September 30, 2006, 
for State allotments under section 3111(c)(3)] 2007, except that 6.5 
percent of such amount shall be available on October 1, 2005 and shall 
remain available through September 30, 2007, to carry out activities 
under section 3111(c)(1)(C). (Department of Education Appropriations 
Act, 2005.)

[[Page 351]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1300-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Language acquisition State grants.         685         683         676
                                           ---------   ---------  ----------
10.00   Total new obligations...........         685         683         676
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          11           7
22.00 New budget authority (gross)......         681         676         676
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         692         683         676
23.95 Total new obligations.............        -685        -683        -676
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           7
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         685         681         676
40.35   Appropriation permanently 
          reduced.......................          -4          -5
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         681         676         676
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         938         965         808
73.10 Total new obligations.............         685         683         676
73.20 Total outlays (gross).............        -645        -840        -624
73.40 Adjustments in expired accounts 
        (net)...........................         -14
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         965         808         860
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           5          34          34
86.93 Outlays from discretionary 
        balances........................         640         806         590
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         645         840         624
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         681         676         676
90.00 Outlays...........................         645         840         624
---------------------------------------------------------------------------

    Language acquisition State grants.--This program provides formula 
grants to States to improve services for limited English proficient and 
immigrant students. States are accountable for demonstrating that 
limited English proficient students are learning English and meeting the 
same high State standards as all other students. The statute also 
authorizes national activities including professional development and 
evaluation, and requires funding for a national information 
clearinghouse on English language acquisition.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1300-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.5  Research and development contracts           2           2           2
41.0  Grants, subsidies, and 
        contributions...................         683         681         674
                                           ---------   ---------  ----------
99.9    Total new obligations...........         685         683         676
---------------------------------------------------------------------------

                                


 
         OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

                              Federal Funds

General and special funds:

                            Special Education

    For carrying out [parts B, C, and D of] the Individuals with 
Disabilities Education Act, [$11,767,748,000] $12,126,130,000, of which 
[$6,145,270,000] $5,719,151,000 shall become available [for obligation] 
on July 1, [2005] 2006, and shall remain available through September 30, 
[2006] 2007, and of which [$5,413,000,000] $6,204,000,000 shall become 
available on October 1, [2005] 2006, and shall remain available through 
September 30, [2006] 2007, for academic year [2005-2006] 2006-2007: 
Provided, [That $11,400,000 shall be for Recording for the Blind and 
Dyslexic, Inc., to support the development, production, and circulation 
of recorded educational materials: Provided further, That $1,500,000 
shall be for the recipient of funds provided by Public Law 105-78 under 
section 687(b)(2)(G) of the Act (as in effect prior to the enactment of 
the Individuals with Disabilities Education Improvement Act of 2004) to 
provide information on diagnosis, intervention, and teaching strategies 
for children with disabilities: Provided further,] That the amount for 
section [611(c)] 611(b)(2) of the Act shall be equal to the amount 
available for that [section] activity during fiscal year [2004] 2005, 
increased by the amount of inflation as specified in section 
[611(f)(1)(B)(ii)] 619(d)(2)(B) of the Act [(as in effect prior to the 
enactment of the Individuals with Disabilities Education Improvement Act 
of 2004)]. (Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0300-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      State grants:

00.01   Grants to States................      10,351      10,611      10,306
00.02   Preschool grants................         391         384         385
00.03   Grants for infants and families.         469         458         441
                                           ---------   ---------  ----------
00.91     Subtotal, State grants........      11,211      11,453      11,132
      National activities:

01.01   State personnel development.....          45         102
01.02   Research and innovation.........          77
01.03   Technical assistance and 
          dissemination.................          53          52          49
01.04   Personnel preparation...........          91          91          91
01.05   Parent information centers......          26          26          26
01.06   Technology and media services...          39          39          32
01.07   Transition initiative...........                                   5
                                           ---------   ---------  ----------
01.91     Subtotal, National activities.         331         310         203
                                           ---------   ---------  ----------
02.00   Total Direct Program............      11,542      11,763      11,335
                                           ---------   ---------  ----------
10.00   Total new obligations...........      11,543      11,763      11,335
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         135          89
22.00 New budget authority (gross)......      11,498      11,674      11,335
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      11,633      11,763      11,335
23.95 Total new obligations.............     -11,543     -11,763     -11,335
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          89
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       5,894       6,355       5,922
40.35   Appropriation permanently 
          reduced.......................         -68         -94
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       5,826       6,261       5,922
55.00   Advance appropriation...........       5,672       5,413       5,413
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      11,498      11,674      11,335
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       7,019       8,794      10,331
73.10 Total new obligations.............      11,543      11,763      11,335
73.20 Total outlays (gross).............      -9,750     -10,226     -11,345
73.40 Adjustments in expired accounts 
        (net)...........................         -18
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       8,794      10,331      10,321
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       3,598       3,751       3,761
86.93 Outlays from discretionary 
        balances........................       6,152       6,475       7,584
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       9,750      10,226      11,345
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      11,498      11,674      11,335

[[Page 352]]

90.00 Outlays...........................       9,749      10,226      11,345
---------------------------------------------------------------------------

                SUMMARY OF GRANTS TO STATES PROGRAM LEVEL

                        [In millions of dollars]

                                     2004-2005 
                                      academic 
                                        year      2005-2006 
                                                academic year 2006-2007 
                                                            academic year
Current Budget Authority............      $4,655      $5,177      $4,894
Advance appropriation...............       5,413       5,413       6,204
                                    ------------------------------------
    Total program level.............      10,068      10,590      11,098
                                    ====================================
Change in advance appropriation from 
the previous year...................        -259                    +791

    State Grants:
        Grants to States.--Formula grants are provided to States to 
    assist them in providing special education and related services to 
    children with disabilities ages 3 through 21.
        Preschool grants.--Formula grants provide additional funds to 
    States to further assist them in providing special education and 
    related services to children with disabilities ages 3 through 5 
    served under the Grants to States program.
        The goal of both of these programs is to improve results for 
    children with disabilities by assisting State and local educational 
    agencies to provide children with disabilities with access to high 
    quality education that will help them meet challenging standards and 
    prepare them for employment and independent living.
        Grants for infants and families.--Formula grants are provided to 
    assist States to implement statewide systems of coordinated, 
    comprehensive, multi-disciplinary interagency programs to provide 
    early intervention services to children with disabilities, birth 
    through age 2, and their families.
        The goal of this program is to help States provide a 
    comprehensive system of early intervention services that will 
    enhance child and family outcomes.

    National activities:
        These activities include personnel preparation, technical 
    assistance, and other activities to support State efforts to improve 
    results for children with disabilities under the State Grants 
    programs.
        The goal of National Activities is to link States, school 
    systems, and families to best practices to improve results for 
    infants, toddlers, and children with disabilities. The request 
    includes funds for a new Transition Initiative to help States use 
    data and research-based practices to improve post-school outcomes.
        Performance data related to program goals include:

                                    2000-2001 ac2001-2002 actual  2002-2003 
                                                                      actual
    Status of Exiting Students
Percent of students with disabilities 
    aged 14-21 leaving school:
  Graduated with a diploma..............        47.6        51.1        51.9
  Graduated through certification.......         9.2         9.5        12.7
  Dropped out of school/not known to 
    continue............................        41.1        37.6        33.6
  Reached maximum age for services/other         2.1         1.8         1.8

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0300-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

25.2    Other services..................          30          27          14
41.0    Grants, subsidies, and 
          contributions.................      11,512      11,736      11,321
                                           ---------   ---------  ----------
99.0      Direct obligations............      11,542      11,763      11,335
99.5  Below reporting threshold.........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........      11,543      11,763      11,335
---------------------------------------------------------------------------

                                

             Rehabilitation Services and Disability Research

    For carrying out, to the extent not otherwise provided, the 
Rehabilitation Act of 1973, section 4(b)(2)(D) of the Assistive 
Technology Act of 1998 (``the AT Act''), and the Helen Keller National 
Center Act, [$3,076,112,000] $3,059,298,000, of which [$1,000,000 shall 
be awarded to the American Academy of Orthotists and Prosthetists for 
activities that further the purposes of the grant received by the 
Academy for the period beginning October 1, 2003, including activities 
to meet the demand for orthotic and prosthetic provider services and 
improve patient care: Provided, That $30,000,000 shall be used for 
carrying out the AT Act, including $4,420,760 for State grants for 
protection and advocacy under section 5 of the AT Act and $4,055,000] 
$15,000,000 shall be for alternative financing programs under section 
4(b)(2)(D) of the AT Act: Provided further, That the Federal share of 
grants for alternative financing programs [under section 4(b)(2)(D) of 
the AT Act] shall not exceed 75 percent, and the requirements in section 
301(c)(2) and section 302 of the AT Act (as in effect on the day before 
the date of enactment of the Assistive Technology Act of 2004) shall not 
apply to such grants[: Provided further, That $7,030,000 of the funds 
for section 303 of the Rehabilitation Act of 1973 shall be available for 
the projects and in the amounts specified in the statement of the 
managers of the conference report accompanying this Act]. (Department of 
Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0301-0-1-506      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Vocational rehabilitation State 
          grants........................       2,584       2,636       2,720
00.02   Client assistance State grants..          12          12          12
00.03   Training........................          39          39          39
00.04   Demonstration and training 
          programs......................          24          26           6
00.05   Migrant and seasonal farmworkers           2           2
00.06   Recreational programs...........           2           2
00.07   Protection and advocacy of 
          individual rights.............          17          17          17
00.08   Projects with industry..........          22          22
00.09   Supported employment State 
          grants........................          38          37
00.10   Independent living..............         127         131         131
00.11   Program improvement.............           1           1           1
00.12   Evaluation......................           1           1           1
00.13   Helen Keller National Center....           9          10           9
00.14   National Institute on Disability 
          and Rehabilitation Research...         107         108         108
00.15   Assistive technology............          26          30          15
                                           ---------   ---------  ----------
01.00   Total direct program............       3,011       3,074       3,059
09.01 Reimbursable program..............           2           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,013       3,076       3,061
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       3,013       3,076       3,061
23.95 Total new obligations.............      -3,013      -3,076      -3,061
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         430         442         339
40.35   Appropriation permanently 
          reduced.......................          -3          -4
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         427         438         339
      Mandatory:

60.00   Appropriation...................       2,584       2,636       2,720
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,013       3,076       3,061
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       1,193       1,302       1,027
73.10 Total new obligations.............       3,013       3,076       3,061
73.20 Total outlays (gross).............      -2,899      -3,351      -3,076
73.40 Adjustments in expired accounts 
        (net)...........................          -7
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           2
                                           ---------   ---------  ----------

[[Page 353]]


74.40   Obligated balance, end of year..       1,302       1,027       1,012
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          79         308         238
86.93 Outlays from discretionary 
        balances........................         367         460         154
86.97 Outlays from new mandatory 
        authority.......................       1,906       1,845       1,904
86.98 Outlays from mandatory balances...         547         738         780
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,899       3,351       3,076
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -4          -2          -2
88.40     Non-Federal sources...........          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -5          -2          -2
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,011       3,074       3,059
90.00 Outlays...........................       2,894       3,349       3,074
---------------------------------------------------------------------------

    Vocational rehabilitation State grants.--The basic State grants 
program provides Federal matching funds to State vocational 
rehabilitation (VR) agencies to assist individuals with physical or 
mental impairments to become gainfully employed. Services are tailored 
to the specific needs of the individual. Priority is given to serving 
those with the most significant disabilities. Current law requires that 
between 1.0 percent and 1.5 percent of the funds appropriated for the VR 
State grants program be set aside for Grants for Indians.

    The program performance measures for this program are based on State 
VR agency performance indicators developed pursuant to Section 106 of 
the Rehabilitation Act. One of these indicators measures the percentage 
of general and combined State VR agencies that assist at least 55.8 
percent of individuals receiving services to achieve an employment 
outcome. In 2003, 66 percent of the agencies met this performance 
criterion. Another measures the percentage of general and combined State 
VR agencies that assist at least 85 percent of individuals with 
employment outcomes to achieve competitive employment. In 2003, 93 
percent of general and combined agencies met this performance criterion. 
The data are based on the approximately 372,250 individuals whose 
service records were closed in 2003 after receiving services.

    The 2006 Budget reflects a multi-year Administration effort to 
reform job training programs, target resources to programs with 
documented effectiveness, and eliminate funding for duplicative and 
overlapping programs. Consistent with this crosscutting reform, the 
budget eliminates funding for three programs (Supported Employment State 
Grants, Projects with Industry, and the Migrant and Seasonal Farmworkers 
program). The services provided by these programs can be provided by the 
larger Vocational Rehabilitation State Grants program.

    Client assistance State grants.--Formula grants are made to States 
to provide assistance in informing and advising clients and applicants 
of benefits available under the Rehabilitation Act and, if requested, to 
pursue legal or administrative remedies to ensure the protection of the 
rights of individuals with disabilities.

    Training.--Grants are made to States and public or nonprofit 
agencies and organizations, including institutions of higher education, 
to increase the number of skilled personnel available for employment in 
the field of rehabilitation and to upgrade the skills of those already 
employed.

    Demonstration and training programs.--Grants are made for programs 
that expand and improve the provision of rehabilitation services or that 
further the purposes of the Rehabilitation Act.

    Protection and advocacy of individual rights.--Formula grants are 
made to State protection and advocacy systems to protect the legal and 
human rights of individuals with disabilities.

    Independent living.--Grants are awarded to States and nonprofit 
agencies to assist individuals with significant disabilities in their 
achievement of self-determined independent living goals. Grants are also 
awarded to provide support services to older blind individuals to 
increase their ability to care for their own needs.

    Program improvement.--Funds are used to promote broad-based planning 
and coordination, improve accountability, and enhance the Department's 
ability to address critical areas of national significance in achieving 
the goals of the Rehabilitation Act. Examples of program improvement 
activities include technical assistance, dissemination, and performance 
measurement activities.

    Evaluation.--Studies are conducted to evaluate the impact and 
effectiveness of various programs authorized under the Rehabilitation 
Act.

    Helen Keller National Center for Deaf-Blind Youths and Adults.--The 
Center provides services to deaf-blind youths and adults and provides 
training and technical assistance to professional and allied personnel 
at its national headquarters center and through its regional 
representatives and affiliate agencies.

    National Institute on Disability and Rehabilitation Research.--The 
Institute carries out a comprehensive and coordinated program of 
rehabilitation research and related activities. Through grants and 
contracts, it supports the conduct and dissemination of research and 
development aimed at improving the lives of individuals with 
disabilities. The Institute also promotes the development and 
utilization of new technologies to assist these individuals in achieving 
greater independence and integration into society.

    Assistive technology.--Grants are made to States to establish or 
expand alternative financing programs to increase access to assistive 
technology for individuals with disabilities. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0301-0-1-506      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

25.1    Advisory and assistance services           9          11           9
25.2    Other services..................           2           2           1
41.0    Grants, subsidies, and 
          contributions.................       3,000       3,061       3,049
                                           ---------   ---------  ----------
99.0      Direct obligations............       3,011       3,074       3,059
99.0  Reimbursable obligations..........           2           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........       3,013       3,076       3,061
---------------------------------------------------------------------------

                                

           Special Institutions for Persons With Disabilities

                  american printing house for the blind

    For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 101 
et seq.), [$17,000,000] $16,864,000. (Department of Education 
Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0600-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........          16          17          17
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          16          17          17
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          17          17          17
23.95 Total new obligations.............         -16         -17         -17
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          17          17          17
----------------------------------------------------------------------------

[[Page 354]]



    Change in obligated balances:
72.40 Obligated balance, start of year..           7           5           1
73.10 Total new obligations.............          16          17          17
73.20 Total outlays (gross).............         -18         -21         -17
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           5           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          11          16          16
86.93 Outlays from discretionary 
        balances........................           7           5           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          18          21          17
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          17          17          17
90.00 Outlays...........................          19          21          17
---------------------------------------------------------------------------

    The Federal appropriation supports the production of free 
educational materials for students below the college level who are 
blind, research related to developing and improving products, and 
advisory services to consumer organizations on the availability and use 
of materials. In 2004, the portion of the Federal appropriation 
allocated to educational materials represented approximately 58.5 
percent of the Printing House's total sales. The full appropriation 
represented approximately 63.5 percent of the Printing House's total 
budget.

                                

                National Technical Institute for the Deaf

    For the National Technical Institute for the Deaf under titles I and 
II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), 
[$55,790,000] $54,472,000, of which [$1,685,000] $800,000 shall be for 
construction and shall remain available until expended: Provided, That 
from the total amount available, the Institute may at its discretion use 
funds for the endowment program as authorized under section 207. 
(Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0601-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operations........................          53          54          54
00.02 Construction......................                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          53          55          55
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          53          55          55
23.95 Total new obligations.............         -53         -55         -55
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          54          55          55
40.35   Appropriation permanently 
          reduced.......................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          53          55          55
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           1           4
73.10 Total new obligations.............          53          55          55
73.20 Total outlays (gross).............         -54         -52         -54
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           1           4           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          53          51          51
86.93 Outlays from discretionary 
        balances........................           1           1           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          54          52          54
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          53          55          55
90.00 Outlays...........................          54          52          54
---------------------------------------------------------------------------

    This residential program provides postsecondary technical and 
professional education for people who are deaf to prepare them for 
employment, provides training, and conducts applied research into 
employment-related aspects of deafness. In 2004, Federal appropriations 
represented 81 percent of the Institute's operating budget. The request 
includes funds for the Endowment Grant program. The request also 
includes funds for the cost of a new construction project to replace the 
roof on the Institute's main classroom and administration building.

                                

                          Gallaudet University

    For the Kendall Demonstration Elementary School, the Model Secondary 
School for the Deaf, and the partial support of Gallaudet University 
under titles I and II of the Education of the Deaf Act of 1986 (20 
U.S.C. 4301 et seq.), [$105,400,000] $104,557,000: Provided, That from 
the total amount available, the University may at its discretion use 
funds for the endowment program as authorized under section 207. 
(Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0602-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operations........................         100         105         105
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         100         105         105
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         100         105         105
23.95 Total new obligations.............        -100        -105        -105
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         101         106         105
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         100         105         105
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                                   6
73.10 Total new obligations.............         100         105         105
73.20 Total outlays (gross).............        -100         -99        -105
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                       6           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         100          99          99
86.93 Outlays from discretionary 
        balances........................                                   6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         100          99         105
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         100         105         105
90.00 Outlays...........................         100          99         105
---------------------------------------------------------------------------

    This institution provides undergraduate and continuing education 
programs for persons who are deaf, and graduate programs related to 
deafness for students who are deaf and students who are hearing. The 
University also conducts basic and applied research and provides public 
service programs for persons who are deaf and persons who work with 
them.

    Gallaudet operates two elementary and secondary education programs 
on the main campus of the University. The Kendall Demonstration 
Elementary School serves students who are deaf from infancy through age 
15, and the Model Secondary School for the Deaf serves high school age 
students who are deaf. Both schools also develop and disseminate 
information on effective educational techniques and strategies for 
teachers and professionals working with students who are deaf or hard of 
hearing.

[[Page 355]]

    In 2004, the appropriation for Gallaudet represented 64.9 percent of 
the total revenue for university-level programs and 97.1 percent of the 
revenue related to the elementary and secondary schools. In addition, 
the University receives other Federal funds such as student financial 
aid, vocational rehabilitation, Endowment Grant program income, and 
competitive grants and contracts. The request also includes funds for 
the Endowment Grant program.

                                


 
                OFFICE OF VOCATIONAL AND ADULT EDUCATION

                              Federal Funds

General and special funds:

                     Vocational and Adult Education

    For carrying out, to the extent not otherwise provided, [the Carl D. 
Perkins Vocational and Technical Education Act of 1998,] the Adult 
Education and Family Literacy Act, [and subparts 4 and 11 of part D of 
title V of the Elementary and Secondary Education Act of 1965 
(``ESEA''), $2,027,166,000, of] $215,734,000, which [$1,226,404,000] 
shall become available on July 1, [2005] 2006 and shall remain available 
through September 30, [2006 and of which $791,000,000 shall become 
available on October 1, 2005 and shall remain available through 
September 30, 2006] 2007: Provided, That of the amount provided for 
Adult Education State Grants, $69,135,000 shall be made available for 
integrated English literacy and civics education services to immigrants 
and other limited English proficient populations: Provided further, That 
of the amount reserved for integrated English literacy and civics 
education, notwithstanding section 211 of the Adult Education and Family 
Literacy Act, 65 percent shall be allocated to States based on a State's 
absolute need as determined by calculating each State's share of a 10-
year average of the Immigration and Naturalization Service data for 
immigrants admitted for legal permanent residence for the 10 most recent 
years, and 35 percent allocated to States that experienced growth as 
measured by the average of the 3 most recent years for which Immigration 
and Naturalization Service data for immigrants admitted for legal 
permanent residence are available, except that no State shall be 
allocated an amount less than $60,000: Provided further, That of the 
amounts made available for the Adult Education and Family Literacy Act, 
[$9,169,000] $9,096,000 shall be for national leadership activities 
under section 243 and [$6,692,000] $6,638,000 shall be for the National 
Institute for Literacy under section 242[: Provided further, That 
$100,238,000 shall be available to carry out part D of title V of the 
ESEA: Provided further, That $95,238,000 shall be available to support 
the activities authorized under subpart 4 of part D of title V of the 
Elementary and Secondary Education Act of 1965, of which up to 5 percent 
shall become available October 1, 2004 and shall remain available 
through September 30, 2006, for evaluation, technical assistance, school 
networking, peer review of applications, and program outreach 
activities, and of which not less than 95 percent shall become available 
on July 1, 2005, and remain available through September 30, 2006, for 
grants to local educational agencies: Provided further, That funds made 
available to local education agencies under this subpart shall be used 
only for activities related to establishing smaller learning communities 
in high schools]. (Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Vocational education:

        Annual appropriations:
          Vocational education:
00.01       State grants................       1,203       1,196         791
00.02       National programs...........          13          12          11
00.03       Occupational and employment 
              information...............           9          11
00.04       Tribally controlled 
              postsecondary vocational 
              institutions..............           7
00.05       Tech-prep education State 
              grants....................         109         106
00.06     Tech-prep demonstration.......                       5           5
                                           ---------   ---------  ----------
00.91       Total, Vocational education.       1,341       1,330         807
          Adult education:
01.01       State grants................         602         569         207
01.02       National Institute for 
              Literacy..................           7           7           7
01.03       National leadership 
              activities................          12           9           9
                                           ---------   ---------  ----------
01.91       Total, adult education......         621         585         223
02.01     Literacy programs for 
            prisoners...................           5
03.01     Smaller learning communities..           1         173          94
04.01   Community technology centers....          10           5
09.01 Reimbursable program..............           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,980       2,093       1,124
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          78         216         134
22.00 New budget authority (gross)......       2,111       2,011       1,007
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,196       2,227       1,141
23.95 Total new obligations.............      -1,980      -2,093      -1,124
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         216         134          17
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,331       1,236         216
40.35   Appropriation permanently 
          reduced.......................         -13         -16
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,318       1,220         216
55.00   Advance appropriation from prior 
          year..........................         791         791         791
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,111       2,011       1,007
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       1,618       1,637       1,700
73.10 Total new obligations.............       1,980       2,093       1,124
73.20 Total outlays (gross).............      -1,947      -2,030      -1,928
73.40 Adjustments in expired accounts 
        (net)...........................          -7
73.45 Recoveries of prior year 
        obligations.....................          -7
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       1,637       1,700         896
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         600         656         566
86.93 Outlays from discretionary 
        balances........................       1,347       1,374       1,362
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,947       2,030       1,928
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       2,109       2,011       1,007
90.00 Outlays...........................       1,945       2,030       1,928
---------------------------------------------------------------------------

    Vocational education.--
        State grants.--A 2006 advance appropriation from 2005 supports 
    formula grants to States and localities to expand and improve their 
    programs of vocational education and promote equal opportunity in 
    vocational education programs for historically underserved 
    populations. No new funds are requested for 2006.
        National programs.--2005 appropriated funds are used in 2006 to 
    support discretionary activities that contribute to knowledge of how 
    to improve vocational education nationally. Activities include 
    national centers for research and dissemination in career and 
    technical education and a program of discretionary research and 
    development projects. No new funds are requested for 2006.
        Tech-prep demonstration.--2005 appropriated funds are used in 
    2006 to support competitive grants to consortia to establish tech-
    prep programs in secondary schools located on the sites of community 
    colleges. No new funds are requested for 2006.

    Adult education--
        State programs.--Funds support formula grants to States to help 
    eliminate functional illiteracy among the Nation's adults, to assist 
    adults in obtaining a high school diploma

[[Page 356]]

    or  its equivalent, and to promote family literacy. A portion of the 
    funds is reserved for formula grants to States to provide English 
    literacy and civics education for immigrants and other limited 
    English proficient adults.
        National Institute for Literacy.--Funds support the Institute's 
    national leadership activities to improve and expand the Nation's 
    system for delivery of literacy services.
        National leadership activities.--Funds support discretionary 
    activities to evaluate the effectiveness of Federal, State, and 
    local adult education programs, and to test and demonstrate methods 
    of improving program quality.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........           1           1
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation           2           2           1
24.0    Printing and reproduction.......                                   1
25.1    Advisory and assistance services           6
25.2    Other services..................           3           3           2
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           3           1           1
25.5    Research and development 
          contracts.....................           9           9           5
41.0    Grants, subsidies, and 
          contributions.................       1,955       2,077       1,113
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,978       2,092       1,123
99.0  Reimbursable obligations..........           2
99.5  Below reporting threshold.........                       1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,980       2,093       1,124
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          16          20          20
---------------------------------------------------------------------------

                                


 
                    OFFICE OF POSTSECONDARY EDUCATION

                              Federal Funds

General and special funds:

                            Higher Education

    For carrying out, to the extent not otherwise provided, [section 121 
and titles II, III, IV, V, VI, and VII of the Higher Education Act of 
1965 (``HEA''), as amended, section 1543 of the Higher Education 
Amendments of 1992,] the Mutual Educational and Cultural Exchange Act of 
1961, [title VIII of the Higher Education Amendments of 1998, and 
section 117 of the Carl D. Perkins Vocational and Technical Education 
Act, $2,134,269,000, of which $1,500,000 for interest subsidies 
authorized by section 121 of the HEA shall remain available until 
expended: Provided, That $9,876,000, to remain available through 
September 30, 2006, shall be available to fund fellowships for academic 
year 2006-2007 under part A, subpart 1 of title VII of said Act, under 
the terms and conditions of part A, subpart 1: Provided further, That 
notwithstanding any other provision of law or any regulation, the 
Secretary of Education shall not require the use of a restricted 
indirect cost rate for grants issued pursuant to section 117 of the Carl 
D. Perkins Vocational and Technical Education Act of 1998: Provided 
further, That $988,000 is for data collection and evaluation activities 
for programs under the HEA, including such activities needed to comply 
with the Government Performance and Results Act of 1993] $12,737,000: 
Provided further, That notwithstanding any other provision of law, funds 
made available in this Act to carry out [title VI of the HEA and] 
section 102(b)(6) of the Mutual Educational and Cultural Exchange Act of 
1961 may be used to support visits and study in foreign countries by 
individuals who are participating in advanced foreign language training 
and international studies in areas that are vital to United States 
national security and who plan to apply their language skills and 
knowledge of these countries in the fields of government, the 
professions, or international development: Provided further, That of the 
funds referred to in the preceding proviso up to 1 percent may be used 
for program evaluation, national outreach, and information dissemination 
activities [and $1,500,000 shall be used for a contract with the 
National Research Council to carry out an independent review of title VI 
international education and foreign language studies and the section 
102(b)(6) Fulbright-Hays programs: Provided further, That the funds 
provided for title II of the HEA shall be allocated notwithstanding 
section 210 of such Act: Provided further, That $146,360,000 of the 
funds for part B of title VII of the Higher Education Act of 1965 shall 
be available for the projects and in the amounts specified in the 
statement of the managers of the conference report accompanying this 
Act]. (Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Aid for institutional development:

00.01   Strengthening institutions......          81          80
00.02   Strengthening tribally 
          controlled colleges and 
          universities..................          23          24
00.03   Strengthening Alaska Native and 
          Native Hawaiian-serving 
          institutions..................          11          12
00.04   Strengthening historically black 
          colleges and universities.....         223         239
00.05   Strengthening historically black 
          graduate institutions.........          53          58
00.06   Minority science and engineering 
          improvement...................           9           9
                                           ---------   ---------  ----------
00.91     Subtotal, aid for 
            institutional development...         400         422
      Other aid for institutions:

01.01   Developing Hispanic-serving 
          institutions..................          94          95
01.02   International education and 
          foreign language studies......         104         107          13
01.03   Fund for the Improvement of 
          Postsecondary Education.......         157         163
01.05   Demonstration projects to ensure 
          quality higher education for 
          students with disabilities....           7           7
01.06   Interest subsidy grants.........           2           1           1
01.07   Tribally controlled 
          postsecondary vocational and 
          technical institutions........                       7
                                           ---------   ---------  ----------
01.91     Subtotal, other aid for 
            institutions................         364         380          14
      Assistance for students:

02.01   Federal TRIO programs...........         832         837
02.02   Gaining early awareness and 
          readiness for undergraduate 
          programs (GEAR UP)............         298         306
02.03   Byrd honors scholarships........          41          41
02.04   Javits fellowships..............          10          10          10
02.05   Graduate assistance in areas of 
          national need.................          30          30
02.06   Thurgood Marshall legal 
          educational opportunity.......                       3
02.07   B.J. Stupak Olympic scholarships           1           1
02.08   Child care access means parents 
          in school.....................          16          16
                                           ---------   ---------  ----------
02.91     Subtotal, assistance for 
            students....................       1,228       1,244          10
04.01 Teacher quality enhancement.......          89          68
05.01 GPRA data/HEA program evaluation..           1           1
06.01 Underground railroad program......           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,084       2,117          24
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          18          18          18
22.00 New budget authority (gross)......       2,085       2,117          13
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,103       2,135          31
23.95 Total new obligations.............      -2,084      -2,117         -24
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          18          18           7
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       2,098       2,134          13
40.35   Appropriation permanently 
          reduced.......................         -13         -17
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       2,085       2,117          13
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       2,833       2,864       2,776

[[Page 357]]

73.10 Total new obligations.............       2,084       2,117          24
73.20 Total outlays (gross).............      -2,041      -2,205      -2,034
73.40 Adjustments in expired accounts 
        (net)...........................         -13
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       2,864       2,776         766
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          73         107           1
86.93 Outlays from discretionary 
        balances........................       1,968       2,098       2,033
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,041       2,205       2,034
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       2,085       2,117          13
90.00 Outlays...........................       2,041       2,205       2,034
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2004 actual  2005 est.   2006 est.
Enacted/requested:
  Budget Authority..................       2,085       2,117          13
  Outlays...........................       2,041       2,205       2,034
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                               1,189
  Outlays...........................                                  59
                                    ------------------------------------
Total:
  Budget Authority..................       2,085       2,117       1,202
  Outlays...........................       2,041       2,205       2,093
                                    ====================================

    International education and foreign language studies programs.--
Funds promote the development and improvement of international and 
foreign language programs.

    Interest subsidy grants.--Funds meet mandatory interest subsidy 
costs of construction loan commitments made prior to 1974.

    Javits fellowships.--Funds support fellowships to students of 
superior ability who have financial need and who are pursuing doctoral 
degrees in the arts, humanities, and social sciences.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..           2           2
25.2  Other services....................           5           7           1
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           2           2           2
41.0  Grants, subsidies, and 
        contributions...................       2,075       2,106          21
                                           ---------   ---------  ----------
99.9    Total new obligations...........       2,084       2,117          24
---------------------------------------------------------------------------

                            Higher Education

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Aid for institutional development:

00.01   Strengthening institutions......                                  80
00.02   Strengthening tribally 
          controlled colleges and 
          universities..................                                  24
00.03   Strengthening Alaska Native and 
          Native Hawaiian-serving 
          institutions..................                                   7
00.04   Strengthening historically black 
          colleges and universities.....                                 241
00.05   Strengthening historically black 
          graduate institutions.........                                  58
00.06   Minority science and engineering 
          improvement...................                                   9
                                           ---------   ---------  ----------
00.91     Subtotal, aid for 
            institutional development...                                 419
      Other aid for institutions:

01.01   Developing Hispanic-serving 
          institutions..................                                  96
01.02   International education and 
          foreign language studies......                                  94
01.03   Fund for the Improvement of 
          Postsecondary Education.......                                  22
01.07   Tribally controlled 
          postsecondary vocational and 
          technical institutions........                                   7
                                           ---------   ---------  ----------
01.91     Subtotal, other aid for 
            institutions................                                 219
      Assistance for students:

02.01   Federal TRIO programs...........                                 369
02.05   Graduate assistance in areas of 
          national need.................                                  30
02.08   Child care access means parents 
          in school.....................                                  16
                                           ---------   ---------  ----------
02.91     Subtotal, assistance for 
            students....................                                 415
03.01 Community college access..........                                 125
05.01 GPRA data/HEA program evaluation..                                   1
                                           ---------   ---------  ----------
10.00   Total new obligations...........                               1,179
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........
22.00 New budget authority (gross)......                               1,189
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                               1,189
23.95 Total new obligations.............                              -1,179
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........                                  10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                               1,189
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                               1,179
73.20 Total outlays (gross).............                                 -59
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                               1,120
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                  59
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                               1,189
90.00 Outlays...........................                                  59
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..                                   1
25.2  Other services....................                                   3
41.0  Grants, subsidies, and 
        contributions...................                               1,175
                                           ---------   ---------  ----------
99.9    Total new obligations...........                               1,179
---------------------------------------------------------------------------

    The resources in this schedule are proposed for later transmittal 
under proposed legislation to revise and reauthorize programs currently 
under the Higher Education Act of 1965.

    Aid for institutional development.--
        Strengthening institutions.--Funds support planning and 
    development grants for improving academic programs and financial 
    management at schools that enroll high proportions of disadvantaged 
    students and have low per-student expenditures.
        Strengthening tribally controlled colleges and universities.--
    Funds support grants to American Indian tribally controlled colleges 
    and universities with scarce resources to enable them to improve and 
    expand their capacity to serve Indian students.
        Strengthening Alaska Native and Native Hawaiian-serving 
    institutions.--Funds support Alaska Native and Native Hawaiian-
    serving institutions to enable them to improve and expand their 
    capacity to serve Alaska Native and Native Hawaiian students.
        Strengthening historically black colleges and universities.--
    Funds support grants to help historically black undergraduate 
    institutions to improve and expand their capacity to serve students, 
    and to strengthen management and fiscal operations.
        Strengthening historically black graduate institutions.--Funds 
    support grants to help historically black graduate institutions to 
    improve and expand their capacity to serve students, and to 
    strengthen management and fiscal operations.

[[Page 358]]

        Minority science and engineering improvement.--Funds support 
    grants to predominantly minority institutions to help them make 
    long-range improvements in science and engineering education and to 
    increase the participation of minorities in scientific and 
    technological careers.

    Other aid for institutions.--
        Developing Hispanic-serving institutions.--Funds support 
    Hispanic-serving institutions to enable them to improve and expand 
    their capacity to serve students.
        International education and foreign language studies programs.--
    Funds promote the development and improvement of international and 
    foreign language programs.
        Fund for the improvement of postsecondary education.--Funds 
    support a broad range of postsecondary reform and improvement 
    projects, as well as international consortia programs.
        Tribally controlled postsecondary vocational and technical 
    institutions.--Funds support the operation and improvement of 
    tribally controlled postsecondary vocational institutions, to ensure 
    continued and expanded educational opportunities for Indian 
    students.

    Assistance for students.--
        Federal TRIO programs.--Funds support postsecondary education 
    outreach and student support services to help individuals from 
    disadvantaged backgrounds complete college and graduate studies.
        Javits fellowships.--Funds requested will be used in 2007 to 
    support fellowships to students of superior ability who have 
    financial need and who are pursuing doctoral degrees in the arts, 
    humanities, and social sciences.
        Graduate assistance in areas of national need.--Funds support 
    fellowships to graduate students of superior ability who have 
    financial need and who are from traditionally under-represented 
    backgrounds for study in areas of national need.
        Child care access means parents in school.--Funds support a 
    program designed to bolster the participation of low-income parents 
    in postsecondary education through the provision of campus-based 
    child care services.

    Other aid.--
        Community college access grants.--Funds would support 
    competitive grants to encourage States, local educational agencies, 
    and community colleges to establish ``dual enrollment'' programs to 
    enable high school students, particularly disadvantaged students, to 
    take college-level courses and receive both high school and 
    postsecondary credit.
        GPRA data/HEA program evaluation.--Funds support data collection 
    and evaluation activities for programs under the Higher Education 
    Act of 1965, including such activities needed to comply with the 
    Government Performance and Results Act of 1993.

                                

                            Howard University

    For partial support of Howard University (20 U.S.C. 121 et seq.), 
[$240,715,000] $238,789,000, of which not less than [$3,552,000] 
$3,600,000 shall be for a matching endowment grant pursuant to the 
Howard University Endowment Act (Public Law 98-480) and shall remain 
available until expended. (Department of Education Appropriations Act, 
2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0603-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 General support...................         212         209         209
00.02 Howard University Hospital........          30          30          30
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         242         239         239
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           7           4           4
22.00 New budget authority (gross)......         239         239         239
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         246         243         243
23.95 Total new obligations.............        -242        -239        -239
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           4           4           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         240         241         239
40.35   Appropriation permanently 
          reduced.......................          -1          -2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         239         239         239
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                                  11
73.10 Total new obligations.............         242         239         239
73.20 Total outlays (gross).............        -242        -228        -239
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                      11          11
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         235         225         225
86.93 Outlays from discretionary 
        balances........................           7           3          14
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         242         228         239
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         239         239         239
90.00 Outlays...........................         242         228         239
---------------------------------------------------------------------------

    Howard University is a private, nonprofit educational institution 
consisting of 12 schools and colleges. Federal funds are used to provide 
partial support for university programs as well as for the teaching 
hospital facilities. In 2004, Federal funding represented approximately 
53 percent of the university's revenue.

                                

      College Housing and Academic Facilities Loans Program Account

    For Federal administrative expenses [authorized under section 121 of 
the Higher Education Act of 1965, $578,000] to carry out activities 
related to existing facility loans [entered into under] pursuant to 
section 121 of the Higher Education Act of 1965, as amended, $573,000.

  Historically Black College and University Capital Financing Program 
                                 Account

    The aggregate principal amount of outstanding bonds insured pursuant 
to section 344 of title III, part D of the Higher Education Act of 1965, 
shall not exceed $357,000,000, and the cost, as defined in section 502 
of the Congressional Budget Act of 1974, of such bonds shall not exceed 
zero.
    For administrative expenses to carry out the Historically Black 
College and University Capital Financing Program entered into pursuant 
to title III, part D of the Higher Education Act of 1965, as amended, 
[$212,000] $210,000. (Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.09 Federal administration............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 99.5)...................           1           1           1
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           1           1           1
----------------------------------------------------------------------------

[[Page 359]]



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

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           1           1
----------------------------------------------------------------------------

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

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Historically Black Colleges and 
        Universities....................          55          70          50
                                           ---------   ---------  ----------
115901Total direct loan levels..........          55          70          50
    Direct loan subsidy (in percent):
132001Historically Black Colleges and 
        Universities....................        0.00        0.00        0.00
    Direct loan subsidy budget authority:
133001Historically Black Colleges and 
        Universities....................
                                           ---------   ---------  ----------
133901Total subsidy budget authority....
    Direct loan subsidy outlays:
134001Historically Black Colleges and 
        Universities....................
                                           ---------   ---------  ----------
134901Total subsidy outlays.............
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................           1           1           1
359001Outlays from new authority........                       1           1
---------------------------------------------------------------------------

    The College Housing and Academic Facilities Loans Program and the 
Historically Black College and University Capital Financing Program are 
administered separately, but are consolidated for presentation purposes.

    College Housing and Academic Facilities Loans Program.--Funds for 
this activity pay the Federal costs for administering the College 
Housing and Academic Facilities Loans (CHAFL), College Housing Loans 
(CHL), and Higher Education Facilities Loans (HEFL) programs. Prior to 
1994, these programs provided financing for the construction, 
reconstruction, and renovation of housing, academic, and other 
educational facilities. Although no new loans have been awarded since 
fiscal year 1993, costs for administering the outstanding loans will 
remain through 2030.

    Historically Black College and University Capital Financing 
Program.--The Historically Black College and University (HBCU) Capital 
Financing Program provides HBCUs with access to capital financing for 
the repair, renovation, and construction of classrooms, libraries, 
laboratories, dormitories, instructional equipment, and research 
instrumentation. The Higher Education Amendments of 1992 granted the 
Department authority to enter into insurance agreements with a private 
for-profit Designated Bonding Authority to guarantee no more than 
$375,000,000 in outstanding principal and unpaid accrued interest 
combined. The bonding authority issues the loans and maintains an escrow 
account in which 5 percent of each institution's principal is deposited. 
This amount is estimated to be sufficient to cover all potential 
delinquencies and defaults. No subsidy appropriations are required. The 
2006 Budget provides funds for continuing Federal administrative 
activities only.

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................           5           5           5
---------------------------------------------------------------------------

                                

     College Housing and Academic Facilities Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4252-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Interest paid to Treasury.........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................           1           1           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1
22.00 New financing authority (gross)...           1           1           1
22.60 Portion applied to repay debt.....          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           1           1           1
23.95 Total new obligations.............          -1          -1          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...           3           3           2
69.47   Portion applied to repay debt...          -2          -2          -1
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........           1           1           1
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............           1           1           1
73.20 Total financing disbursements 
        (gross).........................          -1          -1          -1
87.00 Total financing disbursements 
        (gross).........................           1           1           1
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.40     Interest repayments...........          -1          -1          -1
88.40     Principal repayments..........          -2          -2          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -3          -3          -2
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          -2          -2          -1
90.00 Financing disbursements...........          -2          -2          -1
---------------------------------------------------------------------------

    Consistent with the Federal Credit Reform Act of 1990, the College 
Housing and Academic Facilities Loans Financing Account records all cash 
flows to and from the Government resulting from direct loans made in 
fiscal years 1992 and 1993. The amounts in this account are a means of 
financing, and are not incuded in the budget totals.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4252-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          22          20          18
1251  Repayments: Repayments and 
        prepayments.....................          -2          -2          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          20          18          17
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4252-0-3-502

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401

Direct loans receivable, gross

22

20

1402

Interest receivable

1



1405

Allowance for subsidy cost (-)

-3

-3





1499

Net present value of assets related to direct loans

20

17





1999

Total assets

20

17

    LIABILITIES:
2103

Federal liabilities: Debt

20

17





2999

Total liabilities

20

17





[[Page 360]]

4999

Total liabilities and net position

20

17

-----------------------------------------------------------------------------------------------

                                

    College Housing and Academic Facilities Loans Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Interest paid to Treasury.........           9           9           9
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................           9           9           9
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1
22.00 New budget authority (gross)......           9           9           9
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           3
22.60 Portion applied to repay debt.....          -4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           9           9           9
23.95 Total new obligations.............          -9          -9          -9
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           1           2           3
69.00 Offsetting collections (cash).....          46          35          34
69.27 Capital transfer to general fund..          -4         -26         -25
69.47 Portion applied to repay debt.....         -34          -2          -3
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................           8           7           6
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           9           9           9
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           4           1           1
73.10 Total new obligations.............           9           9           9
73.20 Total outlays (gross).............          -9          -9          -9
73.45 Recoveries of prior year 
        obligations.....................          -3
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           9           9           9
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.40     Repayments of principal.......         -34         -24         -23
88.40     Interest received on loans....         -12         -11         -11
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -46         -35         -34
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         -37         -26         -25
90.00 Outlays...........................         -37         -26         -25
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, the College 
Housing and Academic Facilities Loans Liquidating Account records all 
cash flows to and from the Government resulting from direct loans made 
prior to 1992. This account includes loans made under the College 
Housing and Academic Facilities Loans, College Housing Loans, and Higher 
Education Facilities Loans programs, which continue to be administered 
separately. 

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         100          93          90
1251  Repayments: Repayments and 
        prepayments.....................          -7          -3          -3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          93          90          87
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          20          18          17
1251  Repayments: Repayments and 
        prepayments.....................          -2          -1          -2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          18          17          15
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         228         203         184
1251  Repayments: Repayments and 
        prepayments.....................         -25         -19         -18
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         203         184         166
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0242-0-1-502

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601

Direct loans, gross

348

314

1602

Interest receivable

5

6





1699

Value of assets related to direct loans

353

320





1999

Total assets

353

320

    LIABILITIES:
      Federal liabilities:

2103

Debt

130

92

2104

Resources payable to Treasury

223

228





2999

Total liabilities

353

320





4999

Total liabilities and net position

353

320

-----------------------------------------------------------------------------------------------

                                

Historically Black College and University Capital Financing Direct Loan 
                            Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4255-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Loan Awards................          55          70          50
00.02 Interest paid to Treasury.........           6           7           8
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................          61          77          58
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...         106          77          58
22.70 Balance of authority to borrow 
        withdrawn.......................         -45
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          61          77          58
23.95 Total new obligations.............         -61         -77         -58
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............         100          70          50
69.00 Offsetting collections (cash).....          21          10          12
69.47 Portion applied to repay debt.....         -15          -3          -4
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................           6           7           8
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         106          77          58
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           9          10          49
73.10 Total new obligations.............          61          77          58
73.20 Total financing disbursements 
        (gross).........................         -60         -38         -54
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          10          49          53
87.00 Total financing disbursements 
        (gross).........................          60          38          54
----------------------------------------------------------------------------

[[Page 361]]



    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.40     Interest repayments...........          -6          -7          -8
88.40     Principal repayments..........         -15          -3          -4
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -21         -10         -12
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          85          67          46
90.00 Financing disbursements...........          39          28          42
---------------------------------------------------------------------------

    The Federal Financing Bank (FFB) purchases bonds issued by the HBCU 
Designated Bonding Authority. Under the policies governing Federal 
credit programs, bonds purchased by the FFB and supported by the 
Department of Education with a letter of credit create the equivalent of 
a Federal direct loan. HBCU bonds are also available for purchase by the 
private sector, and these will be treated as loan guarantees. However, 
the Department anticipates that all HBCU loans will be financed by the 
FFB.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4255-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         229         229         162
1142  Unobligated direct loan limitation 
        (-).............................        -174        -159        -112
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          55          70          50
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          79         118         146
1231  Disbursements: Direct loan 
        disbursements...................          54          31          46
1251  Repayments: Repayments and 
        prepayments.....................         -15          -3          -4
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         118         146         188
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4255-0-3-502

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
1101

Federal assets: Fund balances with Treasury

9

10

      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401

Direct loans receivable, gross

79

118

1402

Interest receivable

3

3





1499

Net present value of assets related to direct loans

82

121





1999

Total assets

91

131

    LIABILITIES:
      Federal liabilities:

2102

Interest payable

3

3

2103

Debt

79

118

2201

Non-Federal liabilities: Undisbursed direct loans

9

10





2999

Total liabilities

91

131





4999

Total liabilities and net position

91

131

-----------------------------------------------------------------------------------------------

                                


 
                 OFFICE OF STUDENT FINANCIAL ASSISTANCE

                              Federal Funds

General and special funds:

                      Student Financial Assistance

    [For carrying out subparts 1, 3 and 4 of part A, part C and part E 
of title IV of the Higher Education Act of 1965, as amended, 
$14,380,795,000, which shall remain available through September 30, 
2006.]
    [The maximum Pell Grant for which a student shall be eligible during 
award year 2005-2006 shall be $4,050.] (Department of Education 
Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Federal Pell grants...............      12,256       9,589
02.01 Federal supplemental educational 
        opportunity grants (SEOG).......         771         780
02.02 Federal work-study................       1,003         991
02.03 Federal Perkins loans: Federal 
        capital contributions...........         102
02.04 Federal Perkins loans: Loan 
        cancellations...................          66          66
                                           ---------   ---------  ----------
02.91   Direct Program by Activities--
          Subtotal (1 level)............       1,942       1,837
03.01 Leveraging educational assistance 
        partnership.....................          68          66
04.01 Loan forgiveness for child care 
        providers.......................           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................      14,267      11,492
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          33          25       2,799
22.00 New budget authority (gross)......      14,007      14,266
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         252
22.30 Expired unobligated balance 
        transfer to unexpired account...           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      14,293      14,291       2,799
23.95 Total new obligations.............     -14,267     -11,492
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          25       2,799       2,799
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................      14,090      14,381
40.35   Appropriation permanently 
          reduced.......................         -83        -115
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............      14,007      14,266
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       8,479       7,707       4,636
73.10 Total new obligations.............      14,267      11,492
73.20 Total outlays (gross).............     -14,854     -14,563      -7,171
73.40 Adjustments in expired accounts 
        (net)...........................          67
73.45 Recoveries of prior year 
        obligations.....................        -252
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       7,707       4,636      -2,535
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       6,501       7,100
86.93 Outlays from discretionary 
        balances........................       8,353       7,463       7,171
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      14,854      14,563       7,171
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      14,007      14,266
90.00 Outlays...........................      14,854      14,563       7,171
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2004 actual  2005 est.   2006 est.
Enacted/requested:
  Budget Authority..................      14,007      14,266
  Outlays...........................      14,854      14,563       7,171
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                              15,051
  Outlays...........................                               7,669
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                               4,721
  Outlays...........................                                 101
                                    ------------------------------------
Total:
  Budget Authority..................      14,007      14,266      19,772
  Outlays...........................      14,854      14,563      14,941
                                    ====================================

    Note: Includes in all years institutional matching share of 
defaulted notes assigned from institutions to the Education Department.

    The Administration is working with Congress to develop legislation 
reauthorizing programs included in the Higher Education Act. When new 
authorizing legislation is enacted, resources for the affected programs 
will be requested.

    Funding Tables.--The following tables display student aid funds 
available, the number of aid awards, average awards,

[[Page 362]]

and the unduplicated count of recipients from any Federal student aid 
program. The tables include the aid from programs in the Student 
Financial Assistance account, as well as aid from the Federal Family 
Education Loan (FFEL) program, and the William D. Ford Federal Direct 
Loan program. Loan amounts reflect the capital actually loaned, not the 
Federal cost of those loans. The data in these tables include the 
effects of matching funds wherever applicable. The 2006 data in these 
tables reflect the Administration's legislative proposals.

      AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

                             [in thousands]

                                        2004         2005        2006
Pell grants.........................  13,090,868  12,901,175  13,591,660
Enhanced Pell Grants for State 
Scholars............................           0           0      33,000
Student loans:
  Guaranteed student loans:
    Stafford loans..................  17,591,540  18,847,048  20,362,970
    Unsubsidized Stafford loans.....  16,531,099  18,207,705  20,056,662
    PLUS............................   5,143,106   5,898,107   6,577,527
  Direct student loans:
    Stafford loans..................   5,971,842   6,294,928   6,792,725
    Unsubsidized Stafford loans.....   4,761,479   5,140,520   5,710,007
    PLUS............................   2,106,810   2,424,624   2,685,374
  Consolidation:
    FFEL............................  35,946,562  34,736,700  25,326,020
    Direct Loans....................   7,782,000   9,036,135   7,620,207
  Loans for short-term training.....           0           0     283,558
  Perkins loans.....................   1,262,882   1,135,368           0
      Student loans, subtotal.......  97,097,319 101,721,134  95,415,052
Work study..........................   1,194,390   1,184,229   1,184,229
Supplemental educational opportunity 
grants..............................     975,260     985,722     985,722
Leveraging educational assistance 
partnerships........................     168,517     166,928           0
Presidential math and science 
scholars............................           0           0     100,000
                                    ------------------------------------
      Total aid available........... 112,526,354 116,959,188 111,309,662

                          NUMBER OF AID AWARDS

                             [in thousands]

                                        2004         2005        2006
    Pell grants.....................       5,302       5,330       5,468
    Enhanced Pell grants for state 
      scholars......................           0           0          36
    Guaranteed student loans--
      Stafford loans................       5,098       5,439       5,645
    Guaranteed student loans--
      Unsubsidized Stafford loans...       3,887       4,224       4,436
    Guaranteed student loans--PLUS..         565         617         656
    Guaranteed student loans--
      Consolidation.................       1,243       1,185         826
    Direct student loans--Stafford 
      loans.........................       1,625       1,679       1,741
    Direct student loans--
      Unsubsidized Stafford loans...       1,132       1,184       1,245
    Direct student loans--PLUS......         244         265         281
    Direct student loans--
      Consolidation.................         331         374         316
    Loans for short-term training...           0           0         377
    Perkins loans...................         630         567           0
    Work-study......................         826         819         819
    Supplemental educational 
      opportunity grants............       1,278       1,292       1,292
    Leveraging eduational assistance 
      partnerships..................         169         167           0
    Presidential math and science 
      scholars......................           0           0          20
                                    ------------------------------------
      Total awards..................      22,330      23,140      23,138

                           AVERAGE AID AWARDS

                           [in whole dollars]

                                        2004         2005        2006
    Pell grants.....................       2,469       2,420       2,486
    Enhanced Pell grants for state 
      scholars......................           0           0         911
    Guaranteed student loans--
      Stafford loans................       3,450       3,465       3,607
    Guaranteed student loans--
      Unsubsidized Stafford loans...       4,253       4,311       4,521
    Guaranteed student loans--PLUS..       9,103       9,565      10,024
    Guaranteed student loans--SLS...           0           0           0
    Guaranteed student loans--
      Consolidation.................      28,925      29,323      30,662
    Direct student loans--Stafford 
      loans.........................       3,675       3,750       3,901
    Direct student loans--
      Unsubsidized Stafford loans...       4,205       4,341       4,586
    Direct student loans--PLUS......       8,651       9,157       9,573
    Direct student loans--
      Consolidation.................      23,543      24,161      24,138
    Loans for short-term training...           0           0         752
    Perkins loans...................       2,003       2,003           0
    Work-study......................       1,446       1,446       1,446
    Supplemental educational 
      opportunity grants............         763         763         763
    Leveraging educational 
      assistance partnerships.......       1,000       1,000           0
    Presidential math and science 
      scholars......................           0           0       5,000

                        NUMBER OF STUDENTS AIDED

                             [in thousands]

Unduplicated student count..........       9,432       9,879      10,216

                 ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

                        [in thousands of dollars]

                                        2004         2005        2006
Pell grants.........................      26,510      26,650      27,340
Work-study..........................      74,697      74,065      74,065
Supplemental educational opportunity 
grants..............................      39,010      39,429      39,429
Perkins loans.......................      50,515      45,415           0

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         325         324         324
1251  Repayments: Repayments and 
        prepayments.....................         -24         -24         -25
      Write-offs for default:

1263    Direct loans....................          -6          -7          -7
1264    Other adjustments, net..........          29          31          32
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         324         324         324
---------------------------------------------------------------------------

                      Student Financial Assistance

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Federal Pell grants...............                              12,543
01.02 Enhanced Pell grants for State 
        scholars........................                                  24
                                           ---------   ---------  ----------
01.91   Direct Program by Activities--
          Subtotal (1 level)............                              12,567
02.01 Federal supplemental educational 
        opportunity grants (SEOG).......                                 779
02.02 Federal work-study................                                 990
                                           ---------   ---------  ----------
02.91   Direct Program by Activities--
          Subtotal (1 level)............                               1,769
05.01 Presidential math and science 
        scholars........................                                  50
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                              14,386
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........
22.00 New budget authority (gross)......                              15,051
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                              15,051
23.95 Total new obligations.............                             -14,386
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........                                 665
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                              15,051
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                              14,386
73.20 Total outlays (gross).............                              -7,669
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                               6,717
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                               7,669
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                              15,051
90.00 Outlays...........................                               7,669
---------------------------------------------------------------------------

    The resources in this schedule are proposed for later transmittal 
under proposed legislation to reauthorize the Higher Education Act. The 
Administration's Higher Education Act reauthorization proposals, 
including 2006 funding levels for programs in the Student Financial 
Assistance Account, are discussed under the Federal Direct Student Loan 
Program Account. Together with matching funds, this funding would 
provide nearly 7.6 million awards totaling almost $16 billion in 
available aid.

[[Page 363]]

    Federal Pell Grants.--Pell Grants are the single largest source of 
grant aid for postsecondary education. In 2005, more than five million 
undergraduates will receive up to $4,050 to help pay for postsecondary 
education. Undergraduate students establish eligibility for these grants 
under award and need determination rules set out in the authorizing 
statute and the annual appropriations act.

    Campus-based programs.--The Federal Supplemental Educational 
Opportunity Grants, Federal Work-Study, and Federal Perkins Loan 
programs are called the ``campus-based'' programs because participating 
institutions are responsible for administering the programs on their own 
campuses. These programs provide aid administrators with considerable 
flexibility in packaging financial aid awards to best meet student 
needs.

    Federal Supplemental Educational Opportunity Grants (SEOG).--Federal 
funds are awarded by formula to qualifying institutions, which use these 
funds to award grants to undergraduate students. While institutions have 
discretion in awarding these funds, they are required to give priority 
to Pell Grant recipients and other students with exceptional need. The 
Federal share of such grants may not exceed 75 percent of the total 
grant.

    Federal Work Study.--Federal funds are awarded by formula to 
qualifying institutions, which provide part-time jobs to eligible 
undergraduate and graduate students. Hourly earnings under this program 
must be at least equal to the Federal minimum wage. Federal funding in 
most cases pays 75 percent of a student's hourly wages, with the 
remaining 25 percent paid by the employer. The Federal Work Study 
program also requires participating institutions to use at least 7 
percent of the total funds granted to compensate students employed in 
community service jobs.

    Perkins Loan Program.--Institutions award low-interest loans from 
Federal revolving funds held at institutions, which are comprised of 
Federal Capital Contributions, institutional matching funds, and student 
repayments on outstanding loans.

    Perkins Loan Program--Cancellations.--The Department of Education 
reimburses Federal revolving funds held at institutions for cancelled 
Perkins loans. Under the Higher Education Act, borrowers are eligible to 
have some or all of their Perkins loan repayment obligation cancelled if 
they enter certain fields of public service after graduation. Perkins 
loan balances are also cancelled in the event of a borrower's death, or 
total and permanent disability. In general, the revolving funds are 
reimbursed for 100 percent of the principal and accrued interest of the 
loan cancelled. 

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........
1251  Repayments: Repayments and 
        prepayments.....................
      Write-offs for default:

1263    Direct loans....................
1264    Other adjustments, net..........                                -324
                                           ---------   ---------  ----------
1290    Outstanding, end of year........                                -324
---------------------------------------------------------------------------

                      Student Financial Assistance

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-4-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Federal Pell Grants...............                               4,612
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                               4,612
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........
22.00 New budget authority (gross)......                               4,721
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                               4,721
23.95 Total new obligations.............                              -4,612
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........                                 109
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                                 420
60.00   Appropriation...................                               4,301
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................                               4,721
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                               4,612
73.20 Total outlays (gross).............                                -101
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                               4,511
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                 101
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                               4,721
90.00 Outlays...........................                                 101
---------------------------------------------------------------------------

                           Perkins Loan Assets

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0219-4-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Institutional Share of Perkins 
        Collections.....................                                 146
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                 146
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........
22.00 New budget authority (gross)......                                 146
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                                 146
23.95 Total new obligations.............                                -146
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...                                 726
69.27   Capital transfer to general fund                                -580
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........                                 146
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                                 146
73.20 Total outlays (gross).............                                -146
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                 146
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                -726
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                -580
90.00 Outlays...........................                                -580
---------------------------------------------------------------------------

    The 2006 Budget proposes to eliminate the Perkins Loan program and 
recall the Federal portion of revolving funds held by participating 
institutions. (This proposal is discussed, as part of a broader review 
of Higher Education Act reauthor

[[Page 364]]

ization proposals, under the Federal Direct Student Loan Program 
Account). This account records amounts recalled from Perkins Loan 
institutions and subsequent loan repayments on outstanding Perkins 
Loans, as well as reimbursements of institutional funds to participating 
schools.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0219-4-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........
1251  Repayments: Repayments and 
        prepayments.....................                                -726
      Write-offs for default:

1263    Direct loans....................                                 -51
1264    Other adjustments, net..........                               8,000
                                           ---------   ---------  ----------
1290    Outstanding, end of year........                               7,223
---------------------------------------------------------------------------

                                

                       Student Aid Administration

    [For Federal administrative expenses (in addition to funds made 
available under section 458), to carry out part D of title I, and 
subparts 1, 3, and 4 of part A, and parts B, C, D and E of title IV of 
the Higher Education Act of 1965, as amended, $120,247,000.] (Department 
of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Student aid administration........         117         119
                                           ---------   ---------  ----------
10.00   Total new obligations...........         117         119
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         117         119
23.95 Total new obligations.............        -117        -119
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         118         120
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         117         119
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          35          36          51
73.10 Total new obligations.............         117         119
73.20 Total outlays (gross).............        -115        -104         -34
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          36          51          17
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          83          85
86.93 Outlays from discretionary 
        balances........................          32          19          34
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         115         104          34
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         117         119
90.00 Outlays...........................         115         104          34
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2004 actual  2005 est.   2006 est.
Enacted/requested:
  Budget Authority..................         117         119
  Outlays...........................         115         104          34
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 939
  Outlays...........................                                 615
                                    ------------------------------------
Total:
  Budget Authority..................         117         119         939
  Outlays...........................         115         104         649
                                    ====================================

    The Department of Education manages Federal student aid programs 
that will provide over $110 billion in Federal student aid grants and 
loans to 10.2 million students and parents in 2006. Primary 
responsibility for administering these programs lies with the Office of 
Postsecondary Education and the performance-based Office of Federal 
Student Aid (FSA). FSA was created by Congress in 1998 with a mandate to 
improve service to students and other student aid program participants, 
reduce student aid administration costs, and improve accountability and 
program integrity.

    The Department's student aid administrative activities are funded 
from two main sources: (1) funds appropriated on a permanent basis under 
section 458 of the Higher Education Act; and (2) a discretionary 
appropriation partially supporting student aid administrative 
activities. Student aid administrative funds for 2005 totaled $914 
million, $195 million of which supported the payment of account 
maintenance fees to FFEL guaranty agencies.

    The Budget for 2006 includes $939 million for student aid 
administration. In order to improve accountability and simplify program 
oversight and operations, the Administration is proposing to consolidate 
funding for student aid administrative activities into a single 
discretionary account. Funding levels for this account will be based on 
a workload-based methodology consistent with the goals of the 
performance-based organization.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          42          45
11.3      Other than full-time permanent           1
11.5      Other personnel compensation..           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          44          46
12.1    Civilian personnel benefits.....          11          11
23.1    Rental payments to GSA..........           7           7
23.3    Communications, utilities, and 
          miscellaneous charges.........           5           8
24.0    Printing and reproduction.......           3           2
25.2    Other services..................           1           1
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           5           3
25.7    Operation and maintenance of 
          equipment.....................          40          39
31.0    Equipment.......................           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............         117         118
99.5  Below reporting threshold.........                       1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         117         119
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         534         533
---------------------------------------------------------------------------

                       Student Aid Administration

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0202-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Student aid administration........                                 939
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                 939
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 939
23.95 Total new obligations.............                                -939
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                 939
----------------------------------------------------------------------------

[[Page 365]]



    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                                 939
73.20 Total outlays (gross).............                                -615
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                                 324
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 615
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 939
90.00 Outlays...........................                                 615
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0202-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............                                 103
11.5    Other personnel compensation....                                   3
                                           ---------   ---------  ----------
11.9      Total personnel compensation..                                 106
12.1  Civilian personnel benefits.......                                  26
21.0  Travel and transportation of 
        persons.........................                                   4
23.1  Rental payments to GSA............                                  16
23.3  Communications, utilities, and 
        miscellaneous charges...........                                  16
24.0  Printing and reproduction.........                                   2
25.2  Other services....................                                  17
25.3  Other purchases of goods and 
        services from Government 
        accounts........................                                  12
25.7  Operation and maintenance of 
        equipment.......................                                 541
26.0  Supplies and materials............                                   1
31.0  Equipment.........................                                   3
41.0  Grants, subsidies, and 
        contributions...................                                 195
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                 939
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0202-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                               1,186
---------------------------------------------------------------------------

                                

                    Federal Student Loan Reserve Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4257-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.02 Obligations, non-federal..........       2,937       3,409       3,615
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................       2,937       3,409       3,615
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,107       1,039       1,022
22.00 New budget authority (gross)......       3,074       3,392       3,596
22.40 Capital transfer to general fund..        -205                     -82
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,976       4,431       4,536
23.95 Total new obligations.............      -2,937      -3,409      -3,615
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........       1,039       1,022         921
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...       3,074       3,392       3,596
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............       2,937       3,409       3,615
73.20 Total outlays (gross).............      -2,937      -3,409      -3,615
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       3,074       3,392       3,596
86.98 Outlays from mandatory balances...        -137          17          19
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,937       3,409       3,615
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............      -2,885      -3,101      -3,296
88.40     Non-Federal sources...........        -189        -291        -300
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -3,074      -3,392      -3,596
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -137          17          19
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2004 actual  2005 est.   2006 est.
Enacted/requested:
  Budget Authority..................
  Outlays...........................        -137          17          19
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................
  Outlays...........................                                -156
                                    ------------------------------------
Total:
  Budget Authority..................
  Outlays...........................        -137          17        -137
                                    ====================================

    The Higher Education Amendments of 1998 clarified that reserve funds 
held by public and non-profit guaranty agencies participating in the 
Federal Family Education Loan (FFEL) program are Federal property. These 
reserves are used to pay default claims from FFEL lenders and fees to 
support agency efforts to avert defaults. The Federal Government 
reimburses these reserves for default claim payments.

    As discussed under the Federal Direct Student Loan Program Account, 
the Administration is proposing to require guaranty agencies to collect 
a currently optional 1 percent insurance premium paid by borrowers into 
the Federal Student Loan Reserve Fund.

    The following schedule reflects the balances in these guaranty 
agency funds.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4257-0-3-502

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
1101

Federal assets: Fund balances with Treasury

1,107

1,039





1999

Total assets

1,107

1,039

    NET POSITION:
3300

Cumulative results of operations

1,107

1,039





3999

Total net position

1,107

1,039





4999

Total liabilities and net position

1,107

1,039

-----------------------------------------------------------------------------------------------

                                

                    Federal Student Loan Reserve Fund

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4257-4-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.02 Obligations, non-federal..........
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........
22.00 New budget authority (gross)......                                 156
22.40 Capital transfer to general fund..
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                                 156
23.95 Total new obligations.............
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........                                 156
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...                                 156
----------------------------------------------------------------------------

[[Page 366]]



    Change in obligated balances:
73.10 Total new obligations.............
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............
88.40     Non-Federal sources...........                                -156
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                -156
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................                                -156
---------------------------------------------------------------------------

Credit accounts:

           Federal Direct Student Loan Program Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.03 Subsidy modification..............                      49
00.05 Upward Restimate Principal........       2,102       1,262
00.06 Interest on Upward Reestimate.....         627         374
00.09 Administrative expenses...........         799         795
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,528       2,480
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          26          27
22.00 New budget authority (gross)......       3,525       2,480
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
22.40 Capital transfer to general fund..                     -27
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,555       2,480
23.95 Total new obligations.............      -3,528      -2,480
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          27
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                -795
      Mandatory:

60.00   Appropriation...................         795         795         795
60.00   Appropriation (indefinite)--
          Upward reestimate.............       2,729       1,636
60.00   Appropriation (indefinite)--
          Upward reestimate.............                      49
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................       3,524       2,480         795
69.00 Offsetting collections (cash)--
        negative subsidy................         169          89         616
69.00 Offsetting collections (cash)--
        downward reestimate, principal..          97         593
69.00 Offsetting collections (cash)--
        downward reestimate,interest....           6          31
69.00 Offsetting collections (cash)--
        admin...........................           1
69.27 Capital transfer to general fund..        -272        -713        -616
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,525       2,480
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         255         260         357
73.10 Total new obligations.............       3,528       2,480
73.20 Total outlays (gross).............      -3,519      -2,383        -241
73.45 Recoveries of prior year 
        obligations.....................          -4
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         260         357         116
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                -467
86.97 Outlays from new mandatory 
        authority.......................       3,303       2,152         466
86.98 Outlays from mandatory balances...         216         231         242
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,519       2,383         241
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -273        -713        -616
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,252       1,767        -616
90.00 Outlays...........................       3,246       1,670        -375
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2004 actual  2005 est.   2006 est.
Enacted/requested:
  Budget Authority..................       3,252       1,767        -616
  Outlays...........................       3,246       1,670        -375
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                    -335         -53
  Outlays...........................                    -335         -53
                                    ------------------------------------
Total:
  Budget Authority..................       3,252       1,432        -669
  Outlays...........................       3,246       1,335        -428
                                    ====================================

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Stafford..........................       6,631       6,948       7,235
115002Unsubsidized Stafford.............       5,401       5,841       6,229
115003PLUS..............................       2,102       2,535       2,806
115004Consolidation.....................       7,845       9,156       7,611
                                           ---------   ---------  ----------
115901Total direct loan levels..........      21,979      24,480      23,881
    Direct loan subsidy (in percent):
132001Stafford..........................        4.55        5.15        4.33
132002Unsubsidized Stafford.............       -5.00       -6.64      -10.77
132003PLUS..............................       -4.91       -5.08       -7.75
132004Consolidation.....................       -0.81        0.31       -2.99
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       -0.61       -0.53       -3.36
    Direct loan subsidy budget authority:
133001Stafford..........................         302         358         313
133002Unsubsidized Stafford.............        -270        -388        -671
133003PLUS..............................        -103        -129        -217
133004Consolidation.....................         -64          28        -228
                                           ---------   ---------  ----------
133901Total subsidy budget authority....        -135        -131        -803
    Direct loan subsidy outlays:
134001Stafford..........................         256         309         297
134002Unsubsidized Stafford.............        -261        -309        -510
134003PLUS..............................        -101        -116        -179
134004Consolidation.....................         -64          27        -224
                                           ---------   ---------  ----------
134901Total subsidy outlays.............        -170         -89        -616
    Direct loan upward reestimate subsidy budget 
                authority:
135001Stafford..........................       1,180         158
135002Unsubsidized Stafford.............       1,305         113
135003PLUS..............................         241         140
135004Consolidation.....................         619       1,382
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................       3,345       1,793
    Direct loan downward reestimate subsidy budget 
                authority:
137001Stafford..........................         -88        -359
137002Unsubsidized Stafford.............                    -294
137003PLUS..............................         -17         -53
137004Consolidation.....................        -613         -75
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................        -718        -781
----------------------------------------------------------------------------

    Student loan administrative expense data:
351001Budget authority..................         795         795
359001Outlays...........................         790         696         239
---------------------------------------------------------------------------

    The Federal Government operates two major student loan programs: the 
Federal Family Education Loan (FFEL) program--formerly the Guaranteed 
Student Loan (GSL) program--and the William D. Ford Federal Direct Loan 
(Direct Loan) program. For 2006, the President is committed to improving 
the efficiency of both programs and allowing individual institutions to 
choose which of these two programs best meets their needs and the needs 
of their students.

[[Page 367]]

    This summary section outlines the structure of these two programs, 
highlights their differences and similarities, and provides text tables 
displaying program cost data; loan volume, subsidy, default, and 
interest rates; and other descriptive information. As part of his 2006 
Budget, the President is proposing a comprehensive package of student 
aid policy proposals related to the reauthorization of the Higher 
Education Act (HEA). These proposals, which will expand student benefits 
and improve program efficiency, are discussed at the conclusion of this 
program description.

    From its inception in 1965 through 2004, the FFEL program has 
provided over $547 billion in loans to postsecondary students and their 
parents. Since July 1, 1994, the Direct Loan program has provided $150 
billion in new and consolidation loans to students and parents. Taken 
together, the FFEL and Direct Loan programs will make more than $56 
billion in new loans available in 2005. Because funding for these two 
programs is provided on a permanent indefinite basis, for budget 
purposes they are considered separately from other Federal student 
financial assistance programs. The FFEL and Direct Loan programs should 
be viewed in combination with these other programs, however, as part of 
the overall Federal effort to ensure access to higher education.

    Loan capital in the FFEL program is provided by private lenders. 
State and private nonprofit guaranty agencies act as agents of the 
Federal Government, providing a variety of services including collection 
of some defaulted loans, default avoidance activities, and counseling to 
schools, students, and lenders. The Government provides substantial 
payments to these guaranty agencies. The Government also pays interest 
subsidies to lenders for certain borrowers, as well as most costs 
associated with loan defaults and other write-offs.

    The Direct Loan program was created by the Student Loan Reform Act 
of 1993. Under this program, the Federal Government provides loan funds 
to postsecondary institutions directly or through an alternative 
originator. The Direct Loan program began operation in academic year 
1994-1995 with 7 percent of overall loan volume and is expected to 
account for 24 percent in academic year 2005-2006. All eligible 
institutions are free to participate in either the Direct Loan or FFEL 
program.

    The Direct Loan and FFEL programs share many basic elements. Each 
program offers four types of loans: Stafford, Unsubsidized Stafford, 
PLUS for parents, and Consolidation. Evidence of financial need is 
required for a student to receive a subsidized Stafford loan. The other 
three loan programs are available to borrowers at all income levels. 
Loans can be used only to meet qualified educational expenses.

    The borrower interest rate for new Stafford Loans equals the 91-day 
Treasury bill rate plus 1.7 percent during in-school, grace, and 
deferment periods, and the 91-day Treasury bill plus 2.3 percent at all 
other times, with a cap of 8.25 percent, adjusted annually. Interest 
payments for these loans are fully subsidized by the Government while a 
student is in school and during grace and deferment periods. 
Unsubsidized Stafford loans carry the same borrower interest rate as 
Stafford loans, but have no interest subsidy. For new PLUS loans, the 
borrower interest rate equals the 91-day Treasury bill rate plus 3.1 
percent, with a cap of 9 percent and no interest subsidy.

    In the FFEL program, lenders may receive an interest subsidy, called 
a special allowance, from the Government to ensure a guaranteed rate of 
return on their loans. Special allowance payments vary by loan type, are 
determined quarterly, and are based on current borrower interest rates 
and market-yield formulas. For new Stafford and Unsubsidized Stafford 
loans, for example, the Federal Government must pay lenders a special 
allowance if the average 3-month commercial paper rate for a given 
quarter plus 2.34 percent--or 1.74 percent during in-school, grace, or 
deferment periods--is higher than the current interest rate charged 
borrowers.

    Loans funded with the proceeds of tax-exempt securities originally 
issued before October 1, 1993, receive substantially higher special 
allowance payments than are currently paid on other types of loans. The 
Taxpayer-Teacher Protection Act of 2004 temporarily limited the ability 
of loan holders to retain these higher benefits indefinitely by 
refinancing the underlying securities. These temporary provisions are in 
effect through December 31, 2005.

    Consolidation loans allow borrowers to combine loans made under 
Title IV of the Higher Education Act--FFEL, Direct Loans, and Perkins 
Loans--as well as some loans made under the Public Health Service Act. 
The interest rate for new FFEL and Direct Consolidation loans equals the 
weighted average of the interest rate on the loans consolidated, rounded 
up to the nearest one-eighth of one percent. Lenders may choose to offer 
a lower rate. Interest rates for all new FFEL and Direct Consolidation 
Loans are capped at 8.25 percent.

    FFEL borrowers pay an origination fee to the Government equal to 3 
percent of principal, and are also liable for a guaranty agency 
insurance premium of up to 1 percent of principal. Guaranty agencies 
have the option of waiving this premium and FFEL lenders have the option 
of paying some or all of a borrower's origination fee for Stafford Loan 
borrowers.

    Direct Loan borrowers are charged an origination fee equal to 3 
percent of principal, which partially offsets Federal program operation 
costs. Borrowers in both programs may be offered financial incentives to 
encourage prompt repayment.

    Loan limits are also identical across the two programs. In addition, 
loans made under both programs are discharged when borrowers die, are 
totally and permanently disabled, or, under some circumstances, declare 
bankruptcy.

    Under both programs, new borrowers after October 1, 1998, who are 
employed as teachers in schools serving low-income populations for five 
consecutive, complete school years, qualify for up to $5,000 in loan 
forgiveness. The Taxpayer-Teacher Protection Act of 2004 temporarily 
extended this benefit to $17,500 for mathematics, science, and special 
education teachers considered highly qualified under criteria 
established in the No Child Left Behind Act of 2001. These temporary 
provisions affect new borrowers who take out loans between October 1, 
1998, and September 30, 2005; they do not affect borrowers who have 
already received forgiveness benefits.

    Borrowers under Direct Loans may choose from among five repayment 
plans including income-contingent repayment (``pay-as-you-can''), under 
which annual repayment amounts vary based on the income of the borrower 
and the amount borrowed, and payments can be made over 25 years. 
Borrowers may switch between repayment plans at any time. (Income-
contingent repayment is not available to Direct PLUS borrowers).

    FFEL borrowers may choose from among four repayment plans. Repayment 
periods under standard, graduated, and income-sensitive repayment may 
not exceed 10 years. An extended repayment plan of up to 25 years is 
available for new borrowers with outstanding loans totalling more than 
$30,000. FFEL borrowers may change repayment plans annually.

    Reauthorization Proposals. In 2005, the Federal government will 
provide over $70 billion in new grants, loans, and work-study assistance 
to help students pay for postsecondary education, including $57 billion 
in guaranteed and direct student loans and $13 billion in Pell Grants. 
Although the Federal government continues to provide extraordinary 
levels of aid for students, more funds are needed to increase the level 
of Pell Grant aid to low-income students.

    The President proposes a package of reforms to address this problem 
while improving the effectiveness of the Pell

[[Page 368]]

Grant and student loan programs. These reforms will increase the Pell 
Grant maximum award from $4,050 to $4,550 over 5 years and invest 
substantial new funds in student loan borrowers. These proposals would 
also reduce subsidies to various FFEL program participants, who would 
also be required to bear a greater share of overall program risk.

    Federal Pell Grants. The centerpiece of the Administration's budget 
and reauthorization proposal is designed to address the financial need 
of low-income students pursuing a postsecondary education. The 
Administration proposes to assist these students by investing more than 
$19 billion in new mandatory funding for the Pell Grant program from 
2006-2015. These funds would be used to increase the maximum grant award 
by $100 a year each of the next five years, and retire the current $4.3 
billion funding shortfall, putting the program on a firm financial 
footing. The Administration proposes to fund this proposal through 
mandatory savings generated by other reauthorization proposals. The cost 
of operating the Pell Grant program at the current maximum award level 
of $4,050, together with program changes discussed below, would continue 
to be funded through discretionary appropriations. This package of 
programmatic changes also includes a new budget scoring rule that would 
ensure the program is fully funded and shortfalls would not materialize 
in future years.

    While Pell Grants have been very successful in ensuring access to 
postsecondary education for low-income students, the Administration is 
proposing several changes to increase the program's effectiveness and 
improve its overall operation. Pell Grants would be made available year-
round at eligible two- and four-year degree granting institutions, 
giving students a more convenient option for accelerating their studies 
and promptly completing their educations. As a further incentive for 
timely completion, Pell Grant eligibility would be limited to the 
equivalent of 16 semesters. To better target aid to students with the 
greatest financial need, the Administration proposes to index the 
minimum Pell Grant award to the maximum award beginning in 2007. 
Currently, students who qualify for an award between $200 and $400 
receive $400. Indexing would raise the $200 minimum award dollar-for-
dollar with increases in the maximum, without adjusting the $400 actual 
payment; for example, the $100 increase proposed for 2007 would increase 
the minimum award to $300 with a $400 actual payment. With the next $100 
increase, proposed for 2008, the minimum award and actual payment would 
be $400, which would continue to go up in future years as the maximum 
award increases. Lastly, the Administration proposes to eliminate the 
Pell Grant award rule related to tuition sensitivity. This rule limits 
the amount of support that students with greatest need receive while 
attending low-cost institutions.

    The Administration also proposes $33 million for Enhanced Pell 
Grants for State Scholars to encourage students and States to 
participate in the State Scholars program. This program would provide up 
to an additional $1,000 to students completing the rigorous State 
Scholars curriculum in high school. The State Scholars curriculum 
consists of at least three years of mathematics and science, four years 
of English, three and a half years of social studies, and foreign 
language coursework. Currently, thirteen states participate in the 
States Scholars program. Although this new program will operate within 
the larger Pell Grant program, total funding would be capped at $33 
million in 2006. If recipients qualify for more than this amount, a 
process would be developed to allocate awards within the available 
funding level.

    To support these policies the 2006 Budget includes a total of $18.0 
billion for Pell Grants in 2006: $13.2 billion in discretionary funding, 
$4.3 billion in mandatory funding to eliminate the prior year shortfall, 
and an additional $420 million in mandatory funding to fund a $100 
increase in the maximum award to $4,150. Nearly 5.5 million students 
will receive Pell Grants under this proposal.

    Campus-Based Programs. To help fund the higher Pell maximum awards 
and make more funds available to all eligible students, the 
Administration proposes eliminating the Perkins Loan program and 
recalling the federal portion of revolving funds held by participating 
institutions. With the number of Perkins Loan institutions declining 
from 3,338 in academic year 1983-1984 to 1,796 in 2003-2004--and with 
only 3 percent of students enrolled in postsecondary education receiving 
Perkins Loans each year, the Administration believes the federal share 
of funds held by this small group of institutions would better serve 
students if invested in Pell Grants, which serve all eligible students 
regardless of institution. Last year, the PART found the Perkins Loan 
program to be duplicative of the larger guaranteed and direct student 
loan programs. Proposed increases to student loan limits in these 
programs and the continuation of very low interest rates would 
significantly offset the impact of eliminating the Perkins Loan program. 
Under the Administration's proposal, institutions would retain their own 
contributions into Perkins Loan revolving funds. Recalling the federal 
portion of the Perkins Loan funds, less amounts needed to support 
statutory loan forgiveness benefits, will provide $6.0 billion, to help 
offset the costs of the proposed new benefits for all eligible students.

    The Administration is also proposing to phase in revised allocation 
formulae for the SEOG and Work-Study programs under which funding 
distributions are based more directly on institutional need. The current 
allocation formulae have historically distributed a disproportionate 
share of funding to institutions with a long history of program 
participation rather than on the number of low-income students enrolled. 
Since these institutions do not have a higher proportion of low-income 
students, the PART review identified the current formulae as 
problematic.

    Lastly, the Administration proposes to replace the 7 percent 
community service requirements in the Work Study program with a separate 
set-aside equal to 20 percent of the Work-Study appropriation. 
Institutions would apply for these community service funds separate from 
their regular allocation. Program-wide, institutions place 15 percent of 
their students in community service jobs, however, the PART process 
found many individual institutions fail to meet the 7 percent 
requirement. Under the proposed approach, institutions that do not wish 
to participate in community service activities will no longer be 
required to do so and those that do wish to participate will be awarded 
additional funds. Overall, this proposal would double the amount of Work 
Study funds used for community service activities.

    Consistent with these proposals, the 2006 Budget includes $778 
million for SEOG and $990 million for Work-Study, which would generate 
$986 million and $1.2 billion, respectively, in new aid to students. No 
funds are included for the Leveraging Educational Partnerships program.

    Student Loans. The 2006 Budget includes a comprehensive package of 
proposals to make the student loan programs more efficient, cost-
effective vehicles for helping students finance their postsecondary 
educations. Strategic reductions in loan subsidies to financial 
participants in the FFEL Program are specifically tied to operational 
efficiencies and program management improvements that have been realized 
in the last several years. Savings generated from these proposals would 
in large part be reinvested in benefits for students in the Pell Grant 
and the student loan programs.

[[Page 369]]

    To help students meet rising higher education costs, the 
Administration is proposing to increase annual subsidized loan limits to 
$3,500 for first-year students, $4,500 for second year students, and 
annual unsubsidized loan limits to $12,000 for graduate and professional 
students. (The Administration also proposes corresponding increases in 
aggregate loan limits.) The Administration also is proposing to help 
borrowers manage their debt with more flexible extended repayment plans 
for all student loans based on the current Direct Loan model. Lastly, 
the Administration intends to make permanent the teacher loan 
forgiveness provisions of the Taxpayer-Teacher Protection Act of 2004.

    In addition, the Administration is proposing to maintain the current 
variable interest rate formula. The borrower rate on Stafford and 
Unsubsidized Stafford Loans is scheduled to be fixed at 6.8 percent for 
new loans beginning July 1, 2006. Under current interest rate 
projections, this would substantially increase interest rates for most 
borrowers. Rather than increase interest rates for students, the 
Administration proposes spending $4.4 billion to keep interest rates low 
for students and families.

    To encourage lenders to continue to strengthen default prevention 
efforts and in recognition of the strong repayment record associated 
with student loans today, the Administration proposes to reduce the 
amount of loan principal insured against default from 98 to 95 percent 
and better target insurance for lenders identified as exceptional 
performers. The Administration also proposes creating a .25 percent 
annual loan holder fee on the outstanding balance of non-consolidation 
loans in order to recover excess earnings that result from the basic 
program structure. Lastly, the Taxpayer-Teacher Protection Act of 2004's 
provisions related to tax-exempt securities will be made permanent. New 
proposals affecting lenders will reduce federal costs by $8.7 billion 
over 2006-2015.

    To strengthen the financial stability of the guaranty agencies' 
Federal Reserve fund, the Administration is proposing that agencies be 
required to collect the 1 percent insurance premium on all loans 
guaranteed or disbursed after July 1, 2006. The Administration expects 
guaranty agencies to operate more efficiently in the future and proposes 
to reduce incrementally the amount guaranty agencies may retain from 
collections on defaulted loans from 23 percent to roughly 16 percent--
the average paid by the Department of Education to private collection 
agents. Finally, the Administration would provide reduced reinsurance to 
guaranty agencies to correspond to the reduced insurance rate paid to 
lenders in the program. For many guaranty agencies, reinsurance would be 
reduced from the current 95 percent to 92 percent. These changes are 
intended to foster increased guaranty agency default prevention 
activities and improve overall financial management. The latter two 
changes to the guaranty agency system will increase the Federal Student 
Loan Reserve Fund and reduce FFEL program costs by a combined $1.7 
billion over 2006-2015.

    The Administration is also proposing to significantly restructure 
the current Loan Consolidation program to help address the needs of both 
current and former students. Accordingly, the 2006 Budget includes the 
following proposals: replace the current fixed-rate interest formula for 
consolidation loans with the variable rate formula used for student 
loans, placing current and former students on equal terms; allow 
borrowers to reconsolidate on multiple occasions subject to a 1 percent 
borrower origination fee on reconsolidation; eliminate the statutory 
provision limiting borrower ability to choose their consolidation 
lender; and increase the current one-time lender fee on new 
consolidation loans by 50 basis points to 1 percent. Restructuring the 
Loan Consolidation program will reduce program costs by $3.7 billion 
over 2006-2015.

    Taken together, the Administration's proposed student benefits would 
increase student loan program costs by $7.7 billion over 2006-2015. 
Total proposed changes to the FFEL and Direct Loan programs would 
produce net savings of $19 billion over the same period.

    Presidential Math-Science Scholars. The 2006 Budget includes $50 
million for this new program, under which the Department of Education 
would enter into a public-private partnership to award $100 million 
annually in grants to low-income students who pursue studies in math and 
science. The program would provide approximately 20,000 low-income 
students who receive Pell Grants with separate additional awards of up 
to $5,000 each.

    Loans for Short-Term Training. The Administration proposes a new 
loan program, jointly administered by the Department of Education and 
Labor, to help dislocated, unemployed, transitioning, or older workers 
and students. This market-oriented program will allow participants to 
acquire or upgrade specific job-related skills through short-term 
training programs, usually shorter than 10 weeks and not currently 
eligible for Federal student aid. These programs must lead to an 
industry credential, certificate, or employer endorsed technical/
occupational skills.

    Other provisions. The Administration also proposes to reinstate two 
expired provisions affecting institutions with cohort default rates of 
less than 10 percent for the three most recent fiscal years. These 
provisions exempt institutions from the requirements that loans to 
first-year students not be disbursed until 30 days after enrollment and 
all loans be issued in at least two separate disbursements.

    Two provisions restricting schools' eligibility to participate in 
the federal student assistance program are also proposed for 
elimination. The first, which requires 50 percent of a program's courses 
be offered on campus, restricts the availability of distance education. 
The second, requiring at least 10 percent of a school's revenue come 
from non-federal sources, has not been shown to be a reliable indicator 
of institutional quality.

    The Administration proposes to clarify a current provision under 
which student aid applicants who have been convicted of a drug-related 
offense are ineligible for Federal student aid. Under this proposal, the 
current provision would only affect students who commit a drug-related 
offense while enrolled in higher education; incoming students, who are 
currently subject to the provision, would be exempted.

    Lastly, the Administration proposes that military personnel on 
active duty automatically be considered as independent for the purpose 
of determining eligibility for federal student aid.

    The following tables display performance indicators and program 
data; including projected overall Direct Loan and FFEL costs; loan 
volume, number of loans, and average loan amount; descriptive data, and 
program activity under the President's budget and legislative request.

                  Funding Levels (in thousands of dollars)

----------------------------------------------------------------------------
                                         2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
Program Cost:
FFEL:
  Liquidating \1\.......................   (179,625)   (834,864)   (712,601)
  Program:
    Regular.............................   3,943,225   4,463,212   4,241,830
    Consolidation.......................   5,658,390   5,648,276   2,314,494
    Reestimate of Prior Year Costs...... (3,620,994)     592,658           0
    Non-Contractual Modifications \2\...           0   1,039,778           0
                                           ---------   ---------  ----------
      Subtotal, Program.................   5,980,621  11,743,924   6,556,324
                                           ---------   ---------  ----------
        Total FFEL......................   5,800,996  10,909,060   5,843,723
Direct Loans:
  Program:
    Regular.............................   (105,725)   (116,253)   (400,914)
    Consolidation.......................    (63,649)      27,614   (268,512)

[[Page 370]]

    Reestimate of Prior Year Costs......   2,626,596   1,011,844           0
    Non-Contractual Modifications \2\...           0   (286,212)           0
        Total, Direct Loans.............   2,457,222     636,994   (669,425)
        Total, FFEL and Direct Loans....   8,258,218  11,546,054   5,174,298
          Program Cost Outlays:

FFEL:
  Liquidating \1\.......................   (476,011)   (784,247)   (712,601)
  Program:
    Regular.............................   3,280,069   3,739,398   3,760,575
    Consolidation.......................   5,615,746   5,605,227   2,298,306
    Reestimate of Prior Year Costs...... (3,620,994)     592,658           0
    Non-Contractual Modifications \2\...           0   1,039,778           0
                                           ---------   ---------  ----------
      Subtotal, Program.................   5,274,822  10,977,062   6,058,881
                                           ---------   ---------  ----------
        Total, FFEL.....................   4,798,810  10,192,814   5,346,280
Direct Loans:
  Program:
    Regular.............................   (105,725)   (116,253)   (400,914)
    Consolidation.......................    (63,649)      27,614   (268,512)
    Reestimate of Prior Year Costs......   2,626,596   1,011,844           0
    Non-Contractual Modifications \2\...           0   (286,212)           0
                                           ---------   ---------  ----------
        Total, Direct Loans.............   2,457,222     636,994   (669,425)
        Total, FFEL and Direct Loans....   7,256,032  10,829,808   4,676,854
---------------------------------------------------------------------------
    \1\ Liquidating account reflects loans made prior to 1992.
    \2\ Reflects the cost or savings associated with policy changes that 
would affect the terms of existing loans.

   Summary of Loans Available (net commitments in millions of dollars) \1\

----------------------------------------------------------------------------
                                           2004 est.   2005 est.   2006 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................      17,592      18,847      20,363
  Unsubsidized Stafford.................      16,531      18,208      20,057
  PLUS..................................       5,143       5,898       6,578
                                           ---------   ---------  ----------
    Subtotal............................      39,266      42,953      46,997
  Consolidation.........................      35,947      34,737      25,326
                                           ---------   ---------  ----------
    Total, FFEL.........................      75,212      77,690      72,323
Direct Loans:
  Stafford..............................       5,972       6,295       6,793
  Unsubsidized Stafford.................       4,761       5,141       5,710
  PLUS..................................       2,107       2,425       2,685
                                           ---------   ---------  ----------
    Subtotal............................      12,840      13,860      15,188
  Consolidation.........................       7,782       9,036       7,620
                                           ---------   ---------  ----------
    Total, Direct Loans.................      20,622      22,896      22,808
    Total, All Loans....................      95,834     100,586      95,131
---------------------------------------------------------------------------
    \1\ Net commitments equal gross commitments minus loan cancellations.

                       Number of Loans (in thousands)

----------------------------------------------------------------------------
                                           2004 est.   2005 est.   2006 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................       5,098       5,439       5,645
  Unsubsidized Stafford.................       3,887       4,224       4,436
  PLUS..................................         565         617         656
                                           ---------   ---------  ----------
    Subtotal............................       9,550      10,279      10,738
  Consolidation.........................       1,243       1,185         826
                                           ---------   ---------  ----------
    Total, FFEL.........................      10,793      11,464      11,564
Direct Loans:
  Stafford..............................       1,625       1,679       1,741
  Unsubsidized Stafford.................       1,132       1,184       1,245
  PLUS..................................         244         265         281
                                           ---------   ---------  ----------
    Subtotal............................       3,001       3,128       3,267
  Consolidation.........................         331         374         316
                                           ---------   ---------  ----------
    Total, Direct Loans.................       3,331       3,502       3,582
    Total, All Loans....................      14,125      14,966      15,146
---------------------------------------------------------------------------

                    Average Loan Size (in whole dollars)

----------------------------------------------------------------------------
                                           2004 est.   2005 est.   2006 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................       3,450       3,465       3,607
  Unsubsidized Stafford.................       4,253       4,311       4,521
  PLUS..................................       9,103       9,565      10,024
                                           ---------   ---------  ----------
    Weighted Average, without 
      Consolidations....................       4,111       4,179       4,377
                                           ---------   ---------  ----------
  Consolidation.........................      28,925      29,323      30,662
                                           ---------   ---------  ----------
    Weighted Average, FFEL..............       6,968       6,777       6,254
Direct Loans:
  Stafford..............................       3,675       3,750       3,901
  Unsubsidized Stafford.................       4,205       4,341       4,586
  PLUS..................................       8,651       9,157       9,573
                                           ---------   ---------  ----------
    Weighted Average, without 
      Consolidations....................       4,279       4,431       4,649
                                           ---------   ---------  ----------
  Consolidation.........................      23,543      24,161      24,138
                                           ---------   ---------  ----------
    Weighted Average, Direct Loans......       6,190       6,538       6,367
    Weighted Average, All Loans.........       6,785       6,721       6,281
---------------------------------------------------------------------------

               Summary of Subsidy, Default and Interest Rates

----------------------------------------------------------------------------
                                           2004 est.   2005 est.   2006 est.
----------------------------------------------------------------------------

     Subsidy Rates (in percent) \1\

FFEL:
  Stafford..............................       15.41       16.82       16.26
  Unsubsidized Stafford.................        3.91        3.44        1.67
  PLUS..................................        1.62        1.53        0.74
  Consolidation.........................       14.42       16.12        9.06
    Weighted Average, FFEL..............       11.40       11.96        8.22
Direct Loans:
  Stafford..............................        4.55        5.15        3.65
  Unsubsidized Stafford.................       -5.00       -6.64       -9.88
  PLUS..................................       -4.91       -5.08       -7.85
  Consolidation.........................       -0.81        0.31       -3.54
    Weighted Average, Direct Loans......       -0.61       -0.53       -3.51
     Default Rates (in percent) \2\

FFEL:
  Stafford..............................       13.02       13.00       13.25
  Unsubsidized Stafford.................       12.38       12.40       12.38
  PLUS..................................        6.39        6.40        6.39
  Consolidation.........................       14.53       14.48       14.70
    Weighted Average, FFEL..............       13.15       13.02       12.89
Direct Loans:
  Stafford..............................       11.58       11.67       11.85
  Unsubsidized Stafford.................       11.52       11.62       11.56
  PLUS..................................        5.49        5.54        5.54
  Consolidation.........................       27.98       26.85       31.19
    Weighted Average, Direct Loans......       17.13       17.00       17.50
Borrower Interest Rates (in percent) \3\

FFEL:
  Stafford..............................        6.55        6.63        6.68
  Unsubsidized Stafford.................        6.55        6.63        6.68
  PLUS..................................        5.89        6.40        6.93
  Consolidation (reflects Sub and Unsub 
    Stafford only)......................        3.77        4.03        5.55
Direct Loans:
  Stafford..............................        6.50        6.72        6.79
  Unsubsidized Stafford.................        6.50        6.72        6.79
  PLUS..................................        5.54        5.88        6.39
  Consolidation (reflects Sub and Unsub 
    Stafford only)......................        4.20        4.64        5.80
---------------------------------------------------------------------------
    \1\ Subsidy rates represent the Federal portion of non-administrative 
costs--principally interest subsidies and defaults--associated with each 
borrowed dollar. For example, a $1,000 loan with Federal subsidy costs of 
$100 would have a subsidy rate of 10 percent.
    \2\ Default rates displayed in this table, which reflect projected 
defaults over the life of a loan cohort, are used in developing program cost 
estimates. The Department uses other rates based on defaults occurring in 
the first two years of repayment to determine institutional eligibility to 
participate in Federal loan programs. These two-year rates tend to be lower 
than those included in this table.
    \3\ These represent average borrower interest rates during repayment for 
a typical borrower under standard repayment over the life of the loan.

    FFEL program payments are made to lenders (interest subsidies, loan 
defaults and discharges) and guaranty agencies (default collection 
costs, administrative services). These payments are partially offset by 
borrower origination fees and lender fees for originations and an annual 
consolidation loan holder fee. In Direct Loans, cash outflows are 
primarily payments to Treasury. Cash inflows include principal and 
interest payments on outstanding Direct Loans.

[[Page 371]]

    The following table shows government payments to and from lenders, 
guaranty agencies, and borrowers for specific years, regardless of when 
loans were originated. These flows do not reflect long-term costs to the 
government, nor the value of outstanding loan assets: these are 
reflected in credit reform subsidy estimates. For example, collections 
on defaulted FFEL loans due to Consolidation produce a current-year cash 
inflow and a long-term cost associated with re-default risk and future 
lender interest subsidy payments.

    The Federal Credit Reform Act of 1990 accounts for differences in 
the amount and timing of cash flows among direct and guaranteed loan 
programs to make cost estimates for these programs comparable with each 
other and other federal programs.

        Selected Program Costs and Offsets (in thousands of dollars)

----------------------------------------------------------------------------
                                        2004 actual    2005 est.   2006 est.
----------------------------------------------------------------------------
FFEL:
Payments to lenders
  Interest benefits.....................  1,494,541    1,688,024   2,532,291
  Special allowance payments............  1,205,198    3,094,827   3,836,276
  Default claims........................  2,943,297    4,185,304   4,741,575
  Loan discharges.......................    736,013      920,881   1,077,049
  Teacher loan forgiveness..............     10,181       12,977      20,591
Payments to guaranty agencies
  Loan processing and issuance fees.....    175,950      150,592     161,426
  Account maintenance fees..............    195,000      195,000     195,000
  Other administrative payments.........    241,683      304,947     356,051
Fees paid to the Department of Education
  Borrower origination fees.............(1,060,400)  (1,258,028) (1,360,839)
  Lender origination fees...............  (361,786)    (383,597)   (384,964)
  Sallie Mae offset fees................   (24,683)
  Loan holder fees......................(1,015,647)  (1,369,786) (1,551,806)
Other Major Transactions
  Net default collections...............(4,001,348)  (3,829,167) (4,182,454)
  Contract collection costs.............    126,260      118,557     118,874
  Federal administrative costs..........    231,597      229,463     238,147
Net Cash Flow, FFEL                         895,857    4,057,994   5,797,217
  
Direct Loans
  Loan disbursements to borrowers....... 20,341,765   22,865,881  22,516,080
  Borrower interest payments............(1,643,021)  (2,812,403) (3,352,109)
  Borrower principal payments...........(15,765,785)
                                                     (15,070,843)
                                                                (11,953,989)
  Borrower origination fees.............  (391,678)    (431,390)   (466,415)
  Net default collections...............  (667,758)  (1,498,086) (1,828,952)
  Contract collection costs.............     81,373      121,598     145,254
  Federal administrative costs..........    388,528      396,336     407,292

  Net Operating Cash Flows..............  2,343,423    3,571,094   5,467,161

  Loan capital borrowings from Teasury..(20,341,765)
                                                     (22,865,881)
                                                                (22,516,080)
  Net interest payments to Treasury.....  4,763,027    5,490,828   6,035,175
  Principal payments to Treasury........ 12,592,340   14,049,306  11,182,230
  Subtotal Treasury activity............(2,986,398)  (3,325,748) (5,298,676)
Net Cash Flow, Direct Loans               (642,975)      245,346     168,485
    Details may not sum to total due to rounding.

    The following chart compares total FFEL and Direct Loan costs on a 
subsidy rate basis: program costs calculated under the Federal Credit 
Reform Act of 1990 and comparably projected estimates of Federal 
administrative costs, including expenses related to FFEL program 
oversight and servicing the Direct Loan portfolio. As with any long-term 
projection, the comparison is based on assumed future interest rates, 
borrower characteristics, administrative costs, and other factors over 
the life of the loan cohort. To the degree actual conditions differ from 
projections, estimated subsidy rates will change.

   Student Loan Program Costs: Comparative Analysis Including Program and 
             Administrative Activities (in thousands of dollars)

----------------------------------------------------------------------------
                                         2004 actual   2005 est.   2006 est.
                  FFEL

    Program costs: \1\
        Interest subsidies..............       13.01       13.48       10.28
        Interest income.................        0.00        0.00        0.00
        Net defaults....................        1.06        0.91        0.83
        Fees............................       -5.42       -5.15       -5.53
        Other...........................        2.74        2.72        2.64
                                           ---------   ---------  ----------
          Total.........................       11.40       11.96        8.22
      Federal administrative costs......        0.69        0.69        0.69
                                           ---------   ---------  ----------
          Total.........................       12.09       12.65        8.91
    Total adjusted cost:
              Direct Loans

    Program costs: \1\
        Interest subsidies and income, 
          net...........................       -5.62       -5.52       -8.12
        Net Defaults....................        1.70        1.48        1.71
        Fees............................       -2.02       -1.98       -2.17
        Other...........................        5.33        5.49        5.06
                                           ---------   ---------  ----------
          Total.........................       -0.61       -0.53       -3.51
      Federal administrative costs......        1.45        1.45        1.45
                                           ---------   ---------  ----------
          Total adjusted cost...........        0.84        0.92       -2.06
---------------------------------------------------------------------------
    \1\ Fees primarily reflect borrower origination fees and, in FFEL, 
lender origination and consolidation loan holder fees. Other primarily 
reflects loan discharges due to death, disability, or bankruptcy.

    The Federal Credit Reform Act of 1990 requires the cost of existing 
loan cohorts to be reestimated to reflect changes in actual and assumed 
borrower behavior, interest rates, and other factors. The following 
table shows the impact of these reestimates in FFEL and Direct Loans.

                   Loan Disbursement and Subsidy Costs

                     Total Subsidy Costs--1992-2004

                                        FFEL     Direct Loans
Original Subsidy Costs..............+$46 billion -$2 billion
Cumulative Reestimates.............. -$7 billion +$5 billion
1992-2004 Subsidy Costs.............+$39 billion +$3 billion
    Total Disbursements.............$413 billion$146 billion

    Changes in interest rate projections are a significant factor in 
FFEL and Direct Loan reestimates; recent declines in interest rates 
below historical averages have accordingly been a major driver in 
changes to program costs. Changes in borrower behavior (notably, 
prepayment of loans through consolidation and reduction in defaults) 
have also contributed to these reestimates. The average lifetime subsidy 
rate for all outstanding FFEL loans after the most recent reestimate is 
9.40; the comparable Direct Loan rate is 1.76. For the oldest loan 
cohorts, many of the subsidy costs have been expended (e.g., in-school 
interest subsidies). 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          48          51
11.3    Other than full-time permanent..           2
11.5    Other personnel compensation....           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          51          52
12.1  Civilian personnel benefits.......          12          13
21.0  Travel and transportation of 
        persons.........................           3           4
23.1  Rental payments to GSA............           7           7
23.3  Communications, utilities, and 
        miscellaneous charges...........          17           8
24.0  Printing and reproduction.........           4           4
25.1  Advisory and assistance services..           4           2
25.2  Other services....................          22          32
25.3  Other purchases of goods and 
        services from Government 
        accounts........................          11           4
25.6  Training..........................           2          11
25.7  Operation and maintenance of 
        equipment.......................         467         459
26.0  Supplies and materials............           1           1
31.0  Equipment.........................           3           2
32.0  Land and structures...............                       1
41.0  Grants, subsidies, and 
        contributions...................       2,924       1,880
                                           ---------   ---------  ----------
99.9    Total new obligations...........       3,528       2,480
---------------------------------------------------------------------------

[[Page 372]]



                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         607         607
---------------------------------------------------------------------------

                                

               Federal Direct Student Loan Program Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-4-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)--
          negative subsidy..............                     335          53
69.00   Offsetting collections (cash)--
          downward reestimate, principal
69.00   Offsetting collections (cash)--
          downward reestimate,interest..
69.00   Offsetting collections (cash)--
          admin.........................
69.27   Capital transfer to general fund                    -335         -53
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                    -335         -53
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                    -335         -53
90.00 Outlays...........................                    -335         -53
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-4-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Stafford..........................                                 274
115002Unsubsidized Stafford.............                                 262
115003PLUS..............................                                   2
115004Consolidation.....................                                 111
                                           ---------   ---------  ----------
115901Total direct loan levels..........                                 649
    Direct loan subsidy (in percent):
132001Stafford..........................                               -0.68
132002Unsubsidized Stafford.............                                0.89
132003PLUS..............................                               -0.10
132004Consolidation.....................                               -0.55
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....                               -0.15
    Direct loan subsidy budget authority:
133001Stafford..........................                                 -39
133002Unsubsidized Stafford.............                                  30
133003PLUS..............................                                  -3
133004Consolidation.....................                                 -46
                                           ---------   ---------  ----------
133901Total subsidy budget authority....                                 -58
    Direct loan subsidy outlays:
134001Stafford..........................                                 -24
134002Unsubsidized Stafford.............                                  18
134003PLUS..............................                                  -2
134004Consolidation.....................                                 -45
                                           ---------   ---------  ----------
134901Total subsidy outlays.............                                 -53
    Direct loan upward reestimate subsidy budget 
                authority:
135001Stafford..........................
135002Unsubsidized Stafford.............
135003PLUS..............................
135004Consolidation.....................
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................
    Direct loan downward reestimate subsidy budget 
                authority:
137001Stafford..........................
137002Unsubsidized Stafford.............
137003PLUS..............................
137004Consolidation.....................
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................
----------------------------------------------------------------------------

    Student loan administrative expense data:
351001Budget authority..................
359001Outlays...........................
---------------------------------------------------------------------------

                                

          Federal Direct Student Loan Program Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Loan Obligations...........      21,936      24,480      23,881
02.01 Interest rate rebate, Stafford....          87          93          97
02.02 Interest rate rebate, Unsubsidized 
        Stafford........................          69          76          81
02.03 Interest rate rebate, PLUS........          31          35          39
                                           ---------   ---------  ----------
02.91   Direct Program by Activities--
          Subtotal (1 level)............         187         204         217
03.01 Consolidation loans-Payment of 
        Orig. Services..................          18          21          19
04.01 Payment of contract collections...          81         122         145
05.01 Interest payment to Treasury......       5,761       5,491       6,025
08.01 Obligation of negative subsidy....         135         130         803
08.02 Payment of downward reestimate to 
        program account.................         103         624
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         238         754         803
                                           ---------   ---------  ----------
10.00   Total new obligations...........      28,221      31,072      31,090
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         503         938
22.00 New financing authority (gross)...      29,258      31,072      31,090
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................       2,899       2,456       1,827
22.60 Portion applied to repay debt.....      -1,237        -938
22.70 Balance of authority to borrow 
        withdrawn.......................      -2,264      -2,456      -1,827
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      29,159      31,072      31,090
23.95 Total new obligations.............     -28,221     -31,072     -31,090
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         938
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............      22,383      25,234      24,684
69.00 Offsetting collections (cash).....      22,195      21,498      17,593
69.10 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           2
69.27 Capital transfer to general fund 
        (for modification adj transfer).                      -1
69.47 Portion applied to repay debt.....     -15,322     -15,659     -11,187
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................       6,875       5,838       6,406
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................      29,258      31,072      31,090
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       7,459       6,631       6,035
73.10 Total new obligations.............      28,221      31,072      31,090
73.20 Total financing disbursements 
        (gross).........................     -26,148     -29,212     -28,970
73.45 Recoveries of prior year 
        obligations.....................      -2,899      -2,456      -1,827
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -2
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       6,631       6,035       6,328
87.00 Total financing disbursements 
        (gross).........................      26,148      29,212      28,970
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Upward reestimate.............      -2,102      -1,262
88.00     Upward reestimate, interest...        -627        -374
88.00     Modification..................                     -49
88.25     Interest on uninvested funds..        -998
88.40     Repayment of principal, 
            Stafford....................      -5,839      -5,672      -4,280
88.40     Interest received on loans, 
            Stafford....................        -348        -521        -699
88.40     Origination Fees, Stafford....        -183        -186        -194
88.40     Other fees, Stafford..........         -20

[[Page 373]]

88.40     Repayment of principal, 
            Unsubsidized Stafford.......      -4,451      -4,547      -3,482
88.40     Interest received on loans, 
            Unsubsidized Stafford.......        -395        -364        -508
88.40     Origination Fees, Unsubsidized 
            Stafford....................        -145        -151        -161
88.40     Other fees, Unsubsidized 
            Stafford....................         -11
88.40     Repayment of principal, PLUS..      -1,466      -1,572      -1,404
88.40     Interest received on loans, 
            PLUS........................        -178        -213        -324
88.40     Origination Fees, PLUS........         -64         -94        -104
88.40     Other fees, PLUS..............          -3
88.40     Payment of principal, 
            Consolidation...............      -4,386      -4,428      -4,167
88.40     Interest received on loans, 
            Consolidation...............        -955      -2,065      -2,270
88.40     Other fees, Consolidation.....         -24
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........     -22,195     -21,498     -17,593
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          -2
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       7,061       9,574      13,497
90.00 Financing disbursements...........       3,953       7,714      11,377
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    STAFFORD
      Position with respect to appropriations act 
          limitation on obligations:

1111    Limitation on direct loans......
1131    Direct loan obligations exempt 
          from limitation...............       6,615       6,948       7,235
                                           ---------   ---------  ----------
1150      Total direct loan obligations.       6,615       6,948       7,235
----------------------------------------------------------------------------

      Cumulative balance of direct loans 
          outstanding:

1210    Outstanding, start of year......      27,420      27,458      27,934
1231    Disbursements: Direct loan 
          disbursements.................       5,852       6,213       6,471
1251    Repayments: Repayments and 
          prepayments...................      -5,839      -5,672      -4,281
1261    Adjustments: Capitalized 
          interest......................         108
1264    Write-offs for default: Other 
          adjustments, net..............         -83         -65         -71
                                           ---------   ---------  ----------
1290      Outstanding, end of year......      27,458      27,934      30,053
----------------------------------------------------------------------------

    UNSUBSIDIZED STAFFORD
      Position with respect to appropriations act 
          limitation on obligations:

1111    Limitation on direct loans......
1131    Direct loan obligations exempt 
          from limitation...............       5,217       5,841       6,229
                                           ---------   ---------  ----------
1150      Total direct loan obligations.       5,217       5,841       6,229
----------------------------------------------------------------------------

      Cumulative balance of direct loans 
          outstanding:

1210    Outstanding, start of year......      19,098      19,554      20,352
1231    Disbursements: Direct loan 
          disbursements.................       4,616       5,039       5,375
1251    Repayments: Repayments and 
          prepayments...................      -4,451      -4,547      -3,482
1261    Adjustments: Capitalized 
          interest......................         350         362         422
1264    Write-offs for default: Other 
          adjustments, net..............         -59         -56         -63
                                           ---------   ---------  ----------
1290      Outstanding, end of year......      19,554      20,352      22,604
----------------------------------------------------------------------------

    PLUS
      Position with respect to appropriations act 
          limitation on obligations:

1111    Limitation on direct loans......
1131    Direct loan obligations exempt 
          from limitation...............       2,302       2,535       2,806
                                           ---------   ---------  ----------
1150      Total direct loan obligations.       2,302       2,535       2,806
----------------------------------------------------------------------------

      Cumulative balance of direct loans 
          outstanding:

1210    Outstanding, start of year......       4,495       5,078       5,805
1231    Disbursements: Direct loan 
          disbursements.................       2,038       2,346       2,596
1251    Repayments: Repayments and 
          prepayments...................      -1,467      -1,572      -1,404
1261    Adjustments: Capitalized 
          interest......................          24
1264    Write-offs for default: Other 
          adjustments, net..............         -12         -47         -55
                                           ---------   ---------  ----------
1290      Outstanding, end of year......       5,078       5,805       6,942
----------------------------------------------------------------------------

    CONSOLIDATION
      Position with respect to appropriations act 
          limitation on obligations:

1111    Limitation on direct loans......
1131    Direct loan obligations exempt 
          from limitation...............       7,802       9,156       7,611
                                           ---------   ---------  ----------
1150      Total direct loan obligations.       7,802       9,156       7,611
----------------------------------------------------------------------------

      Cumulative balance of direct loans 
          outstanding:

1210    Outstanding, start of year......      33,507      37,155      41,609
1231    Disbursements: Direct loan 
          disbursements.................       7,649       9,064       7,506
1251    Repayments: Repayments and 
          prepayments...................      -4,386      -4,428      -4,167
1261    Adjustments: Capitalized 
          interest......................         487
1264    Write-offs for default: Other 
          adjustments, net..............        -102        -182        -207
                                           ---------   ---------  ----------
1290      Outstanding, end of year......      37,155      41,609      44,741
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4253-0-3-502

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101

Fund balances with Treasury

992

1,672

        Investments in US securities:
1106

Receivables, net

4,223

1,218

      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401

Direct loans receivable, gross

84,520

89,245

1402

Interest receivable

2,771

2,858

1405

Allowance for subsidy cost (-)

-657

1,644





1499

Net present value of assets related to direct loans

86,634

93,747





1999

Total assets

91,849

96,637

    LIABILITIES:
      Federal liabilities:

2101

Accounts payable

62

217

2103

Debt

91,787

96,420





2999

Total liabilities

91,849

96,637





4999

Total liabilities and net position

91,849

96,637

-----------------------------------------------------------------------------------------------

    The Balance Sheet, above, provides information on program assets, 
liabilities, and net position consistent with the audited financial 
statements.

    Receivables, line 1106, are primarily upward reestimates prepared 
for financial statements; an identical offsetting amount is recorded in 
the Allowance for Subsidy, line 1405. The value of total Department 
assets is unchanged but will be reduced when reestimates developed for 
this budget are executed. Differences between reestimates prepared for 
financial statements and for this budget result from updated economic 
(interest rates) and technical assumptions. Revised assumptions may 
significantly change reestimate amounts; differences will be reflected 
in subsequent financial statements.

    Direct Loans receivable, line 1401 reflects the nominal unpaid 
principal balance, including capitalized interest. Interest Receivable, 
line 1402, includes only non-capitalized interest. A positive Allowance 
for Subsidy, line 1405, indicates the outstanding portfolio (including 
the Financial Statements' reestimates) has a negative subsidy, 
increasing the portfolio's net present value; the 2003 negative value 
represents the reverse.

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from Direct Loans. The amounts in this account are a means of 
financing and are not included in the budget totals.

                                

          Federal Direct Student Loan Program Financing Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-4-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Loan Obligations...........                                 649
02.01 Interest rate rebate, Stafford....                                   2
02.02 Interest rate rebate, Unsubsidized 
        Stafford........................                                   2
05.01 Interest payment to Treasury......                                  10
08.01 Obligation of negative subsidy....                                  58
08.05 Obligation of modification, 
        negative........................                     335
                                           ---------   ---------  ----------
10.00   Total new obligations...........                     335         721
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                     335         721

[[Page 374]]

23.95 Total new obligations.............                    -335        -721
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                      26
67.10   Authority to borrow.............                     335         708
69.00 Offsetting collections (cash).....                                   9
69.47 Portion applied to repay debt.....                     -26           4
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................                     -26          13
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                     335         721
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                                 335
73.10 Total new obligations.............                     335         721
73.20 Total financing disbursements 
        (gross).........................                                -415
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                     335         641
87.00 Total financing disbursements 
        (gross).........................                                 415
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.40     Repayment of principal, 
            Stafford....................
88.40     Interest received on loans, 
            Stafford....................
88.40     Origination Fees, Stafford....                                  -4
88.40     Other fees, Stafford..........
88.40     Repayment of principal, 
            Unsubsidized Stafford.......
88.40     Interest received on loans, 
            Unsubsidized Stafford.......
88.40     Origination Fees, Unsubsidized 
            Stafford....................                                  -4
88.40     Other fees, Unsubsidized 
            Stafford....................
88.40     Repayment of principal, PLUS..
88.40     Interest received on loans, 
            PLUS........................
88.40     Origination Fees, PLUS........
88.40     Other fees, PLUS..............
88.40     Payment of principal, 
            Consolidation...............                                  -2
88.40     Interest received on loans, 
            Consolidation...............                                   1
88.40     Other fees, Consolidation.....
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                  -9
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                     335         712
90.00 Financing disbursements...........                                 406
---------------------------------------------------------------------------

              Federal Family Education Loan Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........       9,602      10,111       7,241
00.04 Modification subsidy..............                     148
00.07 Upward reestimate, principal......         216       1,948
00.08 Upward reestimate, interest.......         129          85
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       9,947      12,292       7,241
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       9,947      12,292       7,241
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         465         557         540
22.40 Capital transfer to general fund..        -465        -557        -540
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       9,947      12,292       7,241
23.95 Total new obligations.............      -9,947     -12,292      -7,241
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       9,947      12,292       7,241
69.00 Offsetting collections (cash)--
        downward reestimate.............       3,966       1,440
69.27 Capital transfer to general fund..      -3,966      -1,440
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       9,947      12,292       7,241
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       1,506       1,745       1,955
73.10 Total new obligations.............       9,947      12,292       7,241
73.20 Total outlays (gross).............      -9,242     -11,525      -6,543
73.40 Adjustments in expired accounts 
        (net)...........................          -1
73.45 Recoveries of prior year 
        obligations.....................        -465        -557        -540
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       1,745       1,955       2,113
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           1
86.97 Outlays from new mandatory 
        authority.......................       8,204      10,339       5,215
86.98 Outlays from mandatory balances...       1,037       1,186       1,328
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       9,242      11,525       6,543
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........      -3,966      -1,440
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       5,981      10,852       7,241
90.00 Outlays...........................       5,275      10,085       6,543
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2004 actual  2005 est.   2006 est.
Enacted/requested:
  Budget Authority..................       5,981      10,852       7,241
  Outlays...........................       5,276      10,085       6,543
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                     892        -685
  Outlays...........................                     892        -484
                                    ------------------------------------
Total:
  Budget Authority..................       5,981      11,744       6,556
  Outlays...........................       5,276      10,977       6,059
                                    ====================================

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Stafford..........................      20,124      21,573      22,460
215002Unsubsidized Stafford.............      19,191      21,316      22,770
215003PLUS..............................       5,664       6,620       7,379
215004Consolidation.....................      39,240      35,039      25,527
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......      84,219      84,548      78,136
    Guaranteed loan subsidy (in percent):
232001Stafford..........................       15.41       16.82       18.34
232002Unsubsidized Stafford.............        3.91        3.44        2.14
232003PLUS..............................        1.62        1.53        1.46
232004Consolidation.....................       14.42       16.12        9.90
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....       11.40       11.96        9.27
    Guaranteed loan subsidy budget authority:
233001Stafford..........................       3,101       3,629       4,119
233002Unsubsidized Stafford.............         751         733         487
233003PLUS..............................          92         101         108
233004Consolidation.....................       5,658       5,648       2,527
                                           ---------   ---------  ----------
233901Total subsidy budget authority....       9,602      10,111       7,241
    Guaranteed loan subsidy outlays:
234001Stafford..........................       2,490       3,020       3,454
234002Unsubsidized Stafford.............         689         632         486
234003PLUS..............................         101          88          94
234004Consolidation.....................       5,616       5,605       2,509
                                           ---------   ---------  ----------
234901Total subsidy outlays.............       8,896       9,345       6,543
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Stafford..........................       1,464          60
235002Unsubsidized Stafford.............
235003PLUS..............................           2           1
235004Consolidation.....................         634       2,074
235005SLS...............................                       2
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................       2,100       2,137

[[Page 375]]

    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Stafford..........................        -364        -384
237002Unsubsidized Stafford.............      -2,691        -334
237003PLUS..............................        -625         -32
237004Consolidation.....................      -1,542        -793
237005SLS...............................        -499          -1
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................      -5,721      -1,544
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................
359001Outlays...........................           1
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this program 
account records the subsidy costs associated with Federal Family 
Education Loans (FFEL), formerly guaranteed student loans (GSL), 
committed in 1992 and beyond. Beginning with the 1993 cohort, mandatory 
administrative costs, specifically contract collection costs, are 
included in the FFEL subsidy estimates of each year's cohort. Subsidy 
amounts are estimated on a net present value basis.

    A description of the FFEL program and accompanying tables are 
included under the Federal Direct Student Loan program account.

                                

              Federal Family Education Loan Program Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-4-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........                                -685
00.04 Modification subsidy..............                     892
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                     892        -685
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                     892        -685
23.95 Total new obligations.............                    -892         685
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                     892        -685
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                     892        -685
73.20 Total outlays (gross).............                    -892         484
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                                -201
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                     892        -484
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                     892        -685
90.00 Outlays...........................                     892        -484
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-4-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Stafford..........................                                 880
215002Unsubsidized Stafford.............                                 712
215003PLUS..............................                                   6
215004Consolidation.....................                                  20
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......                               1,618
    Guaranteed loan subsidy (in percent):
232001Stafford..........................                               -2.08
232002Unsubsidized Stafford.............                               -0.47
232003PLUS..............................                               -0.72
232004Consolidation.....................                               -0.84
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....                               -1.05
    Guaranteed loan subsidy budget authority:
233001Stafford..........................                                -324
233002Unsubsidized Stafford.............                                 -95
233003PLUS..............................                                 -53
233004Consolidation.....................                                -213
                                           ---------   ---------  ----------
233901Total subsidy budget authority....                                -685
    Guaranteed loan subsidy outlays:
234001Stafford..........................                                -190
234002Unsubsidized Stafford.............                                 -54
234003PLUS..............................                                 -30
234004Consolidation.....................                                -210
                                           ---------   ---------  ----------
234901Total subsidy outlays.............                                -484
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Stafford..........................
235002Unsubsidized Stafford.............
235003PLUS..............................
235004Consolidation.....................
235005SLS...............................
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Stafford..........................
237002Unsubsidized Stafford.............
237003PLUS..............................
237004Consolidation.....................
237005SLS...............................
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................
359001Outlays...........................
---------------------------------------------------------------------------

                                

         Federal Family Education Loan Program Financing Account

    Note.--The financing account includes all cash flows to and from the 
Government from guaranteed student loans committed after 1991.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Stafford loans:

01.01   Interest benefits...............       1,187       1,435       2,274
01.02   Special allowance...............         500         965         751
01.03   Default claims..................       1,325       1,424       1,487
01.04   Death, disability, and 
          bankruptcy claims.............         175         157         170
01.05   Teacher loan forgiveness, other 
          write-offs....................           5           7          12
01.07   Contract collection costs.......          24          34          37
01.08   Loan Processing Fee.............          80          66          68
01.09   Voluntary flexible agreement 
          performance fee...............          94         164         192
                                           ---------   ---------  ----------
01.91     Subtotal, Stafford loans......       3,390       4,252       4,991
      Unsubsidized Stafford loans:

02.02   Special allowance...............         361         781         633
02.03   Default claims..................         837       1,061       1,199
02.04   Death, disability, and 
          bankruptcy claims.............         132         146         169
02.05   Teacher loan forgiveness, other 
          write-offs....................           5           6           9
02.07   Contract collection costs.......          14          11          15
02.08   Loan Processing Fee.............          74          64          68
02.09   Voluntary flexible agreement 
          performance fee...............          57          52          60
                                           ---------   ---------  ----------
02.91     Subtotal, Unsubsidized 
            Stafford loans..............       1,480       2,121       2,153
      PLUS loans:

03.02   Special allowance...............          20          17          15
03.03   Default claims..................          70         146         172
03.04   Death, disability, and 
          bankruptcy claims.............          62         108         127
03.07   Contract Collection Costs.......           2           1           1
03.08   Loan Processing Fee.............          22          21          23
03.09   Voluntary flexible agreement 
          performance fee...............           7           8           9
                                           ---------   ---------  ----------
03.91     Subtotal, PLUS loans..........         183         301         347
      SLS loans:

04.02   Special allowance...............           2
04.03   Default claims..................          28           1           3
04.04   Death, disability and bankruptcy 
          claims........................           8           3           2
04.07   Contract collection costs.......           8           4           4
04.08   Voluntary flexible agreement 
          performance fee...............           4           4           5
                                           ---------   ---------  ----------

[[Page 376]]


04.91   Subtotal, SLS loans.............          50          12          14
      Consolidation loans:

05.01   Interest benefit................         291         240         265
05.02   Special allowance...............         319       1,325       2,444
05.03   Default claims..................         617       1,503       1,856
05.04   Death, disability, and 
          bankruptcy claims.............         335         490         596
05.07   Contract collection costs.......           6          12          15
05.08   Voluntary flexible agreement 
          performance fee...............          67          49          57
                                           ---------   ---------  ----------
05.91     Subtotal, Consolidations loans       1,635       3,619       5,233
08.02 Payment of downward reestimate to 
        Program accnt...................       3,494       1,046
08.04 Interest on downward reestimate...         472         394
                                           ---------   ---------  ----------
08.91   Downward Reestimate- Subtotal (1 
          level)........................       3,966       1,440
                                           ---------   ---------  ----------
10.00   Total new obligations...........      10,704      11,745      12,738
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       9,262      14,190      20,846
22.00 New financing authority (gross)...      15,484      18,401      14,356
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         148
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      24,894      32,591      35,202
23.95 Total new obligations.............     -10,704     -11,745     -12,738
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........      14,190      20,846      22,464
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...      15,484      18,404      14,356
69.27   Capital transfer to general fund                      -3
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........      15,484      18,401      14,356
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         931       1,147       1,259
73.10 Total new obligations.............      10,704      11,745      12,738
73.20 Total financing disbursements 
        (gross).........................     -10,340     -11,633     -12,632
73.45 Recoveries of prior year 
        obligations.....................        -148
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       1,147       1,259       1,365
87.00 Total financing disbursements 
        (gross).........................      10,340      11,633      12,632
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Payments from program account:
88.00       Stafford loans..............      -2,490      -3,020      -3,454
88.00       Unsubsidized Stafford.......        -689        -632        -486
88.00       PLUS loans..................        -101         -87         -94
88.00       Consolidated loans..........      -5,616      -5,605      -2,509
88.00       Upward reestimate...........        -345      -2,033
88.00       Modification................                    -148
88.25     Interest on uninvested funds..        -436      -1,043      -1,265
          Student Loans: Stafford, 
              Unsubsidized Stafford, 
              PLUS, SLS & Consolidation:
88.40       Stafford recoveries on 
              defaults..................      -1,453      -1,335      -1,476
88.40       Stafford origination fees...        -561        -648        -678
88.40       Stafford other fees.........         -39
88.40       Stafford Sallie Mae offset 
              fees......................         -13
88.40       Unsubsidized Stafford 
              recoveries on default.....        -738        -650        -788
88.40       Unsubsidized Stafford 
              origination fees..........        -522        -621        -666
88.40       Unsubsidized Stafford other 
              fees......................         -15
88.40       Unsubsidized Stafford Sallie 
              Mae offset fees...........          -8
88.40       PLUS recoveries on defaults.        -115        -101        -117
88.40       PLUS origination fees.......        -155        -198        -221
88.40       PLUS other fees.............          -4
88.40       PLUS Sallie Mae offset fees.          -3
88.40       SLS recoveries on defaults..        -120        -105         -95
88.40       SLS other fees..............          -3
88.40       Consolidation recoveries on 
              defaults..................        -299        -634        -864
88.40       Consolidation origination 
              fees......................        -184        -174        -127
88.40       Consolidation loan holders 
              fee.......................      -1,016      -1,370      -1,516
88.40       Consolidation other fees....         -16
88.40       Splitter adjustment from 
              Liquidating account.......        -543
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........     -15,484     -18,404     -14,356
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                      -3
90.00 Financing disbursements...........      -5,144      -6,771      -1,724
---------------------------------------------------------------------------


                                                                

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-0-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    STAFFORD
      Position with respect to appropriations act 
          limitation on commitments:

2111    Limitation on guaranteed loans 
          made by private lenders.......
2131    Guaranteed loan commitments 
          exempt from limitation........      20,124      21,573      22,460
                                           ---------   ---------  ----------
2150      Total guaranteed loan 
            commitments.................      20,124      21,573      22,460
2199  Guaranteed amount of guaranteed 
        loan commitments................      20,124      21,573      22,460
----------------------------------------------------------------------------

      Cumulative balance of guaranteed loans 
          outstanding:

2210    Outstanding, start of year......      69,011      72,302      75,919
2231    Disbursements of new guaranteed 
          loans.........................      17,024      18,525      19,361
2251    Repayments and prepayments......     -12,229     -13,310      -9,853
        Adjustments:
2261      Terminations for default that 
            result in loans receivable..      -1,325      -1,434      -1,503
2263      Terminations for default that 
            result in claim payments....        -175        -157        -170
2264      Other adjustments, net........          -4          -7         -12
                                           ---------   ---------  ----------
2290      Outstanding, end of year......      72,302      75,919      83,742
----------------------------------------------------------------------------

      Memorandum:

2299    Guaranteed amount of guaranteed 
          loans outstanding, end of year      72,302      75,919      83,742
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....       2,715       2,657       2,750
2331      Disbursements for guaranteed 
            loan claims.................       1,325       1,434       1,503
2351      Repayments of loans receivable      -1,264      -1,335      -1,476
2361      Write-offs of loans receivable          -6          -6          -6
2364      Other adjustments, net........        -113
                                           ---------   ---------  ----------
2390        Outstanding, end of year....       2,657       2,750       2,771
----------------------------------------------------------------------------

    UNSUBSIDIZED STAFFORD
      Position with respect to appropriations act 
          limitation on commitments:

2111    Limitation on guaranteed loans 
          made by private lenders.......
2131    Guaranteed loan commitments 
          exempt from limitation........      19,191      21,316      22,770
                                           ---------   ---------  ----------
2150      Total guaranteed loan 
            commitments.................      19,191      21,316      22,770
2199  Guaranteed amount of guaranteed 
        loan commitments................      19,191      21,316      22,770
----------------------------------------------------------------------------

      Cumulative balance of guaranteed loans 
          outstanding:

2210    Outstanding, start of year......      50,194      56,221      60,335
2231    Disbursements of new guaranteed 
          loans.........................      15,893      17,750      19,039
2251    Repayments and prepayments......      -8,892     -12,439      -9,702
        Adjustments:
2261      Terminations for default that 
            result in loans receivable..        -837      -1,045      -1,199
2263      Terminations for default that 
            result in claim payments....        -132        -146        -169
2264      Other adjustments, net........          -5          -6          -9
                                           ---------   ---------  ----------
2290      Outstanding, end of year......      56,221      60,335      68,295
----------------------------------------------------------------------------

      Memorandum:

2299    Guaranteed amount of guaranteed 
          loans outstanding, end of year      56,221      60,335      68,295
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....       1,608       1,695       2,074
2331      Disbursements for guaranteed 
            loan claims.................         837       1,045       1,199
2351      Repayments of loans receivable        -665        -651        -788
2361      Write-offs of loans receivable         -13         -15         -18
2364      Other adjustments, net........         -72
                                           ---------   ---------  ----------

[[Page 377]]


2390        Outstanding, end of year....       1,695       2,074       2,467
----------------------------------------------------------------------------

    PLUS
      Position with respect to appropriations act 
          limitation on commitments:

2111    Limitation on guaranteed loans 
          made by private lenders.......
2131    Guaranteed loan commitments 
          exempt from limitation........       5,664       6,620       7,379
                                           ---------   ---------  ----------
2150      Total guaranteed loan 
            commitments.................       5,664       6,620       7,379
2199  Guaranteed amount of guaranteed 
        loan commitments................       5,664       6,620       7,379
----------------------------------------------------------------------------

      Cumulative balance of guaranteed loans 
          outstanding:

2210    Outstanding, start of year......      10,739      13,498      15,264
2231    Disbursements of new guaranteed 
          loans.........................       4,794       5,659       6,328
2251    Repayments and prepayments......      -1,903      -3,648      -3,345
        Adjustments:
2261      Terminations for default that 
            result in loans receivable..         -70        -137        -171
2263      Terminations for default that 
            result in claim payments....         -62        -108        -127
2264      Other adjustments, net........
                                           ---------   ---------  ----------
2290      Outstanding, end of year......      13,498      15,264      17,949
----------------------------------------------------------------------------

      Memorandum:

2299    Guaranteed amount of guaranteed 
          loans outstanding, end of year      13,498      15,264      17,949
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....         389         334         363
2331      Disbursements for guaranteed 
            loan claims.................          70         137         171
2351      Repayments of loans receivable        -104        -101        -117
2361      Write-offs of loans receivable          -7          -7          -8
2364      Other adjustments, net........         -14
                                           ---------   ---------  ----------
2390        Outstanding, end of year....         334         363         409
----------------------------------------------------------------------------

    SLS
      Cumulative balance of guaranteed loans 
          outstanding:

2210    Outstanding, start of year......         511         384         202
2251    Repayments and prepayments......         -91        -174         -73
        Adjustments:
2261      Terminations for default that 
            result in loans receivable..         -28          -5          -2
2263      Terminations for default that 
            result in claim payments....          -8          -3          -2
2264      Other adjustments, net........
                                           ---------   ---------  ----------
2290      Outstanding, end of year......         384         202         125
----------------------------------------------------------------------------

      Memorandum:

2299    Guaranteed amount of guaranteed 
          loans outstanding, end of year         384         202         125
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....         537         414         287
2331      Disbursements for guaranteed 
            loan claims.................          28           5           2
2351      Repayments of loans receivable         -92        -105         -95
2361      Write-offs of loans receivable         -41         -27         -17
2364      Other adjustments, net........         -18
                                           ---------   ---------  ----------
2390        Outstanding, end of year....         414         287         177
----------------------------------------------------------------------------

    CONSOLIDATION
      Position with respect to appropriations act 
          limitation on commitments:

2111    Limitation on guaranteed loans 
          made by private lenders.......
2131    Guaranteed loan commitments 
          exempt from limitation........      39,240      35,039      25,527
                                           ---------   ---------  ----------
2150      Total guaranteed loan 
            commitments.................      39,240      35,039      25,527
2199  Guaranteed amount of guaranteed 
        loan commitments................      39,240      35,039      25,227
----------------------------------------------------------------------------

      Cumulative balance of guaranteed loans 
          outstanding:

2210    Outstanding, start of year......      79,017     100,176     124,341
2231    Disbursements of new guaranteed 
          loans.........................      36,119      34,785      25,299
2251    Repayments and prepayments......     -14,008      -8,736      -9,020
        Adjustments:
2261      Terminations for default that 
            result in loans receivable..        -617      -1,394      -1,834
2263      Terminations for default that 
            result in claim payments....        -335        -490        -596
                                           ---------   ---------  ----------
2290      Outstanding, end of year......     100,176     124,341     138,190
----------------------------------------------------------------------------

      Memorandum:

2299    Guaranteed amount of guaranteed 
          loans outstanding, end of year     100,176     124,341     138,190
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....       1,870       2,148       2,887
2331      Disbursements for guaranteed 
            loan claims.................         617       1,394       1,834
2351      Repayments of loans receivable        -231        -634        -864
2361      Write-offs of loans receivable         -16         -21         -28
2364      Other adjustments, net........         -92
                                           ---------   ---------  ----------
2390        Outstanding, end of year....       2,148       2,887       3,829
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4251-0-3-502

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101

Fund balances with Treasury

10,193

15,337

        Investments in US securities:
1106

Receivables, net

1,034

1,972

      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501

Defaulted guaranteed loans receivable, gross

7,119

7,247

1502

Interest receivable

1,553

1,580

1505

Allowance for subsidy cost (-)

-1,312

-1,416





1599

Net present value of assets related to defaulted guaranteed loans

7,360

7,411





1999

Total assets

18,587

24,720

    LIABILITIES:
2101

Federal liabilities: Accounts payable

3,277

1,506

2204

Non-Federal liabilities: Liabilities for loan guarantees

15,310

23,214





2999

Total liabilities

18,587

24,720





4999

Total liabilities and net position

18,587

24,720

-----------------------------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this 
nonbudgetary account records all cash flows to and from the Government 
resulting from Federal Family Education Loans (FFEL), formerly 
guaranteed student loans (GSL), committed in 1992 and beyond. The 
amounts in this account are a means of financing and are not included in 
the budget totals.

                                

         Federal Family Education Loan Program Financing Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-4-3-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Stafford loans:

01.01   Interest benefits...............                                 -13
01.02   Special allowance...............                                 -11
01.08   Loan Processing Fee.............                                   1
                                           ---------   ---------  ----------
01.91     Subtotal, Stafford loans......                                 -23
      Unsubsidized Stafford loans:

02.02   Special allowance...............                                 -10
02.08   Loan Processing Fee.............                                   1
                                           ---------   ---------  ----------
02.91     Subtotal, Unsubsidized 
            Stafford loans..............                                  -9
      PLUS loans:

03.02   Special allowance...............                                  -1
      Consolidation loans:

05.01   Interest benefit................                                  -2
05.02   Special allowance...............                                  11
                                           ---------   ---------  ----------
05.91     Subtotal, Consolidations loans                                   9
                                           ---------   ---------  ----------

[[Page 378]]


10.00   Total new obligations...........                                 -24
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                 940
22.00 New financing authority (gross)...                     940        -356
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                     940         584
23.95 Total new obligations.............                                  24
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........                     940         608
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                      22
69.00 Offsetting collections (cash).....                     915        -356
69.27 Capital transfer to general fund..                       3
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................                     918        -356
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                     940        -356
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                                 -24
73.20 Total financing disbursements 
        (gross).........................                                  21
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                                  -3
87.00 Total financing disbursements 
        (gross).........................                                 -21
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Payments from program account:
88.00       Stafford loans..............                                 190
88.00       Unsubsidized Stafford.......                                  54
88.00       PLUS loans..................                                  30
88.00       Consolidated loans..........                                 210
88.00       Upward reestimate...........
88.00       Modification................                    -892
88.25     Interest on uninvested funds..                     -23         -37
          Student Loans: Stafford, 
              Unsubsidized Stafford, 
              PLUS, SLS & Consolidation:
88.40       Stafford recoveries on 
              defaults..................
88.40       Stafford origination fees...                                 -12
88.40       Stafford other fees.........
88.40       Stafford Sallie Mae offset 
              fees......................
88.40       Stafford loanholder fee 
              (proposed)................                                 -17
88.40       Unsubsidized Stafford 
              recoveries on default.....
88.40       Unsubsidized Stafford 
              origination fees..........                                 -10
88.40       Unsubsidized Stafford other 
              fees......................
88.40       Unsubsidized Stafford Sallie 
              Mae offset fees...........
88.40       Unsubsidized Stafford 
              loanholder fee (proposed).                                 -16
88.40       PLUS recoveries on defaults.
88.40       PLUS origination fees.......
88.40       PLUS other fees.............
88.40       PLUS Sallie Mae offset fees.
88.40       PLUS loanholder fee 
              (proposed)................                                  -4
88.40       SLS recoveries on defaults..
88.40       SLS other fees..............
88.40       Consolidation recoveries on 
              defaults..................
88.40       Consolidation origination 
              fees......................                                 -32
88.40       Consolidation loan holders 
              fee.......................
88.40       Consolidation other fees....
88.40       Splitter adjustment from 
              Liquidating account.......
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                    -915         356
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                      25
90.00 Financing disbursements...........                    -915         335
---------------------------------------------------------------------------

                                

            Federal Family Education Loan Liquidating Account

    Note.--The following tables display the liquidating account, which 
includes all cash flows to and from the Government from guaranteed 
student loan commitments prior to 1992.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Interest benefits, net of 
        origination fees................          16          11           9
01.02 Special allowance net of 
        origination fees................           3           7           3
01.03 Default claims....................          62          44          22
01.04 Death, disability, and bankruptcy 
        claims..........................          17          13           9
01.05 Contract collection costs.........          62          47          40
01.06 Voluntary flexible agreements.....          11          22          25
                                           ---------   ---------  ----------
01.91   Subtotal, Stafford loans........         171         144         108
02.01 Default claims....................           5           6           3
02.02 Death, disability, and bankruptcy 
        claims..........................           7           5           3
02.05 Contract collection costs.........          12           9           8
02.06 Voluntary flexible agreements.....           1           5           7
                                           ---------   ---------  ----------
02.91   Subtotal, PLUS/SLS loans........          25          25          21
                                           ---------   ---------  ----------
10.00   Total new obligations...........         196         169         129
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         887         302
22.00 New budget authority (gross)......         478         169         129
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          20
22.40 Capital transfer to general fund..        -887        -302
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         498         169         129
23.95 Total new obligations.............        -196        -169        -129
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         302
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................          50
69.00 Offsetting collections (cash).....         657       1,004         842
69.27 Capital transfer to general fund..        -229        -835        -713
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         428         169         129
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         478         169         129
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          57          51
73.10 Total new obligations.............         196         169         129
73.20 Total outlays (gross).............        -182        -220        -129
73.45 Recoveries of prior year 
        obligations.....................         -20
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          51
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         125         169         129
86.98 Outlays from mandatory balances...          57          51
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         182         220         129
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.40     Fed collections on defaulted 
            loans, Stafford.............        -214        -315        -264
88.40     Federal collections on 
            bankruptcies, Stafford......          -4          -3          -2
88.40     Offsets against Federal tax 
            refunds,Stafford............        -311        -238        -199
88.40     Reimbursements from guaranty 
            agencies, Stafford..........        -419        -261        -220
88.40     Other collections/ fees, 
            Stafford....................         -70         -29         -25
88.40     Splitter adjustment...........         543
88.40     Sallie Mae offset fee.........          -1
88.40     Federal collections on 
            defaulted loans, PLUS/SLS...         -65         -74         -62
88.40     Federal collections on 
            bankruptcies, PLUS/SLS......          -1          -1          -1
          PLUS/SLS loans:
88.40       Offsets against Federal tax 
              refunds, PLUS/SLS.........         -24         -17         -15
88.40       Reimbursements from guaranty 
              agencies, PLUS/SLS........         -91         -66         -54
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -657      -1,004        -842
----------------------------------------------------------------------------

[[Page 379]]



    Net budget authority and outlays:
89.00 Budget authority..................        -179        -835        -713
90.00 Outlays...........................        -476        -784        -713
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    STAFFORD LOANS
      Cumulative balance of guaranteed loans 
          outstanding:

2210    Outstanding, start of year......       2,431       1,745       1,505
2251    Repayments and prepayments......        -607        -178         -74
        Adjustments:
2261      Terminations for default that 
            result in loans receivable..         -62         -49         -45
2263      Terminations for default that 
            result in claim payments....         -17         -13          -9
2264      Other adjustments, net........
                                           ---------   ---------  ----------
2290      Outstanding, end of year......       1,745       1,505       1,377
----------------------------------------------------------------------------

      Memorandum:

2299    Guaranteed amount of guaranteed 
          loans outstanding, end of year       1,745       1,505       1,377
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....       8,864       8,822       8,344
2331      Disbursements for guaranteed 
            loan claims.................          62          49          45
2351      Repayments of loans receivable        -514        -447        -375
2361      Write-offs of loans receivable         -28         -28         -26
2364      Other adjustments, net........         438         -52         -44
                                           ---------   ---------  ----------
2390        Outstanding, end of year....       8,822       8,344       7,944
----------------------------------------------------------------------------

    PLUS/SLS LOANS
      Cumulative balance of guaranteed loans 
          outstanding:

2210    Outstanding, start of year......       1,252         928         813
2251    Repayments and prepayments......        -313        -104         -88
        Adjustments:
2261      Terminations for default that 
            result in loans receivable..          -4          -6          -7
2263      Terminations for default that 
            result in claim payments....          -7          -5          -3
2264      Other adjustments, net........
                                           ---------   ---------  ----------
2290      Outstanding, end of year......         928         813         715
----------------------------------------------------------------------------

      Memorandum:

2299    Guaranteed amount of guaranteed 
          loans outstanding, end of year         928         813         715
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....       1,692       1,502       1,257
2331      Disbursements for guaranteed 
            loan claims.................           4           6           7
2351      Repayments of loans receivable         -94         -84         -70
2361      Write-offs of loans receivable        -175        -155        -130
2364      Other adjustments, net........          75         -12         -12
                                           ---------   ---------  ----------
2390        Outstanding, end of year....       1,502       1,257       1,052
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0230-0-1-502

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101

Fund balances with Treasury

944

353

        Investments in US securities:
1106

Receivables, net

56

11

      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1701

Defaulted guaranteed loans, gross

10,555

10,323

1702

Interest receivable

1,144

857

1703

Allowance for estimated uncollectible loans and interest (-)

-8,273

-7,921





1704

Defaulted guaranteed loans and interest receivable, net

3,426

3,259





1799

Value of assets related to loan guarantees

3,426

3,259





1999

Total assets

4,426

3,623

    LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

3,761

3,498

      Non-Federal liabilities:

2201

Accounts payable

543

10

2204

Liabilities for loan guarantees

122

115





2999

Total liabilities

4,426

3,623





4999

Total liabilities and net position

4,426

3,623

-----------------------------------------------------------------------------------------------
    \1\ Excludes interest and premium collections on insured loans.

    As required by the Federal Credit Reform Act of 1990, this 
liquidating account records, for this program, all cash flows to and 
from the Government resulting from guaranteed student loans committed 
prior to 1992. This account is shown on a cash basis. All new loan 
activity in this program for 1992 and beyond is recorded in 
corresponding program and financing accounts.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.2  Other services....................          74          56          47
33.0  Investments and loans.............          66          51          25
41.0  Grants, subsidies, and 
        contributions...................          32          45          44
42.0  Insurance claims and indemnities..          24          17          13
                                           ---------   ---------  ----------
99.9    Total new obligations...........         196         169         129
---------------------------------------------------------------------------

                                

              Loans for Short Term Training Program Account

              (Legislative Proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0217-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Loan Subsidy:

00.02   Loan Subsidy....................                                  11
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........
22.00 New budget authority (gross)......                                  11
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                                  11
23.95 Total new obligations.............                                 -11
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                  11
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                                  11
73.20 Total outlays (gross).............                                 -11
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                  11
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  11
90.00 Outlays...........................                                  11
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0217-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Direct loan levels................                                  85
                                           ---------   ---------  ----------
115901Total direct loan levels..........                                  85

[[Page 380]]

    Direct loan subsidy (in percent):
132001Subsidy rate......................                               -1.56
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....                               -1.56
    Direct loan subsidy budget authority:
133001Subsidy budget authority..........                                  -1
                                           ---------   ---------  ----------
133901Total subsidy budget authority....                                  -1
    Direct loan subsidy outlays:
134001Subsidy outlays...................                                  -1
                                           ---------   ---------  ----------
134901Total subsidy outlays.............                                  -1
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Loan guarantee levels.............                                 198
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......                                 198
    Guaranteed loan subsidy (in percent):
232001Subsidy rate......................                                5.71
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....                                5.71
    Guaranteed loan subsidy budget authority:
233001Subsidy budget authority..........                                  11
                                           ---------   ---------  ----------
233901Total subsidy budget authority....                                  11
    Guaranteed loan subsidy outlays:
234001Subsidy outlays...................                                  11
                                           ---------   ---------  ----------
234901Total subsidy outlays.............                                  11
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0217-2-1-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................
41.0  Grants, subsidies, and 
        contributions...................                                  11
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  11
---------------------------------------------------------------------------

    Loans for Short Term Training--The Administration proposes a new 
loan program, jointly administered by the Departments of Education and 
Labor, to help dislocated, unemployed, transitioning, or older workers 
and students. This market-oriented program will allow participants to 
acquire or upgrade specific job-related skills through short-term 
training programs. These programs are usually shorter than 10 weeks and 
are not currently eligible for Federal student aid. These programs must 
lead to an industry credential, certificate, or employer endorsed 
technical/occupational skills.

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, the subsidy costs associated with the direct 
loans obligated and loan guarantees committed in 1992 and beyond 
(including modifications of direct loans or loan guarantees that 
resulted from obligations or commitments in any year). The subsidy 
amounts are estimated on a present value basis.

                                

     Loans for Short Term Training Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4573-2-4-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Special Allowance.................                                   1
00.02 Default Claims....................
00.03 Death, disability, and bankruptcy 
        claims..........................
00.04 Contract Collection Costs.........
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                   1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........
22.00 New budget authority (gross)......                                  11
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                                  11
23.95 Total new obligations.............                                  -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........                                  10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections 
          (gross): Offsetting 
          collections (cash)............                                  11
----------------------------------------------------------------------------

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

    Outlays (gross), detail:
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                                   1
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............                                 -11
88.25     Interest on uninvested funds..
88.40     Recoveries on Defaults........
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                 -11
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................                                 -10
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4573-2-4-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........                                 198
2131  Guaranteed loan commitments exempt 
        from limitation.................
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                                 198
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........
2231  Disbursements of new guaranteed 
        loans...........................                                 198
2251  Repayments and prepayments........                                 -11
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....
2263    Terminations for default that 
          result in claim payments......
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                                 187
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                                 187
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......
2331    Disbursements for guaranteed 
          loan claims...................
2351    Repayments of loans receivable..
2361    Write-offs of loans receivable..
2364    Other adjustments, net..........
                                           ---------   ---------  ----------
2390      Outstanding, end of year......
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from loan guarantees committed in 1992 and beyond (including 
modifications of loan guarantees that resulted from commitments in any 
year). The amounts in this account are a means of financing and are not 
included in the budget totals.

[[Page 381]]

                                

       Loans for Short Term Training Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4574-2-4-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Loan obligations..................                                  85
00.02 Interest payments to Treasury.....                                   2
00.03 Contract Collection Costs.........
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............                                  87
08.01 Obligation of Negative subsidy....                                   1
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  88
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........
22.00 New budget authority (gross)......                                  88
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                                  88
23.95 Total new obligations.............                                 -88
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............                                  86
69.00 Offsetting collections (cash).....                                   7
69.47 Portion applied to repay debt.....                                  -5
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................                                   2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                                  88
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations.............                                  88
73.20 Total outlays (gross).............                                 -88
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..
----------------------------------------------------------------------------

    Outlays (gross), detail:
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                                  88
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............
88.25     Interest on uninvested funds..
88.40     Payment of Principal..........                                  -5
88.40     Interest received on loans....                                  -2
88.40     Recoveries of defaulted loans.
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                  -7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  81
90.00 Outlays...........................                                  81
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4574-2-4-502      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........                                  85
1131  Direct loan obligations exempt 
        from limitation.................
                                           ---------   ---------  ----------
1150    Total direct loan obligations...                                  85
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........
1231  Disbursements: Direct loan 
        disbursements...................                                  85
1251  Repayments: Repayments and 
        prepayments.....................                                  -5
1264  Write-offs for default: Other 
        adjustments, net................
                                           ---------   ---------  ----------
1290    Outstanding, end of year........                                  80
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and beyond (including 
modifications of direct loans that resulted from obligations in any 
year). The amounts in this account are a means of financing and are not 
included in budget totals.

                                


 
                     INSTITUTE OF EDUCATION SCIENCES

                              Federal Funds

General and special funds:

                     Institute of Education Sciences

    For carrying out activities authorized by the Education Sciences 
Reform Act of 2002, as amended, [The] the National Assessment of 
Educational Progress Authorization Act, [and] section 208 of the 
Educational Technical Assistance Act of 2002, [$527,453,000: Provided, 
That, of the amount appropriated, $190,518,000] and section 664 of the 
Individuals with Disabilities Education Act, $479,064,000, of which 
$271,560,000 shall be available [for obligation] until September 30, 
[2006: Provided further, That $83,774,000 shall be for research and 
innovation in special education authorized under section 177 of the 
Education Science Reform Act, as amended: Provided further, That 
$10,623,000 of the funds for section 177 of the Act shall be available 
for the projects and in the amounts specified in the statement of the 
managers of the conference report accompanying this Act] 2007. 
(Department of Education Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Research and statistics:

00.01   Research, development, and 
          dissemination.................         165         166         164
00.02   Statistics......................          92          91          91
00.03 Regional educational laboratories.          67          66
00.04 Assessment........................          95          94         116
      Technical assistance providers:

00.05   Regional technology in education 
          consortia.....................          10
00.06   Comprehensive regional 
          assistance centers............          28
00.07   Eisenhower regional mathematics 
          and science education 
          consortia.....................          14
00.08   Eisenhower National 
          Clearinghouse for Mathematics 
          and Science Education.........           5
00.09 Research in special education.....                      83          73
00.10 Statewide data systems............                      25          25
00.11 Special education studies and 
        evaluations.....................                                  10
                                           ---------   ---------  ----------
01.00   Total direct program............         476         525         479
09.01 Reimbursable program..............           4           4           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         480         529         483
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       2
22.00 New budget authority (gross)......         480         527         483
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         481         529         483
23.95 Total new obligations.............        -480        -529        -483
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         479         527         479
40.35   Appropriation permanently 
          reduced.......................          -3          -4
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         476         523         479
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           3           4           4
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......           4           4           4
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         480         527         483
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         575         602         495

[[Page 382]]

73.10 Total new obligations.............         480         529         483
73.20 Total outlays (gross).............        -443        -636        -512
73.40 Adjustments in expired accounts 
        (net)...........................         -12
73.45 Recoveries of prior year 
        obligations.....................          -1
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           4
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         602         495         466
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          90         134         123
86.93 Outlays from discretionary 
        balances........................         353         502         389
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         443         636         512
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -7          -4          -4
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -1
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         476         523         479
90.00 Outlays...........................         435         632         508
---------------------------------------------------------------------------

    Research and Statistics.--
        Research, development, and dissemination.--Funds support the 
    National Center for Education Research, which oversees a diverse 
    portfolio of directed research, field-initiated studies, research 
    and development centers, and interagency initiatives. Funds also 
    support dissemination activities that provide parents, teachers, and 
    schools with valid information on effective educational practice.
        Statistics.--Funds support the Department's statistical data 
    collection activities, which are conducted by the National Center 
    for Education Statistics (NCES). NCES collects, analyzes, and 
    disseminates statistics on education at all levels, from preschool 
    through postsecondary and adult education, including statistics on 
    international education activities.

    Assessment.--Funds support the National Assessment of Educational 
Progress (NAEP). NAEP administers assessments to samples of students in 
order to gather reliable information about educational attainment in 
important academic areas. Funds support collection and reporting of 
national, State, and long-term trend information, including the conduct 
of biennial State NAEP in reading and mathematics at grades 4 and 8. In 
2006, funds will also support costs of expanding State NAEP to grade 12.

    Research in special education.--Funds support research to address 
gaps in scientific knowledge in order to improve special education and 
early intervention services and results for infants, toddlers, and 
children with disabilities.

    Statewide data systems.--Funds support competitive awards to State 
educational agencies to foster the design, development, and 
implementation of longitudinal data systems.

    Special education studies and evaluations.--Funds support objective 
studies, evaluations, and assessments related to the implementation of 
the Individuals with Disabilities Education Act in order to improve 
special education and early intervention services and results for 
infants, toddlers, and children with disabilities. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........           1           1           1
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation           2           2           2
24.0    Printing and reproduction.......           1
25.1    Advisory and assistance services           4           3           2
25.2    Other services..................         181         179         211
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          19          18          18
25.5    Research and development 
          contracts.....................          77          76          10
41.0    Grants, subsidies, and 
          contributions.................         191         244         233
                                           ---------   ---------  ----------
99.0      Direct obligations............         475         522         476
99.0  Reimbursable obligations..........           4           4           4
99.5  Below reporting threshold.........           1           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........         480         529         483
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          11          16          16
---------------------------------------------------------------------------

                                


 
                         DEPARTMENTAL MANAGEMENT

                              Federal Funds

General and special funds:

                         Program Administration

    For carrying out, to the extent not otherwise provided, the 
Department of Education Organization Act, including rental of conference 
rooms in the District of Columbia and hire of three passenger motor 
vehicles, [$423,379,000] $418,992,000. (Department of Education 
Appropriations Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Program administration............         418         425         419
09.01 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         420         426         420
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           5           6
22.00 New budget authority (gross)......         421         420         420
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         426         426         420
23.95 Total new obligations.............        -420        -426        -420
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           6
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         425         423         419
40.35   Appropriation permanently 
          reduced.......................          -5          -4
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         420         419         419
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         421         420         420
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         113         121         159
73.10 Total new obligations.............         420         426         420
73.20 Total outlays (gross).............        -406        -388        -430
73.40 Adjustments in expired accounts 
        (net)...........................          -8
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           2
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         121         159         149
----------------------------------------------------------------------------

[[Page 383]]



    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         327         324         323
86.93 Outlays from discretionary 
        balances........................          79          64         107
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         406         388         430
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -3          -1          -1
88.40     Non-Federal sources...........          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -4          -1          -1
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         420         419         419
90.00 Outlays...........................         402         387         429
---------------------------------------------------------------------------

    The Program Administration account includes the direct Federal costs 
of providing grants and administering elementary and secondary 
education, Indian education, English language acquisition, higher 
education, technical and adult education, special education programs, 
and programs for persons with disabilities. It also supports assessment, 
statistics, and research activities.

    In addition, this account includes the cost of providing centralized 
support and administrative services, overall policy development, and 
strategic planning for the Department. Included in the centralized 
activities are rent and mail services; telecommunications; contractual 
services; financial management and accounting, including payments to 
schools, education agencies and other grant recipients, and preparation 
of auditable financial statements; information technology services; 
personnel management; personnel security; budget formulation and 
execution; program evaluation; legal services; congressional and public 
relations; and intergovernmental affairs.

    Also included in this account are contributions from the public. 
Activities supported include receptions for Blue Ribbon Schools, 
Historically Black Colleges and Universities, and School Recognition. 
Contributions not designated for a specific purpose are in the account's 
Gifts and Bequests Miscellaneous Fund.

    Reimbursable program.--Reimbursements to this account are for 
providing administrative services to other agencies, recycling 
activities, and in-kind travel.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         166         198         197
11.3      Other than full-time permanent          29           7           7
11.5      Other personnel compensation..           4           4           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation         199         209         207
12.1    Civilian personnel benefits.....          46          47          47
21.0    Travel and transportation of 
          persons.......................           5           5           5
23.1    Rental payments to GSA..........          32          35          36
23.3    Communications, utilities, and 
          miscellaneous charges.........          12          13          13
24.0    Printing and reproduction.......           4           5           4
25.1    Advisory and assistance services           4           3           2
25.2    Other services..................          30          22          20
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          23          13          14
25.7    Operation and maintenance of 
          equipment.....................          47          56          58
26.0    Supplies and materials..........           2           2           2
31.0    Equipment.......................          14          14          10
32.0    Land and structures.............           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............         419         425         419
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         420         426         420
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       2,263       2,315       2,244
---------------------------------------------------------------------------

                                

                         Office for Civil Rights

    For expenses necessary for the Office for Civil Rights, as 
authorized by section 203 of the Department of Education Organization 
Act, [$90,248,000] $91,526,000. (Department of Education Appropriations 
Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Civil rights......................          88          89          92
                                           ---------   ---------  ----------
10.00   Total new obligations...........          88          89          92
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          88          89          92
23.95 Total new obligations.............         -88         -89         -92
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          89          90          92
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          88          89          92
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          16          20          21
73.10 Total new obligations.............          88          89          92
73.20 Total outlays (gross).............         -83         -88         -91
73.40 Adjustments in expired accounts 
        (net)...........................          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          20          21          22
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          73          73          76
86.93 Outlays from discretionary 
        balances........................          10          15          15
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          83          88          91
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          88          89          92
90.00 Outlays...........................          83          88          91
---------------------------------------------------------------------------

    The Office for Civil Rights is responsible for ensuring that no 
person is unlawfully discriminated against on the basis of race, color, 
national origin, sex, disability, or age in the delivery of services or 
the provision of benefits in programs or activities of schools and 
institutions receiving financial assistance from the Department of 
Education. The authorities under which the Office for Civil Rights 
operates are Title VI of the Civil Rights Act of 1964 (racial and ethnic 
discrimination), Title IX of the Education Amendments of 1972 (sex 
discrimination), section 504 of the Rehabilitation Act of 1973 
(discrimination against individuals with a disability), the Age 
Discrimination Act of 1975, the Americans with Disabilities Act of 1990 
and the Boy Scouts of America Equal Access Act of 2002.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          49          52          51
11.3      Other than full-time permanent           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          51          54          53
12.1    Civilian personnel benefits.....          13          13          13

[[Page 384]]

21.0    Travel and transportation of 
          persons.......................           1           1           1
23.1    Rental payments to GSA..........           7           9          10
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           2           2
25.2    Other services..................           1           1           1
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           5           3           3
25.7    Operation and maintenance of 
          equipment.....................           8           4           6
31.0    Equipment.......................                       1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          88          88          90
99.5  Below reporting threshold.........                       1           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          88          89          92
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         655         656         638
---------------------------------------------------------------------------

                                

                     Office of the Inspector General

    For expenses necessary for the Office of the Inspector General, as 
authorized by section 212 of the Department of Education Organization 
Act, [$47,790,000] $49,408,000. (Department of Education Appropriations 
Act, 2005.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1400-0-1-751      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Inspector General.................          47          47          49
                                           ---------   ---------  ----------
10.00   Total new obligations...........          47          47          49
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          46          47          49
23.95 Total new obligations.............         -47         -47         -49
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          47          48          49
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          46          47          49
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           7          14          11
73.10 Total new obligations.............          47          47          49
73.20 Total outlays (gross).............         -40         -50         -49
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          14          11          11
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          35          40          40
86.93 Outlays from discretionary 
        balances........................           5          10           9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          40          50          49
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          46          47          49
90.00 Outlays...........................          40          50          49
---------------------------------------------------------------------------

    The Inspector General is responsible for the quality, coverage, and 
coordination of audit and investigation functions relating to Federal 
education activities. The Inspector General has the authority to inquire 
into all activities of the Department, including those performed under 
Federal education contracts, grants, or other agreements. Under the 
Chief Financial Officers Act of 1990, the Inspector General is also 
responsible for internal reviews of the Department's financial systems 
and audits of its financial statements.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1400-0-1-751      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          21          25          25
11.3      Other than full-time permanent           1           1           1
11.5      Other personnel compensation..           2                       1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          24          26          27
12.1    Civilian personnel benefits.....           6           8           7
21.0    Travel and transportation of 
          persons.......................           1           2           1
23.1    Rental payments to GSA..........           3           4           5
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.1    Advisory and assistance services           4           2           3
25.2    Other services..................                       1           1
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           2           1           1
25.7    Operation and maintenance of 
          equipment.....................           4           1           3
31.0    Equipment.......................           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          46          47          49
99.5  Below reporting threshold.........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          47          47          49
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-1400-0-1-751      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         268         302         285
---------------------------------------------------------------------------

                                


 
                      GENERAL FUND RECEIPT ACCOUNTS

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  91-291500  Repayment of loans, capital 
    contributions, higher education 
    activities..........................          51          50          50
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................          51          50          50
---------------------------------------------------------------------------

                                


 
                           GENERAL PROVISIONS

    Sec. 301. No funds appropriated in this Act may be used for the 
transportation of students or teachers (or for the purchase of equipment 
for such transportation) in order to overcome racial imbalance in any 
school or school system, or for the transportation of students or 
teachers (or for the purchase of equipment for such transportation) in 
order to carry out a plan of racial desegregation of any school or 
school system.
    Sec. 302. None of the funds contained in this Act shall be used to 
require, directly or indirectly, the transportation of any student to a 
school other than the school which is nearest the student's home, except 
for a student requiring special education, to the school offering such 
special education, in order to comply with title VI of the Civil Rights 
Act of 1964. For the purpose of this section an indirect requirement of 
transportation of students includes the transportation of students to 
carry out a plan involving the reorganization of the grade structure of 
schools, the pairing of schools, or the clustering of schools, or any 
combination of grade restructuring, pairing or clustering. The 
prohibition described in this section does not include the establishment 
of magnet schools.
    Sec. 303. No funds appropriated under this Act may be used to 
prevent the implementation of programs of voluntary prayer and 
meditation in the public schools.

                           (transfer of funds)

    Sec. 304. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control Act of

[[Page 385]]

1985, as amended) which are appropriated for the Department of Education 
in this Act may be transferred between appropriations, but no such 
appropriation shall be increased by more than 3 percent by any such 
transfer: Provided, That the Appropriations Committees of both Houses of 
Congress are notified at least 15 days in advance of any transfer.
    [Sec. 305. Section 8002(m) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7702(m)) is amended by striking ``5 years'' each 
place it appears and inserting ``7 years''.]
    [Sec. 306. (a) Section 167 of division H of the Consolidated 
Appropriations Act, 2004 (Public Law 108-199; 118 Stat. 3) is amended by 
striking ``$200,000, for Western Maine Technical College, South Paris, 
Maine, for education programs and marketing activities'' and inserting 
``$200,000, for Central Maine Community College, Auburn, Maine, for 
education programs, student recruitment and marketing activities at the 
Central Maine Community College-Western Maine University and Community 
College Center in South Paris, Maine''.]
    [(b) In the statement of the managers of the committee of conference 
accompanying H.R. 2673 (Public Law 108-199; House Report 108-401), in 
the matter in title III of division E, relating to the Fund for the 
Improvement of Education under the heading ``Innovation and 
Improvement'' the provision specifying $300,000 for the Provo City 
Public Schools, Provo, Utah, to develop, purchase and implement an 
English language instructional program for training and certifying ESL 
teachers shall be deemed to read as follows: ``Provo City Public 
Schools, Provo, Utah, for an English language instructional program, 
$300,000''.]
    [Sec. 307. Notwithstanding any other provision of law, students from 
the Republic of the Marshall Islands and the Federated States of 
Micronesia enrolled in institutions in the Republic of Palau shall be 
eligible for grants under subpart 1 of part A of title IV of the Higher 
Education Act of 1965 to the extent such grants continue to be available 
to students from the Republic of the Marshall Islands and the Federated 
States of Micronesia who are attending institutions in the United 
States.] (Department of Education Appropriations Act, 2005.)