Appendix - Department of Education

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

THE BUDGET FOR FISCAL YEAR 2007

[[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, [$14,627,435,000] $16,469,541,000, of
which [$7,073,126,000] $8,566,907,000 shall become available on July 1,
[2006] 2007, and shall remain available through September 30, [2007]
2008, and of which $7,383,301,000 shall become available on October 1,
[2006] 2007, and shall remain available through September 30, [2007]
2008 for academic year [2006-2007] 2007-2008: Provided, That
[$6,934,854,000] $6,808,408,000 shall be for basic grants under section
1124: Provided further, That up to $3,472,000 of these funds shall be
available to the Secretary of Education on October 1, [2005] 2006, 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 for concentration grants under section 1124A: Provided further,
That $2,269,843,000 shall be for targeted grants under section 1125:
Provided further, That $2,269,843,000 shall be for education finance
incentive grants under section 1125A: Provided further, That
$200,000,000 shall be for school improvement grants under section
1003(g): Provided Further, That State educational agencies shall carry
out section 1003(g) without regard to the 95 percent requirement in
paragraph (7) of that section: Provided Further, That State educational
agencies receiving funds under part A of title I of the ESEA shall carry
out section 1003(a) without regard to section 1003(e): Provided further,
That [$9,424,000] $9,330,000 shall be to carry out part E of title I:
Provided further, That [$8,000,000 shall be available for section 1608
of the ESEA, of which $1,465,000 shall be available for a continuation
award for the comprehensive school reform clearinghouse previously
funded under the heading ``Innovation and Improvement'' in title III of
division F of Public Law 108-447] $1,475,000,000 shall be available
under part D of title V of the ESEA 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
shall be for formula grants to States to support the development of
additional reading/language arts and mathematics assessments for high-
school students and 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: Provided
further, That each State receiving assistance under part A of title I of
the ESEA for fiscal year 2007 or any fiscal year thereafter shall: (1)
develop such assessments and shall incorporate them into the assessment
system that it administers under section 1111(b)(3) of the ESEA, under
such conditions as the Secretary may establish; and (2) participate in
biennial State academic assessments of 12th-grade reading and
mathematics under the National Assessment of Progress carried out under
section 303(b) of the National Assessment of Educational Progress
Authorization Act, if the Secretary pays the cost of administering those
assessments. (Department of Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Grants to local educational
agencies........................ 12,739 12,730 12,713
00.02 School improvement grants......... 200
00.03 Reading first State grants........ 1,050 1,084 1,029
00.04 Early reading first............... 104 103 103
00.05 Striving readers.................. 55 100
00.06 Math now for elementary school
students........................ 125
00.07 Math now for middle school
students........................ 125
00.08 Even start........................ 227 119
00.09 Literacy through school libraries. 20 20 20
00.10 High school reform................ 1,475
00.11 America's opportunity scholarships
for kids........................ 100
00.12 State agency programs............. 438 447 437
00.13 Comprehensive school reform....... 210 10
00.14 Evaluation........................ 9 9 9
00.15 Migrant education projects........ 34 34 34
--------- --------- ----------
10.00 Total new obligations........... 14,831 14,611 16,470
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 115 130
22.00 New budget authority (gross)...... 14,843 14,481 16,470
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,960 14,611 16,470
23.95 Total new obligations............. -14,831 -14,611 -16,470
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 130
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 7,580 7,244 9,087
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -146
40.35 Appropriation permanently
reduced....................... -120
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 7,460 7,098 9,087
55.00 Advance appropriation........... 7,383 7,383 7,383
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 14,843 14,481 16,470
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10,896 11,042 10,698
73.10 Total new obligations............. 14,831 14,611 16,470
73.20 Total outlays (gross)............. -14,636 -14,955 -15,707
73.40 Adjustments in expired accounts
(net)........................... -47
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 11,042 10,698 11,461
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5,447 6,630 6,730
86.93 Outlays from discretionary
balances........................ 9,189 8,325 8,977
--------- --------- ----------
87.00 Total outlays (gross)........... 14,636 14,955 15,707
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 14,843 14,481 16,470
90.00 Outlays........................... 14,636 14,955 15,707
---------------------------------------------------------------------------

SUMMARY OF PROGRAM LEVEL

(in millions of dollars)

2005-2006
academic
year 2006-2007
academic year 2007-2008
academic year
New Budget Authority.......... 7,461 7,098 9,086
Advance appropriation......... 7,383 7,383 7,383
------------------------------------
Total program level..... 14,844 14,481 16,470
====================================
Change in advance
appropriation from the
previous year................. 0 0 0

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 students in high-poverty schools to meet challenging State
academic standards. States must annually assess participating students
in at least reading and mathematics, and school

[[Page 344]]

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.

School improvement grants.--Funds would support grants to States to
assist schools and districts identified as in need of improvement
because they have not met their student achievement goals for at least
two consecutive years. Activities may include the development and
implementation of school improvement plans, professional development for
teachers and staff, corrective actions such as instituting a new
curriculum, and the provision of public school choice and supplemental
educational services.

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.

American Competitiveness Initiative:

Math now for elementary school students.--Funds would support
competitive grants to improve instruction in mathematics for students in
kindergarten through 7th grade through such examples as professional
development, diagnostic assessments, and curriculum implementation.

Math now for middle school students.--Funds would support
competitive grants to improve mathematics instruction for middle-school
students whose achievement is significantly below grade level.

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 reform.--This new initiative would support formula
grants to State educational agencies that would reserve a portion of the
funds to support the development of additional reading/language arts and
mathematics assessments as part of their State assessment systems.
States would award the remaining 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.

America's opportunity scholarships for kids.--Funds would support
local efforts to enable students from low-income households who attend a
school identified for restructuring under Title I of the Elementary and
Secondary Education Act to attend private school or to receive
intensive, sustained tutoring assistance.

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 Act requirements including
assessments, accountability systems, school improvement requirements,
public school choice, and supplemental educational services.

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.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
24.0 Printing and reproduction......... 2 2 2
25.1 Advisory and assistance services.. 6 6 7
25.2 Other services.................... 42 41 46
25.3 Other purchases of goods and
services from Government
accounts........................ 4 4 4
25.5 Research and development contracts 16 16 18
41.0 Grants, subsidies, and
contributions................... 14,761 14,542 16,393
--------- --------- ----------
99.9 Total new obligations........... 14,831 14,611 16,470
---------------------------------------------------------------------------

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, [$1,240,862,000] $1,228,453,000, of
which [$1,102,896,000] $1,091,867,000 shall be for basic support
payments under section 8003(b), [$49,966,000] $49,466,000 shall be for
payments for children with disabilities under section 8003(d),
[$18,000,000] $17,820,000 shall be for construction under section
[8007(a)] 8007(b) and shall remain available through September 30,
2008, [$65,000,000] $64,350,000 shall be for Federal property payments
under section 8002, and [$5,000,000] $4,950,000, to remain available
until expended, shall be for facilities maintenance under section 8008:
Provided, 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 2006-2007 [2005-2006], children enrolled in a school of such agency
that would otherwise 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Payments for federally connected children:

00.01 Basic support payments.......... 1,075 1,092 1,092
00.02 Supplemental payments for
children with disabilities.... 50 50 50
--------- --------- ----------

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00.91 Subtotal, payments for federally
connected children............ 1,125 1,142 1,142
01.01 Facilities maintenance............ 10 5 5
02.01 Construction...................... 49 47
03.01 Payments for Federal property..... 62 64 64
--------- --------- ----------
10.00 Total new obligations........... 1,246 1,258 1,211
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 37 35 5
22.00 New budget authority (gross)...... 1,244 1,228 1,228
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,281 1,263 1,233
23.95 Total new obligations............. -1,246 -1,258 -1,211
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 35 5 22
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,254 1,240 1,228
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -12
40.35 Appropriation permanently
reduced....................... -10
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,244 1,228 1,228
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 282 264 168
73.10 Total new obligations............. 1,246 1,258 1,211
73.20 Total outlays (gross)............. -1,262 -1,354 -1,227
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 264 168 152
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,114 1,102 1,087
86.93 Outlays from discretionary
balances........................ 148 252 140
--------- --------- ----------
87.00 Total outlays (gross)........... 1,262 1,354 1,227
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,244 1,228 1,228
90.00 Outlays........................... 1,262 1,354 1,227
---------------------------------------------------------------------------

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
1,260 local educational agencies to assist them in meeting their
operation and maintenance costs. Average per-student payments will be
approximately $1,103.

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 55,000 federally connected
students with disabilities in about 860 local educational agencies.
Average per-student payments will be approximately $908.

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.--Approximately 20 construction grants will be awarded
competitively to the highest need impact aid districts for emergency
repairs and modernization of school facilities.

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 1 1
41.0 Grants, subsidies, and
contributions................... 1,246 1,257 1,210
--------- --------- ----------
99.9 Total new obligations........... 1,246 1,258 1,211
---------------------------------------------------------------------------

School Improvement Programs

For carrying out school improvement activities authorized by title
II, part B of title IV, part A and [subparts] subpart [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,
[$5,308,564,000] $4,973,158,000, of which [$3,676,482,000]
$3,353,117,000 shall become available on July 1, [2006] 2007, and
remain available through September 30, [2007] 2008, and of which
$1,435,000,000 shall become available on October 1, [2006] 2007, and
shall remain available through September 30, [2007] 2008, for academic
year [2006-2007] 2007-2008: 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 $1,250,000
shall be for a grant to the Department of Education of the State of
Hawaii for the activities described in such proviso, and $1,250,000
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 up to 100 percent of the
funds available to a State educational agency under part D of title II
of the ESEA may be used for subgrants described in section 2412(a)(2)(B)
of such act: Provided further,] That [$411,680,000] $407,563,000 shall
be for State assessments and related activities authorized under
sections 6111 and 6112 of the ESEA: Provided further, That [$56,825,000]
$56,257,000 shall be available to carry out section 203 of the
Educational Technical Assistance Act of 2002: Provided further, That
[$31,693,000] $23,780,000 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 [$12,132,000] $18,001,000 shall be available to
carry out the Supplemental Education Grants program for the Federated
States of Micronesia[,] and [$6,051,000 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. (Department of Education
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Improving teacher quality:

00.01 Improving teacher quality State
grants........................ 2,916 2,906 2,887
00.02 Early childhood educator
professional development...... 15 15 15
00.03 Mathematics and science
partnerships.................. 178 184 182
00.04 Educational technology State
grants.......................... 504 279
00.05 21st Century community learning
centers......................... 992 991 981
00.06 State grants for innovative
programs........................ 199 99 99
00.07 Javits gifted and talented
education....................... 11 10
00.08 Foreign language assistance....... 17 22 24
00.09 State assessments................. 400 420 408
00.10 Education for homeless children
and youth....................... 62 62 62
00.11 Education for Native Hawaiians.... 34 34 31
00.12 Alaska Native education equity.... 34 34 34

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00.13 Training and advisory services.... 7 7 7
00.14 Rural education................... 171 169 169
00.15 Supplemental education grants..... 18 18 18
00.16 Comprehensive centers............. 53 56 56
00.17 Safe and drug-free schools and
communities national programs... 9 5
--------- --------- ----------
10.00 Total new obligations........... 5,620 5,311 4,973
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 61 56
22.00 New budget authority (gross)...... 5,616 5,255 4,973
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,677 5,311 4,973
23.95 Total new obligations............. -5,620 -5,311 -4,973
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 56
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4,230 3,873 3,538
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -53
40.35 Appropriation permanently
reduced....................... -45
41.00 Transferred to other accounts... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 4,181 3,820 3,538
55.00 Advance appropriation........... 1,435 1,435 1,435
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,616 5,255 4,973
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 8,641 7,286 6,515
73.10 Total new obligations............. 5,620 5,311 4,973
73.20 Total outlays (gross)............. -6,945 -6,082 -5,339
73.40 Adjustments in expired accounts
(net)........................... -34
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 4
--------- --------- ----------
74.40 Obligated balance, end of year.. 7,286 6,515 6,149
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 839 966 960
86.93 Outlays from discretionary
balances........................ 6,106 5,116 4,379
--------- --------- ----------
87.00 Total outlays (gross)........... 6,945 6,082 5,339
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5,616 5,255 4,973
90.00 Outlays........................... 6,941 6,082 5,339
---------------------------------------------------------------------------

SUMMARY OF PROGRAM LEVEL

(in millions of dollars)

2005-2006
Academic
Year 2006-2007
Academic Year 2007-2008
Academic Year
New Budget Authority.......... 4,185 3,820 3,536
Advance Appropriation......... 1,435 1,435 1,435
------------------------------------
Total program level..... 5,620 5,255 4,971
====================================
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. These efforts may include
the integration of 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 implement innovative
strategies for improving student achievement.

Foreign language assistance.--Funds support competitive grants to
States and school districts to create innovative model programs
providing for the establishment, improvement, or expansion of critical
foreign language study for elementary and secondary school students.

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.

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 such areas 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 such areas 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. The
Small, Rural Schools Achievement program provides rural local
educational agencies with small enrollments with additional formula
funds and flexibility in the use of other Federal formula funds. 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, which 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 21 comprehensive centers that
focus on building State capacity to help school districts and schools
meet the requirements of the No Child Left Behind Act.

[[Page 347]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 9 8 7
25.2 Other services.................... 29 26 23
25.5 Research and development contracts 1 1 1
41.0 Grants, subsidies, and
contributions................... 5,581 5,276 4,942
--------- --------- ----------
99.9 Total new obligations........... 5,620 5,311 4,973
---------------------------------------------------------------------------

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, [$119,889,000] $118,690,000. (Department of Education
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Grants to local educational
agencies........................ 95 95 95
00.02 Special programs for Indian
children........................ 20 20 20
00.03 National activities............... 5 4 4
--------- --------- ----------
10.00 Total new obligations........... 120 119 119
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 120 119 119
23.95 Total new obligations............. -120 -119 -119
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 121 120 119
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 120 119 119
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 151 146 139
73.10 Total new obligations............. 120 119 119
73.20 Total outlays (gross)............. -122 -126 -118
73.40 Adjustments in expired accounts
(net)........................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 146 139 140
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 6 6
86.93 Outlays from discretionary
balances........................ 116 120 112
--------- --------- ----------
87.00 Total outlays (gross)........... 122 126 118
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 120 119 119
90.00 Outlays........................... 122 126 118
---------------------------------------------------------------------------

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 2005, the Department made
1,258 formula grants to local educational agencies and tribal schools
serving more than 481,000 students.

Special programs for Indian Children.--The Department makes
competitive awards for demonstration projects in early childhood
education and college preparation, as well as professional development
grants for training Native American teachers and administrators for
employment 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Other services.................... 5 4 4
41.0 Grants, subsidies, and
contributions................... 115 115 115
--------- --------- ----------
99.9 Total new obligations........... 120 119 119
---------------------------------------------------------------------------

Reading Excellence

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0011-0-1-501 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 67 20
73.20 Total outlays (gross)............. -42 -20
73.40 Adjustments in expired accounts
(net)........................... -6
--------- --------- ----------
74.40 Obligated balance, end of year.. 20
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 42 20
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 42 20
---------------------------------------------------------------------------

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 120 64
73.20 Total outlays (gross)............. -35 -64
73.40 Adjustments in expired accounts
(net)........................... -20
--------- --------- ----------
74.40 Obligated balance, end of year.. 64
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 35 64
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 36 64
---------------------------------------------------------------------------

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

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

Net budget authority and outlays:
89.00 Budget authority..................

[[Page 348]]

90.00 Outlays........................... 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.

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''), [$945,947,000] $850,966,000, of which
[$95,000,000] $94,050,000 shall become available on July 1, [2006] 2007
and remain available until September 30, [2007] 2008: Provided, [That
$16,864,000 shall be available to carry out section 2151(c) of the ESEA,
of which not less than $9,920,000 shall be provided to the National
Board for Professional Teaching Standards, and not less than $6,944,000
shall be provided to the American Board for the Certification of Teacher
Excellence: Provided further,] That 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 [$36,981,000] $36,611,000 shall be for subpart 2 of part B of title
V: Provided further, That [$260,111,000] $203,043,000 shall be available
to carry out part D of title V of the ESEA, of which [$100,000,000]
$99,000,000 of the funds for subpart 1 shall be for competitive grants
to local educational agencies, including charter schools that are local
educational agencies, or States, or partnerships of (1) a local
educational agency, a State, or both and (2) at least one non-profit
organization to develop and implement performance-based teacher and
principal compensation systems in high-need schools: Provided further,
That such performance-based compensation systems must consider gains in
student academic achievement as well as classroom evaluations conducted
multiple times during each school year among other factors and provide
educators with incentives to take on additional responsibilities and
leadership roles: Provided further, That five percent of such funds for
competitive grants shall become available on October 1, [2005] 2006 for
technical assistance, training, peer review of applications, program
outreach and evaluation activities and that 95 percent shall become
available on July 1, [2006] 2007 and remain available through September
30, [2007] 2008 for competitive grants: Provided further, That an
eligible entity receiving a grant under section 1705 of part G of title
I, ESEA, shall provide (a) matching funds from State, local, or other
sources to cover at least two-thirds of the total cost of the activities
to be assisted; and (b) incentives, such as salary increments or
bonuses, to teachers who become qualified to teach advanced placement
classes and to teachers whose students pass advanced placement exams.
(Department of Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0204-0-1-501 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

00.01 Teacher incentive fund.......... 99 99
00.02 Troops-to-teachers.............. 15 15 15
00.03 Transition to teaching.......... 45 44 44
00.04 National writing project........ 20 21
00.05 Teaching American history....... 119 120 50
00.06 School leadership............... 15 15
00.07 Advanced credentialing.......... 17 17 8
School choice and flexibility:

00.08 Charter schools grants.......... 217 215 215
00.09 Credit enhancement for charter
school facilities............. 37 37 37
00.10 Voluntary public school choice.. 27 26 26
00.11 Magnet schools assistance....... 108 107 107
00.12 Advanced placement................ 30 32 122
00.13 School dropout prevention......... 5 5
00.14 Close Up fellowships.............. 1 1
00.15 Ready to learn television......... 23 24 24
00.16 Academies for American history and
civics.......................... 2
00.17 FIE programs of national
significance.................... 257 12 39
00.18 National mathematics panel........ 10
00.19 Evaluation of mathematics and
science education............... 5
00.20 Adjunct teacher corps............. 25
00.21 Reading is fundamental/Inexpensive
book distribution............... 25 25 25
00.22 Star schools...................... 21 15
00.23 Ready to teach.................... 14 11
00.24 Exchanges with historic whaling
and trading partners............ 9 9
00.25 Excellence in economic education.. 1 1
00.26 Mental health integration in
schools......................... 5 5
00.27 Foundations for learning.......... 1 1
00.28 Arts in education................. 36 35
00.29 Parental information and resource
centers......................... 42 39
00.30 Womens educational equity......... 3 3
--------- --------- ----------
01.00 Total direct program............ 1,093 936 851
09.01 DC School Choice.................. 14 14 14
--------- --------- ----------
10.00 Total new obligations........... 1,107 950 865
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 1,106 950 865
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,107 950 865
23.95 Total new obligations............. -1,107 -950 -865
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,101 946 851
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -10
40.35 Appropriation permanently
reduced....................... -9
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,092 936 851
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 14 14 14
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,106 950 865
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,041 1,595 1,326
73.10 Total new obligations............. 1,107 950 865
73.20 Total outlays (gross)............. -552 -1,219 -1,028
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,595 1,326 1,163
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 50 48 44
86.93 Outlays from discretionary
balances........................ 502 1,171 984
--------- --------- ----------
87.00 Total outlays (gross)........... 552 1,219 1,028
----------------------------------------------------------------------------

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.................. 1,092 936 851
90.00 Outlays........................... 538 1,205 1,014
---------------------------------------------------------------------------

Recruiting and training high quality teachers and principals:
Teacher incentive fund.--Provides funds for the development of
performance-based teacher compensation systems that reward teachers
and schools that are raising student achievement and closing the
achievement gap.

[[Page 349]]

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.
Adjunct teacher corps.--Funds would 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 mathematics and
science.

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. Funds above $200
million are used for the State Charter School Facilities Incentive
Grant program, which provides funds to States to assist charter
schools in obtaining facilities.
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.
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.

American competitiveness initiative proposals:
Advanced placement.--Funds support grants to States to pay test
fees for low-income students who are enrolled in Advanced Placement
(AP) or International Baccalaureate (IB) courses and competitive
grants to State educational agencies, local educational agencies,
and national nonprofit educational entities to expand access for
low-income individuals to AP and IB classes. Applicants will be
required to secure public or private matching funds in order to
leverage the Federal investment and to offer incentives to teachers
to become qualified to teach AP/IB courses in math, science, and
foreign languages and to teachers whose students pass AP/IB exams.
National mathematics panel.--Funds will support the
establishment of a National Mathematics Panel that will review
current research on and identify principles for effective
mathematics instruction.
Evaluation of mathematics and science education.--Funds will
support an evaluation of Federal programs that promote mathematics
and science education.

Ready-to-learn television.--Funds support the development,
distribution, and production of educational video programming and
accompanying materials and services for preschool and 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.

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)

Direct obligations:

25.1 Advisory and assistance services 2 1 12
25.2 Other services.................. 38 33 30
25.3 Other purchases of goods and
services from Government
accounts...................... 15 15 15
41.0 Grants, subsidies, and
contributions................. 1,038 887 794
--------- --------- ----------
99.0 Direct obligations............ 1,093 936 851
99.0 Reimbursable obligations.......... 14 14 14
--------- --------- ----------
99.9 Total new obligations........... 1,107 950 865
---------------------------------------------------------------------------

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''), [$736,886,000, of which $350,000,000 shall become available
on July 1, 2006 and remain available through September 30, 2007:
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] $266,627,000: Provided [further], That
[$350,000,000 shall be available for subpart 1 of part A of title IV and
$224,580,000] $215,992,000 shall be available for subpart 2 of part A
of title IV, of which [not less than $1,449,000] $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
[$132,901,000] $50,635,000 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 $12,194,000 may be used
to carry out section 2345 and $3,025,000 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]. (Department of Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0203-0-1-501 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

00.01 State grants.................... 441 349
National programs:
00.02 Alcohol abuse reduction....... 33 32
00.03 Mentoring program............. 48 49 19
00.04 Other national programs....... 152 141 198
--------- --------- ----------
00.91 Subtotal, Safe and drug-free
schools and communities....... 674 571 217
01.01 Character education............... 24 24 24
02.01 Elementary and secondary school
counseling...................... 35 35
03.01 Physical education program........ 73 73 26
04.01 Civic education................... 29 29
05.01 State grants for incarcerated
youth offenders................. 22
06.01 Literacy program for prisoners.... 5 5

[[Page 350]]

09.00 Reimbursable program.............. 69
--------- --------- ----------
10.00 Total new obligations........... 931 737 267
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 7
22.00 New budget authority (gross)...... 930 730 267
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 938 737 267
23.95 Total new obligations............. -931 -737 -267
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 7
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 868 737 267
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -7
40.35 Appropriation permanently
reduced....................... -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 861 730 267
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 69
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 930 730 267
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 827 1,291 1,182
73.10 Total new obligations............. 931 737 267
73.20 Total outlays (gross)............. -534 -846 -803
73.40 Adjustments in expired accounts
(net)........................... -1
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 68
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,291 1,182 646
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 27 15 5
86.93 Outlays from discretionary
balances........................ 507 831 798
--------- --------- ----------
87.00 Total outlays (gross)........... 534 846 803
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -137
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 68
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 861 730 267
90.00 Outlays........................... 397 846 803
---------------------------------------------------------------------------

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)

Direct obligations:

25.2 Other services.................. 15 14 17
25.3 Other purchases of goods and
services from Government
accounts...................... 3 3 4
41.0 Grants, subsidies, and
contributions................. 844 720 246
--------- --------- ----------
99.0 Direct obligations............ 862 737 267
99.0 Reimbursable obligations.......... 69
--------- --------- ----------
99.9 Total new obligations........... 931 737 267
---------------------------------------------------------------------------

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, [$675,765,000]
$669,007,000, which shall become available on July 1, [2006] 2007, and
shall remain available through September 30, [2007] 2008, except that
6.5 percent of such amount shall be available on October 1, [2005] 2006
and shall remain available through September 30, [2007] 2008, to carry
out activities under section 3111(c)(1)(C). (Department of Education
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Language acquisition State grants. 673 678 669
--------- --------- ----------
10.00 Total new obligations........... 673 678 669
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 7 9
22.00 New budget authority (gross)...... 676 669 669
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 683 678 669
23.95 Total new obligations............. -673 -678 -669
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 9
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 681 676 669
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -7
40.35 Appropriation permanently
reduced....................... -5
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 676 669 669
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 965 937 799
73.10 Total new obligations............. 673 678 669
73.20 Total outlays (gross)............. -668 -816 -617
73.40 Adjustments in expired accounts
(net)........................... -34
--------- --------- ----------
74.40 Obligated balance, end of year.. 937 799 851
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 7 33 33
86.93 Outlays from discretionary
balances........................ 661 783 584
--------- --------- ----------
87.00 Total outlays (gross)........... 668 816 617
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 676 669 669
90.00 Outlays........................... 667 816 617
---------------------------------------------------------------------------

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.

[[Page 351]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.5 Research and development contracts 2 2 2
41.0 Grants, subsidies, and
contributions................... 671 676 667
--------- --------- ----------
99.9 Total new obligations........... 673 678 669
---------------------------------------------------------------------------

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

Federal Funds

General and special funds:

Special Education

For carrying out the Individuals with Disabilities Education Act,
[$11,770,607,000] $11,697,502,000, of which [$6,141,604,000]
$5,284,912,000 shall become available on July 1, [2006] 2007, and shall
remain available through September 30, [2007] 2008, and of which
[$5,424,200,000] $6,215,200,000 shall become available on October 1,
[2006] 2007, and shall remain available through September 30, [2007]
2008, for academic year [2006-2007] 2007-2008: Provided, [That
$12,000,000 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(b)(2) of the Act shall be equal to the lesser of the amount
available for that activity during fiscal year [2005] 2006, increased by
the amount of inflation as specified in section 619(d)(2)(B) of the Act
or the percentage increase in the funds appropriated under section
611(i) of the Act. (Department of Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
State grants:

00.01 Grants to States................ 10,596 10,586 9,893
00.02 Preschool grants................ 385 381 381
00.03 Grants for infants and families. 456 437 436
--------- --------- ----------
00.91 Subtotal, State grants........ 11,437 11,404 10,710
National activities:

01.01 State personnel development..... 51 51 50
01.02 Technical assistance and
dissemination................. 52 49 49
01.03 Personnel preparation........... 91 90 89
01.04 Parent information centers...... 26 26 25
01.05 Technology and media services... 39 38 31
01.06 SE-Voc Rehab. Transition
Initiative.................... 2
--------- --------- ----------
01.91 Subtotal, National activities. 259 254 246
--------- --------- ----------
02.00 Total Direct Program............ 11,696 11,658 10,956
--------- --------- ----------
10.00 Total new obligations........... 11,696 11,658 10,956
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 89 67 50
22.00 New budget authority (gross)...... 11,674 11,641 10,906
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 11,763 11,708 10,956
23.95 Total new obligations............. -11,696 -11,658 -10,956
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 67 50
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6,355 6,346 5,482
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -118
40.35 Appropriation permanently
reduced....................... -94
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 6,261 6,228 5,482
55.00 Advance appropriation........... 5,413 5,413 5,424
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 11,674 11,641 10,906
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 8,794 9,534 10,482
73.10 Total new obligations............. 11,696 11,658 10,956
73.20 Total outlays (gross)............. -10,939 -10,710 -11,523
73.40 Adjustments in expired accounts
(net)........................... -17
--------- --------- ----------
74.40 Obligated balance, end of year.. 9,534 10,482 9,915
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3,016 3,749 3,756
86.93 Outlays from discretionary
balances........................ 7,923 6,961 7,767
--------- --------- ----------
87.00 Total outlays (gross)........... 10,939 10,710 11,523
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 11,674 11,641 10,906
90.00 Outlays........................... 10,940 10,710 11,523
---------------------------------------------------------------------------

SUMMARY OF GRANTS TO STATES PROGRAM LEVEL

[In millions of dollars]

2005-2006 2006-2007 2007-2008
academic
year academic yeaacademic year
Current Budget Authority...... $5,177 $5,159 $4,468
Advance appropriation......... 5,413 5,424 6,215
------------------------------------
Total program level....... 10,590 10,583 10,683
====================================

Change in advance
appropriation from the
previous year................. +11 +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:

2001-2002
actual 2002-2003
actual 2003-2004
actual
Status of Exiting Students
Percent of students with
disabilities aged 14-21 leaving
school:
Graduated with a diploma.... 51.1 51.9 54.2
Graduated through
certification............. 9.5 12.7 13.1
Dropped out of school/not
known to continue......... 37.6 33.6 30.9
Reached maximum age for
services/other............ 1.8 1.8 1.8

[[Page 352]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Other services.................... 21 18 18
41.0 Grants, subsidies, and
contributions................... 11,675 11,640 10,938
--------- --------- ----------
99.9 Total new obligations........... 11,696 11,658 10,956
---------------------------------------------------------------------------

Rehabilitation Services and Disability Research

For carrying out, to the extent not otherwise provided, the
Rehabilitation Act of 1973, the Assistive Technology Act of 1998 [(``the
AT Act'')], and the Helen Keller National Center Act, [$3,129,638,000,]
$3,180,414,000. [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 $30,760,000 shall be used for carrying out the AT Act, including
$4,385,000 for State grants for protection and advocacy under section 5
of the AT Act and $3,760,000 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 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.] (Department of Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Vocational rehabilitation State
grants........................ 2,636 2,720 2,837
00.02 Client assistance State grants.. 12 12 12
00.03 Training........................ 39 38 38
00.04 Demonstration and training
programs...................... 26 7 7
00.05 Migrant and seasonal farmworkers 2 2
00.06 Recreational programs........... 2 3
00.07 Protection and advocacy of
individual rights............. 17 16 16
00.08 Projects with industry.......... 22 20
00.09 Supported employment State
grants........................ 37 30
00.10 Independent living.............. 131 130 130
00.11 Program improvement............. 1 1 1
00.12 Evaluation...................... 1 1 1
00.13 Helen Keller National Center.... 11 9 9
00.14 National Institute on Disability
and Rehabilitation Research... 108 107 107
00.15 Assistive technology............ 30 30 22
--------- --------- ----------
01.00 Total direct program............ 3,075 3,126 3,180
09.01 Reimbursable program.............. 2 2 2
--------- --------- ----------
10.00 Total new obligations........... 3,077 3,128 3,182
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3,077 3,128 3,182
23.95 Total new obligations............. -3,077 -3,128 -3,182
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 442 410 343
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -4
40.35 Appropriation permanently
reduced....................... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 439 406 343
Mandatory:

60.00 Appropriation................... 2,636 2,720 2,837
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1 2 2
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 2 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,077 3,128 3,182
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,302 1,393 1,050
73.10 Total new obligations............. 3,077 3,128 3,182
73.20 Total outlays (gross)............. -2,974 -3,471 -3,184
73.40 Adjustments in expired accounts
(net)........................... -10
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,393 1,050 1,048
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 81 285 241
86.93 Outlays from discretionary
balances........................ 358 456 146
86.97 Outlays from new mandatory
authority....................... 1,874 1,904 1,986
86.98 Outlays from mandatory balances... 661 826 811
--------- --------- ----------
87.00 Total outlays (gross)........... 2,974 3,471 3,184
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -2 -2
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,075 3,126 3,180
90.00 Outlays........................... 2,973 3,469 3,182
---------------------------------------------------------------------------

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 2004, 66 percent of the agencies met this performance
criterion. Another indicator 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 2004, 95 percent of general and combined agencies met this
performance criterion. The data are based on the approximately 385,075
individuals whose service records were closed in 2004 after receiving
services.

The 2007 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

[[Page 353]]

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.--Formula grants are made to States to
implement comprehensive Statewide programs designed to maximize the
ability of individuals with disabilities of all ages to obtain assistive
technology. States conduct activities that include alternative financing
programs, device reutilization programs, device loan programs, and
device demonstrations.

Object Classification (in millions of dollars)

Direct obligations:

25.1 Advisory and assistance services 10 11 10
25.2 Other services.................. 2 2 2
41.0 Grants, subsidies, and
contributions................. 3,063 3,113 3,168
--------- --------- ----------
99.0 Direct obligations............ 3,075 3,126 3,180
99.0 Reimbursable obligations.......... 2 2 2
--------- --------- ----------
99.9 Total new obligations........... 3,077 3,128 3,182
---------------------------------------------------------------------------

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.), [$17,750,000] $17,573,000. (Department of Education
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0600-0-1-501 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 17 18 18
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 17 18 18
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 17 18 18
23.95 Total new obligations............. -17 -18 -18
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 17 18 18
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 5 1
73.10 Total new obligations............. 17 18 18
73.20 Total outlays (gross)............. -17 -22 -18
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 12 17 17
86.93 Outlays from discretionary
balances........................ 5 5 1
--------- --------- ----------
87.00 Total outlays (gross)........... 17 22 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 17 18 18
90.00 Outlays........................... 17 22 18
---------------------------------------------------------------------------

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 2005, the portion of the Federal appropriation
allocated to educational materials represented approximately 64 percent
of the Printing House's total sales. The full appropriation represented
approximately 74 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.),
[$56,708,000,] $55,349,000 [of which $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, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0601-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Operations........................ 54 55 55
00.02 Construction...................... 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 55 56 55
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 56 56 55
23.95 Total new obligations............. -55 -56 -55
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 56 57 55
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 56 56 55
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 2 5
73.10 Total new obligations............. 55 56 55
73.20 Total outlays (gross)............. -54 -53 -56
--------- --------- ----------

[[Page 354]]

74.40 Obligated balance, end of year.. 2 5 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 54 52 52
86.93 Outlays from discretionary
balances........................ 1 4
--------- --------- ----------
87.00 Total outlays (gross)........... 54 53 56
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 56 56 55
90.00 Outlays........................... 54 53 56
---------------------------------------------------------------------------

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 2005, Federal appropriations
represented 81 percent of the Institute's operating budget. The request
includes funds for the Endowment Grant program.

Gallaudet University

For the Kendall Demonstration Elementary School, the Model Secondary
School for the Deaf, and the partial support of Gallaudet University and
related activities under titles I and II of the Education of the Deaf
Act of 1986 (20 U.S.C. 4301 et seq.), [$108,079,000] $107,598,000, of
which $600,000 shall be for the Secretary of Education to carry out
section 205 of the Act: Provided, That from the total amount available
to the University, the University may at its discretion use funds for
the endowment program as authorized under section 207. (Department of
Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Operations........................ 105 107 107
00.02 Evaluation........................ 1
--------- --------- ----------
10.00 Total new obligations........... 105 107 108
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 105 107 108
23.95 Total new obligations............. -105 -107 -108
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 105 108 108
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 105 107 108
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 6
73.10 Total new obligations............. 105 107 108
73.20 Total outlays (gross)............. -105 -101 -108
--------- --------- ----------
74.40 Obligated balance, end of year.. 6 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 105 101 102
86.93 Outlays from discretionary
balances........................ 6
--------- --------- ----------
87.00 Total outlays (gross)........... 105 101 108
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 105 107 108
90.00 Outlays........................... 105 101 108
---------------------------------------------------------------------------

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.

In 2005, the appropriation for Gallaudet represented 65.2 percent of
the total revenue for university-level programs and 97.4 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 includes $600,000 for the
Secretary of Education to conduct a study that is intended to assist
Galluadet in improving its performance on key outcome measures. The
request also includes funds for the Endowment Grant program.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0602-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 1
41.0 Grants, subsidies, and
contributions................... 105 107 107
--------- --------- ----------
99.9 Total new obligations........... 105 107 108
---------------------------------------------------------------------------

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, [title VIII-D of the Higher Education
Amendments of 1998, and subpart 4 of part D of title V of the Elementary
and Secondary Education Act of 1965 (``ESEA''), $2,012,282,000, of]
$579,552,000, which [$1,216,558,000] shall become available on July 1,
[2006] 2007 and shall remain available through September 30, [2007 and
of which $791,000,000 shall become available on October 1, 2006 and
shall remain available through September 30, 2007] 2008: Provided, That
of the amount provided for Adult Education State Grants, [$68,582,000]
$67,896,000 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, [$9,096,000] $9,005,000 shall
be for national leadership activities under section 243 and [$6,638,000]
$6,572,000 shall be for the National Institute for Literacy under
section 242[: Provided further, That $94,476,000 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, 2005 and shall remain
available through

[[Page 355]]

September 30, 2007, for evaluation, technical assistance, school
networks, peer review of applications, and program outreach activities,
and of which not less than 95 percent shall become available on July 1,
2006, and remain available through September 30, 2007, for grants to
local educational agencies: Provided further, That funds made available
to local educational agencies under this subpart shall be used only for
activities related to establishing smaller learning communities within
large high schools or small high schools that provide alternatives for
students enrolled in large high schools: Provided further, That
$23,000,000 shall be for Youth Offender Grants]. (Department of
Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Vocational education:

Vocational education:
00.01 State grants.................. 1,194 1,184 791
00.02 National programs............. 12 12 9
00.03 Occupational and employment
information................. 10 1
00.04 Tech-prep education State
grants...................... 106 105
00.05 Tech-prep demonstration....... 5 5
--------- --------- ----------
00.91 Total, Vocational education... 1,327 1,307 800
Adult education:
01.01 State grants.................. 570 563 564
01.02 National leadership activities 6 9 9
01.03 National Institute for
Literacy.................... 6 7 7
--------- --------- ----------
01.91 Total, adult education........ 582 579 580
02.01 Smaller learning communities.... 177 91 92
03.01 State grants for incarcerated
youth offenders............... 23
04.01 Community technology centers.... 5
--------- --------- ----------
10.00 Total new obligations........... 2,091 2,000 1,472
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 216 136 128
22.00 New budget authority (gross)...... 2,011 1,992 1,371
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,227 2,128 1,499
23.95 Total new obligations............. -2,091 -2,000 -1,472
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 136 128 27
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,236 1,221 580
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -20
40.35 Appropriation permanently
reduced....................... -16
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,220 1,201 580
55.00 Advance appropriation from prior
year.......................... 791 791 791
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,011 1,992 1,371
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,637 1,756 1,686
73.10 Total new obligations............. 2,091 2,000 1,472
73.20 Total outlays (gross)............. -1,967 -2,070 -1,937
73.40 Adjustments in expired accounts
(net)........................... -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,756 1,686 1,221
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 563 655 585
86.93 Outlays from discretionary
balances........................ 1,404 1,415 1,352
--------- --------- ----------
87.00 Total outlays (gross)........... 1,967 2,070 1,937
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,011 1,992 1,371
90.00 Outlays........................... 1,967 2,070 1,937
---------------------------------------------------------------------------

Vocational education:
State grants.--A 2007 advance appropriation from 2006 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 2007.
National programs.--2006 appropriated funds are used in 2007 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 2007.

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 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.3 Personnel compensation: Other than
full-time permanent............. 1 1 1
25.1 Advisory and assistance services.. 1
25.2 Other services.................... 5 19 25
25.3 Other purchases of goods and
services from Government
accounts........................ 2 1
25.5 Research and development contracts 15 2
25.7 Operation and maintenance of
equipment....................... 1
41.0 Grants, subsidies, and
contributions................... 2,066 1,975 1,442
--------- --------- ----------
99.0 Direct obligations................ 2,090 1,998 1,469
99.5 Below reporting threshold......... 1 2 3
--------- --------- ----------
99.9 Total new obligations........... 2,091 2,000 1,472
---------------------------------------------------------------------------

Personnel Summary

OFFICE OF POSTSECONDARY EDUCATION

Federal Funds

General and special funds:

Higher Education

For carrying out, to the extent not otherwise provided, 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, [$1,970,760,000]
$1,108,711,000: Provided, That [$9,797,000] $9,699,000, to remain
available through September 30, [2007] 2008, shall be available to fund
fellowships for academic year [2007-2008] 2008-2009 under part A,
subpart 1 of title VII of [said Act] the HEA, 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 [$980,000]
$970,000 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: 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
Edu

[[Page 356]]

cational 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: Provided further, That [the funds
provided for title II of the HEA shall be allocated notwithstanding
section 210 of such Act] $24,000,000 shall be for grants to
institutions of higher education, in partnership with local educational
agencies, to establish instructional programs at all educational levels
in languages critical to U.S. national security. (Department of
Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Aid for institutional development:

00.01 Strengthening institutions...... 80 79 79
00.02 Strengthening tribally
controlled colleges and
universities.................. 24 24 24
00.03 Strengthening Alaska Native and
Native Hawaiian-serving
institutions.................. 12 12 9
00.04 Strengthening historically black
colleges and universities..... 239 238 238
00.05 Strengthening historically black
graduate institutions......... 58 58 58
00.06 Minority science and engineering
improvement................... 9 9 9
--------- --------- ----------
00.91 Subtotal, aid for
institutional development... 422 420 417
Other aid for institutions:

01.01 Developing Hispanic-serving
institutions.................. 95 95 95
01.02 International education and
foreign language studies...... 107 106 107
01.03 Fund for the Improvement of
Postsecondary Education....... 162 22 22
01.04 Demonstration projects to ensure
quality higher education for
students with disabilities.... 7 7
01.05 Interest subsidy grants......... 1 1 1
01.06 Tribally controlled
postsecondary vocational and
technical institutions........ 7 7 7
--------- --------- ----------
01.91 Subtotal, other aid for
institutions................ 379 238 232
Assistance for students:

02.01 Federal TRIO programs........... 837 828 380
02.02 Gaining early awareness and
readiness for undergraduate
programs (GEAR UP)............ 306 303
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 30
02.06 Thurgood Marshall legal
educational opportunity....... 3 3
02.07 B.J. Stupak Olympic scholarships 1 1
02.08 Child care access means parents
in school..................... 16 16 16
--------- --------- ----------
02.91 Subtotal, assistance for
students.................... 1,244 1,232 436
03.01 Teacher quality enhancement....... 68 60
04.01 GPRA data/HEA program evaluation.. 1 1 1
05.01 Underground railroad program...... 2 2
06.01 Advancing America through foreign
language partnerships........... 24
--------- --------- ----------
10.00 Total new obligations........... 2,116 1,953 1,110
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 18 19 17
22.00 New budget authority (gross)...... 2,117 1,951 1,109
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,135 1,970 1,126
23.95 Total new obligations............. -2,116 -1,953 -1,110
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 19 17 16
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2,134 1,971 1,109
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -20
40.35 Appropriation permanently
reduced....................... -17
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 2,117 1,951 1,109
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,864 2,870 2,631
73.10 Total new obligations............. 2,116 1,953 1,110
73.20 Total outlays (gross)............. -2,053 -2,192 -1,983
73.40 Adjustments in expired accounts
(net)........................... -57
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,870 2,631 1,758
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 74 98 55
86.93 Outlays from discretionary
balances........................ 1,979 2,094 1,928
--------- --------- ----------
87.00 Total outlays (gross)........... 2,053 2,192 1,983
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,117 1,951 1,109
90.00 Outlays........................... 2,053 2,192 1,983
---------------------------------------------------------------------------

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.
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.
Interest subsidy grants.--Balances from prior year
appropriations meet mandatory interest subsidy costs of construction
loan commitments made prior to 1974.
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 support services to help disadvan

[[Page 357]]

taged adults enter and complete college and graduate studies.
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.
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:
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.
Advancing America through foreign language partnerships.--Funds
support an initiative to establish fully articulated language
programs of study in languages critical to U.S. national security
through grants to institutions of higher education for partnerships
with school districts for language learning from kindergarten
through high school and into advanced language learning at the
postsecondary education level.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2 4 2
25.2 Other services.................... 7 6 5
25.3 Other purchases of goods and
services from Government
accounts........................ 2 2 2
41.0 Grants, subsidies, and
contributions................... 2,105 1,941 1,101
--------- --------- ----------
99.9 Total new obligations........... 2,116 1,953 1,110
---------------------------------------------------------------------------

Howard University

For partial support of Howard University (20 U.S.C. 121 et seq.),
[$239,790,000] $237,392,000, of which not less than [$3,562,000]
$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,
2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0603-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 General support................... 205 211 208
00.02 Howard University Hospital........ 30 29 29
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 235 240 237
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 8 5
22.00 New budget authority (gross)...... 239 237 237
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 243 245 242
23.95 Total new obligations............. -235 -240 -237
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 8 5 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 241 240 237
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -3
40.35 Appropriation permanently
reduced....................... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 239 237 237
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10
73.10 Total new obligations............. 235 240 237
73.20 Total outlays (gross)............. -235 -230 -238
--------- --------- ----------
74.40 Obligated balance, end of year.. 10 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 235 223 223
86.93 Outlays from discretionary
balances........................ 7 15
--------- --------- ----------
87.00 Total outlays (gross)........... 235 230 238
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 239 237 237
90.00 Outlays........................... 235 230 238
---------------------------------------------------------------------------

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 2005, Federal funding represented approximately
52 percent of the university's revenue.

Credit accounts:

College Housing and Academic Facilities Loans Program Account

For Federal administrative expenses to carry out activities related
to existing facility loans pursuant to section 121 of the Higher
Education Act of 1965, as amended [$573,000] $486,000. (Department of
Education Appropriations Act, 2006.)

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,
[$210,000] $190,000. (Department of Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

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

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

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

[[Page 358]]

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

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Historically Black Colleges and
Universities.................... 39 56 56
--------- --------- ----------
115901Total direct loan levels.......... 39 56 56
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 1
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records the subsidy costs associated with the direct loans obligated and
loan guarantees committed in 1992 and beyond, as well as any
administrative expenses for the College Housing and Academic Facilities
Loans Program and the Historically Black College and University Capital
Financing Program. The subsidy amounts are estimated on a present value
basis; the administrative expenses are estimated on a cash basis. These
programs are administered separately but consolidated in the President's
budget 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.
Since this amount is intended to be sufficient to cover all potential
delinquencies and defaults, no subsidy appropriations have been
required. The 2007 Budget provides funds for continuing Federal
administrative activities only.

Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 5 5 4
---------------------------------------------------------------------------

College Housing and Academic Facilities Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Interest paid to Treasury......... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 1 1 1
----------------------------------------------------------------------------

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

New financing authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 2 2 2
69.47 Portion applied to repay debt. -1 -1 -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.......... -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -2 -2 -2
----------------------------------------------------------------------------

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

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 20 19 19
1251 Repayments: Repayments and
prepayments..................... -1 -1
--------- --------- ----------
1290 Outstanding, end of year........ 19 19 18
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

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

2004 actual

2005 actual

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

1401

Direct loans receivable, gross

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-3

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
2103

Federal liabilities: Debt

2999

Total liabilities

4999

Total liabilities and net position

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

[[Page 359]]

College Housing and Academic Facilities Loans Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Interest paid to Treasury......... 8 8 8
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 8 8 8
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 9 8 8
22.60 Portion applied to repay debt..... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8 8 8
23.95 Total new obligations............. -8 -8 -8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 2 2 2
Spending authority from offsetting
collections:

69.00 Offsetting collections (cash)... 44 32 31
69.27 Capital transfer to general fund -28 -24 -22
69.47 Portion applied to repay debt... -9 -2 -3
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 7 6 6
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 9 8 8
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 1
73.10 Total new obligations............. 8 8 8
73.20 Total outlays (gross)............. -9 -8 -8
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 9 8 8
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Repayments of principal....... -32 -22 -21
88.40 Interest received on loans.... -12 -10 -10
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -44 -32 -31
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -35 -24 -23
90.00 Outlays........................... -36 -24 -23
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 93 83 80
1251 Repayments: Repayments and
prepayments..................... -10 -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 83 80 77
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 18 17 15
1251 Repayments: Repayments and
prepayments..................... -1 -2 -1
--------- --------- ----------
1290 Outstanding, end of year........ 17 15 14
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 203 182 164
1251 Repayments: Repayments and
prepayments..................... -21 -18 -16
--------- --------- ----------
1290 Outstanding, end of year........ 182 164 148
---------------------------------------------------------------------------

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
obligated 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.

Balance Sheet (in millions of dollars)

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

2004 actual

2005 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1601

Direct loans, gross

314

282

1602

Interest receivable

1699

Value of assets related to direct loans

320

288

1999

Total assets

320

288

LIABILITIES:
Federal liabilities:

2103

Debt

2104

Resources payable to Treasury

228

205

2999

Total liabilities

320

288

4999

Total liabilities and net position

320

288

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

Historically Black College and University Capital Financing Direct Loan
Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Loan Awards................ 39 56 56
00.02 Interest paid to Treasury......... 6 8 8
--------- --------- ----------
10.00 Total new obligations........... 45 64 64
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 45 64 64
23.95 Total new obligations............. -45 -64 -64
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 39 56 56
Spending authority from offsetting
collections:

69.00 Offsetting collections (cash)... 9 12 12
69.47 Portion applied to repay debt... -3 -4 -4
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 6 8 8
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 45 64 64
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 38 39
73.10 Total new obligations............. 45 64 64
73.20 Total financing disbursements
(gross)......................... -17 -63 -50
--------- --------- ----------
74.40 Obligated balance, end of year.. 38 39 53
87.00 Total financing disbursements
(gross)......................... 17 63 50
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.40 Interest repayments........... -6 -8 -8
88.40 Principal repayments.......... -3 -4 -4
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -9 -12 -12
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 36 52 52
90.00 Financing disbursements........... 8 51 38
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4255-0-3-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 193 222 170
1142 Unobligated direct loan limitation
(-)............................. -154 -166 -114
--------- --------- ----------
1150 Total direct loan obligations... 39 56 56
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 118 126 177
1231 Disbursements: Direct loan
disbursements................... 11 55 42

[[Page 360]]

1251 Repayments: Repayments and
prepayments..................... -3 -4 -5
--------- --------- ----------
1290 Outstanding, end of year........ 126 177 214
---------------------------------------------------------------------------

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 fiscal year 1996 and beyond.
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. The amounts in this account are a means of financing and are not
included in the budget totals.

Balance Sheet (in millions of dollars)

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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

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

1401

Direct loans receivable, gross

118

126

1402

Interest receivable

1499

Net present value of assets related to direct loans

121

129

1999

Total assets

131

139

LIABILITIES:
Federal liabilities:

2102

Interest payable

2103

Debt

118

126

2201

Non-Federal liabilities: Undisbursed direct loans

2999

Total liabilities

131

139

4999

Total liabilities and net position

131

139

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

OFFICE OF FEDERAL STUDENT AID

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,
[$15,077,752,000] $14,490,057,000, which shall remain available through
September 30, [2007] 2008.
The maximum Pell Grant for which a student shall be eligible during
award year [2006-2007] 2007-2008 shall be $4,050. (Department of
Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
01.01 Federal Pell grants............... 12,504 9,472 17,502
02.01 Federal supplemental educational
opportunity grants (SEOG)....... 778 772 771
02.02 Federal work-study................ 990 981 980
02.04 Federal Perkins loans: Loan
cancellations................... 66 66
--------- --------- ----------
02.91 Direct Program by Activities--
Subtotal (1 level)............ 1,834 1,819 1,751
03.01 Leveraging educational assistance
partnership..................... 66 65
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 14,404 11,356 19,253
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 25 23 7,894
22.00 New budget authority (gross)...... 14,266 19,227 14,490
22.10 Resources available from
recoveries of prior year
obligations..................... 144
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,435 19,250 22,384
23.95 Total new obligations............. -14,404 -11,356 -19,253
23.98 Unobligated balance expiring or
withdrawn....................... -8
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 23 7,894 3,131
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 14,381 15,078 14,490
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -151
40.35 Appropriation permanently
reduced....................... -115
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 14,266 14,927 14,490
Mandatory:

60.00 Appropriation................... 4,300
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 14,266 19,227 14,490
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7,707 6,861 4,237
73.10 Total new obligations............. 14,404 11,356 19,253
73.20 Total outlays (gross)............. -15,102 -13,980 -14,473
73.40 Adjustments in expired accounts
(net)........................... -4
73.45 Recoveries of prior year
obligations..................... -144
--------- --------- ----------
74.40 Obligated balance, end of year.. 6,861 4,237 9,017
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 7,557 7,400 2,640
86.93 Outlays from discretionary
balances........................ 7,545 6,580 11,833
--------- --------- ----------
87.00 Total outlays (gross)........... 15,102 13,980 14,473
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 14,266 19,227 14,490
90.00 Outlays........................... 15,102 13,980 14,473
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 324 323 323
1251 Repayments: Repayments and
prepayments..................... -21 -21 -22
Write-offs for default:

1263 Direct loans.................... -6 -6 -6
1264 Other adjustments, net.......... 26 27 27
--------- --------- ----------
1290 Outstanding, end of year........ 323 323 322
---------------------------------------------------------------------------

Notes: At the time the Budget was prepared, final congressional
passage of the Higher Education Reconciliation Act was pending. The
Budget assumes passage of the Act in 2006. Figures include, in all
years, institutional matching share of defaulted notes assigned from
institutions to the Education Department.

The Administration's 2007 budget for the Student Financial
Assistance account is $14.490 billion. Together with matching funds,
this funding would provide nearly 7.7 million awards totaling over $15.5
billion in available aid.

Federal Pell Grants.--Pell Grants are the single largest source of
grant aid for postsecondary education. In 2006, more than 5 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.

For 2007, the Administration is proposing to make Pell Grants
available year-round for certain students at two- and four-year
institutions, enabling these students to accelerate their educations to
obtain their degrees more quickly. To further encourage students to
promptly complete their education, the Administration is also proposing
to limit Pell Grant eligibility to the equivalent of 18 semesters.
Lastly, the Administration proposes to eliminate the Pell Grant award
rule re

[[Page 361]]

lated to tuition sensitivity, which limits the amount of aid for needy
students attending low-cost institutions.

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.--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.

Funding Tables.--The following tables display student aid funds
available, the number of aid awards, average awards, and the
unduplicated count of recipients from any Federal student aid program.
The tables include aid from programs in the Student Financial Assistance
account, as well as aid from the Academic Competitiveness Grant, Federal
Family Education Loan, and William D. Ford Direct Student Loan programs.
Loan amounts reflect the capital actually loaned, not the Federal cost
of these loans. The data in these tables include the effects of matching
funds wherever appropriate. The 2007 data in these tables reflect the
Administration's legislative proposals.

AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

[in thousands]

2005 2006 2007
Pell grants................... 12,594,425 12,745,922 12,986,009
Academic Competitiveness
Grants........................ 0 790,000 850,000
Student loans:
Guaranteed student loans:
Stafford loans............ 18,774,240 19,648,595 21,111,659
Unsubsidized Stafford
loans................... 18,459,986 20,180,893 22,068,292
PLUS...................... 6,049,677 6,873,264 3,616
Direct student loans:
Stafford loans............ 5,823,846 6,069,412 6,518,284
Unsubsidized Stafford
loans................... 4,842,092 5,227,261 5,749,258
PLUS...................... 2,264,096 2,576,830 2,890,543
Consolidation:
FFEL...................... 53,955,913 45,230,493 25,083,085
Direct Loans.............. 15,684,705 13,694,126 7,897,821
Perkins loans............... 1,135,368 1,134,733 132,692
Student loans, subtotal. 126,989,922 120,635,607 99,195,251
Work study.................... 1,184,204 1,172,000 1,172,000
Supplemental educational
opportunity grants............ 985,722 975,864 975,865
Leveraging educational
assistance partnerships....... 166,928 164,960 0
------------------------------------
Total aid available..... 141,921,201 136,484,353 115,179,125

NUMBER OF AID AWARDS

[in thousands]

2005 2006 2007
Pell grants............... 5,129 5,213 5,272
Academic Competitiveness
Grants.................. 0 535 600
Guaranteed student loans--
Stafford loans.......... 5,422 5,652 5,838
Guaranteed student loans--
Unsubsidized Stafford
loans................... 4,271 4,601 4,846
Guaranteed student loans--
PLUS.................... 630 679 726
Guaranteed student loans--
Consolidation........... 1,981 1,656 885
Direct student loans--
Stafford loans.......... 1,588 1,634 1,685
Direct student loans--
Unsubsidized Stafford
loans................... 1,135 1,194 1,255
Direct student loans--PLUS 248 265 283
Direct student loans--
Consolidation........... 645 543 326
Perkins loans............. 524 524 61
Work-study................ 818 810 810
Supplemental educational
opportunity grants...... 1,287 1,274 1,274
Leveraging eduational
assistance partnerships. 167 165 0
------------------------------------
Total awards............ 23,845 24,744 23,860

AVERAGE AID AWARDS

[in whole dollars]

2005 2006 2007
Pell grants............... 2,456 2,445 2,463
Academic Competitiveness
Grants.................. 0 1,477 1,417
Guaranteed student loans--
Stafford loans.......... 3,463 3,477 3,616
Guaranteed student loans--
Unsubsidized Stafford
loans................... 4,322 4,386 4,554
Guaranteed student loans--
PLUS.................... 9,599 10,124 10,660
Guaranteed student loans--
Consolidation........... 27,244 27,306 28,353
Direct student loans--
Stafford loans.......... 3,666 3,715 3,869
Direct student loans--
Unsubsidized Stafford
loans................... 4,266 4,380 4,582
Direct student loans--PLUS 9,145 9,713 10,225
Direct student loans--
Consolidation........... 24,303 25,222 24,212
Perkins loans............. 2,166 2,166 2,166
Work-study................ 1,447 1,447 1,447
Supplemental educational
opportunity grants...... 766 766 766
Leveraging educational
assistance partnerships. 1,000 1,000 0

NUMBER OF STUDENTS AIDED

[in thousands]

Unduplicated student count.... 9,707 10,120 10,420

ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

[in thousands of dollars]

2005 2006 2007
Pell grants................... 25,644 26,064 26,360
Work-study.................... 74,064 73,305 73,305
Supplemental educational
opportunity grants............ 39,429 39,035 39,035
Perkins loans................. 45,415 45,389 5,308

Academic Competitiveness/SMART Grant Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0205-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 790 850
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 790 850
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 790 850
23.95 Total new obligations............. -790 -850
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

[[Page 362]]

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 790 850
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 600
73.10 Total new obligations............. 790 850
73.20 Total outlays (gross)............. -190 -789
--------- --------- ----------
74.40 Obligated balance, end of year.. 600 661
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 190 204
86.98 Outlays from mandatory balances... 585
--------- --------- ----------
87.00 Total outlays (gross)........... 190 789
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 790 850
90.00 Outlays........................... 190 789
---------------------------------------------------------------------------

The Higher Education Reconciliation Act of 2005 would create an
Academic Competitiveness Grant program to provide need-based student aid
to first-year and second-year students who have completed a rigorous
course of study in high school and third-year and fourth-year students
pursuing a major in mathematics, science, or a foreign language deemed
critical to national security. Students receiving grants would have to
be eligible to receive a Pell Grant and, for second, third, and fourth-
year students, would have to maintain at least a 3.0 grade point
average. Grant levels would be $750 for first-year students, $1,300 for
second-year students, and $4,000 for third- and fourth-year students,
except that, when taken together with other Federal student aid, grants
cannot exceed a student's cost of attendance. Funding in excess of the
amount needed to fund grants in a given year could be carried over for
use in subsequent years; if the mandatory funding level is insufficient
to fund program grants, grant levels would have to be reduced.

Perkins Loan Assets

An institution of higher education with a student loan revolving
fund established under part E of title IV of the Higher Education Act of
1965, as amended, shall promptly remit to the Secretary of Education the
Federal portion of collections and other receipts to the fund that are
received by the institution between October 1, 2006 and September 30,
2007.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0219-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 664
68.27 Capital transfer to general
fund........................ -664
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary).......
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -664
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -664
90.00 Outlays........................... -664
---------------------------------------------------------------------------

The 2007 Budget proposes to recall the Federal portion of Perkins
Loan collections paid during fiscal year 2007 to revolving funds held by
participating institutions. The Administration will work with Congress
during the Higher Education Act reauthorization process to phase out the
Perkins Loan program, which is inefficient and duplicative of the other,
larger Federal student loan programs.

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, [$120,000,000]
$733,720,000. (Department of Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Student aid administration........ 719 719 734
--------- --------- ----------
10.00 Total new obligations........... 719 719 734
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 719 719 734
23.95 Total new obligations............. -719 -719 -734
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 720 720 734
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 719 719 734
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 36 318 413
73.10 Total new obligations............. 719 719 734
73.20 Total outlays (gross)............. -437 -624 -698
--------- --------- ----------
74.40 Obligated balance, end of year.. 318 413 449
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 405 406 415
86.93 Outlays from discretionary
balances........................ 32 218 283
--------- --------- ----------
87.00 Total outlays (gross)........... 437 624 698
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 719 719 734
90.00 Outlays........................... 437 624 698
---------------------------------------------------------------------------

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 2007. 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.

Prior to 2007, student aid administrative activities were funded
from two main sources: (1) funds appropriated on a permanent basis under
section 458 of the Higher Education Act (which included an amount--$195
million in 2006--for account maintenance fee payments to Federal Family
Education Loan guaranty agencies); and (2) a discretionary appropriation
partially supporting student aid administrative activities. Under the
Higher Education Reconciliation Act of 2005, student aid administrative
funds for 2007 and subsequent years will be funded from a single
discretionary ac

[[Page 363]]

count. (Account maintenance fees payments for these years will be paid
from the FFEL Program Account.)

The Budget for 2007 includes $744 million for student aid
administration. Most of these funds support automated systems maintained
by private contractors to process student aid applications; provide and
track aid awards to students, parents, and schools; and service the
over-$100 billion portfolio of William D. Ford Direct Student Loans.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............... 97 102 105
11.5 Other personnel compensation...... 3 3 3
--------- --------- ----------
11.9 Total personnel compensation.... 100 105 108
12.1 Civilian personnel benefits....... 24 26 27
21.0 Travel and transportation of
persons......................... 4 4 4
23.1 Rental payments to GSA............ 14 16 16
23.3 Communications, utilities, and
miscellaneous charges........... 16 8 8
24.0 Printing and reproduction......... 7 8 9
25.1 Advisory and assistance services.. 2 1 1
25.2 Other services.................... 34 17 25
25.3 Other purchases of goods and
services from Government
accounts........................ 14 14 14
25.7 Operation and maintenance of
equipment....................... 499 515 518
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 3 2 2
32.0 Land and structures............... 1 2 1
--------- --------- ----------
99.9 Total new obligations........... 719 719 734
---------------------------------------------------------------------------

Personnel Summary

Public enterprise funds:

Federal Student Loan Reserve Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4257-0-3-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
01.02 Obligations, non-federal.......... 4,977 4,279 4,461
--------- --------- ----------
10.00 Total new obligations (object
class 42.0)................... 4,977 4,279 4,461
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,040 888 779
22.00 New budget authority (gross)...... 4,825 4,252 4,842
22.40 Capital transfer to general fund.. -82 -82
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,865 5,058 5,539
23.95 Total new obligations............. -4,977 -4,279 -4,461
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 888 779 1,078
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 4,825 4,252 4,842
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 4,977 4,279 4,461
73.20 Total outlays (gross)............. -4,977 -4,279 -4,461
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 4,825 4,252 4,842
86.98 Outlays from mandatory balances... 152 27 -381
--------- --------- ----------
87.00 Total outlays (gross)........... 4,977 4,279 4,461
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -4,725 -3,959 -4,280
88.40 Non-Federal sources........... -100 -293 -562
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -4,825 -4,252 -4,842
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 152 27 -381
---------------------------------------------------------------------------

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.

The Higher Education Reconciliation Act of 2005 would 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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

1,039

1,040

1999

Total assets

1,039

1,040

NET POSITION:
3300

Cumulative results of operations

1,039

1,040

3999

Total net position

1,039

1,040

4999

Total liabilities and net position

1,039

1,040

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

Credit accounts:

Federal Direct Student Loan Program Program Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Loan Subsidy............... 1,071 599 41
00.03 Subsidy modification, upward...... 49 7
00.05 Upward Restimate Principal........ 1,262 3,327
00.06 Interest on Upward Reestimate..... 374 1,342
00.09 Administrative expenses........... 814
--------- --------- ----------
10.00 Total new obligations........... 3,570 5,275 41
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 26 27 27
22.00 New budget authority (gross)...... 3,552 5,275 41
22.10 Resources available from
recoveries of prior year
obligations..................... 19
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,597 5,302 68
23.95 Total new obligations............. -3,570 -5,275 -41
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 27 27 27
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation -federal
administration................ 795
60.00 Appropriation (indefinite)--loan
subsidy....................... 1,071 599 41
60.00 Appropriation--upward
modification.................. 49 7
60.00 Appropriation (indefinite)--
Upward reestimate............. 1,636 4,669
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 3,551 5,275 41
Spending authority from offsetting
collections:

69.00 Offsetting collections (cash)--
negative subsidy.............. 22 5
69.00 Offsetting collections (cash)--
downward reestimate, principal 380 500
69.00 Offsetting collections (cash)--
downward reestimate,interest.. 27 22
69.00 Offsetting collections (cash)--
admin......................... 1
69.27 Capital transfer to general fund -429 -522 -5
--------- --------- ----------

[[Page 364]]

69.90 Spending authority from
offsetting collections
(total mandatory)........... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,552 5,275 41
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 260 680 553
73.10 Total new obligations............. 3,570 5,275 41
73.20 Total outlays (gross)............. -3,131 -5,402
73.45 Recoveries of prior year
obligations..................... -19
--------- --------- ----------
74.40 Obligated balance, end of year.. 680 553 594
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 2,910 5,118
86.98 Outlays from mandatory balances... 221 284
--------- --------- ----------
87.00 Total outlays (gross)........... 3,131 5,402
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -430 -522 -5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,122 4,753 36
90.00 Outlays........................... 2,703 4,880 -5
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Stafford.......................... 6,482 6,727 7,234
115002Unsubsidized Stafford............. 5,450 5,977 6,574
115003PLUS.............................. 2,262 2,693 3,022
115004Consolidation..................... 17,663 13,824 7,977
--------- --------- ----------
115901Total direct loan levels.......... 31,857 29,221 24,807
Direct loan subsidy (in percent):
132001Stafford.......................... 8.08 9.83 10.29
132002Unsubsidized Stafford............. -6.32 -8.28 -8.42
132003PLUS.............................. -4.00 -6.37 -8.00
132004Consolidation..................... 5.49 4.37 1.15
--------- --------- ----------
132901Weighted average subsidy rate..... 3.32 2.05 0.16
Direct loan subsidy budget authority:
133001Stafford.......................... 524 661 744
133002Unsubsidized Stafford............. -344 -495 -553
133003PLUS.............................. -91 -171 -242
133004Consolidation..................... 982 604 92
--------- --------- ----------
133901Total subsidy budget authority.... 1,071 599 41
Direct loan subsidy outlays:
134001Stafford.......................... 405 558 643
134002Unsubsidized Stafford............. -279 -390 -465
134003PLUS.............................. -89 -136 -207
134004Consolidation..................... 965 605 92
--------- --------- ----------
134901Total subsidy outlays............. 1,002 637 63
Direct loan upward reestimate subsidy budget
authority:
135001Stafford.......................... 158 1,691
135002Unsubsidized Stafford............. 113 21
135003PLUS.............................. 140 6
135004Consolidation..................... 1,388 3,114
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 1,799 4,832
Direct loan downward reestimate subsidy budget
authority:
137001Stafford.......................... -292 -51
137002Unsubsidized Stafford............. -172 -236
137003PLUS.............................. -30 -76
137004Consolidation..................... -76 -322
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -570 -685
---------------------------------------------------------------------------

The Federal Government operates two major student loan programs: the
Federal Family Education Loan (FFEL) program and the William D. Ford
Federal Direct Loan (Direct Loan) program. For 2007, 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.

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. This section also
discusses the impact of the Higher Education Reconcilication Act of
2005, which was awaiting final congressional action and enactment as the
Budget was being prepared.

From its inception in 1965 through 2005, the FFEL program has
provided over $644 billion in loans to postsecondary students and their
parents. Since July 1, 1994, the Direct Loan program has provided $178
billion in new and consolidation loans to students and parents. Taken
together, the FFEL and Direct Loan programs will make more than $60
billion in new loans available in 2006. 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 expand 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. The Direct Loan program began
operation in academic year 1994-1995 with 7 percent of overall loan
volume and is expected to account for 23 percent in academic year 2006-
2007. 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, 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.

For most loans made prior to July 1, 2006, 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. For loans made on or after July 1,
2006, the borrower interest rate is fixed at 6.8 percent. 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 most PLUS loans made
prior to July 1, 2006, 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. The Higher Education Amendments of 2005 would increase
the fixed borrower interest rate on PLUS loans made on or after July 1,
2006, from 7.9 percent to 8.5 percent.

[[Page 365]]

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. Under the Higher Education Reconciliation Act of 2005, for
periods when the borrower interest rate exceeds the special allowance
rate on loans made on or after April 1, 2006, lenders would remit the
difference to the government.

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. The Higher Education
Reconciliation Act of 2005 would make these limits permanent and also
eliminate the practice of recycling tax-exempt securities for most loan
holders.

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. The Higher Education Reconciliation
Act of 2005 would eliminate the practice of in-school loan consolidation
and revise the circumstances under which a FFEL borrower could obtain a
Direct Consolidation Loan.

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. The Higher Education Reconciliation Act of 2005
includes phased reductions that would eliminate FFEL origination fees by
July 1, 2010, and lower Direct Loan fees to 1 percent by the same date;
the Act would also require guaranty agencies to collect the insurance
premium. Borrowers in both programs may be offered financial incentives
to encourage prompt repayment.

Loan limits are also identical across the two programs. The Higher
Education Reconciliation Act of 2005 would increase annual loan limits
for first-year, second-year, and graduate and professional students.
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. The Higher
Education Reconciliation Act of 2005 would make these extended benefits
permanent.

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.

The Higher Education Reconciliation Act of 2005 would standardize
FFEL and Direct Loan repayment plan terms--other than income-contingent
repayment in Direct Loans--on the terms currently available in FFEL.

Other provisions.--The Higher Education Reconciliation Act of 2005
also would 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.

The Act would also revise 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 change, only students who
commit a drug-related offense while enrolled in higher education would
lose eligibility; incoming students, who are currently subject to the
provision, would be exempted.

Lastly, under the Act military personnel on active duty would
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 assuming passage of the Higher Education Reconciliation
Act of 2005 and the President's budget and legislative request.

Funding Levels

(in thousands of dollars)

2005 actual 2006 est. 2007 est.
Program Cost:
FFEL:
Liquidating\1\ ............. (627,993) (861,403) (821,573)
Program:
Regular................... 4,342,008 4,286,810 4,714,417
Consolidation............. 6,787,921 5,552,358 1,410,844
Net Reestimate of Prior
Year Costs.............. 1,043,588 7,298,135 0
Net Modification\2\ ...... 147,516 1,709,540 0
------------------------------------
Subtotal, Program....... 12,321,033 18,846,843 6,125,261
------------------------------------
Total FFEL.................11,693,040 17,985,440 5,303,688
Direct Loans:
Program:
Regular................... 88,868 (5,226) (50,878)
Consolidation............. 982,172 604,123 91,733
Net Reestimate of Prior
Year Costs.............. 1,228,912 4,147,171 0
Net Modification\2\ ...... 49,172 7,291 0
------------------------------------
Total, Direct Loans..... 2,349,124 4,753,359 40,855
Total, FFEL and Direct
Loans................. 14,042,164 22,738,799 5,339,676
Program Cost Outlays:
FFEL:
Liquidating\1\ ............. (939,979) (861,403) (821,573)
Program:
Regular................... 3,645,191 3,707,099 3,928,445
Consolidation............. 6,728,302 5,530,160 1,411,709
Net Reestimate of Prior
Year Costs.............. 1,043,588 7,298,135 0
Net Modification\2\ ...... 147,516 1,709,540 0
------------------------------------

[[Page 366]]

Subtotal, Program....... 11,564,597 18,244,934 5,340,154
------------------------------------
Total, FFEL................10,625,618 17,383,531 4,518,581
Direct Loans:
Program:
Regular................... 36,730 31,993 (29,242)
Consolidation............. 965,350 605,024 91,929
Net Reestimate of Prior
Year Costs.............. 1,228,912 4,147,171 0
Net Modification\2\ ...... 49,172 7,291 0
------------------------------------
Total, Direct Loans..... 2,280,164 4,791,479 62,687
Total, FFEL and Direct
Loans................. 12,905,782 22,175,010 4,581,268
\1\ Liquidating account reflects loans made prior to 1992.
\2\ Reflects the cost or savings associated with policy changes,
including those contained in the Higher Education Reconciliation Act of
2006, that would affect the terms of existing loans.

Summary of Loans Available

(net commitments in millions of dollars)\1\

2005 actual 2006 est. 2007 est.
FFEL:
Stafford.................... 18,774 19,649 21,112
Unsubsidized Stafford....... 18,460 20,181 22,068
PLUS........................ 6,050 6,873 7,744
------------------------------------
Subtotal.................. 43,284 46,703 50,924
Consolidation............... 53,956 45,230 25,083
------------------------------------
Total, FFEL............... 97,240 91,933 76,007
Direct Loans:
Stafford.................... 5,824 6,069 6,518
Unsubsidized Stafford....... 4,842 5,227 5,749
PLUS........................ 2,264 2,577 2,891
------------------------------------
Subtotal.................. 12,930 13,874 15,158
Consolidation............... 15,685 13,694 7,898
------------------------------------
Total, Direct Loans....... 28,615 27,568 23,056
Total, All Loans.......... 125,855 119,501 99,063
\1\ Net commitments equal gross commitments minus loan
cancellations.

Number of Loans

(in thousands)

2005 actual 2006 est. 2007 est.
FFEL:
Stafford.................... 5,422 5,652 5,838
Unsubsidized Stafford....... 4,271 4,601 4,846
PLUS........................ 630 679 726
------------------------------------
Subtotal.................. 10,323 10,932 11,410
Consolidation............... 1,981 1,656 885
------------------------------------
Total, FFEL............... 12,303 12,588 12,295
Direct Loans:
Stafford.................... 1,588 1,634 1,685
Unsubsidized Stafford....... 1,135 1,194 1,255
PLUS........................ 248 265 283
------------------------------------
Subtotal.................. 2,971 3,092 3,222
Consolidation............... 645 543 326
------------------------------------
Total, Direct Loans....... 3,617 3,635 3,548
Total, All Loans.......... 15,920 16,224 15,843

Average Loan Size (in whole dollars)

2005 actual 2006 est. 2007 est.
FFEL:
Stafford.................... 3,463 3,477 3,616
Unsubsidized Stafford....... 4,322 4,386 4,554
PLUS........................ 9,599 10,124 10,660
------------------------------------
Weighted Average, without
Consolidations.......... 4,193 4,272 4,463
------------------------------------
Consolidation............... 27,244 27,306 28,353
------------------------------------
Weighted Average, FFEL.... 7,903 7,303 6,182
Direct Loans:
Stafford.................... 3,666 3,715 3,869
Unsubsidized Stafford....... 4,266 4,380 4,582
PLUS........................ 9,145 9,713 10,225
------------------------------------
Weighted Average, without
Consolidations.......... 4,352 4,486 4,704
------------------------------------
Consolidation............... 24,303 25,222 24,212
------------------------------------
Weighted Average, Direct
Loans................... 7,912 7,583 6,498
Weighted Average, All
Loans................... 7,905 7,366 6,253

Summary of Subsidy, Default and Interest Rates

2005 actual 2006 est. 2007 est.
Subsidy Rates (in percent)\1\
FFEL:
Stafford.................... 19.09 17.78 18.77
Unsubsidized Stafford....... 4.02 1.12 0.78
PLUS........................ 1.41 -0.01 -0.63
Consolidation............... 20.99 12.20 5.59
Weighted Average, FFEL.... 16.18 10.05 7.22
Direct Loans:
Stafford.................... 6.85 9.83 10.29
Unsubsidized Stafford....... -9.34 -8.28 -8.42
PLUS........................ -6.88 -6.37 -8.00
Consolidation............... 4.21 4.37 1.15
Weighted Average, Direct
Loans................... 1.58 2.17 0.20
Default Rates (in percent)\2\
FFEL:
Stafford.................... 12.50 12.48 12.70
Unsubsidized Stafford....... 11.15 11.15 11.08
PLUS........................ 5.41 5.38 5.38
Consolidation............... 13.38 13.27 13.84
Weighted Average, FFEL.... 12.29 12.04 11.86
Direct Loans:
Stafford.................... 11.91 12.04 12.23
Unsubsidized Stafford....... 11.97 12.09 11.99
PLUS........................ 5.50 5.50 5.50
Consolidation............... 15.51 17.20 25.86
Weighted Average, Direct
Loans................... 13.39 14.00 16.00
Borrower Interest Rates (in
percent)\3\
FFEL:
Stafford.................... 6.73 6.78 6.80
Unsubsidized Stafford....... 6.73 6.77 6.80
PLUS........................ 6.68 8.00 8.50
Consolidation (reflects Sub
and Unsub Stafford only).. 3.57 5.15 6.28
Direct Loans:
Stafford.................... 6.73 6.78 6.80
Unsubsidized Stafford....... 6.73 6.78 6.80
PLUS........................ 6.68 8.14 8.50
Consolidation (reflects Sub
and Unsub Stafford only).. 3.87 5.35 6.59
\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.

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

[[Page 367]]

these programs comparable with each other and other federal programs.

Selected Program Costs and Offsets

(in thousands of dollars)

2005 actual 2006 est. 2007 est.
FFEL:
Payments to lenders
Interest benefits........... 1,781,622 2,699,344 3,567,825
Special allowance payments.. 4,229,255 5,765,647 4,649,385
Default claims.............. 3,861,692 4,359,993 4,976,875
Loan discharges............. 863,885 1,165,819 1,350,007
Teacher loan forgiveness.... 17,463 22,011 23,309

Administrative payments to
guaranty agencies............. 549,359 640,931 913,755

Fees paid to the Department of
Education
Borrower origination fees... (1,202,394) (1,267,377) (1,021,659)
Lender origination fees..... (423,214) (480,034) (417,544)
Sallie Mae offset fees...... (279)
Loan holder fees............ (1,353,488) (1,943,420) (2,073,778)
Other Major Transactions
Net default collections..... (3,956,450) (3,925,880) (4,346,649)
Contract collection costs... 118,557 135,318 139,860
Federal administrative costs 225,222 225,200 229,874
Net Cash Flow, FFEL........... 4,711,231 7,397,553 7,991,261
Direct Loans
Loan disbursements to
borrowers................. 27,670,928 27,538,199 22,790,117
Borrower interest payments.. (1,818,126) (2,399,477) (3,019,275)
Borrower principal payments. (22,939,000) (15,539,834) (10,877,287)
Borrower origination fees... (390,295) (432,563) (457,869)
Net default collections..... (772,567) (1,700,845) (1,985,106)
Contract collection costs... 146,598 127,561 146,875
Federal administrative costs 371,680 367,826 368,933
Net Operating Cash Flows.... 2,269,217 7,960,867 6,966,389
Loan capital borrowings from
Teasury................... (27,670,928) (27,538,199) (22,790,117)
Net interest payments to
Treasury.................. 4,694,408 5,815,168 6,425,042
Principal payments to
Treasury.................. 19,394,506 13,904,285 9,531,960
Subtotal Treasury activity.. (3,582,014) (7,818,746) (6,833,115)
Net Cash Flow, Direct Loans... (1,312,797) 142,122 133,274
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. In 2005 and 2006,
Federal administrative costs include account maintenance fees payable to
guaranty agencies; under the Higher Education Act of 2005, starting in
2007, these payments would be made as part of FFEL program payments and
be reflected in the program subsidy rates. 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

(expressed as percentages)

2005 actual 2006 est. 2007 est.
FFEL
Program costs:\1\
Interest subsidies........ 18.47 11.41 7.44
Interest income........... 0.00 0.00 0.00
Net defaults.............. 0.87 0.89 0.84
Fees...................... -6.06 -5.71 -4.39
Other..................... 2.91 3.45 3.33
------------------------------------
Total................... 16.18 10.05 7.22
Federal administrative costs 0.69 0.69 0.37
------------------------------------
Total................... 16.87 10.74 7.59
Direct Loans
Program costs:\1\
Interest subsidies and
income, net............. -3.20 -2.58 -5.80
Net Defaults.............. 1.46 1.34 1.70
Fees...................... -1.43 -1.60 -2.03
Other..................... 4.75 5.01 6.33
------------------------------------
Total................... 1.58 2.17 0.20
Federal administrative costs 1.50 1.50 1.50
------------------------------------
Total adjusted cost..... 3.08 3.67 1.70

\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.
Totals may not add due to rounding.

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--1992-2006

FFEL Direct Loans
Original Subsidy Costs.................. +$55.3 bil -$1.4 bil
Cumulative Reestimates.................. +$0.7 bil +$7.7 bil
1992-2005 Subsidy Costs................. +$56.0 bil +$6.3 bil
Total Disbursements.................... $508.8 bil $173.7 bil

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
11.01; the comparable Direct Loan rate is 3.65. For the oldest loan
cohorts, many of the subsidy costs have been expended (e.g., in-school
interest subsidies).

As in prior years, the budget estimates for both the FFEL and Direct
Loan programs were developed using the 2007 Budget economic assumptions,
which include point estimates of future interest rates. However, the
Congressional Budget Office uses an alternative method that factors in
the probability that future interest rate scenairos may differ from
current economic projections. The Administration intends to explore
possible changes to its estimating methodology for student loans that
would better account for different interest rate scenarios.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............... 48
11.3 Other than full-time permanent.... 2
11.5 Other personnel compensation...... 2
--------- --------- ----------
11.9 Total personnel compensation.... 52
12.1 Civilian personnel benefits....... 14
21.0 Travel and transportation of
persons......................... 3 4
23.1 Rental payments to GSA............ 5 8
23.3 Communications, utilities, and
miscellaneous charges........... 4 4
24.0 Printing and reproduction......... 4 7
25.1 Advisory and assistance services.. 5 1
25.2 Other services.................... 13 13
25.3 Other purchases of goods and
services from Government
accounts........................ 13 9
25.6 Training.......................... 2 3
25.7 Operation and maintenance of
equipment....................... 500
26.0 Supplies and materials............ 1
31.0 Equipment......................... 3 1
32.0 Land and structures............... 2
41.0 Grants, subsidies, and
contributions................... 2,951 5,223 41
--------- --------- ----------
99.9 Total new obligations........... 3,570 5,275 41
---------------------------------------------------------------------------

[[Page 368]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Loan Obligations........... 31,857 29,222 24,807
02.01 Interest rate rebate, Stafford.... 86 90 95
02.02 Interest rate rebate, Unsubsidized
Stafford........................ 70 77 83
02.03 Interest rate rebate, PLUS........ 32 37 42
--------- --------- ----------
02.91 Direct Program by Activities--
Subtotal (1 level)............ 188 204 220
03.01 Consolidation loans-Payment of
Orig. Services.................. 26 22 15
04.01 Payment of contract collections... 146 127 147
05.01 Interest payment to Treasury...... 6,171 5,815 6,425
08.02 Payment of downward reestimate to
program account................. 407 500
08.04 Interest on downward reestimate... 22
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 407 522
--------- --------- ----------
10.00 Total new obligations........... 38,795 35,912 31,614
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 938 1,697
22.00 New financing authority (gross)... 41,227 35,912 31,614
22.10 Resources available from
recoveries of prior year
obligations..................... 1,920 2,190 3,873
22.60 Portion applied to repay debt..... -2,267 -1,697
22.70 Balance of authority to borrow
withdrawn....................... -1,326 -2,190 -3,873
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 40,492 35,912 31,614
23.95 Total new obligations............. -38,795 -35,912 -31,614
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,697
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 32,170 29,141 24,740
Spending authority from offsetting
collections:

69.00 Offsetting collections (cash)... 30,106 25,386 16,406
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 32 -34
69.27 Capital transfer to general fund
(for modification adj
transfer)..................... -1
69.47 Portion applied to repay debt... -21,080 -18,581 -9,532
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 9,057 6,771 6,874
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 41,227 35,912 31,614
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 6,631 8,658 8,389
73.10 Total new obligations............. 38,795 35,912 31,614
73.20 Total financing disbursements
(gross)......................... -34,816 -34,025 -29,378
73.45 Recoveries of prior year
obligations..................... -1,920 -2,190 -3,873
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -32 34
--------- --------- ----------
74.40 Obligated balance, end of year.. 8,658 8,389 6,752
87.00 Total financing disbursements
(gross)......................... 34,816 34,025 29,378
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Direct Loan Subsidy........... -1,024 -637 -68
88.00 Upward reestimate............. -1,262 -3,327
88.00 Upward reestimate, interest... -374 -1,342
88.00 Upward Modification........... -49 -7
88.25 Interest on uninvested funds.. -1,477
88.40 Repayment of principal,
Stafford.................... -8,296 -5,283 -3,029
88.40 Interest received on loans,
Stafford.................... -360 -377 -548
88.40 Origination Fees, Stafford.... -177 -180 -185
88.40 Other fees, Stafford.......... -24
88.40 Repayment of principal,
Unsubsidized Stafford....... -6,739 -4,333 -2,579
88.40 Interest received on loans,
Unsubsidized Stafford....... -471 -269 -420
88.40 Origination Fees, Unsubsidized
Stafford.................... -146 -154 -162
88.40 Other fees, Unsubsidized
Stafford.................... -13
88.40 Repayment of principal, PLUS.. -2,298 -1,519 -1,391
88.40 Interest received on loans,
PLUS........................ -202 -292 -424
88.40 Origination Fees, PLUS........ -67 -99 -111
88.40 Other fees, PLUS.............. -3
88.40 Payment of principal,
Consolidation............... -6,046 -5,691 -5,359
88.40 Interest received on loans,
Consolidation............... -1,047 -1,876 -2,130
88.40 Other fees, Consolidation..... -31
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -30,106 -25,386 -16,406
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -32 34
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 11,089 10,560 15,208
90.00 Financing disbursements........... 4,710 8,639 12,972
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 6,482 6,727 7,234
--------- --------- ----------
1150 Total direct loan obligations... 6,482 6,727 7,234
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 27,458 24,928 25,578
1231 Disbursements: Direct loan
disbursements................... 5,616 6,002 6,334
1251 Repayments: Repayments and
prepayments..................... -8,296 -5,283 -3,029
1261 Adjustments: Capitalized interest. 283
1264 Write-offs for default: Other
adjustments, net................ -133 -69 -73
--------- --------- ----------
1290 Outstanding, end of year........ 24,928 25,578 28,810
----------------------------------------------------------------------------

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 5,450 5,977 6,574
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 5,450 5,977 6,574
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 19,554 17,829 18,978
1231 Disbursements: Direct loan
disbursements................... 4,615 5,117 5,551
1251 Repayments: Repayments and
prepayments..................... -6,739 -4,333 -2,579
1261 Adjustments: Capitalized interest. 494 427 569
1264 Write-offs for default: Other
adjustments, net................ -95 -62 -67
--------- --------- ----------
1290 Outstanding, end of year........ 17,829 18,978 22,452
----------------------------------------------------------------------------

PLUS
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 2,262 2,693 3,022
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 2,262 2,693 3,022
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 5,078 4,922 5,824
1231 Disbursements: Direct loan
disbursements................... 2,117 2,475 2,778
1251 Repayments: Repayments and
prepayments..................... -2,298 -1,519 -1,391
1261 Adjustments: Capitalized interest. 52
1264 Write-offs for default: Other
adjustments, net................ -27 -54 -63
--------- --------- ----------
1290 Outstanding, end of year........ 4,922 5,824 7,148
----------------------------------------------------------------------------

CONSOLIDATION
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 17,663 13,824 7,977
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 17,663 13,824 7,977
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 37,155 47,027 54,841
1231 Disbursements: Direct loan
disbursements................... 15,136 13,740 7,908
1251 Repayments: Repayments and
prepayments..................... -6,046 -5,691 -5,359

[[Page 369]]

1261 Adjustments: Capitalized interest. 1,034
1264 Write-offs for default: Other
adjustments, net................ -252 -235 -281
--------- --------- ----------
1290 Outstanding, end of year........ 47,027 54,841 57,109
---------------------------------------------------------------------------

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 2004 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.

Balance Sheet (in millions of dollars)

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

1,672

4,913

Investments in US securities:
1106

Receivables, net

1,218

4,150

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

1401

Direct loans receivable, gross

89,245

94,707

1402

Interest receivable

2,858

3,121

1405

Allowance for subsidy cost (-)

1,644

-2,132

1499

Net present value of assets related to direct loans

93,747

95,696

1999

Total assets

96,637

104,759

LIABILITIES:
Federal liabilities:

2101

Accounts payable

217

388

2103

Debt

96,420

104,371

2999

Total liabilities

96,637

104,759

4999

Total liabilities and net position

96,637

104,759

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

Federal Family Education Loan Program Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 11,130 9,839 6,125
00.04 Modification subsidy, upward...... 147 1,724
00.07 Upward reestimate, principal...... 2,394 6,999
00.08 Upward reestimate, interest....... 90 588
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 13,761 19,150 6,125
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 13,761 19,150 6,125
22.10 Resources available from
recoveries of prior year
obligations..................... 556 632 602
22.40 Capital transfer to general fund.. -556 -632 -602
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13,761 19,150 6,125
23.95 Total new obligations............. -13,761 -19,150 -6,125
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 13,761 19,150 6,125
Spending authority from offsetting
collections:

69.00 Offsetting collections (cash)--
downward reestimate........... 1,440 303
69.27 Capital transfer to general fund -1,440 -303
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)...........
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 13,761 19,150 6,125
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,745 1,944 1,914
73.10 Total new obligations............. 13,761 19,150 6,125
73.20 Total outlays (gross)............. -13,005 -18,548 -5,340
73.40 Adjustments in expired accounts
(net)........................... -1
73.45 Recoveries of prior year
obligations..................... -556 -632 -602
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,944 1,914 2,097
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 11,819 17,238 4,029
86.98 Outlays from mandatory balances... 1,186 1,310 1,311
--------- --------- ----------
87.00 Total outlays (gross)........... 13,005 18,548 5,340
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1,440 -303
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 12,321 18,847 6,125
90.00 Outlays........................... 11,565 18,245 5,340
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Stafford.......................... 21,376 22,615 24,327
215002Unsubsidized Stafford............. 21,185 23,801 26,019
215003PLUS.............................. 6,614 7,722 8,702
215004Consolidation..................... 51,230 45,511 25,239
--------- --------- ----------
215901Total loan guarantee levels....... 100,405 99,649 84,287
Guaranteed loan subsidy (in percent):
232001Stafford.......................... 16.73 17.78 18.77
232002Unsubsidized Stafford............. 3.19 1.12 0.78
232003PLUS.............................. 1.36 -0.01 -0.63
232004Consolidation..................... 13.25 12.20 5.59
--------- --------- ----------
232901Weighted average subsidy rate..... 11.09 9.87 7.27
Guaranteed loan subsidy budget authority:
233001Stafford.......................... 3,576 4,021 4,566
233002Unsubsidized Stafford............. 676 267 203
233003PLUS.............................. 90 -1 -55
233004Consolidation..................... 6,788 5,552 1,411
--------- --------- ----------
233901Total subsidy budget authority.... 11,130 9,839 6,125
Guaranteed loan subsidy outlays:
234001Stafford.......................... 2,969 3,336 3,769
234002Unsubsidized Stafford............. 595 341 190
234003PLUS.............................. 81 30 -30
234004Consolidation..................... 6,728 5,530 1,411
--------- --------- ----------
234901Total subsidy outlays............. 10,373 9,237 5,340
Guaranteed loan upward reestimate subsidy
budget authority:
235001Stafford.......................... 169 956
235002Unsubsidized Stafford............. 361
235003PLUS.............................. 1 17
235004Consolidation..................... 2,486 6,749
235005SLS............................... 2 19
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 2,658 8,102
Guaranteed loan downward reestimate subsidy
budget authority:
237001Stafford.......................... -384 -280

[[Page 370]]

237002Unsubsidized Stafford............. -392 -94
237003PLUS.............................. -44 -44
237004Consolidation..................... -793 -386
237005SLS............................... -1
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -1,614 -804
----------------------------------------------------------------------------

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

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 Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
01.01 Interest benefits................. 1,378 2,305 3,104
01.02 Special allowance................. 1,301 871 200
01.03 Default claims.................... 987 1,443 1,554
01.04 Death, disability, and bankruptcy
claims.......................... 181 170 183
01.05 Teacher loan forgiveness, other
write-offs...................... 11 12 13
01.07 Contract collection costs......... 28 38 41
01.08 Guaranty Agency Administrative
Fees............................ 72 70 160
01.09 Voluntary flexible agreement
performance fee................. 76 166 182
--------- --------- ----------
01.91 Subtotal, Stafford loans........ 4,034 5,075 5,437
02.02 Special allowance................. 1,023 771 169
02.03 Default claims.................... 691 1,044 1,190
02.04 Death, disability, and bankruptcy
claims.......................... 145 169 194
02.05 Teacher loan forgiveness, other
write-offs...................... 7 10 10
02.07 Contract collection costs......... 17 14 17
02.08 Guaranty Agency Administrative
Fees............................ 68 72 152
02.09 Voluntary flexible agreement
performance fee................. 48 52 57
--------- --------- ----------
02.91 Subtotal, Unsubsidized Stafford
loans......................... 1,999 2,132 1,789
03.02 Special allowance................. 45 21 -42
03.03 Default claims.................... 62 139 159
03.04 Death, disability, and bankruptcy
claims.......................... 63 128 151
03.07 Contract Collection Costs......... 2 1 1
03.08 Guaranty Agency Administrative Fee 21 25 55
03.09 Voluntary flexible agreement
performance fee................. 6 7 8
--------- --------- ----------
03.91 Subtotal, PLUS loans............ 199 321 332
04.02 Special allowance................. 2
04.03 Default claims.................... 17 23 18
04.04 Death, disability and bankruptcy
claims.......................... 6 2 1
04.07 Contract collection costs......... 5 5 4
04.08 Voluntary flexible agreement
performance fee................. 3 4 5
--------- --------- ----------
04.91 Subtotal, SLS loans............. 33 34 28
05.01 Interest benefit.................. 393 386 457
05.02 Special allowance................. 1,851 4,097 4,321
05.03 Default claims.................... 2,061 1,650 2,011
05.04 Death, disability, and bankruptcy
claims.......................... 447 678 808
05.07 Contract collection costs......... 10 15 19
05.08 Voluntary flexible agreement
performance fee................. 59 50 54
05.10 Account Maintenance Fee........... 240
--------- --------- ----------
05.91 Subtotal, Consolidations loans.. 4,821 6,876 7,910
08.02 Payment of downward reestimate to
Program accnt................... 1,046 162
08.04 Interest on downward reestimate... 394 127
08.05 Downward Modification............. 14
--------- --------- ----------
08.91 Downward Reestimate- Subtotal (1
level)........................ 1,440 303
--------- --------- ----------
10.00 Total new obligations........... 12,526 14,741 15,496
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14,190 21,119 33,171
22.00 New financing authority (gross)... 19,401 26,793 14,086
22.10 Resources available from
recoveries of prior year
obligations..................... 54
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 33,645 47,912 47,257
23.95 Total new obligations............. -12,526 -14,741 -15,496
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 21,119 33,171 31,761
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

60.00 Appropriation................... 1 105
Spending authority from offsetting
collections:

69.00 Offsetting collections (cash)... 19,404 26,699 14,086
69.27 Capital transfer to general fund -4 -11
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 19,400 26,688 14,086
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 19,401 26,793 14,086
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,147 2,071 2,437
73.10 Total new obligations............. 12,526 14,741 15,496
73.20 Total financing disbursements
(gross)......................... -11,548 -14,375 -15,371
73.45 Recoveries of prior year
obligations..................... -54
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,071 2,437 2,562
87.00 Total financing disbursements
(gross)......................... 11,548 14,375 15,371
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Stafford loans................ -2,970 -3,336 -3,769
88.00 Unsubsidized Stafford......... -595 -342 -190
88.00 PLUS loans.................... -81 -30 30
88.00 Consolidated loans............ -6,728 -5,530 -1,412
88.00 Upward reestimate............. -2,484 -7,587
88.00 Modification.................. -147 -1,723
88.25 Interest on uninvested funds.. -565 -1,562 -1,840
88.40 Stafford recoveries on
defaults.................... -1,401 -1,341 -1,463
88.40 Stafford origination fees..... -625 -646 -546
88.40 Stafford other fees........... -30
88.40 Unsubsidized Stafford
recoveries on default....... -729 -662 -790
88.40 Unsubsidized Stafford
origination fees............ -596 -655 -568
88.40 Unsubsidized Stafford other
fees........................ -14
88.40 PLUS recoveries on defaults... -81 -94 -109
88.40 PLUS origination fees......... -185 -219 -199
88.40 PLUS other fees............... -3
88.40 SLS recoveries on defaults.... -92 -100 -89
88.40 SLS other fees................ -2
88.40 Consolidation recoveries on
defaults.................... -470 -701 -941
88.40 Consolidation origination fees -220 -227 -126
88.40 Consolidation loan holders fee -1,354 -1,944 -2,074
88.40 Consolidation other fees...... -32
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -19,404 -26,699 -14,086
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -3 94
90.00 Financing disbursements........... -7,857 -12,324 1,285
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 2005 actual 2006 est. 2007 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................. 21,376 22,615 24,328
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 21,376 22,615 24,328
2199 Guaranteed amount of guaranteed
loan commitments................ 21,376 22,615 24,328
----------------------------------------------------------------------------

[[Page 371]]

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 72,302 74,601 81,108
2231 Disbursements of new guaranteed
loans........................... 12,399 19,379 20,441
2251 Repayments and prepayments........ -8,921 -11,291 -6,253
Adjustments:

2261 Terminations for default that
result in loans receivable.... -987 -1,398 -1,564
2263 Terminations for default that
result in claim payments...... -181 -171 -183
2264 Other adjustments, net.......... -11 -12 -13
--------- --------- ----------
2290 Outstanding, end of year........ 74,601 81,108 93,536
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 74,601 81,108 93,536
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 2,657 2,454 2,322
2331 Disbursements for guaranteed
loan claims................... 987 1,398 1,564
2351 Repayments of loans receivable.. -1,226 -1,341 -1,463
2361 Write-offs of loans receivable.. -181 -189 -182
2364 Other adjustments, net.......... 217
--------- --------- ----------
2390 Outstanding, end of year...... 2,454 2,322 2,241
----------------------------------------------------------------------------

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................. 21,185 23,801 26,019
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 21,185 23,801 26,019
2199 Guaranteed amount of guaranteed
loan commitments................ 21,185 23,801 26,019
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 56,221 59,179 66,318
2231 Disbursements of new guaranteed
loans........................... 12,306 19,664 21,327
2251 Repayments and prepayments........ -8,505 -11,339 -6,576
Adjustments:

2261 Terminations for default that
result in loans receivable.... -691 -1,008 -1,188
2263 Terminations for default that
result in claim payments...... -145 -169 -194
2264 Other adjustments, net.......... -7 -9 -10
--------- --------- ----------
2290 Outstanding, end of year........ 59,179 66,318 79,677
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 59,179 66,318 79,677
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 1,695 1,740 1,912
2331 Disbursements for guaranteed
loan claims................... 691 1,008 1,188
2351 Repayments of loans receivable.. -655 -661 -790
2361 Write-offs of loans receivable.. -145 -175 -194
2364 Other adjustments, net.......... 154
--------- --------- ----------
2390 Outstanding, end of year...... 1,740 1,912 2,116
----------------------------------------------------------------------------

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................. 6,614 7,722 8,702
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 6,614 7,722 8,702
2199 Guaranteed amount of guaranteed
loan commitments................ 6,614 7,722 8,702
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 13,498 14,611 17,029
2231 Disbursements of new guaranteed
loans........................... 3,738 6,573 7,418
2251 Repayments and prepayments........ -2,500 -3,897 -3,083
Adjustments:

2261 Terminations for default that
result in loans receivable.... -62 -130 -159
2263 Terminations for default that
result in claim payments...... -63 -128 -150
--------- --------- ----------
2290 Outstanding, end of year........ 14,611 17,029 21,055
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 14,611 17,029 21,055
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 334 291 264
2331 Disbursements for guaranteed
loan claims................... 62 130 159
2351 Repayments of loans receivable.. -68 -94 -109
2361 Write-offs of loans receivable.. -63 -63 -60
2364 Other adjustments, net.......... 26
--------- --------- ----------
2390 Outstanding, end of year...... 291 264 254
----------------------------------------------------------------------------

SLS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 384 276 184
2251 Repayments and prepayments........ -85 -67 -37
Adjustments:

2261 Terminations for default that
result in loans receivable.... -17 -23 -20
2263 Terminations for default that
result in claim payments...... -6 -2 -1
--------- --------- ----------
2290 Outstanding, end of year........ 276 184 126
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 276 184 126
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 414 385 302
2331 Disbursements for guaranteed
loan claims................... 17 22 20
2351 Repayments of loans receivable.. -74 -100 -89
2361 Write-offs of loans receivable.. -6 -5 -4
2364 Other adjustments, net.......... 34
--------- --------- ----------
2390 Outstanding, end of year...... 385 302 229
----------------------------------------------------------------------------

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................. 51,230 45,511 25,239
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 51,230 45,511 25,239
2199 Guaranteed amount of guaranteed
loan commitments................ 51,230 45,511 25,239
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 100,176 138,457 168,892
2231 Disbursements of new guaranteed
loans........................... 53,134 45,311 25,128
2251 Repayments and prepayments........ -12,345 -12,457 -12,063
Adjustments:

2261 Terminations for default that
result in loans receivable.... -2,061 -1,741 -1,990
2263 Terminations for default that
result in claim payments...... -447 -678 -807
--------- --------- ----------
2290 Outstanding, end of year........ 138,457 168,892 179,160
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 138,457 168,892 179,160
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 2,148 3,696 4,181
2331 Disbursements for guaranteed
loan claims................... 2,061 1,741 1,990
2351 Repayments of loans receivable.. -393 -701 -941
2361 Write-offs of loans receivable.. -447 -555 -613
2364 Other adjustments, net.......... 327
--------- --------- ----------
2390 Outstanding, end of year...... 3,696 4,181 4,617
---------------------------------------------------------------------------

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.

[[Page 372]]

Balance Sheet (in millions of dollars)

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

15,337

23,191

Investments in US securities:
1106

Receivables, net

1,972

524

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

1501

Defaulted guaranteed loans receivable, gross

7,247

8,566

1502

Interest receivable

1,580

1,691

1505

Allowance for subsidy cost (-)

-1,416

-1,711

1599

Net present value of assets related to defaulted guaranteed loans

7,411

8,546

1999

Total assets

24,720

32,261

LIABILITIES:
2101

Federal liabilities: Accounts payable

1,506

1,761

2204

Non-Federal liabilities: Liabilities for loan guarantees

23,214

30,500

2999

Total liabilities

24,720

32,261

4999

Total liabilities and net position

24,720

32,261

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

Federal Family Education Loan Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
01.01 Interest benefits, net of
origination fees................ 11 9 7
01.02 Special allowance net of
origination fees................ 9 5 1
01.03 Default claims.................... 41 54 40
01.04 Death, disability, and bankruptcy
claims.......................... 15 14 10
01.05 Contract collection costs......... 46 52 49
01.06 Voluntary flexible agreements..... 6 8 6
--------- --------- ----------
01.91 Subtotal, Stafford loans........ 128 142 113
02.01 Default claims.................... 3 7 5
02.02 Death, disability, and bankruptcy
claims.......................... 6 5 4
02.05 Contract collection costs......... 10 10 9
02.06 Voluntary flexible agreements..... 2 2 2
--------- --------- ----------
02.91 Subtotal, PLUS/SLS loans........ 21 24 20
--------- --------- ----------
10.00 Total new obligations........... 149 166 133
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 302 339
22.00 New budget authority (gross)...... 474 166 133
22.10 Resources available from
recoveries of prior year
obligations..................... 14
22.40 Capital transfer to general fund.. -302 -339
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 488 166 133
23.95 Total new obligations............. -149 -166 -133
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 339
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 1,102 1,028 954
69.27 Capital transfer to general
fund........................ -628 -862 -821
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 474 166 133
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 51 23 23
73.10 Total new obligations............. 149 166 133
73.20 Total outlays (gross)............. -163 -166 -133
73.45 Recoveries of prior year
obligations..................... -14
--------- --------- ----------
74.40 Obligated balance, end of year.. 23 23 23
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 163 166 133
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Fed collections on defaulted
loans, Stafford............. -213 -324 -301
88.40 Federal collections on
bankruptcies, Stafford...... -4 -4 -3
88.40 Offsets against Federal tax
refunds,Stafford............ -327 -245 -227
88.40 Reimbursements from guaranty
agencies, Stafford.......... -280 -263 -245
88.40 Other collections/ fees,
Stafford.................... -58 -31 -29
88.40 Federal collections on
defaulted loans, PLUS/SLS... -70 -76 -70
88.40 Federal collections on
bankruptcies, PLUS/SLS...... -1 -1 -1
88.40 Offsets against Federal tax
refunds, PLUS/SLS........... -27 -18 -17
88.40 Reimbursements from guaranty
agencies, PLUS/SLS.......... -122 -66 -61
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -1,102 -1,028 -954
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -628 -862 -821
90.00 Outlays........................... -939 -862 -821
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
STAFFORD LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,745 1,276 1,091
2251 Repayments and prepayments........ -414 -118 -70
Adjustments:

2261 Terminations for default that
result in loans receivable.... -40 -54 -44
2263 Terminations for default that
result in claim payments...... -15 -13 -10
--------- --------- ----------
2290 Outstanding, end of year........ 1,276 1,091 967
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1,276 1,091 967
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 8,822 8,005 7,531
2331 Disbursements for guaranteed
loan claims................... 40 54 44
2351 Repayments of loans receivable.. -439 -460 -428
2361 Write-offs of loans receivable.. -15 -14 -13
2364 Other adjustments, net.......... -403 -54 -50
--------- --------- ----------
2390 Outstanding, end of year...... 8,005 7,531 7,084
----------------------------------------------------------------------------

PLUS/SLS LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 928 793 773
2251 Repayments and prepayments........ -126 -8 -5
Adjustments:

2261 Terminations for default that
result in loans receivable.... -3 -7 -6
2263 Terminations for default that
result in claim payments...... -6 -5 -4
--------- --------- ----------
2290 Outstanding, end of year........ 793 773 758
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 793 773 758
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 1,502 1,301 1,205
2331 Disbursements for guaranteed
loan claims................... 3 7 6
2351 Repayments of loans receivable.. -132 -86 -80
2361 Write-offs of loans receivable.. -6 -5 -5
2364 Other adjustments, net.......... -66 -12 -12
--------- --------- ----------
2390 Outstanding, end of year...... 1,301 1,205 1,114
---------------------------------------------------------------------------

\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

[[Page 373]]

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.

Balance Sheet (in millions of dollars)

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

353

362

Investments in US securities:
1106

Receivables, net

1701

Defaulted guaranteed loans, gross

10,323

9,306

1702

Interest receivable

857

595

1703

Allowance for estimated uncollectible loans and interest (-)

-7,921

-6,736

1704

Defaulted guaranteed loans and interest receivable, net

3,259

3,165

1799

Value of assets related to loan guarantees

3,259

3,165

1999

Total assets

3,623

3,527

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

3,498

3,412

Non-Federal liabilities:

2201

Accounts payable

2204

Liabilities for loan guarantees

115

111

2999

Total liabilities

3,623

3,527

4999

Total liabilities and net position

3,623

3,527

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Other services.................... 56 62 58
33.0 Investments and loans............. 44 62 46
41.0 Grants, subsidies, and
contributions................... 28 24 15
42.0 Insurance claims and indemnities.. 21 18 14
--------- --------- ----------
99.9 Total new obligations........... 149 166 133
---------------------------------------------------------------------------

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 National Assessment of Educational
Progress Authorization Act, section 208 of the Educational Technical
Assistance Act of 2002, and section 664 of the Individuals with
Disabilities Education Act, [$522,695,000] $554,468,000, of which
[$271,560,000] $298,844,000 shall be available until September 30,
[2007] 2008[: Provided, That of the amount provided to carry out title
I, parts B and D of Public Law 107-279, not less than $25,257,000 shall
be for the national research and development centers authorized under
section 133(c)]. (Department of Education Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Research and statistics:

00.01 Research, development, and
dissemination................. 166 163 163
00.02 Statistics...................... 91 90 93
00.03 Regional educational laboratories. 66 65 65
00.04 Assessment........................ 94 93 97
00.05 Research in special education..... 83 72 72
00.06 Statewide data systems............ 49 54
00.07 Special education studies and
evaluations..................... 10 10
00.08 Comprehensive regional assistance
centers......................... 4
--------- --------- ----------
01.00 Total direct program............ 504 542 554
09.01 Reimbursable program.............. 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 507 545 557
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 25
22.00 New budget authority (gross)...... 530 520 557
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 532 545 557
23.95 Total new obligations............. -507 -545 -557
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 25
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 527 523 554
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -6
40.35 Appropriation permanently
reduced....................... -4
42.00 Transferred from other accounts. 4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 527 517 554
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 3 3 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 530 520 557
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 602 621 504
73.10 Total new obligations............. 507 545 557
73.20 Total outlays (gross)............. -461 -662 -542
73.40 Adjustments in expired accounts
(net)........................... -28
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 621 504 519
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 95 133 141
86.93 Outlays from discretionary
balances........................ 366 529 401
--------- --------- ----------
87.00 Total outlays (gross)........... 461 662 542
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -4 -3 -3
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.................. 527 517 554
90.00 Outlays........................... 457 659 539
---------------------------------------------------------------------------

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. In 2007, funds will also support
costs of beginning a new longitudinal study of secondary school
students.

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
2007, funds will also support costs of expanding State NAEP to grade 12
in 2009.

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.

[[Page 374]]

Statewide data systems.--Funds support competitive awards to State
educational agencies to foster the design, development, and
implementation of longitudinal data systems, including grants to improve
reporting of high school graduation rates and dropout data.

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)

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 1
25.1 Advisory and assistance services 4 4 4
25.2 Other services.................. 164 171 178
25.3 Other purchases of goods and
services from Government
accounts...................... 18 15 15
25.5 Research and development
contracts..................... 92 92 92
25.7 Operation and maintenance of
equipment..................... 1 1 1
41.0 Grants, subsidies, and
contributions................. 220 255 260
--------- --------- ----------
99.0 Direct obligations............ 502 540 553
99.0 Reimbursable obligations.......... 3 3 3
99.5 Below reporting threshold......... 2 2 1
--------- --------- ----------
99.9 Total new obligations........... 507 545 557
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 13 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, [$415,303,000.] $425,966,000, of which $4,550,000, to remain
available until expended, shall be for building alterations and related
expenses for the move of Department staff to the Mary E. Switzer
building in Washington, D.C. (Department of Education Appropriations
Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Program administration............ 424 411 426
09.01 Reimbursable program.............. 2 1 1
--------- --------- ----------
10.00 Total new obligations........... 426 412 427
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 6
22.00 New budget authority (gross)...... 421 412 427
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 427 412 427
23.95 Total new obligations............. -426 -412 -427
23.98 Unobligated balance expiring or
withdrawn....................... -2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 423 415 426
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -4
40.35 Appropriation permanently
reduced....................... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 419 411 426
Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 1 1
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 2 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 421 412 427
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 121 125 147
73.10 Total new obligations............. 426 412 427
73.20 Total outlays (gross)............. -417 -390 -429
73.40 Adjustments in expired accounts
(net)........................... -6
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -2
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 2
--------- --------- ----------
74.40 Obligated balance, end of year.. 125 147 145
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 334 320 330
86.93 Outlays from discretionary
balances........................ 83 70 99
--------- --------- ----------
87.00 Total outlays (gross)........... 417 390 429
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2 -1 -1
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -2
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 419 411 426
90.00 Outlays........................... 414 389 428
---------------------------------------------------------------------------

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.

Included in this account is the Department of Education's cost to
renovate and upgrade the Mary E. Switzer building, in order to
consolidate staff located in various buildings in Washington, D.C.

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.

[[Page 375]]

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)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 171 197 203
11.3 Other than full-time permanent 29 5 5
11.5 Other personnel compensation.. 3 4 4
--------- --------- ----------
11.9 Total personnel compensation.. 203 206 212
12.1 Civilian personnel benefits..... 48 48 51
13.0 Benefits for former personnel... 1
21.0 Travel and transportation of
persons....................... 5 5 5
23.1 Rental payments to GSA.......... 36 38 39
23.3 Communications, utilities, and
miscellaneous charges......... 11 11 11
24.0 Printing and reproduction....... 3 4 4
25.1 Advisory and assistance services 3 2 2
25.2 Other services.................. 23 19 20
25.3 Other purchases of goods and
services from Government
accounts...................... 23 15 15
25.7 Operation and maintenance of
equipment..................... 52 48 47
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 14 12 15
32.0 Land and structures............. 1 3
--------- --------- ----------
99.0 Direct obligations............ 424 411 426
99.0 Reimbursable obligations.......... 2 1 1
--------- --------- ----------
99.9 Total new obligations........... 426 412 427
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 2,245 2,208 2,213
---------------------------------------------------------------------------

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, [$91,526,000] $92,866,000. (Department of Education Appropriations
Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Civil rights...................... 89 91 93
--------- --------- ----------
10.00 Total new obligations........... 89 91 93
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 89 91 93
23.95 Total new obligations............. -89 -91 -93
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 90 92 93
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 89 91 93
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 20 22 21
73.10 Total new obligations............. 89 91 93
73.20 Total outlays (gross)............. -86 -92 -93
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 22 21 21
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 73 76 78
86.93 Outlays from discretionary
balances........................ 13 16 15
--------- --------- ----------
87.00 Total outlays (gross)........... 86 92 93
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 89 91 93
90.00 Outlays........................... 86 92 93
---------------------------------------------------------------------------

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............... 50 53 53
11.3 Other than full-time permanent.... 2 2 2
11.5 Other personnel compensation...... 1 1
--------- --------- ----------
11.9 Total personnel compensation.... 52 56 56
12.1 Civilian personnel benefits....... 12 13 13
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 7 8 9
23.3 Communications, utilities, and
miscellaneous charges........... 2 2 2
25.2 Other services.................... 1 2 2
25.3 Other purchases of goods and
services from Government
accounts........................ 3 3 4
25.7 Operation and maintenance of
equipment....................... 7 3 3
31.0 Equipment......................... 2 1 1
32.0 Land and structures............... 1 1
--------- --------- ----------
99.0 Direct obligations................ 87 90 92
99.5 Below reporting threshold......... 2 1 1
--------- --------- ----------
99.9 Total new obligations........... 89 91 93
---------------------------------------------------------------------------

Personnel Summary

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, [$49,000,000] $53,145,000. (Department of Education Appropriations
Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Inspector General................. 47 49 53
--------- --------- ----------
10.00 Total new obligations........... 47 49 53
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 48 49 53
23.95 Total new obligations............. -47 -49 -53
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 48 49 53
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 14 11 10

[[Page 376]]

73.10 Total new obligations............. 47 49 53
73.20 Total outlays (gross)............. -50 -50 -49
--------- --------- ----------
74.40 Obligated balance, end of year.. 11 10 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 41 40 42
86.93 Outlays from discretionary
balances........................ 9 10 7
--------- --------- ----------
87.00 Total outlays (gross)........... 50 50 49
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 48 49 53
90.00 Outlays........................... 49 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............... 23 25 26
11.3 Other than full-time permanent.... 1 1 1
11.5 Other personnel compensation...... 2
--------- --------- ----------
11.9 Total personnel compensation.... 26 26 27
12.1 Civilian personnel benefits....... 8 8 8
21.0 Travel and transportation of
persons......................... 1 2 2
23.1 Rental payments to GSA............ 4 4 5
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.1 Advisory and assistance services.. 2 3 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....................... 2 1 3
31.0 Equipment......................... 1 1 1
32.0 Land and structures............... 1 1
--------- --------- ----------
99.9 Total new obligations........... 47 49 53
---------------------------------------------------------------------------

Personnel Summary

HURRICANE EDUCATION RECOVERY

Federal Funds

General and special funds:

Hurricane Education Recovery

[For assisting in meeting the educational needs of individuals
affected by hurricanes in the Gulf of Mexico in calendar year 2005,
$1,600,000,000, to remain available through September 30, 2006, of which
$750,000,000 shall be available to State educational agencies until
expended to carry out section 102 of title IV, division B of this Act,
$5,000,000 shall be available to carry out section 106 of title IV,
division B of this Act, $645,000,000 shall be available to carry out
section 107 of title IV, division B of this Act, and $200,000,000 shall
be available to provide assistance under the programs authorized by
subparts 3 and 4 of part A, part C of title IV, and part B of title VII
of the Higher Education Act of 1965, for students attending institutions
of higher education (as defined in section 102 of that Act) that are
located in an area in which a major disaster has been declared in
accordance with section 401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act related to hurricanes in the Gulf of Mexico
in calendar year 2005 and who qualify for assistance under subparts 3
and 4 of part A and part C of title IV of the Higher Education Act of
1965, to provide emergency assistance based on demonstrated need to
institutions of higher education that are located in an area affected by
hurricanes in the Gulf of Mexico in calendar year 2005 and were forced
to close, relocate or significantly curtail their activities as a result
of damage directly sustained by such hurricanes, and to provide payments
to institutions of higher education to help defray the unexpected
expenses associated with enrolling displaced students from institutions
of higher education at which operations have been disrupted due to
hurricanes in the Gulf of Mexico in calendar year 2005: Provided, That
of the $200,000,000 described in the preceding proviso, $95,000,000
shall be for the Mississippi Institutes of Higher Learning to provide
assistance under such title IV programs, notwithstanding any
requirements relating to matching, Federal share, reservation of funds,
or maintenance of effort that would otherwise be applicable to that
assistance; $95,000,000 shall be for the Louisiana Board of Regents to
provide emergency assistance based on demonstrated need under part B of
title VII of the Higher Education Act of 1965, which may be used for
student financial assistance, faculty and staff salaries, equipment and
instruments, or any purpose authorized under the Higher Education Act of
1965, to institutions of higher education that are located in an area
affected by hurricanes in the Gulf of Mexico in calendar year 2005; and
$10,000,000 shall be available to the Secretary of Education for such
payments to institutions of higher education to help defray the
unexpected expenses associated with enrolling displaced students from
institutions of higher education directly affected by hurricanes in the
Gulf of Mexico in calendar year 2005, in accordance with criteria as are
established by the Secretary and made publicly available without regard
to section 437 of the General Education Provisions Act or section 553 of
title 5, United States Code: Provided further, That the amounts provided
in this paragraph are designated as an emergency requirement pursuant to
section 402 of H. Con. Res. 95 (109th Congress), the concurrent
resolution on the budget for fiscal year 2006.] (Emergency Supplemental
Appropriations Act to Address Hurricanes in the Gulf of Mexico and
Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0013-0-1-500 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
Aid for elementary and secondary education:

00.01 Programs to restart school
operations.................... 750
00.02 Assistance for homeless children
and youth..................... 5
00.03 Temporary emergency impact aid
for displaced students........ 645
--------- --------- ----------
00.91 Subtotal, Aid for elementary and
secondary education........... 1,400
01.01 Aid for institutions of higher
education....................... 200
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,600
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,600
23.95 Total new obligations............. -1,600
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,600
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 140
73.10 Total new obligations............. 1,600
73.20 Total outlays (gross)............. -1,460 -140
--------- --------- ----------
74.40 Obligated balance, end of year.. 140
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,460
86.93 Outlays from discretionary
balances........................ 140
--------- --------- ----------

[[Page 377]]

87.00 Total outlays (gross)........... 1,460 140
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,600
90.00 Outlays........................... 1,460 140
---------------------------------------------------------------------------

Programs to restart school operations.--Funds provide assistance or
services to local educational agencies and non-public schools in
Alabama, Louisiana, Mississippi, and Texas to help defray expenses
related to the restart, reopening, and re-enrollment of students in
elementary and secondary schools that serve an area in which a major
disaster related to Hurricanes Katrina or Rita was declared.

Assistance for homeless children and youth.--Funds provide
assistance to local educational agencies (LEAs) to enable them to
address the needs of homeless students displaced by Hurricanes Katrina
and Rita. LEAs used the funds awarded under this program to support
activities that are allowable under the McKinney-Vento Homeless
Assistance Act.

Temporary emergency impact aid for displaced students.--Funds
provide assistance to local educational agencies for the cost of
educating students enrolled in public and nonpublic schools who were
displaced by Hurricanes Katrina and Rita during school year 2005-2006.

Aid to institutions of higher education.--Funds provide assistance
to qualifying students at institutions of higher education in areas
affected by Hurricanes Katrina and Rita; assistance to institutions
forced to close, relocate, or significantly curtail activities due the
the hurricanes; and assistance to institutions enrolling displaced
students from schools at which the hurricanes disrupted operations.

GENERAL FUND RECEIPT ACCOUNTS

(in millions of dollars)

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2005 actual 2006 est. 2007 est.
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Offsetting receipts from the public:
91-291500 Repayment of loans, capital
contributions, higher education
activities.......................... 32 42 42
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 32 42 42
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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 in 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
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. For an additional amount to carry out subpart 1 of part
A of title IV of the Higher Education Act of 1965 for the purpose of
eliminating the estimated accumulated shortfall of budget authority for
such subpart, $4,300,000,000, pursuant to section 303 of H. Con. Res. 95
(109th Congress), the concurrent resolution on the budget for fiscal
year 2006.]
[Sec. 306. Subpart 12 of part D of title V of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7265 et seq.) is amended--
(1) in section 5522(b) (20 U.S.C. 7265a(b)), by adding at the
end the following:
``(4) To authorize and develop cultural and educational programs
relating to any Federally recognized Indian tribe in Mississippi.'';
(2) in section 5523 (20 U.S.C. 7265b)--
``(6) The Mississippi Band of Choctaw Indians in Choctaw,
Mississippi.''; and
(A) in subsection (a)--
(i) by redesignating paragraphs (6) through (8) as paragraphs (7)
through (9) respectively; and
(ii) by inserting after paragraph (5) the following:
(B) in subsection (b), by adding at the end the following:
``(7) Cultural and educational programs relating to any Federally
recognized Indian tribe in Mississippi.''; and
(3) in section 5525(1) (20 U.S.C. 7265d(1))--
(A) in subparagraph (A), by striking ``and'' after the
semicolon;
(B) in subparagraph (B), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(C) the Mississippi Band of Choctaw Indians in Choctaw,
Mississippi.''.] (Department of Education Appropriations Act, 2006.)