[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)

----------------------------------------------------------------------------
Identification code 91-0900-0-1-501      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-0102-0-1-501      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

[[Page 345]]


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)

----------------------------------------------------------------------------
Identification code 91-1000-0-1-501      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

[[Page 346]]

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)

----------------------------------------------------------------------------
Identification code 91-0101-0-1-501      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

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

      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)

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

      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)

----------------------------------------------------------------------------
Identification code 91-1300-0-1-501      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-0300-0-1-501      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

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

      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)

----------------------------------------------------------------------------
Identification code 91-0602-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................          13          18          20
---------------------------------------------------------------------------

                                


 
                    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)

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

    New budget authority (gross), detail:
      Discretionary:

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

    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)

----------------------------------------------------------------------------
Identification code 91-4252-0-3-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

    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 years 1992 and 1993. The 
amounts in this account are a means of financing and are not incuded in 
the budget totals.

                             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

20

19

1402

Interest receivable



1

1405

Allowance for subsidy cost (-)

-3

-3





1499

Net present value of assets related to direct loans

17

17





1999

Total assets

17

17

    LIABILITIES:
2103

Federal liabilities: Debt

17

17





2999

Total liabilities

17

17





4999

Total liabilities and net position

17

17

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

[[Page 359]]



                                

   College Housing and Academic Facilities Loans Liquidating Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

6

6





1699

Value of assets related to direct loans

320

288





1999

Total assets

320

288

    LIABILITIES:
      Federal liabilities:

2103

Debt

92

83

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)

----------------------------------------------------------------------------
Identification code 91-4255-0-3-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

10

10

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

1401

Direct loans receivable, gross

118

126

1402

Interest receivable

3

3





1499

Net present value of assets related to direct loans

121

129





1999

Total assets

131

139

    LIABILITIES:
      Federal liabilities:

2102

Interest payable

3

3

2103

Debt

118

126

2201

Non-Federal liabilities: Undisbursed direct loans

10

10





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)

----------------------------------------------------------------------------
Identification code 91-0200-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................       1,114       1,159       1,159
---------------------------------------------------------------------------

                                

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)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-4253-0-3-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-4251-0-3-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

11



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

10

4

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)

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........           1           1           1
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..           2           2           2
24.0    Printing and reproduction.......           1                       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)

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         640         638         638
---------------------------------------------------------------------------

                                

                     Office of the Inspector General

    For expenses necessary for the Office of the Inspector General, as 
authorized by section 212 of the Department of Education Organization 
Act, [$49,000,000] $53,145,000. (Department of Education Appropriations 
Act, 2006.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1400-0-1-751      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 91-1400-0-1-751      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         299         296         298
---------------------------------------------------------------------------

                                


 
                      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)

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

                                


 
                           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.)
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