[Congressional Record Volume 164, Number 92 (Tuesday, June 5, 2018)]
[House]
[Pages H4742-H4743]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HIGHLIGHTING NEW JOBS AND HIGHER WAGES
The SPEAKER pro tempore. The Chair recognizes the gentlewoman from
North Carolina (Ms. Foxx) for 5 minutes.
Ms. FOXX. Mr. Speaker, this month, the Federal Reserve estimated GDP
will hit 4.8 percent in the second quarter of 2018. Under the former
administration, GDP never hit even 3 percent.
Thanks to tax reform and regulatory relief passed by this unified
Republican government, Americans are experiencing economic expansion
after 8 years of stagnation. According to the Bureau of Labor
Statistics:
One million jobs have been created since the Tax Cuts and Jobs Act
was enacted--223,000 were added last month;
In May, average hourly earnings increased by 2.7 percent; and
Unemployment is at its lowest since 2000.
The Conference Board also reports consumer confidence is at a 17-year
high.
Democrats apparently haven't learned the key to economic progress,
promising to raise taxes if given the chance. However, tax cuts and
repeal of onerous Obama-era regulations have been pivotal for our
economy. Now, nearly every measure of success is in our favor.
The PROSPER Act is Good for Our Country
Ms. FOXX. Mr. Speaker, I want to talk a little bit today about the
PROSPER Act and share some articles that have been published that help
explain why the PROSPER Act is so good for our country, so good for
students, and needs to be passed.
The first article is an article in Forbes by Preston Cooper, May 23,
2018.
Mr. Speaker, I include the entire article in the Record.
[From Forbes, May 23, 2018]
What Betsy DeVos Should Have Said About the PROSPER Act
(By Preston Cooper)
Secretary of Education Betsy DeVos testified before the
House Committee on Education and Workforce on Tuesday.
Representative Bobby Scott, the Democratic ranking member on
the committee, asked DeVos about his concerns with the
PROSPER Act, House Republicans' bill to reform the federal
role in higher education. DeVos' answer could have been
better. Here's how the exchange between the two proceeded:
Rep. Scott: Madam Secretary, the PROSPER Act provides for a
$15 billion cut in student aid, is that right?
Secretary DeVos: I've heard that opined. I'm not sure I
agree with that, but . . .
Scott: Do you have another number?
DeVos: Pardon me?
Scott: Do you have another number?
DeVos: It's an approach to giving students much more
flexibility in pursuing their higher education.
Scott: $15 billion cut. Do you have another number?
DeVos: I have heard that opined, that that is the case. I
said I don't necessarily share that perspective.
Here's a better answer that DeVos could have given to
Scott's question. (The below exchange, in case it's not
clear, is entirely fictional.)
Rep. Scott: Madam Secretary, the PROSPER Act provides for a
$15 billion cut in student aid, is that right?
Secretary DeVos: That's not quite accurate, Congressman,
but it's a common misconception. The Congressional Budget
Office score of the PROSPER Act did estimate a $15 billion
reduction in student aid over the next ten years, but only on
the mandatory side of the budget. Democrats and many in the
media latched onto this number, which appeared on page two of
the score, and ignored what the other thirty-five pages said.
But as I have read the entire CBO score, I can tell you that
the PROSPER Act does not cut federal spending on higher
education.
The PROSPER Act expands the federal government's flagship
student aid program for low-income students, the Pell Grant.
To encourage timely completion, the bill provides a $300
bonus to Pell Grant students who take on more than a full-
time course load. Most importantly, the bill makes several
regulatory changes aimed at expanding both student and
institutional eligibility for the program. As a result, under
the PROSPER Act, an additional 1.1 million students annually
would receive Pell Grants by 2027.
All of these changes cost money, of course. But the Pell
Grant is unique among federal programs in that it is funded
partially on the mandatory side of the budget, and partially
through the annual appropriations process. The $15 billion
reduction in student aid that you cited, Congressman, only
reflects changes on the mandatory side. If you include the
estimated increase in appropriations due to Pell Grant
expansion in your calculations, you'll find that the PROSPER
Act will increase, federal spending on higher education by
$12 billion over the next ten years.
While the PROSPER Act increases higher education spending
overall, it's true that the bill finds savings in certain
areas. In a time when the national debt surpasses $21
trillion, it's important to live within our means. Changes to
student loan repayment options are the largest single source
of savings in the PROSPER Act. These changes mostly focus on
limiting loan forgiveness, which in practice delivers its
benefits mostly to graduate borrowers with very large loans.
The bill makes these changes while retaining income-driven
repayment options for borrowers to ensure monthly payments
remain affordable.
The PROSPER Act therefore redistributes federal funds from
graduate students and those with high student loan balances,
who tend to be higher-income, to the low- and middle-income
undergraduate students who receive Pell Grants. These
priorities are also reflected in the administration's budget
proposal, which would make the student loan program more
generous for undergraduates and pay for it by asking higher-
earning graduate borrowers to pay a little more.
In conclusion, the PROSPER Act does not cut federal higher
education funding by $15 billion. It increases funding by $12
billion by making new investments in the Pell Grant program
for our nation's most vulnerable
[[Page H4743]]
students. Recognizing budget constraints, the bill partially
offsets the cost by reining in poorly-targeted and expensive
loan forgiveness programs. While I welcome debate over
specific provisions of the PROSPER Act, I hope those are
priorities that Democrats on the committee can get behind.
Ms. FOXX. Mr. Speaker, Mr. Cooper explains that there is a common
misconception about PROSPER that is being exploited, unfortunately, by
many colleges and universities and our Democratic friends.
He says: ``The Congressional Budget Office score of the PROSPER Act
did estimate a $15 billion reduction in student aid over the next 10
years, but only on the mandatory side of the budget. Democrats and many
in the media latched onto this number, which appeared on page 2 of the
score, and ignored what the other 35 pages said. But as I have read the
entire CBO score, I can tell you that the PROSPER Act does not cut
Federal spending on higher education.''
``The PROSPER Act expands the Federal Government's flagship student
aid program for low-income students, the Pell grant. To encourage
timely completion, the bill provides a $300 bonus to Pell grant
students who take on more than a full-time course load. Most
importantly, the bill makes several regulatory changes aimed at
expanding both student and institutional eligibility for the program.
As a result, under the PROSPER Act, an additional 1.1 million students
annually would receive Pell grants by 2027.''
``. . . you'll find that the PROSPER Act will increase Federal
spending on higher education by $12 billion over the next 10 years.''
``Changes to student loan repayment options are the largest single
source of savings in the PROSPER Act. These changes mostly focus on
limiting loan forgiveness, which in practice delivers its benefits
mostly to graduate borrowers with very large loans. The bill makes
these changes while retaining income-driven repayment options for
borrowers to ensure monthly payments remain affordable.''
{time} 1215
``In conclusion, the PROSPER Act does not cut Federal higher
education funding by $15 billion. It increases funding by $12 billion
by making new investments in the Pell Grant program for our Nation's
most vulnerable students. Recognizing budget constraints, the bill
partially offsets the costs by reining in poorly-targeted and expensive
loan forgiveness programs.''
I welcome the debate over specific provisions in the PROSPER Act, and
I hope that those priorities are ones that the colleges and
universities will get behind, and that our colleagues on the other side
of the aisle will get behind.
____________________