FY '10 Budget

Before Congress can appropriate a dime, they have to pass a budget resolution. That is basically instructions to the appropriations committees in the House and Senate on how much they can spend and not where to spend it. The House and Senate are both expected to hold their final votes on the conference report for the fiscal 2010 budget resolution today.

According to CQ, "though nonbinding, the budget resolution sets a framework for future tax and spending decisions. It includes controversial reconciliation instructions that would ease passage of legislation, sought by Obama, to overhaul the nation’s health care system and curtail the role of private lenders in the federal student aid program. "

Stay tuned for the financial aid issue. This is more policy than appropriations, hence will the Obama administration succeed in making Pell Grants an entitlement program. And while we're on the financial aid front, the movement to have a central lending program run out to the Dept. of Education grows. Currently universities can choose between being a private lending school or a direct (gov't) lending school. As more private carriers get out of the business or keep bundling loans and selling to the Dept. of Education, the direct lending issue will grow.