Congress Set to Vote on Massive Higher Education Bill with $169B in New Spending
Congress is poised to vote this week on the College Opportunity and Affordability Act of 2008 (COAA), a bill that has raised concerns among taxpayers and experts alike. The legislation, if passed, would lead to a substantial expansion of government and the creation of numerous federal programs. Additionally, the bill includes a staggering $169 billion in new federal spending over the next five years, a figure that has caught the attention of fiscal conservatives and advocates for responsible budgeting.
The Higher-Education Bill: The Unnoticed Budget Buster, a recent paper by Brian Riedl from The Heritage Foundation, highlights the problems with the COAA. Riedl points out that if the legislation passes, it would be among the largest authorized discretionary spending increases in American history, even surpassing the No Child Left Behind Act in magnitude. The COAA would authorize an average of $34 billion in new spending each year for various higher education subsidies, ranging from increased Pell Grants to student loan forgiveness programs. Furthermore, the bill would introduce at least fifty new federal programs.
This is not the first time federal subsidies for higher education have been expanded. Last year, President Bush signed the College Cost Reduction and Access Act of 2007, which increased Pell grant awards, reduced student loan rates, and implemented new student loan forgiveness programs. However, the estimated cost of this bill over the next decade is approximately $15 billion, a figure that could increase significantly if Congress decides to extend the lowered student loan rates beyond 2012.
According to Riedl, inflation-adjusted higher education spending has nearly tripled since 2001, from $9.4 billion to $27.6 billion. If the COAA is fully funded, it would result in an immediate 123% increase in spending and an astounding 555% increase compared to 2001 levels.
Critics argue that funneling more taxpayer dollars into higher education subsidies is an ineffective strategy. Despite decades of increased federal spending on student financial aid, college costs continue to soar. In fact, colleges and universities have responded to higher education spending increases by raising tuition prices and other costs. Over the past thirty years, the cost of attending public and private colleges has risen by 96% and 124%, respectively, even after accounting for inflation.
Supporters of the COAA argue that the bill’s financial disclosure requirements for universities that raise tuition prices will help deter future increases. However, opponents contend that this would do nothing to address the existing high prices and that colleges may continue to raise tuition rates despite the added pressure of financial disclosure.
Another consideration is fairness. The burden of higher education subsidies falls on taxpayers, a majority of whom do not hold college degrees. Critics question whether it is fair for workers who did not attend college to subsidize the fortunate few who did, especially considering that college graduates are estimated to earn nearly a million dollars more over their lifetime compared to those with only a high school diploma.
Given these concerns, many are urging President Bush to veto the College Opportunity and Affordability Act if it makes its way to his desk. They argue that it is a bad deal for taxpayers and fails to address the underlying issue of skyrocketing college costs.
As Congress prepares to vote on this massive higher education bill, the debate surrounding the COAA continues. While the goal of increasing access to education is admirable, critics of the legislation argue that pouring more taxpayer dollars into subsidies is an ineffective solution. They call for a reevaluation of this approach to ensure that college education remains affordable without burdening taxpayers or perpetuating the cycle of rising costs.
In the end, finding a balance between providing access to higher education and maintaining fiscal responsibility will be paramount. The outcomes of the upcoming congressional vote on the COAA will have far-reaching implications for students, taxpayers, and the future of higher education in America.
