The White House and Republican congressional leaders settled
negotiations on an education tax break in late May even though some
Democrats — including Congressional Black Caucus (CBC) members — are
skeptical of the overall budget agreement, of which it is a part.
The GOP quelled rebellion within its ranks after House Speaker Newt
Gingrich (R-Ga.) and Senate Majority Leader Trent Lott (R-Miss.) put a
commitment to education tax cuts in writing. The two leaders pledged to
provide “roughly” $35 billion over five years for postsecondary
education — “including a deduction and a tax credit.”
“We believe this package should be consistent with the objectives
put forward in the Hope scholarship and tuition tax proposals contained
in the administration’s FY 1998 budget to assist middle-class parents,”
the letter stated.
The letter followed a series of critical remarks about President
Bill Clinton’s plan from House leaders such as Rep. Bill Archer
(R-Texas), chairman of the House Ways and Means Committee that will
write much of the tax-cut language.
The letter accompanied the release of detailed documents on the
negotiated agreement and its effects; on domestic programs. The
documents show Clinton and Republican leaders agreed to provide a $300
increase in the maximum Pell Grant next year and to protect programs
such as Goals 2000, educational technology, Head Start and bilingual
education.
But federal programs not on this protected list could face freezes
or cuts over the life of the five-year agreement, based on the overall
budget framework.
Funding for discretionary education, training and social service
programs not protected by the agreement would remain frozen at $43.4
billion a year from 1998 to 2002. Programs that rely on this money
include Title 1 education, college work/study, aid to historically
Black colleges and universities, and scores of job-training and
social-service programs.
