2021-2022 Federal & State Budgets

President Biden signed into law the $1.5 trillion FY22 omnibus measure on Tuesday, funding the federal government for the remainder of the fiscal year.

Congress released the $1.5 trillion FY22 Omnibus Appropriations bill, the Consolidated Appropriations Act of 2022, to fund the federal government through the end of the current fiscal year (September 30, 2022). The bill, which represents a bipartisan and bicameral agreement, provides increases for most higher education and research programs of interest to APLU institutions.

On Tuesday, the House passed a continuing resolution (CR) to fund the government through March 11, with Senate Majority Leader Schumer (D-NY) saying the Senate will take up the CR before their President’s Day recess. Additionally, House and Senate Appropriations leaders reached an agreement Wednesday on an FY22 budget framework, permitting appropriations subcommittees to begin work on the twelve individual spending bills.

On Friday, the House passed the America COMPETES Act of 2022 by a final vote of 222-210. It was reported that the Senate might be planning to take up the House bill, swap in the Senate U.S. Innovation and Competition Act language, and pass the amended bill. The House and Senate could then go to conference on the two bills. However, it is unclear if this will happen before or after the upcoming Congressional recess. It is also unclear if formal conferees will be named or if the House and Senate will continue to “ping pong” legislation back and forth until an agreement is reached. The White House has indicated that it is eager to complete negotiations before the State of the Union address in March.

On January 25, Speaker Nancy Pelosi unveiled a new 2,900 page America COMPETES Act of 2022. The new legislation is a companion piece to the bipartisan U.S. Innovation and Competitiveness Act passed by the Senate in 2021. In a press release, Speaker Pelosi noted “The House legislation will supercharge our investment in CHIPS, advance manufacturing at home, strengthen our supply chain, transform our research capacity and advance our competitiveness and leadership abroad, plus many other key provisions.”

House Democrats provided an extensive section by section of the bill and fact sheet describing aspects of the bill. The House contains $52 billion to support domestic semiconductor manufacturing and would provide new authorizations for the National Science Foundation, Department of Energy, and the National Institute of Standards and Technology. The House Science Committee issued a press release outlining all of the Committee’s bills that were included in the package. In addition, FYI-Science Policy News publish an article highlighting science policy aspects of the bill.

The House Rules Committee will meet early next week to consider amendments and floor consideration will follow. Passage of the bill will set the stage for a formal conference with the Senate. House and Senate leadership hopes to reach a final agreement later this spring.

On Friday, Speaker Pelosi issued a press release announcing that House Democrats will soon introduce its competitiveness bill. The Speaker noted that, “We are proud of our legislation, which, thanks to Science, Space and Technology Committee Chair Eddie Bernice Johnson, strengthens America’s national and economic security and the financial security of families, as it advances our leadership in the world, now and into the future. The House legislation will supercharge our investment in chips, strengthen our supply chain and transform our research capacity, plus many other key provisions.”

The U.S. Innovation and Competitiveness Act, a $250 billion authorization bill, which aims to increase global competitiveness, was passed by the Senate in 2021. The Wall Street Journal reported that action on the bill has been delayed due ongoing debate about the possible additions by the House, including provisions focused on economic inequality and climate change. Despite these differences, House Democratic Leaders are aiming to pass a new bill in the House and come to an agreement with the Senate to ensure a bipartisan accomplishment.

The chairs and ranking members of the House and Senate appropriations committees met last Thursday to discuss parameters towards a FY22 appropriations resolution. The federal government is currently operating on a Continuing Resolution for FY22 that expires on February 18. The meeting, the group’s first since November, did not result in an agreement. Following the meeting, Senate Appropriations Chairman Patrick Leahy (D-VT) said “I told everybody I would like to continue the discussion,” and Senate Appropriations Ranking Member Richard Shelby (R-AL) called the conversation “constructive.”  House Appropriations Chair Rosa DeLauro (D-CT) stated “It was a good meeting and we’re going to continue to work.” In addition to reaching agreement on overall spending levels, how to handle policy riders also must be resolved.  

In furtherance of Majority Leader Chuck Schumer’s (D-NY) goal to advance the Build Back Better (BBB) Act prior to Christmas, a number of Senate committees began releasing legislative text and Congressional Budget Office scores for their parts of the reconciliation package. Committees are working to try to ensure compliance with reconciliation rules as the Senate Parliamentarian holds bipartisan “Byrd bath” meetings this week. The Senate Finance and HELP Committees followed on Saturday by releasing their updates.

Below is a summary of the changes from the House-passed Build Back Better Act in the Senate bills that have been released thus far.

Summary of Changes

The education provisions in the Senate text have not changed from the House version of the bill. Specifically, the Senate maintained the $550 increase to the Pell Grant program, which continues to be limited to only public and private non-profit institutions of higher education.

Within the finance section, the provisions APLU has tracked continue to be included in the Senate bill text. Small changes have been made to the Public University Research Infrastructure Tax Credit and the Qualified Environmental Justice Program Credit, excluding some of the specific provisions related to program implementation that may have been subject to a Byrd challenge.

The research agency funding provisions in the Senate Commerce Committee text remain the same as the House version. Due to differences in committee jurisdictions, there are some superficial changes in section numbers.

Within the Senate Agriculture Committee legislative text, several programs of interest to APLU institutions would receive increases or a decrease as compared to the House-passed BBB. The Agriculture and Food Research Initiative receives $285M for FY22, a $75 million increase from the House bill). Additionally, the Foundation for Food and Agriculture Research receives $285M for FY22, also a $75 million increase from the House bill.). Finally, the Wood Innovation Grant Program (facilities construction) receives $775 million, a reduction of $250 million as compared to the House bill.
 

The House of Representatives last night passed an amended version of the National Defense Authorization Act for Fiscal Year 2022 agreed upon by Democratic and Republican leadership of the House and Senate Armed Services Committees. The legislation passed on a 363-70 vote. The Senate is expected to quickly pass the agreement. In advance of the vote, the House Armed Services Committee provided a summary and explanatory statement on the agreement.

We are pleased the higher education community was successful in advocating for increased basic research funding authorizations. Additionally, provisions of concern regarding increased research security regulations were removed and will likely be considered next year as part of the U.S. Innovation and Competition (S. 1260) conference. The measure also does not include the language in the Senate NDAA requiring publication of diversity training materials, speakers, etc.

APLU’s bill analysis highlights additional areas of interest and impact, including a new Higher Education Act requirement that public institutions provide in-state tuition to qualifying foreign service officers, spouses, and dependents. The requirement is meant to encompass foreign service officers within the existing HEA in-state tuition requirement for active duty servicemembers. The measure also includes provisions related to DOD and Army tuition assistance benefits.

On Friday, the House passed the Build Back Better act with a 220-213 final vote count. The sweeping legislation bolsters many social spending programs including supporting scientific research and increasing the maximum Pell grant by $550. The Build Back Better Act will now advance to the Senate where it is likely to be taken up in early December. Changes will be made to the reconciliation bill in order to conform to the Senate Byrd Rule and garner the support necessary to win over fifty democratic senators. The immigration reform proposal is one provision that is in jeopardy due to senate parliamentary rules.

On November 17, Speaker Pelosi (D-CA) and Majority Leader Schumer (D-NY) issued a joint statement on the status of USICA. In the statement the congressional leaders announced that the bipartisan United States Innovation and Competition Act (USICA) will be conferenced to resolve differences in the House and Senate versions of the legislation. The agreement to go to conference was reached after Senate Republicans indicated opposition to Majority Leader Schumer’s plans to attached USICA to the FY2022 NDAA.

House and Senate leadership hope to reach a final agreement before the end of the year.

The White House recently released a factsheet outlining “25 competitive infrastructure funding opportunities for local governments.” Funding opportunities for local governments relate to the following three subcategories: Transportation; Climate, Energy & Environment; and Broadband, Cyber, and Other Programs. The factsheet also shares best practices as municipalities prepare to apply for and receive federal infrastructure funds. Agency contact information is also included.

Last week, President Biden announced the details of a new framework for a $1.85 trillion Build Back Better (BBB) Act.

APLU expressed support for Congress to advance the legislation. While the bill was significantly scaled back, the legislation still includes many core higher education and research priorities.

On Thursday, Rep. John Garamendi (D-CA), along with 80 Democratic members of the House and Senate, sent a Dear Colleague letter to Speaker Pelosi and Majority Leader Schumer requesting that a Pell increase be maintained in the final version of the Build Back Better Act.

On Monday, Senate Appropriations Committee Chairman Patrick Leahy (D-VT) released the final nine of twelve Fiscal Year 2022 Appropriations bills as well as subcommittee explanatory statements.  As noted in the press release, the bills comply with the topline spending allocation contained in the Fiscal Year 2022 Budget Resolution.

The bills were released without agreement from Senate Republicans, however, and do not move Congress any closer to agreement on a FY22 budget. The Senate has not reached bipartisan agreement on overall defense and non-defense spending totals, continuing to delay the process of developing an annual budget. Failure to reach an agreement before the current continuing resolution expires on December 3 could result in a one-year stopgap or another short-term measure.

On Tuesday, the Double Pell Alliance, comprised of higher education associations, including APLU, organizations and advocacy groups, launched DoublePell.org, a national campaign to double the maximum Pell Grant award to $13,000. The site provides students and families with tools to communicate with Congress in support of doubling Pell, engage on social media, and share personal stories about how the Pell Grant has helped them. The heart of #Doublepell is the Take Action page, which includes a customizable letter that students, families, alumni, and other stakeholders can send to their members of Congress, and shareable social media graphics to amplify the #DoublePell campaign messages.

Yesterday, Representative Bobby Scott (D-VA), chairman of the House Education & Labor Committee, Representative Mark Pocan (D-WI), Senator Patty Murray (D-WA), chair of the Senate Health, Education, Labor, and Pensions Committee, and Senator Mazie Hirono (D-HI) reintroduced the Pell Grant Preservation and Expansion Act of 2021, which would double the maximum federal Pell Grant to $13,000 over five years, shift all Pell funding to mandatory spending, reinstate the mandatory inflation adjustment, increase eligibility from 12 semesters to 18 semesters, and expand eligibility to Dreamers.

The bill also includes a substantive rewrite of satisfactory academic progress (SAP) policy, which contains some changes that APLU is concerned with. We have expressed those concerns to committee staff, and while there was not an opportunity to address those concerns prior to introduction, staff has expressed willingness to work with the higher ed community on the proposal. Specifically, the changes would:

• Create uniform standards for when institutions must review SAP, rather than maintaining the flexibility provided through current regulations

• Codify several requirements that are currently set in regulation

• Introduce new student notification requirements and required reports to Congress, which would likely result in new reporting requirements for institutions

• Require SAP policies to be consistent across Title IV and institutional need-based aid programs

On Tuesday, the House Science, Space, and Technology Committee marked up and advanced H.R. 2225, the National Science Foundation for the Future Act, and H.R. 3593, the Department of Energy Science for the Future Act, by voice vote. Of particular note, funding for NSF in the NSF for the Future Act was increased to $78 billion (previously $73 billion) over 5 years.

Earlier this week, House Appropriations Committee Chairwoman Rosa DeLauro (D-CT) announced the markup schedule for the FY2022 appropriations bills. Subcommittee and full committee markups will begin on June 24 and conclude by July 16. APLU will provide detailed analyses of the bills and update our FY2022 appropriations priorities chart to reflect House action.

On Monday, House Democrats signed off on a deeming resolution on a Fiscal Year 2022 budget that would provide $1.506 trillion in discretionary spending. The resolution does not break down specific funding levels for defense and nondefense as that decision will be left up to House Appropriations Committee Chairwoman Rosa DeLauro (D-CT). Passage of the deeming resolution means House members can bypass hours of floor debate, allowing for completion of all 12 spending bills before August recess.

In the Senate, Majority Leader Chuck Schumer (D-NY) held a meeting with Democrats yesterday to discuss a budget resolution to unlock reconciliation. Very few details were released following the meeting, however, Budget Chair Bernie Sanders (I-VT) said Democrats are looking to adopt a budget resolution on the floor before August recess.

Yesterday, the Department of Education (ED) issued a Notice of Interpretation (NOI) reversing Trump-era guidance which determined discrimination based on sexual orientation and gender identity were not covered under Title IX. The NOI, which is based on the Supreme Court ruling in Bostock v. Clayton County, indicates ED will enforce Title IX protections for LGBTQ students who experience discrimination based on sexual orientation or gender identity. In a statement, ED Secretary Miguel Cardona said the NOI “makes clear that all students—including LGBTQ+ students—deserve the opportunity to learn and thrive in schools that are free from discrimination."

On Tuesday, the Senate passed the U.S. Innovation and Competition Act (USICA) on a 68-32 vote.

APLU President Peter McPherson released a statement hailing passage of the bill, writing “Senate passage of the U.S. Innovation and Competition Act is a critical legislative step forward for American science and innovation. It enables exactly the kind of investments necessary to ensure the U.S. remains the world’s unparalleled innovation powerhouse.” The statement also expressed concerns about research security provisions attached to the bill and APLU’s desire to work “with lawmakers to ensure new research security regulations are appropriate in scope, not duplicative, and don’t needlessly hamper appropriate international education and scientific partnerships.”  

President Biden also issued a statement applauding passage of the bill. “Along with the American Jobs Plan, the U.S. Innovation and Competition Act would make generational investments in research and development and advanced manufacturing to help us grow critical industries and win the jobs of the future. It will empower us to discover, build, and enhance tomorrow’s most vital technologies — from artificial intelligence, to computer chips, to the lithium batteries used in smart devices and electric vehicles — right here in the United States,” the statement said.

USICA now moves to the House where it faces several hurdles as Democrats work to advance their own bills to bolster U.S. competition in research, innovation, and manufacturing. At the top of the list is the House Science NSF reauthorization bill, NSF for the Future Act, which is scheduled for a full committee markup on June 15.

On May 28, the White House unveiled its long-awaited FY2022 President’s Budget Request (PBR) to Congress. Totaling approximately $6 trillion dollars, the PBR allocates $1.5 trillion for discretionary spending at federal agencies in FY2022, including $769 billion for nondefense programs (16 percent above FY2021) and $753 billion for defense spending (1.7 percent above FY2021). The PBR also contains the previously proposed $2.3 trillion and $1.8 trillion for the American Jobs Plan and American Families Plan, respectively. The PBR notes that the American Jobs Plan and American Families Plan together will be funded over 15 years.

Last Wednesday, the Senate Committee on Commerce, Science, and Transportation marked up and approved the Endless Frontier Act (S.1260) on a 24-4 vote. Over 50 amendments were accepted during mark up, including Senator Maria Cantwell’s (D-WA) NASA Act of 2021 and Senator Ben Ray Luján’s (D-NM) proposal to divert $17 billion of funding for a new NSF directorate to the Department of Energy.

The lead sponsor of the bill, Senate Majority Leader Chuck Schumer (D-NY) last Thursday filed cloture on the motion to proceed to the Endless Frontier Act, setting up a procedural test vote for the full Senate today at 5:30pm ET. A 1420-page Amendment in the Nature of a Substitute will be considered the base bill. The amendment includes additions from the other Senate Committees including Homeland Security, HELP, Foreign Relations, Financial Services and Judiciary. APLU will continue to monitor the floor situation and alert CGA to other amendments via the Science Team listserv. Senator Schumer predicts a relatively open process so there may be many amendments.

Additionally, the House Science, Space and Technology Subcommittee on Research and Technology marked up and advanced the NSF for the Future Act on May 13. The Subcommittee accepted 12 amendments via voice vote.

This morning, the Department of Education (ED) announced more than $36 billion in grants provided under the American Rescue Plan (ARP) Act’s Higher Education Emergency Relief Fund (HEERF III) for colleges and universities. ED’s HEERF III webpage includes the allocation tables, including the (a)(1) student and institutional fund allocations, along with new guidance for the use of funds.

One of the most significant changes is the final decision that all students, regardless of citizenship, can receive emergency aid grants. The guidance notes that eligibility specifically includes citizens, permanent residents, refugees, asylum seekers, Deferred Action for Childhood Arrival (DACA) recipients, other DREAMers, and similar undocumented students, as well as international students with exceptional need.
 
ED staff also noted institutions that already received HEERF I and II grants will not need to apply for funds—HEERF III grants will be automatically disbursed. The new guidance provides answers to many questions raised by the CGA, and includes details regarding the two new required uses of HEERF III institutional funds: 1) practices to monitor and suppress COVID-19 and 2) outreach to financial aid applicants.

In addition to the new guidance, ED has also updated its Education Stabilization Fund database, which now includes both HEERF I and II awards and expenditures through March 30, 2020. These data are based on quarterly reports to ED.

On April 9, the Biden administration released its FY2022 budget blueprint. The $1.52 trillion "skinny" discretionary budget contains $769 billion for nondefense (16 percent above FY2021) and $753 billion for defense (1.7 percent above FY2021) spending. A few highlights include increased funding for the Pell Grant program and federal science agencies. The budget request has an emphasis on health and climate science related research, including the creation of the Advanced Research Projects Agency for Health and the Advanced Research Projects Agency for Climate.

APLU has developed a detailed analysis of the budget blueprint, including funding and policy priorities relevant to APLU institutions.

Capital investment of $550 million in critical maintenance is included in the budget, comparable to last year's funding level system-wide. These resources are essential to ensuring that our students, faculty and staff have access to state-of-the-art facilities expected of a modern research university. An additional $100 million is included for program enhancement and expansion, which can include new construction and critical maintenance, and is subject to an MOU with the NYS Division of the Budget.

While there was no specific appropriation for the new home of our College of Engineering and Applied Sciences on our downtown campus, the University will work closely with SUNY to determine how UAlbany’s critical maintenance allocation can most effectively advance the University’s capital priorities -- the conversion of the former Albany High School foremost among them. Our efforts to identify a blend of funding to complete this critical project continue.

Additionally, $200 million is re-appropriated for the SUNY Capital Matching Program for priority projects, including major renovations and new construction of academic facilities at the state-operated campuses and statutory colleges ($200 million state share/$100 million campus share).

Funding for UAlbany’s NYSTAR Center of Excellence in Atmospheric and Environmental Prediction and Innovation (Weather and Climate Analytics) was increased by $550,000 over last year's $250,000 level, bringing the total amount to $800,000, a major win for our campus. Our COE will continue bringing businesses and researchers together to devise innovative solutions to the problems faced by weather-sensitive industries. This Center, when fully developed, will be home to the largest concentration of atmospheric, climate, and environmental researchers in New York State and one of the largest in the nation, with more than 70 highly regarded faculty, researchers and research staff.

• The Center for Autism and Related Disabilities at the University at Albany (CARD Albany) is a university-affiliated resource center that brings research and practice together in community settings. The budget funds the Center at $1.74 million, which includes restored funding of $500,000.

• Just for the Kids (NYKids) within the School of Education is the only New York-focused, evidenced-based school improvement program in the State that compares the performance of equally-resourced and similarly challenged schools, and then identifies the best practices that explain what relates to the "achievement gap" between high-achieving schools and lower-performing schools. This initiative was level-funded at $235,000.

• The School of Social Welfare received level funding of $210,000 for evaluating the Dwyer Peer-to-Peer Veterans Program that uses new and innovative support interventions to help veterans with PTSD transition and reintegrate back into civilian life.

• The Center for Women in Government and Civil Society received $100,000 for the Immigrant Integration Index that seeks to quantify the moderating effects of nativity status, race/ethnicity and gender in shaping socioeconomic outcomes of foreign-born New Yorkers.

The following are School of Public Health initiatives included in the Enacted Budget:

• $261,600 in level funding for the Public Health Management Leaders of Tomorrow program (PHLOT), established in 2006, that strengthens the public health infrastructure across New York by providing programs (e.g., tuition awards, internship stipends, leadership training and scholarships) designed to offer novel educational opportunities to state and local public health professionals, as well as to the next generation of public health leaders at the School of Public Health.

• $487,000 for Physician Workforce Studies - the Center for Health Workforce Studies, under contract with the NYS Department of Health, monitors the state's health workforce and identifies areas around the state with shortages of primary care, oral health and behavioral health providers.

• $32,000 for Public Health Live, a monthly webcast series designed to provide continuing education opportunities on public health issues.

Excelsior Scholarship Program

• Note: The freeze on the calculation of the Excelsior aid amount at 2016 levels is extended until 2023-24..

Predictable Tuition/Maintenance of Effort (MOE)

• Note: The Enacted Budget omits the extension of Predictable Tuition and Maintenance of Effort (MOE) to 2024-25, as proposed in the Executive Budget.

Highlights

• The Executive's five percent Deficit Reduction Plan (DRP) for 2021-22 and beyond was rejected; however, the 2020-21 DRP was maintained

• $500 increase to the maximum TAP award from $5,165 to $5,665

• Legislation approved that would eliminate the TAP Gap by 2024-25

• A 20 percent increase to opportunity programs, including EOP

• $18 million for another round of the SUNY Investment and Performance Fund

• $100 million in additional capital investment for state-operated campuses and statutory colleges

• Protecting the financial aid eligibility of a student that was unable to complete academic requirements because of the COVID-19 pandemic

• Restoration of $150,000 for the Hispanic Leadership Institute, for a total of $350,000, similar to last year

• Restoration of $700,000 for the Small Business Development Centers (SBDC), for a total of $2.67 million, similar to last year

• Restoration of $600,000 for Graduate Diversity Fellowships, for a total of $6.6 million, similar to last year

• Restoration of $500,000 and an increase of $500,000 for Mental Health Services/Tele-counseling Network, for a total of $1 million

• $2 million in enhanced supports for students with disabilities is included

• Mother Nature Bond Act restored -- $3 billion act will be on the ballot in November 2022 to help NY combat climate change, build resilient infrastructure and revitalize critical habitats

• Extending the NY Army, Air National Guard and Naval Militia Tuition Benefit Program for an additional five years

• Existing procurement provisions, enacted in 2011, are extended through 2026; this does not included the proposed new authority for SUNY to purchase technology and services from consortia

• $600 million in retroactive general salary increases for state workers

• Police union collective bargaining contract is included -- impacts SUNY Police Benevolent Association of NY/Agency Police Services Unit employees

• Note: The Enacted Budget does not include the following:

  • Academic program review reforms

  • Additional flexibility in setting tuition rate categories for doctoral degree granting institutions and for specific high demand certificate programs

  • Early retirement incentive (included only for certain NYC employees)

  • Consolidation of Centers of Excellence into the Centers for Advanced Technology Program

SUNY Capital

• Funding was maintained at $550 million for SUNY-wide critical maintenance, with a $396.6 million lump sum for high priority critical maintenance projects to be distributed by the State University Construction Fund and $153.4 million allocated to state-operated campuses via formula, of which $9.63 million is included for UAlbany (previously $9.72 million)

• The amount UAlbany will receive under the $396.6 million lump is uncertain at this time, though we believe many of our projects are well-timed to move quickly

• An additional $100 million is included for program enhancement and expansion, which can include new construction and critical maintenance -- provided in a lump sum and subject to the submission of an annual plan for approval by SUNY to the Director of the State Budget

Student Financial Aid and Support

• Tuition Assistance Program (TAP)

  • TAP is funded at $935 million, approximately $75 million more than last year's level, increasing the maximum TAP award by $500 for a total of $5,665

  • Additionally, the Enacted Budget proposes the phase in general fund operating support for the cost of the TAP Gap over three years as follows:

    • 2022-23 (33%)

    • 2023-24 (67%)

    • 2024-25 (100%)

• Opportunity Programs

  • The Educational Opportunity Program (EOP) was increased by 20 percent for a total of $38.6 million

  • The Science and Technology Entry Program (STEP) was increased by 20 percent for a total of $19 million

  • The Collegiate Science and Technology Entry Program (C-STEP) was increased by 20 percent for a total of $14.4 million

  • The Liberty Partnership Program was increased by 20 percent for a total of $22 million

• Student Financial Aid Disruptions

  • Legislation included to hold harmless students who were unable to complete academic requirements needed to maintain financial aid eligibility because their enrollment was disrupted by the COVID-19 pandemic

The following economic development programs were also included in the Enacted Budget:

• $150 million for another round of Regional Economic Development Council (REDC) funding for investment in innovative plans for regional job creation and community development; 

• $100 million for a new round of Downtown Revitalization awards;

• Campuses are eligible for grants under the State and Municipal Facilities Program, which received a new appropriation of $385 million;

• $12 million for the Centers of Excellence (COE), an increase of approximately $1.4 million from last year's level; UAlbany's COE was increased to $800,000 (previously funded at $250,000); and

• $13.6 million for the Centers for Advanced Technology (CAT) program, an increase of approximately $1.2 million from last year’s level.

Note: Funding for another round of the NYSUNY 2020 challenge grant program was omitted in the Enacted Budget.