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Federal Update

House Education, Labor, and Ways and Means Committees have now finished their work on the $3.5 trillion budget reconciliation proposal. This proposal includes:

  • Free Community College tuition to eligible students through America’s College Promise 

  • $9 billion for retention and completion grants

  • $2 billion for Community College and industry partnerships grants

  • $500 annual increase to the maximum Pell grant for Award Years 2022-2023 - 2029-2030

  • $3.6 billion for Adult Basic Education

  • $3 billion for Perkins CTE

  • $5 billion for Apprenticeships, Youth Apprenticeships, and Pre-Apprenticeships

  • Makes DACA recipients eligible for Title IV financial aid programs

  • $9.1 billion over 7 years to reauthorize the Trade Adjustment Assistance for Community College and Career Training (TAACCCT) grant program.

  • $425 million over 4 years to continue the Health Profession Opportunity Grant (HPOG) program, which aims to prepare low-income individuals for healthcare professions.

  • Excludes Federal Pell Grants from gross income for tax purposes.

  • Eliminates the Pell Grant offset included in the American Opportunity Tax Credit (AOTC) formula, allowing thousands of students to receive the full benefit of the AOTC.

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