DEEP EDUCATION CUTS PREDICTED IN BALANCED BUDGET PLAN SIGNED BY REAGAN - Cont.

Sep 28, 2026

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A balanced budget plan signed by President Reagan is expected to significantly hinder education and other domestic programs over the next five years, according to House Budget Committee estimates. Automatic spending cuts could reduce education and domestic programs by 4.6% in fiscal 1986, with potentially up to 30% reductions the next year and deeper cuts afterward. The bill extends a debt ceiling while requiring deficit-reduction targets and possible sequester actions.

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DEEP EDUCATION CUTS PREDICTED IN BALANCED BUDGET PLAN SIGNED BY REAGAN

DEEP EDUCATION CUTS PREDICTED IN BALANCED BUDGET PLAN (Cont.)

REGULATIONS PROPOSED TO START VA EDUCATIONAL TEST PROGRAM

HIGH COURT UPHOLDS CONSCIENTIOUS EXPULSION OF MEDICAL STUDENT

Vol.18,No.241 Friday,December 13,1985 # DEEP EDUCATION CUTS PREDICTED IN BALANCED BUDGET PLAN SIGNED BY REAGAN A balanced budget plan signed by President Reagan yesterday could seriouslyhamper education programs over the next five years,according to preliminaryestimates by the House Budget Committee. The committee estimated that automatic spending cuts under the plan could cuteducation and other domestic programs by 4.6 percent across the board in fiscal1986.Those programs could be cut by as much as 30 percent the following yearand suffer exponentially deeper cuts in succeeding years,the committee said. "It's going to be a horrendous year,"said Susan Frost,executive director ofthe Committee on Education Funding."And it only gets worse after that." After weeks of debate,both the House and Senate late Wednesday approved thefinal version of H.J。Res.372,a debt ceiling extension measure stalled fortwo months as differing amendments to balance the budget were debated. Reagan signed the bill yesterday morning,narrowly avoiding a government de-fault(HED,Dec.12)·The bill,which raises the debt ceiling to more than$2 trillion,requires automatic spending cuts if Congress and the president donot meet fixed targets to reduce the deficit.The debt ceiling is set at$171.9 billion in fiscal 1986,declining until it reaches zero in 1991. If a sequester order is invoked to achieve the$11.7 billion in cuts required by March 1 under the bill,education programswould not absorb a disproportionate share of domestic spending cuts.But do-mestic programs would be hit harder than defense programs,which the House Bud-get Committee predicts would be cut only 3 percent across the board. Should automatic cuts be needed,the bill calls for equal slices from defenseand domestic programs.But,because prior-year defense contracts are protectedand military programs account for"a larger pot of money"than domestic pro-grams,defense will not suffer as much as domestic programs,Frost said. A proportionately lower cut for defense and provisions exempting Social Secur-ity and some other programs would leave 73 percent of the budget"off the ta-ble”for automatic cuts,the committee said,while 27 percent of the budget,including education,could be slashed to achieve debt-reduction targets.TheSenate Budget Committee has not compiled comparable figures,said a staffer. The outlook is bleak for education programs,which already have been out-stripped by inflation,reduced or frozen."There is no fat anymore in any of(more) # DEEP EDUCATION CUTS PREDICTED IN BALANCED BUDGET PLAN(Cont.) these programs,"said Frost,who maintained the bill could mean "the elimi-nation or reduction of services to students"served by ED programs. Meanwhile,yesterday Reagan signed an $18.4 billion education appropriationsmeasure,H.R。3424,passed by both houses last week(HED,Dec。9)。The pres-ident has threatened to veto H.J。Res.465,a new stopgap bill that would fundother programs lacking fiscal 1986 appropriations.That measure remainedstalled in conference yesterday. In negotiations on another spending measure,conferees agreed late Wednesday totrim the Guaranteed Student Loan program by $806 million over the next threeyears by requiring lenders to make multiple loan disbursements,recalling $75million in state agency advances in fiscal 1988 and making students with oneloan in default ineligible for further financial aid(HED,Nov.18)。 The plan would allow students with $5,000 or more in various loans to consoli-date their payments into one holding a 10 percent interest over 15 years. Theproposal is part of H.R。3128,a three-year budget reconciliation plan not ex-pected to be addressed before Congress's Christmas recess,--Deborah L,Gold # REGULATIONS PROPOSED TO START VA EDUCATIONAL TEST PROGRAM The Veterans Administration and the Department of Defense have jointly proposednew regulations implementing the Educational Assistance Test Program。 The test program

FAQs

What does the Reagan balanced budget plan do that affects education funding?

The plan includes automatic spending cuts tied to deficit-reduction targets, which could reduce education and other domestic programs over coming fiscal years.

How large are the estimated cuts for education and domestic programs in fiscal 1986?

House Budget Committee preliminary estimates project a 4.6% cut across the board for education and other domestic programs in fiscal 1986.

What proposed VA educational change is described in the document?

The VA and Department of Defense propose regulations to implement an Educational Assistance Test Program, allowing eligible veterans to receive benefits even if they change programs and enroll in certain nontraditional courses.

Sep 28, 2026

Uploaded by hdkawk