Legislative Update - Higher Education Daily Special Supplement - December 1985

Sep 21, 2026

Uploaded by Rowan

December 1985 legislative update covering actions of the 99th Congress and President Reagan affecting U.S. higher education funding. It summarizes the end of the first session, the Education Department’s $18.4 billion fiscal 1986 appropriations, and risks tied to the Gramm-Rudman-Hollings balanced budget amendment, including potential education cuts. It also reports tax reform developments, reauthorization progress for the Higher Education Act, and changes to Guaranteed Student Loans, Pell Grants, and other education-related programs.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

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Legislative Update

Laws Enacted in First Session of 99th Congress

Legislative Update (Cont.)

Supplemental Appropriations and Continuing Resolutions

# Legislative Update: Congress is to return for its second session Jan.21. Debt Limit, P.L.99-177 Education Department Appropriations, Fiscal 1986 P.L.99-178 # HIGHER EDUCATION DAILYSPECIAL SUPPLEMENT December 1985 The first session of the 99th Congress ended Dec.20,capping a congressionalyear in which major balanced budgetand tax reform initiatives threatened to erode funding for education. Despite enactment of a fiscal 1986 appropriations measure providing the Education Department with $18.4 billion,funding for education programs remains in doubt because of passage of the controversia/Gramm-Rudman-Hollingsbalanced budget amendment,sponsored by Sens.Phil Gramm,R-Texas,Warren Rudman,R-N.H,and Ernest Hollings,D-S.C. Faced with anencroaching $200 billion federal deficit,legislators had twokey words on their minds this year:Gramm-Rudman.Other appropriations measures remained stalled as both Houses spent months trying to resolve their dif-ferences on the amendment to balance the budget by 1991.Negotiations finally came to an end Dec.11 when theHouse and Senate approved a compromise to the amendment. In another historic act,the House for the first time in 40years took a major step toward reshaping tax policy when itpassed H.R.3838,the 1985 Tax Reform Act.When the legislation was released in November from the House Ways andMeans Committee,educators were relieved to find the House panel had rejected President Reagan's proposal toeliminate state and local tax deductions. But highereducation institutions,especially private colleges and universities,would be harmed financiallyby the bill.Among the most dangerous provisions of the bill,according to educators,are its end to taxexempt status forscholar-ships and fellowships beyond tuition and equipment expenses,and its cap on tax-exempt bonds. Also taking upa large portion of the session were reauthorization hearings for the 1965Higher Education Act,with theHousepassing the measure Dec.4.Senatemarkupof the bill,which began this session,is to continueafter the recess.And the Guaranteed Student Loan programwas hard hit by budget cutting action,as S498million was sliced from theprogram in the fiscal 1986 labor,health and human services and education appropriations measure. ## LAWS ENACTED IN FIRST SESSION OF 99TH CONGRESS... After months of congressional negotiations,President Reagan Dec.12 signed H.J.Res.372,a federal debt ceiling extension measure,including the controversialGramm-Rudman-Hollings balanced budget amendment(HED,Dec.13).The amend-ment,which is now being challenged in federal court,will force Congress to meetbudget reduction targets for the next five years,reducing the current deficit of $200billion to zero by 1991.If Congress exceeds the deficit targets at any time,the presi-dent could make automatic spending cuts,half from defense programs and halffrom domestic programs.The plan could cut education programs by 4.6 percent infiscal 1986.Legislators agreed to exempt from cuts such domestic programs asSocial Security,child nutrition,Aid to Dependent Children and the Women,Infantsand Children supplemental food program. President Reagan Dec.12 signed H.R.3424,the fiscal 1986 labor,health and humanservices and education appropriations measure,which provides $18.4 billion for theEducation Department,a drop from last year's funding level of $19.1 billion(HED,Dec.13).The measure slices the Guaranteed Student Loan program by $498 million,Pell Grants by $24 million and academic facilities grants by $18 million,but in-creases funds for special education by $90 million and adds $138 million torehabilitative services and handicapped research.(more) ## Legislative Update (Cont.) Supplemental Appropriations, Fiscal 1985 P.L99-88 First Continuing Resolution, P.L.99-103 Second Continuing Resolution, P.L99-154 Third Continuing Resolution, P.L99-179 Fourth Continuing Resolution, P.L.99-184 Fifth Continuing Res

FAQs

What major fiscal 1986 appropriation did the Education Department receive, and why did funding remain uncertain?

The fiscal 1986 labor, health and human services and education appropriations measure provided the Education Department $18.4 billion. Funding stayed in doubt due to the Gramm-Rudman-Hollings balanced budget amendment and the possibility of automatic spending cuts if deficit targets were exceeded.

How did the debt ceiling extension and balanced budget amendment affect federal deficits and education programs?

The debt ceiling extension included the Gramm-Rudman-Hollings amendment, requiring budget reduction targets for the next five years and reducing the deficit to zero by 1991. It could trigger automatic spending cuts, with education programs projected to be cut by 4.6 percent in fiscal 1986.

What changes were reported for student aid and education funding in the fiscal 1986 appropriations measure?

The measure sliced the Guaranteed Student Loan program by $498 million, Pell Grants by $24 million, and academic facilities grants by $18 million. It increased funds for special education by $90 million and added $138 million to rehabilitative services and handicapped research.

Sep 21, 2026

Uploaded by Rowan