Congress has finally passed its FY 08 spending bill.  Here is a quick list of our key legislative priorities as the first session of the 110th Congress moves toward adjournment.  

 Higher Education Act Reauthorization:  Thanks to the groundwork of countless NAICU members, the House slowed down the HEA reauthorization process, and now plans to take the bill up on the House floor in either late January or February.  The slowdown has allowed the NAICU staff to seek further improvements in the legislation, although it is clear that the final bill will not be totally to our liking.

1. Tax:  Congress did not finish its work of extending a series of tax provisions set to expire on December 31, 2007.  Caught up in the list of unfinished items are the IRA charitable rollover and the tuition tax deduction -- although Congress has indicated they hope to extend each when they come back into session. Colleges should advise potential IRA donors that this privilege may not be available for donations after December 31 of this year.
   
   NAICU will be conducting a new IRA Rollover survey in January -- this time with the help of a broader coalition of higher education associations -- to help support our efforts to get this important tax incentive restored.  Please give this survey your attention when it comes out early next month.
   
   Also of note, despite continued scrutiny of college endowments, Congress did not mandate a five percent payout rule in this session.
2. Student Aid Funding:  In the final budget showdown with the president over spending, Congress cut the baseline for the Pell Grant maximum for next year from its current level of $4,310 to $4,241.  However, when the new money gained from cuts to student loan lenders during reconciliation is added back in, the final Pell Grant maximum for the 2008-09 academic year will be $4,731 -- a new high.
   
   Also, the other student aid programs, including campus-based aid, were level funded.  This is good news since the president’s budget had called for the elimination of several programs.