E-Update for November 3, 2017

Highlights:

• On November 2, House Ways and Means Committee Chairman Kevin Brady (R-TX) introduced H.R. 1, the “Tax Cuts and Jobs Act,” which proposes changes to the U.S. tax code and impacts early childhood education through postsecondary education.
• On November 3, the House passed H.R. 3922, the “Championing Health Kids Act,” by a vote of 242-174, which reauthorizes the Children’s Health Insurance Program (CHIP) for five years.
• On November 1, President Trump announced the nomination of Douglas Webster to serve as Chief Financial Officer of USED. Dr. Webster currently serves as the Director of Risk Management at the U.S. Agency for International Development.

Tax Reform:

House Ways and Means Committee Introduces Tax Plan: House Ways and Means Committee Chairman Kevin Brady (R-TX) introduced H.R. 1, the “Tax Cuts and Jobs Act,” which proposes changes to the U.S. tax code. Overall, the tax reform proposal impacts early childhood education through postsecondary education with benefits for parents and families related to the child tax credit being increased, while certain credits and deductions for college students are consolidated or eliminated and some institutions of higher education are faced with a new tax. The bill is scheduled for markup by the House Ways and Means Committee on November 6. A section by section summary of the bill can be found here and the bill text here. House Ways and Means Ranking Member Richard Neal’s (D-MA) statement is available here and President Donald Trump’s statement here.

• Senate Finance Committee Chairman Orrin Hatch (R-UT) released a statement supporting the tax reform bill, which included the following update: “The Senate Finance Committee continues to work to complete tax reform legislation that will grow the economy and provide relief to middle-class families. After Ways and Means has acted, Chairman Hatch intends to lay down a mark for the committee to advance this month.” His statement can be found here. Additionally, Senate Finance Committee Ranking Member Ron Wyden (D-OR) delivered remarks on the tax bill, expressing his criticism for the Republican plan. His statement is available here.

November 2, 2017

Congress:

House:

House Passes CHIP Reauthorization: The House passed H.R. 3922, the “Championing Health Kids Act,” by a vote of 242-174. The bill provides for a five-year reauthorization of the Children’s Health Insurance Program (CHIP) and a two-year extension of other public health programs, including community health centers.
November 3, 2017

Reps. Cleaver and Bishop Request GAO Review of USED Student Loan Services: Representatives Emanuel Cleaver (D-MO) and Sanford Bishop (D-GA) sent a letter to Comptroller General Gene Dodaro requesting that the U.S. Government Accountability Office (GAO) investigate USED’s student loan services and industry practices. Specifically, the Representatives are asking that the GAO determine if USED has implemented changes aimed at better supporting student loan borrowers.
November 2, 2017

Rep. Bonamici Releases Statement on USED’s Potential Loan Forgiveness Plans: On October 31, Representative Suzanne Bonamici (D-OR) released a statement regarding reports that USED may only provide partial loan forgiveness to students who have been defrauded or misled by for-profit colleges. In her statement, Representative Bonamici notes, “Forcing students to pay for a useless degree is putting the profits of for-profit colleges over the interests of students.”
October 31, 2017

House Education & the Workforce Committee Publishes Blog Post on Student Debt: The House Education and the Workforce Committee published a blog post titled, “Everyone’s Saying It: Higher Education is not serving students—Debt Edition.” The post presents a number of opinions on the impact on students and families of growing levels of student debt, including statements from President Donald Trump and Speaker of the House Paul Ryan (R-WI).
October 30, 2017

Senate:

Senators Send Letter to VA Secretary Regarding Protections Against Fraudulent For-Profit Colleges: A group of ten Senators, including Ranking Member of the Senate Health, Education, Labor, and Pensions (HELP) Committee Patty Murray (D-WA) and Senator Dick Durbin (D-IL), sent a letter to U.S. Secretary of Veterans Affairs (VA) David Shulkin asking him to uphold the VA’s responsibility to protect veterans who have been defrauded or misled by for-profit colleges. In the letter, the Senators ask Secretary Shulkin to stop efforts to issue a blanket waiver to VA employees with any financial relationships to for-profit colleges.
November 1, 2017

Senator Warren Raises Concerns About Potential Navient Acquisition: On November 1, Senator Elizabeth Warren (D-MA) released a statement regarding her concerns about Navient, which is a student loan servicer, potentially acquiring Earnest, a private loan lender, due to the possible impact on student loan borrowers serviced by Navient. Regarding the acquisition, Senator Warren stated, “I am deeply concerned that this acquisition presents Navient with an opportunity to abuse its unfettered access to, and relationship with, federal student loans borrowers in order to cross-sell Earnest refinancing products, shift borrowers from its federal servicing portfolio to its private loan origination portfolio, and boost company profits while reducing its contractual responsibilities.”
November 1, 2017

Administration:

White House:

President Trump Meets with Senate Republicans on DACA Fix: This week, President Trump met with a group of Senate Republicans to discuss potential legislation to address the status of DREAMers who received protections under the Deferred Action for Childhood Arrivals (DACA) program. Reports following the meeting indicate that President Trump would not be in favor of including a DACA fix on a year-end appropriations bill.

U.S. Department of Education (USED):

Federal Judge Requests USED Response in Corinthian Colleges Case: A federal judge directed USED Secretary DeVos to respond within 20 days to a lawsuit brought by a former Corinthian Colleges student regarding the student’s application for loan forgiveness. The student has asked USED to end wage garnishments on her defaulted debt and approve her borrower defense to repayment application.
October 31, 2017

USED Regulatory Reform Task Force Releases Status Report: USED’s Regulatory Reform Task Force released a memorandum titled, “Regulatory Reform Task Force Status Report.” The report details the task force’s work to date to comply with President Trump’s Executive Order titled, “Enforcing the Regulatory Reform Agenda,” which seeks to reduce regulatory burden.
October 18, 2017

Upcoming Events:

• On November 6, the House Ways and Means Committee will markup H.R. 1, “The Tax Cuts and Jobs Act” at 12:00 pm. More information here.
• This week, the House released its 2018 legislative calendar, here.

Publications:

• On October 31, the Medicaid and CHIP Payment and Access Commission released a fact sheet titled, “CHIP: Exhaustion of Federal Funding,” which provides information on what will happen at the state level if Congress does not reauthorize the Children’s Health Insurance Program (CHIP). Fact sheet here.

Legislation:

S.2037
A bill to amend the Higher Education Act of 1965 regarding proprietary institutions of higher education in order to protect students and taxpayers.
Sponsor: Sen. Richard Durbin (D-IL)

H.R.4172
Give Assistance and Help to Americans Impacted by Natural Disasters Act
A bill to amend the Internal Revenue Code of 1986 to provide tax relief for major disasters declared in any of calendar years 2012 through 2015, to make certain tax relief provisions permanent, and for other purposes.
Sponsor: Rep. Richard Neal (D-MA)

H.R.4181
A bill to amend the Higher Education Act of 1965 regarding proprietary institutions of higher education in order to protect students and taxpayers.
Sponsor: Rep. Steve Cohen (D-TN)

H.R.4194
A bill to direct the Mayor of the District of Columbia to establish a District of Columbia National Guard Educational Assistance Program to encourage the enlistment and retention of persons in the District of Columbia National Guard by providing financial assistance to enable members of the National Guard of the District of Columbia to attend undergraduate, vocational, or technical courses.
Sponsor: Rep. Eleanor Holmes Norton