The Incredible Shrinking Education Grants

Our government has found still another occasion to mislead the American people. Congress has passed and President Bush last week signed the Higher Education Act, which, among other things, authorizes an increase in the maximum size of Pell grants for college students from $2,400 to $3,700.

“Authorizes.” What a lovely word. It permits Bush to say, “I hope that many middle- and low-income families who dream of a college education for their children will find that this legislation helps to make their dreams a reality.” It permits the Democratic Policy Committee to proclaim proudly that “the maximum Pell grant will be increased by more than 50%.”

Dream on. Within days of the passage of the Higher Education Act, the House Appropriations Committee sent to the floor legislation that would cut the maximum Pell grant by $100 for the coming year. This legislation would permit the President to make further cuts.

What we have here is a civics lesson. An authorizing bill, like the Higher Education Act, simply sets the legal limits within which Congress can spend money on particular programs. No money can be appropriated without authorization. But authorizing a program does not in any way commit Congress to fund it. The decision about how much to spend is made separately, in an appropriations bill. Or, in other words, with an authorization and a quarter, you can buy a cup of coffee.

Why is Congress authorizing more money and spending less? The answer requires two words: the deficit. Appropriating the money needed to fund the new Pell grant maximum would add billions of dollars to spending on higher education. But no one wants higher deficits or (perish the thought) higher taxes that could pay for more spending. The solution? Raise the spending ceiling but keep a lid on the actual spending. Take all possible credit for a more generous Pell grant program and hope folks don’t notice that the grants are in reality smaller. And don’t let the grants actually shrink until after the election.

Happy campaigning.