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This week, three separate House committees met to advance pieces of the Republican reconciliation proposal. Of significant concern for K-12 school and state education leaders is the shift of costs to states that the federal government has traditionally subsidized.  

If this reconciliation package becomes law, states will be forced to pick up close to a trillion dollars in costs previously paid by the federal government which will lead to pressure on states to cut K-12 education funding. These cost-shifting proposals are coupled with a $20 billion school voucher proposal which together pose an existential threat to ensuring adequate funding for public education at the local level. The next step is merging the proposals into one mega-bill that will be on the floor of the House next week. If the House vote is successful, it will move to the Senate for consideration.  

Th House Ways & Means Committee included their voucher proposal (ECCA) which would make 90% of families in America eligible for a voucher (of no specified amount) to homeschool their children or send them to private school. This national voucher program would supercharge existing state voucher programs and create voucher programs in new states. It would direct $5 billion over 4 years to states powered by a tax shelter for wealthy investors who are looking to avoid paying capital gains taxes.  

The House Energy & Commerce Committee portion of the bill creates a new federal cost-sharing requirement for adult beneficiaries who earn just above the federal poverty limit, and prevents states from increasing taxes on healthcare providers to help cover costs.  This means that some states could see significant cuts in their Medicaid financing that will create budget shortfalls they will need to close, likely with Medicaid cuts. The bill also reduces the federal cost-share for Medicaid expansion states, if the state allows undocumented immigrants to receive healthcare, even if the state uses their own funds for this purpose. States would also be prohibited from raising the revenue they need to finance their share of Medicaid costs over the long run which makes them less able to make substantial improvements to their Medicaid programs. 

The House Agriculture Committee would make significant changes to the Supplemental Nutrition Assistance Program (SNAP), creating a cost-sharing model for the first time in the program鈥檚 history, changing eligibility rules and requirements. The legislation requires participants to re-determine eligibility at least every 6 months, instead of annually. The Center for Budget Policy and Priorities estimates that the cost shift to states will force states to reduce benefits or limit eligibility. For school districts, changes to eligibility requirements for families would negatively impact a school's (or district's) ability to directly certify students for free and reduced priced meals. One silver lining of the legislation is that it also includes the reauthorization of Secure Rural Schools Program. This is a critical step for districts and schools who are near National Forest lands and unable to collect property taxes. 

Not to be left out, the House Education & Workforce Committee advanced its portion last week. The bill focused solely on higher education and proposed an overhaul of federal student loan programs by eliminating certain options, establishing limits for borrowers, and changing repayment options. The bill also established the Workforce Pell Grant Program which would allow students to use Pell Grants for short-term training and school options outside of a 4-year institution.