Over the last few weeks, President Biden signed another significant legislative package ushered through Congress by Democrats while apprenticeship programs celebrated an important anniversary as the Administration took further action on student loan debt.
Inflation Reduction Act Signed Into Law
As shared previously, congressional Democrats recently announced that after a year and half of on-again-off-again negotiations they had finally found agreement on a legislative package that would make significant new investments in healthcare and climate change while raising revenues to offset the federal deficit by roughly $306 billion. Dubbed the Inflation Reduction Act of 2022 (H.R. 5376), Democrats in Congress were able to advance this legislation using the budget reconciliation process– a legislative maneuver that allows lawmakers to approve legislation via a simple majority vote (and thus avoiding a likely Republican filibuster in the Senate). Previous versions of this proposal, known last year as the Build Back Better Act, envisioned significant new investments in Career Technical Education (CTE) and workforce development, but lawmakers were unable to come to consensus on these and many other initiatives originally included in this package.
While the package does contain some modest investments in workforce and education, primarily focused within the climate provisions of the package, potential opportunities for the CTE community regarding these new sources of funding will become clearer in the months ahead as the law begins to be implemented by various federal agencies. This more streamlined bill was cleared by the House in recent weeks and signed into law by President Biden on August 16. More information about the bill can be accessed here.
Registered Apprenticeships Celebrate 85th Anniversary
This month marked the 85th anniversary of the enactment of the National Apprenticeship Act (NAA)– federal legislation first passed and last updated by Congress in 1937. Also known as the Fitzgerald Act, this legislation created the federal system of registered apprenticeship overseen and administered by the U.S. Department of Labor (DOL). In recognition of this milestone DOL has launched a new “ApprenticeshipUSA” brand to cultivate a better understanding amongst the public regarding registered apprenticeship programs (RAPs). Additionally, the agency has launched an online dialogue about the future of RAPs, soliciting feedback for how to improve these programs and related systems. This online portal for public input will remain open through September 5, 2022 and can be accessed here.
As a reminder, National Apprenticeship Week is fast approaching (November 14-20), so be on the lookout for more updates from DOL in the coming weeks ahead for how to promote RAPs in local communities throughout the nation.
President Biden Takes Executive Action on Student Debt
On Wednesday, August 24, President Biden and U.S. Secretary of Education Miguel Cardona unveiled the Administration’s plans to forgive up to $10,000 of federal student loan debt for borrowers making $125,000 or less annually. The plan would provide up to $20,000 in similar forgiveness for those who previously received a federal Pell grant and meet the same income eligibility requirements. In addition to this executive action, the U.S. Department of Education (ED) announced newly proposed regulations regarding how individuals pay back federal student loans in the future. Among these proposed changes are new plans to forgive loan balances after 10 years of payments for loan balances of $12,000 or less. ED estimates that this change would have the practical effect of allowing nearly all community college borrowers to be debt-free within 10 years.
The White House’s factsheet on this executive action can be found here. Information regarding ED’s newly proposed income-driven repayment rules can be accessed here.
CTE Research Network Grant Application Opportunity
Last week, ED published a new grant opportunity inviting qualified applicants to lead the CTE Research Network. Authorized under the national activities section (Sec. 114) of the Carl D. Perkins Career and Technical Education Act (Perkins V) and overseen by ED’s National Center for Education Research under the Institute of Education Sciences, the CTE research network is dedicated to researching various topics impacting CTE of national importance. Applications for this grant opportunity are due by February 23, 2023.
Steve Voytek, Policy Advisor
Tags: apprenticeship, Build Back Better Act, Department of Labor, National Center for Education Research, pell grants, Registered Apprenticeship, U.S. Department of Education