The White House and Republican congressional leaders settled negotiations on an education tax break in late May even though some Democrats -- including Congressional Black Caucus (CBC) members -- are skeptical of the overall budget agreement, of which it is a part.
The GOP quelled rebellion within its ranks after House Speaker Newt Gingrich (R-Ga.) and Senate Majority Leader Trent Lott (R-Miss.) put a commitment to education tax cuts in writing. The two leaders pledged to provide "roughly" $35 billion over five years for postsecondary education -- "including a deduction and a tax credit."
"We believe this package should be consistent with the objectives put forward in the Hope scholarship and tuition tax proposals contained in the administration's FY 1998 budget to assist middle-class parents," the letter stated.
The letter followed a series of critical remarks about President Bill Clinton's plan from House leaders such as Rep. Bill Archer (R-Texas), chairman of the House Ways and Means Committee that will write much of the tax-cut language.
The letter accompanied the release of detailed documents on the negotiated agreement and its effects; on domestic programs. The documents show Clinton and Republican leaders agreed to provide a $300 increase in the maximum Pell Grant next year and to protect programs such as Goals 2000, educational technology, Head Start and bilingual education.
But federal programs not on this protected list could face freezes or cuts over the life of the five-year agreement, based on the overall budget framework.
Funding for discretionary education, training and social service programs not protected by the agreement would remain frozen at $43.4 billion a year from 1998 to 2002. Programs that rely on this money include Title 1 education, college work/study, aid to historically Black colleges and universities, and scores of job-training and social-service programs.
Conservative Republicans already are pledging to go after some unprotected programs such as AmeriCorps, the president's national-service program.

