Unless Congress and President Obama can reach a compromise today, most government programs will be reduced by 5 percent on Friday. With hours left before the cuts kick in – and no hint of a deal – colleges and universities are bracing for hits to research and development, student financial aid, and workforce training programs.
The reduction, or sequester, is a $1.2 trillion package of cuts to discretionary and military programs. The legislation authorizing the cuts was passed two years ago, and was designed to force Congress to reduce the national debt by presenting an onerous alternative. Instead, Congress and the president: Republicans are pushing program cuts, while president Obama wants tax hikes to be part of the strategy.
MAP: SEQUESTRATION – A STATE-BY-STATE BREAKDOWN
View What will the sequester mean for financial aid? in a larger map
The nation’s largest financial program, the Pell Grant, is exempt from sequestration. But other programs, such as work study and the Federal Supplemental Educational Opportunity Grant — which provides aid to students with exceptional financial need — are not. The sequester could cut about $148 million for federal student aid starting in the 2013-2014 academic year.
According to a state-by-state breakdown from the White House, the top 10 states affected by student financial aid cuts would be:
The top 10 states affected by cuts to work-study would be:
