Federal

‘Sequester’ Cuts Still in Place Amid Budget Wrangling

By Alyson Klein — March 21, 2013 4 min read
  • Save to favorites
  • Print

The U.S. Congress missed a chance last week to avert the automatic federal spending cuts known as sequestration when it passed legislation extending funding for all programs—including education—at current levels, minus a 5 percent across-the-board reduction.

Lawmakers’ decision means that the squeeze is likely to stay in place for the 2013-14 school year, for which districts are already preparing. President Barack Obama expressed dismay that Congress did not act to ward off the cuts when it finalized its spending bill fiscal 2013, which was approved on March 21. But he indicated he would sign the spending legislation, in order to prevent a government shutdown.

Meanwhile, dueling budget measures put forth by House Republicans and Senate Democrats for fiscal 2014, which starts on Oct. 1, make it clear that the long-term agreement on taxes, spending, and entitlement programs—that’s viewed as necessary to stop the cuts—is likely to remain elusive.

Sequestration, which affects both military programs and a range of domestic programs, was put in place as part of a deal to raise the debt ceiling, back in summer 2011. The prospect of the cuts was supposed to prod lawmakers from both sides of the aisle and the Obama administration to come up with a bipartisan accord on the nation’s fiscal future. The cuts are set to stay in place for another decade, unless lawmakers can figure out a way to stop them. They will have another chance to avoid the cuts when Congress must raise the debt ceiling, likely this summer.

Sharp Contrasts

Meanwhile, Democrats in the Senate and Republicans in the House released budget blueprints that contrast sharply when it comes to the future of the sequestration cuts–and education spending in general.

“The problem is that the roads are radically forking in different directions,” said Joel Packer, the executive director of the Committee for Education Funding, a lobbying coalition in Washington, which prefers the Senate Democrats’ plan.

The House GOP budget plan, written by U.S. Rep. Paul Ryan of Wisconsin, the chairman of the House Budget Committee, would seek to avert many of the cuts for military programs by shifting a greater share of the reductions to domestic spending programs, the category that includes education.

Mr. Ryan’s budget, which was approved by the House on March 21 on a largely party-line vote of 221 to 207 isn’t specific about what would happen to individual education programs, such as Title I grants, which target schools with disadvantaged students, and state grants for special education. But the plan does call on lawmakers to eliminate what it terms “duplicative” K-12 programs, particularly in the area of teacher quality.

“The current structure for K–12 programs at the [U.S.] Department of Education is fragmented and ineffective,” the Ryan budget states. “Moreover, many programs are duplicative and poorly targeted to students with the greatest needs.”

The Ryan budget also would have some major implications for federal student-lending programs. For instance, it would allow a planned hike in student-loan interest rates to go through, doubling the interest on federal student loans from 3.4 percent to 6.8 percent, according to an analysis by the CEF. That increase was slated to go into effect last summer, until both President Obama and Gov. Mitt Romney, then the presumptive GOP presidential nominee, called for halting the increase.

Congress was able to then pass a one-year extension of lending rates at the 3.4 percent level. However, it’s unclear whether the politics will be similar this time around: Mr. Ryan’s budget indicates that Republicans are likely to allow the increase to go through to avoid adding to the deficit.

Mr. Ryan’s budget also seeks to put the Pell Grant program, which helps low-income students cover the cost of college, on firmer fiscal footing, in part by eliminating the grants for students who attend postsecondary education less than half time, the CEF analysis found.

Senate’s Ideas

On the other hand, a plan authored by Sen. Patty Murray, D-Wash., the chairwoman of the Senate Budget Committee, would seek to put an end to the sequestration cuts through tax increases and reductions that would affect both military and domestic spending at roughly the same levels. Under Ms. Murray’s plan, domestic spending would steadily increase over time.

The Senate budget also calls for investments in key formula programs, such as Title I grants to districts and special education, as well as career and technical education programs, literacy, and mathematics and science education. It also calls for unspecified new investment in early-learning programs—which Mr. Obama emphasized in his State of the Union Address earlier this year.

On higher education, Ms. Murray’s budget would keep in place the current interest rate on federal student loans of 3.4 percent. And it doesn’t call for the same changes in the Pell Grant program spelled out in Mr. Ryan’s budget.

“Our budget also makes sure we aren’t reducing our fiscal deficit while increasing our deficits in education, skills, infrastructure, and innovation,” Ms. Murray said.

The Senate was expected to continue consideration of the Murray plan last week. However, it appears unlikely that the two plans will be merged into a single document to help guide congressional tax and spending decisions over the next year—leaving unresolved the question of how lawmakers will cope with continued spending cuts.

A version of this article appeared in the March 27, 2013 edition of Education Week as ‘Sequester’ Cuts Still in Place Amid Budget Wrangling

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
There But Not Present: Rethinking Student Engagement
Learn how to recognize the early signs of disengagement and what the behavioral science reveals about which interventions actually work.
Content provided by Frontline Education
Teacher Preparation Webinar What Teacher Education Should Look Like in the Age of AI
Explore the current trends around the use of AI in teacher preparation and continuing education with data from the EdWeek Research Center.
English Learners Webinar How Can School Districts Better Support English Learners With Disabilities?
Join this webinar to hear recent findings from the EdWeek Research Center and discover practical strategies for improvement.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal A Top Democrat Breaks Down His Party's Plans for K-12 in a House Majority
If Democrats retake the House, Rep. Bobby Scott may be in a position to set his chamber’s K-12 agenda.
5 min read
Rep. Bobby Scott, D-Va., speaks during a prayer vigil held by the Chesapeake Coalition of Black Pastors at The Mount (Mount Lebanon Baptist Church) in Chesapeake, Va., Sunday, Nov. 27, 2022, for the six people killed at a Walmart in Chesapeake, Va., when a manager opened fire with a handgun before an employee meeting Tuesday night.
Rep. Bobby Scott, D-Va., speaks during a prayer vigil in Chesapeake, Va., on Nov. 27, 2022. Scott is the ranking Democrat on the U.S. House of Representatives' education committee and will seek the panel's chairmanship if Democrats win a House majority in next month's elections.
Carolyn Kaster/AP
Federal What a Democratic Congress Could Mean for Trump's K-12 Agenda
They may try to reverse—or at least investigate—the Trump admin.'s efforts to dismantle the Ed. Dept.
9 min read
House Minority Leader Hakeem Jeffries, D-N.Y., the top Democrat in the Republican-majority House, is joined by Rep. Pete Aguilar, D-Calif., chair of the House Democratic Caucus, as they criticize President Donald Trump and his policies while talking to reporters about the approaching midterm election, at the Capitol in Washington, Thursday, Sept. 17, 2026.
House Democratic Leader Hakeem Jeffries speaks at the U.S. Capitol on Sept. 17, 2026. He's joined by Rep. Pete Aguilar, D-Calif., who chairs the House Democratic Caucus. If Democrats gain a majority of either chamber of Congress after next month's elections, they'll be able to hold oversight hearings on and launch investigations into the dismantling of the U.S. Department of Education.
J. Scott Applewhite/AP
Federal The Future of Education Research: More Partisan and Largely Left to States?
As Trump administration works to change federal grants, outside researchers try to regroup.
6 min read
Image of file folders with tabs called "funding" "grants" "projects" and a blank note paper paperclipped to the outside.
Collage by Laura Baker/Education Week + Getty
Federal Bipartisan Bill in Congress Would Help Schools Put Cellphone Bans or Restrictions in Place
The bill would establish a federal grant program to support state efforts to restrict cellphones.
5 min read
Sen. Tom Cotton, R-Ark., the chairman of the Senate Intelligence Committee, center, is joined from left by Sen. John Barrasso, R-Wyo., the GOP whip, and Senate Majority Leader John Thune, R-S.D., as he speaks to reporters ahead of a Wednesday meeting with President Donald Trump, at the Capitol in Washington, Tuesday, June 23, 2026. (AP Photo/J. Scott Applewhite) Senate Minority Leader Chuck Schumer, D-N.Y., speaks to reporters at the Capitol in Washington, Tuesday, June 23, 2026.
Sen. Tom Cotton, R-Ark., speaks to reporters ahead of a meeting with President Donald Trump at the Capitol in Washington on June 23, 2026. Cotton is one of the sponsors of a bipartisan bill that would create a grant program for states to implement school cellphone bans or restrictions.
J. Scott Applewhite/AP