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Lawmakers, university leaders warn federal budget plans could shrink Pell, research and workforce aid
Summary
At a joint Assembly–Senate hearing, higher-education leaders told lawmakers that proposed federal reconciliation targets and executive actions risk cuts to Pell grants, student-aid administration, institutional research funding and teacher-preparation grants that support New Jersey students and campuses.
John Patrick Walsh, assistant vice president of federal relations at the American Association of State Colleges and Universities, told a joint Assembly and Senate higher-education hearing on Feb. 13 that higher education faces “a very uncertain time” as Congress prepares budget reconciliation instructions that could force across-the-board savings.
“We are currently stuck at fiscal year 24 levels due to continuing resolutions,” Walsh said, adding that a projected Pell shortfall and reconciliation proposals could leave major programs underfunded. “This shortfall we're probably looking at another $5,000,000,000 shortfall by next year,” he said in reference to new Pell expansions combined with current budget conditions.
The session brought leaders from Rutgers University, Montclair State and statewide higher-education associations to the Statehouse to describe effects felt across campuses: fewer federal research awards and paused grant work; teacher preparation programs placed at risk; and community colleges' career-technical funding under pressure.
Nut graf: Lawmakers and university officials said the biggest near-term risks are (1) cuts or flat funding for Pell and other student-aid programs, (2) reductions in the student-aid administration workforce that manages FAFSA and loan servicing, and (3) potential cuts to federal research and indirect-cost reimbursements that support university labs and facilities. Those changes, witnesses said, would disproportionately affect first-generation, low-income and minority students in New Jersey.
Fran Pfeiffer, senior vice president for government relations at Rutgers University, described the university’s dependency on federal funds across education, research and clinical care. She said Rutgers receives about $491 million in federal student-aid support — including $94 million in Pell for about 17,000 students — and nearly $286 million a year in NIH funding alone. “We’re staying the course, but people are afraid,” Pfeiffer said, describing canceled study sections, grant pauses and staff reductions at federal agencies that have already delayed projects.
Jennifer Keys Maloney, executive director of the New Jersey Association of State Colleges and Universities, told lawmakers the sector graduated 18,000 students who received Pell last year and that federal Pell shortfalls would ripple into state aid and institutional budgets. “Any decrease in federal funding or changes to our practices place an undue burden on our students and our institutions,” she said, warning of tuition increases, program cuts or staff reductions if federal support diminished.
Witnesses outlined specific federal programs at risk under House reconciliation instructions that ask education and workforce committees to identify deep savings. Walsh summarized the scale: the House proposal's reconciliation instructions would require roughly $330 billion in cuts or mandatory savings across education, health and labor jurisdictions over 10 years; Senate instructions are much smaller but unresolved. He cautioned that reconciliation is a high-risk pathway because the House plan and Senate plan must ultimately agree.
Several witnesses said an immediate fiscal pressure is the Pell program's bookkeeping shortfall. Walsh and other presenters told the committee that continuing resolutions and program expansions mean the Pell program is moving into a structural deficit without additional appropriations.
Lawmakers pressed witnesses on consequences for enrollment, workforce pipelines and college viability. Aaron Fichter of the Council of County Colleges said community colleges receive about $300 million annually in federal support and that 49,000 community-college students statewide receive Pell. Brookdale Community College President David Stout and others warned that cuts to Perkins, Pell and workforce grants would force program eliminations and could imperil some institutions.
The hearing included repeated appeals that the state legislature prepare to respond if federal support shrinks. Several witnesses urged state leaders to shore up student aid and institutional supports in budget deliberations.
Ending: Committee chairs said the hearing was intended to brief lawmakers as federal negotiations continue and signaled they would keep working with institutions to monitor developments and to target state budget resources where possible.
