Departments Of Labor, Health And Human Services, And Education, And Related Agencies Appropriations Act, 2005
Mr. Chairman, as a Member with a lifelong and established record of being an advocate for protecting the sovereign rights of Indian tribes, I rise in opposition to this amendment. Since first becoming aware of the unfavorable…
Mr. Chairman, as a Member with a lifelong and established record of being an advocate for protecting the sovereign rights of Indian tribes, I rise in opposition to this amendment.
Since first becoming aware of the unfavorable administrative ruling of the National Labor Relations Board that determined it has jurisdiction to regulate the labor practices of on-reservation tribal enterprises under the National Labor Relations Act, I, along with my Democratic colleagues, the gentlewoman from California (Minority Leader Pelosi), the gentleman from California (Mr. George Miller), the gentleman from West Virginia (Mr. Rahall), and others have been participating in ongoing, sincere discussions between tribal representatives and representatives of labor.
The purpose of these discussions is to work out a permanent legislative solution that honors the principles of tribal sovereignty and Labor's traditional role of collective bargaining.
The amendment offered today by my dear friend, the gentleman from Arizona (Mr. Hayworth), undermines the ongoing discussions we have had, because this temporary fix would harm the amicable relationship between the parties involved and would possibly destroy our efforts to seek a permanent legislative solution that is mutually satisfactory to all parties.
I have met with the various parties in my own office. They are in an active discussion trying to seek a permanent solution. I am convinced that this temporary solution will interfere with those negotiations to reach that which the gentleman from Arizona (Mr. Hayworth) and I share in common, some solution and some balance to this very important principle embodied in our Constitution of retained sovereignty and collective bargaining.
I am convinced, or I would not be standing here, that we will get a solution satisfactory to both sides on this issue.
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, my amendment is simple. At a time when students and families are struggling with skyrocketing tuition, we are squandering an opportunity to generate more student aid. This fiscal year alone, nearly $1 billion in special student loan subsidies will be paid by the Federal Government to lenders rather than used for financial aid for students. This subsidy results from an obscure provision in the Higher Education Act and its regulations which provide lenders a 9.5 percent rate of return on certain student loans.
This rate of return is excessive when we consider that lenders are guaranteed approximately a 3.5 percent rate on other student loans. The 9.5 percent guarantee was established in the high interest rate year of 1980. Congress intended for it to be phased out of existence beginning in 1993; but through a regulatory loophole, the guarantee has continued. Both the New York Times and the L.A. Times have reported on this loophole. The Government Accountability Office will soon issue a report which calls for the Department of Education to correct its regulations on this matter.
This special subsidy has caused a loss of financial opportunity for students. Students are bearing the brunt of rising college costs and shrinking grant aid. Today we have an opportunity to correct this problem. Despite this issue being addressed in the last Presidential budget, no action has taken place. Since this subsidy has not been eliminated, it has now tripled in the past 3 years.
It has been publicly announced in our hearings in the Committee on Education and the Workforce and in the press that we will not authorize the Higher Education Act this year. This essentially prevents Congress from addressing this issue in the normal fashion. This amendment is the only recourse left to us today. The amendment ends the special subsidy for new loans which are funded with proceeds from bonds which have been refunded or transferred.
Today, Mr. Chairman, we have an opportunity to curtail the biggest use of this provision to date. I urge Members join me in supporting this amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield such time as he may consume to the gentleman from Maryland (Mr. Van Hollen), a cosponsor of the amendment.
Mr. Chairman, I have no further requests for time, and I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.