Federal Bill Introduced to Reduce Spending on Programs and Services

Posted on by

This week, U.S. Representative Kevin Brady (R-TX) introduced the Cut Unsustainable and Top-heavy Spending (CUTS) Act to reduce federal spending by $153 billion over the next five years. The bill includes several provisions that would affect student aid, including:

  • Elimination of the administrative cost allowance (ACA) paid to schools for student aid administration to save $200 million over the next five years
  • Elimination of the Leveraging Educational Assistance Partnership (LEAP) Program to save $1 million over five years
  • Elimination of the Robert C. Byrd Honors Scholarship Program to save $42 million over the next five years
  • Elimination of the Department of Education’s Legal Assistance Loan Repayment Program to save $5 million over the next five years.  

The Act is among several that have already been introduced in the U.S. House. Further action on this bill has yet to be scheduled.