Today the U.S. Senate released their proposed budget bill to fund the federal government through the end of the current fiscal year.

The proposed budget bill would fully fund the Pell Grant program to maintain the $5,550 maximum award for the 2011-12 award year and maintain funding for the Federal Supplemental Educational Opportunity Grant (FSEOG). The bill, however, would eliminate funding for the Leveraging Educational Assistance Partnership (LEAP).

The Senate’s propoasl would reduce federal spending by $50 billion, including $6.5 billion in new cuts that were suggested by the White House in the Administration’s 2012 budget request.

The House’s budget bill (H.R. 1) , which passed on February 19, cuts discretionary-funded maximum awards for the Pell Grant from $4,860 to $4,105.  The bill also provides no funding for the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Leveraging Educational Assistance Partnership (LEAP). Both programs provide financial grants to students who qualify for financial aid. Finally, the bill reduces President Obama’s proposed FY11 budget request by $100 billion.

The Senate is expected to vote on their proposed budget bill and the House’s bill this week. It is unlikely that the Senate will pass H.R. 1.

If the Senate fails to pass either H.R. 1 or its own budget bill, both chambers would have to return to the drawing board and would likely require additional time to reach an agreement on spending levels for the remainder of FY2011.

Last week the U.S. House and Senate passed a short-term (two week) budget bill that will fund the federal government through March 18. The latest continuing resolution was passed in order to allow more time to debate a long-term agreement for the remainder of the current fiscal year. Despite this intention, some speculate that a second short-term continuing resolution will be needed before a final agreement is reached.