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Fiscal Year 2013 Budget

Summary and Background Information

TABLE OF CONTENTS

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I. SUMMARY OF THE 2013 BUDGET.......................................................................................1

II. THE 2013 EDUCATION BUDGET BY PROGRAM AREA....................................................16

A. ELEMENTARY AND SECONDARY EDUCATION ...........................................................16

Overview ...............................................................................................................................16

Race to the Top................................................................................................................17

Investing in Innovation Fund (i3) ......................................................................................17

College- and Career-Ready Students...............................................................................18

School Turnaround Grants ...............................................................................................19

Assessing Achievement ...................................................................................................20

Excellent Instructional Teams...........................................................................................20

Effective Teachers and Leaders State Grants ................................................................20

Teacher and Leader Innovation Fund.............................................................................21

Effective Teaching and Learning for a Complete Education .............................................21

Effective Teaching and Learning: Literacy ......................................................................22

Effective Teaching and Learning: STEM.........................................................................22

Effective Teaching and Learning for a Well-Rounded Education ....................................22

College Pathways and Accelerated Learning ...................................................................23

Promise Neighborhoods...................................................................................................23

Successful, Safe, and Healthy Students...........................................................................24

21st Century Community Learning Centers.......................................................................24

Expanding Educational Options .......................................................................................25

Magnet Schools Assistance Program...............................................................................25

Fund for the Improvement of Education............................................................................26

English Learner Education ...............................................................................................26

Title I State Agency Programs..........................................................................................26

Migrant Student Education .............................................................................................27

Neglected and Delinquent Children and Youth Education ..............................................27

Homeless Children and Youth Education .........................................................................27

Rural Education................................................................................................................27

Indian Student Education .................................................................................................28

Native Hawaiian Student Education .................................................................................28

Alaska Native Student Education .....................................................................................29

Comprehensive Centers...................................................................................................29

Impact Aid........................................................................................................................30

Training and Advisory Services (Title IV of the Civil Rights Act) .......................................30

Supplemental Education Grants (Compact of Free Association Amendments Act) ..........31
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B. SPECIAL EDUCATION AND REHABILITATIVE SERVICES ...........................................32

Overview ...............................................................................................................................32

Special Education State Grants.............................................................................................33

Grants to States ...............................................................................................................33

Preschool Grants .............................................................................................................34

Grants for Infants and Families ........................................................................................34

Special Education National Activities.....................................................................................34

State Personnel Development..........................................................................................34

Technical Assistance and Dissemination..........................................................................35

Personnel Preparation......................................................................................................35

Parent Information Centers ..............................................................................................35

Technology and Media Services.......................................................................................35

Other Special Education Activities.........................................................................................36

Special Olympics Education Programs.............................................................................36

PROMISE: Promoting Readiness of Minors in SSI...........................................................36

Rehabilitation Services and Disability Research....................................................................36

Vocational Rehabilitation (VR) State Grants.....................................................................36

Client Assistance State Grants.........................................................................................37

Training............................................................................................................................37

Demonstration and Training .............................................................................................38

Independent Living...........................................................................................................38

Protection and Advocacy of Individual Rights (PAIR) .......................................................38

National Institute on Disability and Rehabilitation Research .............................................39

Helen Keller National Center for Deaf-Blind Youths and Adults........................................39

Assistive Technology........................................................................................................39

Special Institutions for Persons with Disabilities ...............................................................40

American Printing House................................................................................................40

National Technical Institute for the Deaf .........................................................................40

Gallaudet University .......................................................................................................40

C. CAREER, TECHNICAL, AND ADULT EDUCATION........................................................41

Overview ...............................................................................................................................41

Career and Technical Education ......................................................................................41

Adult Education (Adult Basic and Literacy Education) ......................................................42

D. STUDENT FINANCIAL ASSISTANCE.............................................................................43

Overview ...............................................................................................................................43

Student Aid Summary Tables...........................................................................................45

Tax Benefits for Postsecondary Students.........................................................................47

Pell Grants .......................................................................................................................47

Supplemental Educational Opportunity Grants.................................................................48

Work-Study ......................................................................................................................48

Perkins Loans ..................................................................................................................49

TEACH Grants/Presidential Teaching Fellows .................................................................50
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Federal Family Educational Loans and Direct Loans........................................................51

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E. HIGHER EDUCATION PROGRAMS ...............................................................................54

Overview ...............................................................................................................................54

Title III: Aid for Institutional Development .........................................................................56

Aid for Hispanic-Serving Institutions (HSIs)......................................................................58

Hawkins Centers of Excellence ........................................................................................59

International Education and Foreign Language Studies (IEFLS) ......................................59

Race to the Top: College Affordability and Completion....................................................59

Fund for the Improvement of Postsecondary Education (FIPSE)......................................60

First in the World..............................................................................................................60

Tribally Controlled Postsecondary Career and Technical Institutions ...............................60

Special Programs for Migrant Students ............................................................................61

Federal TRIO Programs ...................................................................................................61

Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)........62

Graduate Assistance in Areas of National Need (GAANN)...............................................62

Child Care Access Means Parents in School ...................................................................62

GPRA Data/HEA Program Evaluation ..............................................................................63

Academic Facilities ..........................................................................................................63

Howard University ............................................................................................................63

F. INSTITUTE OF EDUCATION SCIENCES........................................................................64

Overview ...............................................................................................................................64

Research, Development, and Dissemination....................................................................64

Statistics...........................................................................................................................64

Regional Educational Laboratories (REL).........................................................................65

Assessment .....................................................................................................................65

Research in Special Education.........................................................................................66

Statewide Data Systems ..................................................................................................66

Special Education Studies and Evaluations......................................................................66

III. PROGRAMS PROPOSED FOR CONSOLIDATION OR ELIMINATION..............................67

IV. DEPARTMENTAL MANAGEMENT ....................................................................................71

History and Background ........................................................................................................71

Salaries and Expenses Overview..........................................................................................73

Department Employment..................................................................................................74

Program Administration ....................................................................................................75

Student Aid Administration................................................................................................75

Office for Civil Rights.............................................................................................................76

Office of the Inspector General..............................................................................................77
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APPENDICES...........................................................................................................................78

Summary of Discretionary Funds, Fiscal Years 2008-2013 President’s Budget

Mandatory Funding in the Department of Education

Summary of Mandatory Funds, Fiscal Years 2011-2013 President’s Budget

Advance Appropriations for Department of Education

Total Expenditures for Elementary and Secondary Education in the United States

Detailed Budget Table by Program

For further information on the Department and its activities,

visit us at www.ed.gov, or call 1-800-USA-LEARN
Even as we find ways to cut spending, what we can’t do is cut back on investments

like education that will help us create jobs and grow our economy.

President Barack Obama

March 4, 2011

I. SUMMARY OF THE 2013 BUDGET

Over the past 3 years, President Obama has demonstrated extraordinary leadership in 

shepherding America’s education system through the financial crisis and economic recession 

and in leveraging the change and reform we need to prepare our children for the challenges of 

competing successfully in the 21st century global economy.

The American Recovery and Reinvestment Act of 2009 (ARRA) delivered nearly $100 billion to 

States, school districts, postsecondary institutions, and students to help address budget 

shortfalls and meet the educational needs of all Americans in the midst of the most severe 

economic downturn since the Great Depression. These funds helped save or create an 

estimated 400,000 jobs, including 325,000 education jobs, and the Education Jobs Fund has

helped cash-strapped States and districts keep tens of thousands of teachers in the classroom 

since its passage in late summer of 2010.

President Obama also used ARRA funds to launch transformational reforms through the Race 

to the Top, Investing in Innovation (i3), and redesigned School Improvement Grant (SIG)

programs. Race to the Top is now helping 18 States and the District of Columbia implement 

comprehensive, game-changing reforms designed to raise the quality of academic standards 

and assessments; increase the use of data to improve instruction and decisionmaking; recruit, 

develop, and retain effective teachers and principals; and turn around the lowest-performing 

schools. Nine States are using Race to the Top—Early Learning Challenge awards to help 

build statewide systems of high-quality early learning. The i3 program has made 72 awards, 

totaling $800 million, to develop, validate, and scale up projects designed to dramatically 

enhance student learning and accelerate student achievement. School districts are putting

$4.5 billion to work in implementing rigorous school turnaround models in more than 1,200 of 

the Nation’s persistently lowest-achieving schools, including many of the “dropout factories” that 

graduate fewer than 60 percent of their students.

Drawing on these successful reforms, in early 2010, the President proposed a far-reaching 

reauthorization plan for the Elementary and Secondary Education Act (ESEA). A Blueprint for 

Reform re-envisioned the Federal role in education as supporting more flexible, innovative, 

locally driven approaches to teaching and learning that would allow States, school districts, 

principals and teachers to make better, more productive use of existing resources. However, 

with reauthorization 5 years overdue and States and school districts increasingly struggling with 

the outdated accountability provisions of the No Child Left Behind Act, President Obama

decided that our children can no longer wait. In September 2011, he announced an ESEA

flexibility initiative to help create space—pending completion of reauthorization—for State and 

local innovations that would increase the quality of instruction and improve student academic 

achievement. Eleven States submitted requests for ESEA flexibility in November 2011, and up 

to 30 additional States are expected to follow suit in early 2012.
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President Obama also continues to advocate for his American Jobs Act, which would provide 

$25 billion to support the jobs of some 325,000 teachers and $30 billion to help modernize up to 

35,000 public schools and community colleges.

In postsecondary education, President Obama has worked tirelessly to make a college 

education more accessible and affordable for all students and help ensure that, by 2020, the 

United States will once again have the highest proportion of college graduates in the world. The 

historic Student Aid and Fiscal Responsibility Act of 2010 (SAFRA) ended decades of 

unnecessary Government subsidies to banks and other institutions that made guaranteed loans 

to postsecondary students, saving an estimated $68 billion. These savings were re-directed to 

help Pell Grants keep pace with rising college costs, reduce the burden of loan repayment for 

college graduates, expand career training opportunities at local community colleges, and 

increase support for minority-serving institutions, which currently enroll nearly 60 percent of all 

minority undergraduate students. Thanks in part to these new investments, President Obama 

has roughly doubled funding for the need-based Pell Grant program, raising the maximum 

award from $4,731 in fiscal year 2008 to an estimated $5,635 for fiscal year 2013 and 

increasing the number of recipients by approximately 50 percent to nearly 10 million students.

The President’s 2013 budget would build on these accomplishments by enabling the expansion 

of successful existing reform programs like Race to the Top and i3, supporting new initiatives to 

increase higher education affordability and quality, strengthening the teaching profession, and 

improving job training. 

The Administration is requesting $69.8 billion in discretionary 

appropriations for the Department of Education in fiscal year 2013, an 

increase of $1.7 billion, or 2.5 percent, over the fiscal year 2012 level.

The 3-year table below displays the Department’s discretionary request without Pell Grants, the 

net discretionary request for the Pell Grant program, and the total discretionary request.

Department of Education Discretionary Appropriations

(in billions of dollars)

Breakdown of Department 

discretionary appropriations 2011 2012

2013 

Request Change

Discretionary

(without Pell Grants)

$45.3 $45.3 $47.0 +$1.7

Pell Grants

(net discretionary request)

$23.0 $22.8 $22.8 0.0

Total $68.3 $68.1 $69.8 +$1.7

The overall 2013 request also includes additional mandatory funds for Pell Grants and new 

initiatives. Most of the Department’s funding is discretionary and is appropriated annually for 

each program within the limits established by authorizing legislation. Mandatory funding 

generally does not require annual appropriations because the authorizing legislation itself 

establishes a fixed funding level or a method for calculating automatic appropriations without 

further congressional action. The largest mandatory programs in the Department's budget are 

federally subsidized loans for postsecondary students, the costs of which are estimated based 
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on assumptions about interest rates, lender fees, repayments, defaults, and collections. Other 

education programs funded in whole or in part through mandatory appropriations include Pell 

Grants and Vocational Rehabilitation State Grants. The total request for Pell Grants, for 

example, is $36.1 billion, including $22.8 billion in discretionary funds and $13.3 billion in 

mandatory funds. 

Over the past 3 years the Department of Education has successfully streamlined and 

consolidated programs from kindergarten through college to save taxpayer dollars, improve 

efficiency and reduce administrative burdens, and better serve States, schools, students, and 

families. Congress eliminated or consolidated 49 ineffective, outdated, or duplicative programs 

for a total savings of more than $1.2 billion, in many instances following the Administration’s 

recommendations, though it has not yet provided the consolidated program structure that would 

enable the Department to drive the reforms that are needed in the Nation’s schools. In addition, 

the Administration replaced decades of costly subsidies to banks for guaranteed student loans 

with more efficient Direct Loans that will save taxpayers $68 billion over 10 years.

MAJOR INITIATIVES FOR FISCAL YEAR 2013

In addition to sustaining the State and local K-12 reform momentum created by initiatives like 

Race to the Top and i3, the 2013 budget request for the Department of Education is focused on 

three new priorities: (1) improving affordability and quality in postsecondary education,

(2) elevating the teaching profession to the same high status it enjoys in nations with the 

highest-performing education systems, and (3) strengthening the connections between school 

and work and better aligning job training programs with workforce demands.

Affordability and Quality in Postsecondary Education

Whether it is by looking at earnings or employment rates, the evidence is clear that obtaining a 

postsecondary credential is an economic imperative, not a luxury. But the growing need for 

higher education is coming at the same time that the cost of college is rising to levels that are 

increasingly unaffordable for many American families. Historic Federal investments in student 

financial assistance and tax credits have helped slow increases in the net price that students 

and families pay for college, but we cannot expect Federal student aid to keep pace with rising 

college costs indefinitely. Instead, we need larger reforms that address the root causes 

affecting college affordability, while also creating incentives to provide greater quality and value 

to students. Addressing these goals is something that cannot be done by the Federal 

Government alone. For these reasons, President Obama is proposing a comprehensive 

approach to higher education affordability and quality that focuses on improvements at the 

State, institutional, and individual levels. Specific proposals include:

 $1 billion for the first year of Race to the Top: College Affordability and Completion to drive 

systemic State reforms that simultaneously lead to increased affordability, quality, and 

productivity. Funds would be awarded to States with a strong record of increasing college 

affordability and quality, which could be demonstrated in such ways as maintaining a 

consistent State financial commitment to higher education, operating institutions that 

reasonably stabilize or contain the growth in what students pay for college and measure and 

publicize institutional value in terms of financial returns and other outcomes, making use of 

data to drive policy, and improving alignment between K-12 and postsecondary education 

and across colleges. Funds would be used by States and institutions to boost quality and 

productivity and provide greater value to students through improved undergraduate 
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experiences, new paths to credit attainment and degrees, and increased capacity, among 

other purposes.

 Expanding and reforming the Campus-Based Aid programs —Supplemental Educational 

Opportunity Grants (SEOG), Federal Work-Study, and Perkins Loans—to provide $10 billion 

in student financial aid for use at those colleges that provide the best value to students by 

enrolling and graduating students from low-income families, restraining net prices, and 

demonstrating good value.

 $55.5 million for a “First in the World” fund that would help postsecondary institutions, 

including private institutions and nonprofit organizations, to develop, evaluate, or scale up 

innovative and effective strategies for improving college completion outcomes while lowering 

costs and increasing the quality and capacity of higher education. Awards could be used to 

pay start-up costs for activities such as using technology to redesign coursework, improving

early college preparation in order to mitigate the need for remediation, and developing and 

implementing competency-based instruction and assessment. Funds also would be used 

for incentive payments that reward grantees for successful outcomes.

The significant Federal investment in postsecondary student aid means taxpayers have a strong 

interest in positive higher education outcomes. These initiatives would help protect that 

investment by creating incentives for States and public and private postsecondary institutions to 

provide good value to students at an affordable price and move us closer to meeting President 

Obama’s 2020 goal for college completion.

Elevating the Teaching Profession

A second priority in the 2013 President’s request is furthering efforts to ensure that 

accomplished, effective teachers are guiding every student’s learning and that teaching is highly 

respected as a profession. Previous appropriations have supported State and local efforts to 

implement performance-based compensation and strengthen teacher evaluation systems, but it 

is increasingly clear that those reforms are too narrow to elevate the profession to the status 

that our teachers deserve and our children need. In addition, we need to re-engineer and 

radically change our approach to attracting, training, supporting, and rewarding talented 

individuals in the teaching profession while empowering them to work together in new ways to 

dramatically improve the achievement of all students. Specific proposals supporting this goal 

include:

 $5 billion in one-time funds through the American Jobs Act for a new initiative to strengthen 

the education profession by elevating it to the ranks of our most respected professions, such 

as medicine and law. The initiative would provide support to States and districts to pursue 

bold reforms at every stage of the profession, including by reforming colleges of education 

and making these schools more selective; creating new career ladders for teachers and 

ensuring that earnings are tied more closely to performance; establishing more leadership 

roles and responsibilities for teachers in running schools; improving professional 

development and time for collaboration among teachers; providing greater individual and 

collective autonomy in the classroom in exchange for greater accountability; creating 

evaluation systems based on multiple measures, rather than just test scores; and re-shaping 

tenure to raise the bar, protect good teachers, and promote accountability.
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 A new 25-percent set-aside of Effective Teachers and Leaders State Grant funds under 

Title II of the ESEA. This increased set-aside—approximately $617 million—would support

efforts to build evidence on how to best recruit, train, and support effective teachers and 

school leaders; recruit and prepare effective science, technology, engineering, and 

mathematics teachers; and invest in efforts to enhance the teaching and school leadership 

professions.

 $190 million in mandatory funding for a new Presidential Teaching Fellows program that 

would make formula grants to States that meet certain conditions to award scholarships of 

up to $10,000 to talented individuals attending the most effective programs in the State.

These individuals would be trained in a high-need subject and would commit to teach for at 

least 3 years in a high-need school. To be eligible for funds, States would measure the 

effectiveness of their teacher preparation programs based on student achievement data of 

their graduates, among other measures; hold teacher preparation programs accountable for 

results; and upgrade licensure and certification standards. 

Aligning Job Training and Education Programs with Workforce Demands

In addition to funding for reforming traditional postsecondary education and reshaping the 

teaching profession, the 2013 request for education includes key discretionary and mandatory 

investments aimed at improving the connections between school and work and strengthening

the alignment of job training programs with workforce demands.

 $8 billion over 3 years for a community college initiative, jointly administered by the 

Departments of Education and Labor, that would improve access to job training across the 

Nation and support State and community college partnerships with businesses to build the 

skills of American workers. Increased investment in community colleges will help ensure our 

country has one of the most skilled workforces in the world.

 $1 billion over 3 years to expand Career Academies and increase the number of students 

served by this effective strategy. 

 $1.1 billion to support the reauthorization and reform of the Career and Technical Education 

(CTE) program, currently set to expire at the end of fiscal year 2012. The Administration’s 

reauthorization proposal would restructure CTE to increase the rigor and relevance of what 

students learn in school to more closely align with the demands of the 21st century economy

and workforce, while creating stronger linkages between secondary and postsecondary 

education. The proposal also would promote innovation and reform in CTE. 

KEY PROGRAMS IN THE DEPARTMENT’S 2013 REQUEST

The three major priorities for fiscal year 2013—improving college affordability and quality, 

reshaping the teaching profession, and strengthening the connections between school and 

work—are embedded in and complement a comprehensive set of investments in the 2013 

request that reflect the Administration’s longstanding commitment to transform our education 

system while continuing to help States, communities, school districts, schools, and 

postsecondary institutions meet the needs of all students. These investments are structured 

around the policy themes described below.
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Great Teachers and Leaders

The 2013 request includes a major new initiative to rebuild the teaching profession by radically 

changing how we prepare, credential, support, advance, and compensate teachers. As in other 

high-performing countries, we must elevate the teaching profession through a higher bar for 

entry; better training, including mentoring; higher compensation; a more flexible and 

collaborative work environment; meaningful evaluation and rewards for excellence; and 

opportunities for career advancement, both in the classroom and in school leadership teams. 

Our overall goals are to attract talented individuals to the field and create career and leadership 

opportunities to keep them in the classroom and invested in their school’s success—especially 

in high-need schools. Key proposals in this area include:

 $5 billion in one-time funds through the previously proposed American Jobs Act for a new

initiative designed to dramatically reshape the teaching profession. This initiative would help 

States and school districts pursue bold reforms at every stage of the profession, including by 

reforming colleges of education and making these schools more selective; creating new 

career ladders for teachers and ensuring that earnings are tied more closely to performance; 

establishing more leadership roles and responsibilities for teachers in running schools; 

improving professional development and increasing time for collaboration among teachers; 

providing greater individual and collective autonomy in the classroom in exchange for 

greater accountability; creating evaluation systems based on multiple measures, rather than 

just test scores; and re-shaping tenure to raise the bar, protect good teachers, and promote 

accountability.

 $190 million in mandatory funding for a new Presidential Teaching Fellows program that

would fund formula grants to States to provide scholarships to talented students attending

top-tier teacher preparation programs in the State, with a priority on students from lowincome families. The new program would require fellows to be trained in a high-need 

subject and to commit to teach for at least 3 years in a high-need school. To be eligible for 

funds, States would measure the effectiveness of their teacher preparation programs based 

on student achievement data of their graduates, among other measures; hold teacher 

preparation programs accountable for results; and upgrade licensure and certification 

standards. This program would replace the TEACH Grants program.

 $30 million for the Hawkins Centers of Excellence program to increase the number of

effective minority educators by expanding and reforming teacher education programs at 

Minority-Serving Institutions. Supporting the preparation of effective teachers for high-need 

schools is a key strategy for closing the achievement gap between minority students and 

their peers.

 $2.9 billion for the new Excellent Instructional Teams program, which would consolidate 

5 teacher and school leader programs into 2 new programs better designed to help States 

and LEAs increase the effectiveness of teachers and principals:

 $2.5 billion for Effective Teachers and Leaders State grants to help States and LEAs 

carry out strategies to recruit, prepare, retain, and reward effective teachers and 

principals. Key activities would include strengthening teacher evaluation systems and 

ensuring the equitable distribution of effective teachers and school leaders. The request 

also would allow the Department to reserve up to 25 percent of program funds to 
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support, among other things, innovative efforts to create and expand high-performing 

pathways into teaching and school leadership.

 $400 million for the Teacher and Leader Innovation Fund to significantly increase 

competitive grant funding for State and local efforts to support ambitious reforms—

including innovative compensation systems—to better recruit, prepare, retain, and 

reward effective teachers, principals, and school leadership teams in high-need schools. 

 $186.9 million for a new Effective Teaching and Learning: Literacy competitive grant 

program that would help States strengthen their literacy programs by developing 

comprehensive, evidence-based, preschool-through-grade-12 literacy plans and aligning 

Federal, State, and local resources to provide high-quality literacy instruction.

 $149.7 million for the new Effective Teaching and Learning: Science, Technology, 

Engineering, and Mathematics (STEM) competitive grant program to help States improve 

instruction and raise student achievement in these subjects.

 $90 million for the new Effective Teaching and Learning for a Well-Rounded Education

program to provide competitive grants to States, high-need local educational agencies 

(LEAs), and non-profit partners to strengthen the teaching and learning of the arts, foreign 

languages, civics and government, history, economics and financial literacy, environmental 

education, health education, and other subjects that contribute to a well-rounded education.

Promoting Innovation

The 2013 request would continue to change the culture of America’s education system by 

rewarding excellence and promoting innovation. The early success of programs like Race to 

the Top and i3 have demonstrated the eagerness of States, school districts, institutions of 

higher education, researchers, and education entrepreneurs to respond to incentives by 

proposing groundbreaking changes that promise to improve the quality and outcomes of our 

education system. Key requests include:

 $850 million for additional Race to the Top awards, an increase of $301 million over the 

2012 level, to support comprehensive State and local reforms and innovations designed to 

close achievement gaps and produce significant improvements in student achievement, high 

school graduation rates, and college enrollment rates for all students. The request includes 

funding for the Race to the Top—Early Learning Challenge.

 $150 million for the Investing in Innovation (i3) program for new competitive awards to 

develop, evaluate, and scale up evidence-based approaches that improve pre-K through 

grade 12 achievement and close achievement gaps, decrease dropout rates, increase high 

school graduation rates, and improve teacher and school leader effectiveness. A portion of 

funds from i3 also would be used to support the development of breakthrough learning 

technologies through a new Advanced Research Projects Agency—Education (ARPA-ED).

 $255 million for Expanding Educational Options to support the creation and expansion of 

effective charter schools and other effective autonomous schools.
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 $1 billion for the first year of Race to the Top: College Affordability and Completion to drive 

systemic State reforms that simultaneously lead to increased affordability, quality, and 

productivity. Funds would be awarded to States with a strong record of increasing college 

affordability and quality and could be used by States and institutions to provide greater value 

to students through improved undergraduate experiences, new paths to credit attainment 

and degrees, and increased capacity, among other purposes.

 $55.5 million for a “First in the World” competition among colleges and universities that 

would apply the lessons of the successful Investing in Innovation (i3) program to the 

challenge of improving college completion, particularly for minority and low-income students. 

First in the World would provide “venture capital” to encourage innovative approaches to 

improving college completion, research support to build the evidence of effectiveness 

needed to identify successful strategies, and resources to scale up and disseminate 

strategies we already know are successful. Funds also would be used for incentive 

payments that reward grantees for successful outcomes. Up to $20 million would be 

dedicated specifically to projects serving MSIs.

Meeting the Full Range of Student Needs

The disadvantaged children and young people targeted by key Department formula grant 

programs, such as Title I, Part A of the Elementary and Secondary Education Act and Part B 

Grants to States under the Individuals with Disabilities Education Act, often fall behind in school 

because of the failure to meet their non-academic needs. The 2013 request includes over

$1.4 billion to support comprehensive services, safe school climates, student health and wellbeing, and expanded school schedules to accommodate both additional learning opportunities 

and access to comprehensive services outside the traditional school day. 

 $100 million for Promise Neighborhoods, an increase of $40.1 million over the 2012 level, 

for competitive grants to support the development and implementation of plans for 

comprehensive neighborhood projects that include a continuum of family and community 

services and ambitious education reforms designed to combat the effects of poverty and 

improve education and life outcomes, from birth through college to career, for children and 

youth within a distressed geographic area.

 $1.2 billion for a reauthorized 21st Century Community Learning Centers program, the same 

as the 2012 level, for competitive grants for projects to provide students with additional time 

for academic and enrichment activities—including before- and after-school, summer school, 

and expanded learning time programs involving the redesign and extension of the school 

day, week, or year—as well as to programs that support full-service community schools that 

coordinate access to comprehensive services.

 $195.9 million for Successful, Safe, and Healthy Students, a new competitive grant program 

under the Administration’s ESEA reauthorization proposal, to carry out strategies designed 

to improve the physical and mental health of students; reduce or prevent drug use, alcohol 

use, bullying, harassment, or violence; and collect and report better information on school 

climate and student safety.
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Improving STEM Education

President Obama has identified the need to improve our STEM education compared to other 

nations, and set out three overarching priorities to ensure more students get the skills needed to 

succeed in the STEM fields: increasing STEM literacy so that more students are motivated to 

pursue STEM subjects; improving the quality of math and science teaching; and expanding 

STEM education and career opportunities for underrepresented groups, including women and 

minorities. Key activities include:

 $149.7 million for Effective Teaching and Learning: STEM, which would replace the current 

Mathematics and Science Partnerships program. Funds would be used to support State 

implementation of comprehensive, evidence-based plans; professional development that 

aligns Federal, State, and local resources to provide high-quality STEM instruction, and for 

subgrants to high-need LEAs to support comprehensive STEM instruction in the grades and 

schools with the greatest needs.

 $80 million for STEM teacher and leader training and professional development, funded 

through a set aside from the Effective Teachers and Leaders program, to support the 

President’s goal of preparing 100,000 effective STEM teachers over the next decade. 

These funds would support competitive awards to create or expand high-quality pathways to 

teacher certification and other innovative approaches for recruiting, training, and placing 

talented recent college graduates and mid-career professionals in STEM fields in high-need 

schools.

 $30 million in the Fund for the Improvement of Education, combined with $30 million from 

the National Science Foundation, to support the development and implementation of a 

robust, evidence-based K-12 STEM initiative as well as efforts to improve the evidence base 

for STEM programs across the Federal Government. The initiative would include 

competitive grants focused on developing, evaluating, and scaling up proven practices that 

can help increase student achievement in K-12 STEM. In addition, funds would support the 

development of common evidence frameworks for the two agencies, a “what works” 

repository, and technical assistance activities.

 A priority for STEM projects under the Investing in Innovation (i3) program, which makes 

competitive awards to develop, validate, and scale up innovative programs, practices, and 

strategies that are effective in improving educational outcomes for students. The proposed

Advanced Research Projects Agency for Education (ARPA-ED), which would be launched 

through a set-aside of i3 funds, would focus on developing breakthrough educational 

technology solutions in high-need areas, such as STEM.

Supporting Early Learning

The Administration is committed to supporting a continuum of learning in the early years from 

birth through third grade. Significant evidence from research and evaluation demonstrate that 

high-quality early learning programs and services are the among the most cost-effective 

investments in improving health, social-emotional, and cognitive outcomes; increasing school 

readiness across a range of domains; and closing and even preventing achievement gaps. The 

2013 request would build on the 2011 Race to the Top—Early Learning Challenge competition, 
10

which awarded $500 million to 9 States to help build statewide systems of high-quality early 

education programs. Key activities in 2013 would include:

 Additional funding for the Race to the Top—Early Learning Challenge, using a portion of the 

$850 million request for Race to the Top. These funds would be paired with new 

investments by the Department of Health and Human Services in child care quality. 

Together, these investments would improve the quality of early childhood programs and 

prepare young children to succeed in school.

 $462.7 million for the Grants for Infants and Families program under the Individuals with 

Disabilities Education Act (IDEA), an increase of $20 million over the 2012 level, to help 

States implement statewide systems of early intervention services for all eligible children 

with disabilities from birth through age 2 and their families. 

 $372.6 million for IDEA Preschool Grants to help States provide a free appropriate public 

education in the least restrictive environment to all children with disabilities ages 3 through 5 

to help ensure that young children with disabilities succeed in school.

 $100 million for Promise Neighborhoods, an increase of $40.1 million over the 2012 level, 

for competitive grants to support the development and implementation of plans for 

comprehensive neighborhood projects, including a continuum of family and community 

services and ambitious education reforms, designed to combat the effects of poverty and 

improve education and life outcomes, from birth through college and career, for children and 

youth within a distressed geographic area.

All Students College- and Career-Ready

The core of the Administration’s ESEA reauthorization proposal is ensuring that all students, 

including poor and minority students, students with disabilities, and English Learners, graduate 

from high schools college- and career-ready (CCR). One key to reaching this goal is closing

longstanding achievement gaps between poor and minority students and their more advantaged 

peers. Proposals in this area for 2013 include:

 $14.5 billion for a reauthorized and strengthened Title I, Part A College- and Career-Ready 

Students program, the same as the 2012 level, to maintain support for State and local 

efforts to help disadvantaged students in high-poverty schools meet challenging collegeand career-ready (CCR) academic standards. The request also would help States create 

statewide accountability systems based on CCR standards and aligned assessments, 

measure school success in helping all students graduate high school ready for college and a 

career, reward schools and LEAs making significant progress and closing achievement 

gaps, and carry out rigorous interventions in the lowest-performing schools. These funds 

also would help States carry out similar reforms under approved ESEA flexibility plans.

 $533.6 million for a reauthorized School Turnaround Grants program, the same as the 2012 

level, to fund a new round of awards to local school districts to support the implementation 

of rigorous interventions in their persistently lowest-performing schools as identified under 

the College- and Career-Ready Students program. These funds also would support 

rigorous interventions in the lowest-performing “priority schools” identified by States under

approved ESEA flexibility plans.
11

 $389.2 million for a reauthorized Assessing Achievement program, the same as the 2012 

level, for formula and competitive grants to help States improve the quality of their 

assessment systems as they transition to assessments aligned with college- and careerready standards. Grantees also could use funds to develop and implement CCR standards 

and assessments in other subjects, such as science and history, needed to ensure that all 

students receive a well-rounded education.

 $11.6 billion for Special Education Grants to States, the same as the 2012 level, to continue 

paying a significant share of State and local costs of improving educational outcomes for 

children with disabilities. The request would provide an estimated average of $1,762 per 

student for about 6.6 million children ages 3 through 21.

 $732.1 million for a reauthorized English Learner Education program, the same as the 2012 

level, for formula grants to help States and LEAs meet the needs of the growing population 

of English Learners, and to help these students reach the same college- and career-ready 

goals for reading and mathematics as other students. The Administration’s reauthorization 

proposal supports strengthened professional development for educators, improved 

accountability, and the development and implementation of innovative and effective 

programs.

 $443.5 million for Title I Migrant Student Education and Neglected and Delinquent Children 

and Youth Education State agency programs, the same as the 2012 level, to help meet the 

educational needs of approximately 241,000 children of migrant agricultural workers and to 

help an estimated 109,000 neglected and delinquent students return to and complete high

school or a GED program and obtain employment.

 $65.2 million for Homeless Children and Youth Education, the same as the 2012 level, for 

locally based services to help homeless children enroll in, attend, and succeed in school. In 

addition to academic instruction, the program helps ensure access for these children to 

preschool programs, special education, and gifted and talented programs.

 $30 million for PROMISE: Promoting Readiness of Minors in SSI, an increase of 

$28 million to expand pilot demonstration programs in selected States to improve the health, 

educational attainment, and employment outcomes for children receiving Supplemental 

Security Income (SSI) payments and their families by better coordinating and increasing the 

use of existing services for which they and their families are eligible. A portion of these 

funds could be used for Pay for Success bonds to engage social investors, the Federal 

Government, and a State or local community to collaboratively finance effective 

interventions.

College Access and Completion

The 2013 request includes a wide range of proposals to support the Administration’s initiative on 

college affordability and quality, including strong continued support for essential student 

financial aid programs; potentially groundbreaking reform measures based on the Race to the 

Top model of supporting comprehensive, systemic reform; encouragement of innovation at the 

institutional level; assistance to a wide range of minority-serving institutions; and programs to 
12

help disadvantaged students prepare for and succeed in postsecondary education. Key 

proposals include:

 A $5,635 maximum Pell Grant award supported by a total request of $36.1 billion in 

discretionary and mandatory funding that would provide Pell Grants to nearly 10 million 

postsecondary students. The proposed budget continues the Administration’s strong 

commitment to the Pell Grant program and to preserving the maximum award, and includes 

measures that ensure full program funding through the 2014-15 academic year. To help 

place the program on a secure financial footing now and in the future, the request includes 

additional mandatory funding that is offset by reforms in the student loan programs.

 Making the American Opportunity Tax Credit permanent to continue to provide a partially 

refundable tax credit of up to $10,000 over 4 years to almost nine million taxpayers. The tax 

credit currently is scheduled to expire in 2012.

 Keeping interest rates low on postsecondary student loans by suspending for 1 year a 

scheduled increase under current law that would double rates on subsidized Stafford loans 

from 3.4 percent to 6.8 percent. This proposal reflects the Administration’s commitment to 

helping families pay college costs by keeping rates low, especially in light of the ongoing 

recovery from the recent economic recession.

 Expanding and reforming the Campus-Based Aid programs—SEOG, Federal Work-Study, 

and Perkins Loans—to provide more than $10 billion in financial assistance to students 

attending colleges that are succeeding in enrolling and graduating students from low-income 

families, restraining net prices, and demonstrating good value. The request also includes a 

$150 million increase for Federal Work-Study.

 $1 billion for the first year of Race to the Top: College Affordability and Completion to drive 

systemic State reforms that simultaneously lead to increased affordability, quality, and 

productivity at colleges of all levels. Funds would be awarded to States with a strong record 

of increasing college affordability and quality and could be used by States and institutions to 

provide greater value to students through improved undergraduate experiences, new paths 

to credit attainment and degrees, and increased capacity, among other purposes.

 $55.5 million for a “First in the World” competition among colleges and universities to 

develop, test, and scale up effective approaches to education, including a reservation of up 

to $20 million within the fund for projects involving Minority-Serving Institutions.

 $839.9 million for Federal TRIO programs, the same as the 2012 level, to maintain strong 

support for services to help disadvantaged students enroll in and complete college.

 $302.2 million for Gaining Early Awareness and Readiness for Undergraduate Programs

(GEAR UP), the same as the 2012 level, to help approximately 725,000 middle and high 

school students prepare for and enroll in college.
13

 $81.3 million for College Pathways and Accelerated Learning, a new authority under the 

Administration’s ESEA reauthorization proposal designed to increase graduation rates and 

preparation for college matriculation and success by providing college-level and other 

accelerated courses and instruction in high-poverty middle and high schools, including 

Advanced Placement/International Baccalaureate (AP/IB) courses, dual-enrollment 

programs, and “early college high schools.”

 $431.1 million in discretionary funds for the Aid for Institutional Development programs, the 

same as the 2012 level, to maintain support for ongoing efforts to improve the academic 

programs and administrative and fundraising capabilities of institutions that enroll a large 

proportion of minority and disadvantaged students, including Historically Black Colleges and 

Universities.

 $109.4 million in discretionary funds for Aid for Hispanic-serving Institutions, the same as the 

2012 level, to help ensure that Hispanic students, half of whom enroll in Hispanic-serving 

institutions, have access to high quality postsecondary education.

Aligning Programs for Adult Learners and Individuals

with Disabilities with Workforce Demands

The 2013 request includes funding for a variety of programs targeted to adult learners and 

individuals with disabilities that would provide essential support for State and local activities 

intended to help millions of Americans navigate the ever-changing job market and overcome the 

career challenges created by the combination of global competition and the economic 

recession.

 $8 billion over 3 years for a community college initiative, jointly administered by the 

Departments of Education and Labor, that would improve access to job training across the 

Nation and support State and community college partnerships with businesses to build the 

skills of American workers. Increased investment in community colleges will help ensure our 

country has one of the most skilled workforces in the world.

 $1 billion over 3 years to expand Career Academies and increase the number of students 

served by this effective strategy.

 $1.1 billion to support the reauthorization and reform of the Career and Technical Education 

(CTE) program, currently set to expire at the end of fiscal year 2012. The Administration’s 

reauthorization proposal would restructure CTE to increase the rigor and relevance of what 

students learn in school and more closely align CTE with the demands of the 21st century 

economy and workforce while creating stronger linkages to postsecondary education. The 

proposal also would provide funding to promote innovation and reform in CTE. 
14

 $595 million for Adult Basic and Literacy Education State Grants, the same as the 2012 

level, to support a reauthorization proposal that would streamline service delivery, require 

rigorous content standards and aligned assessments, ensure that workforce and adult 

education providers engage with employers, strengthen accountability requirements, 

promote innovative programs that support the use of career pathways models, and increase 

support for adults in correctional settings. The request includes a $15 million set-aside to 

support a Workforce Innovation Fund (WIF) that would make competitive grants that

encourage innovation and identify and validate effective strategies for improving the delivery 

of services and outcomes for all beneficiaries under the programs authorized by the 

Workforce Investment Act (WIA), as well as $75 million for the English Literacy/Civics 

Education set-aside to help States and communities provide adults learning English with 

expanded access to high-quality English literacy programs linked to civics education. 

 $3.2 billion for Vocational Rehabilitation (VR) State Grants to help States and tribal 

governments to increase the participation of individuals with disabilities in the workforce. 

The requested $45.7 million increase over 2012 includes $35.7 million that would be made 

available from the consolidation of the smaller VR-related programs under the Rehabilitation 

Act in order to reduce duplication of effort and administrative costs, streamline program 

administration at the Federal, State, and local levels, and improve accountability. The 

increase also includes $10 million that would be set aside to support innovation under the 

WIF to improve the delivery of services and outcomes for beneficiaries under programs 

authorized by WIA, including individuals with significant disabilities.

Identifying Effective Practices and Increasing Transparency

The Administration is seeking a total of $760.5 million, an increase of $101.5 million, or 

15 percent, to support the Department of Education’s longstanding role in sponsoring education 

research and development activities, gathering and making available to researchers and the 

public a wide range of data on our education system, and measuring the performance of 

American students through a rigorous assessment program in a variety of academic subjects. 

The 2013 request includes the following:

 $202.3 million for Research, Development, and Dissemination, an increase of $12.5 million 

over the 2012 level, to support critical investments in education research, development, 

dissemination, and evaluation that provide parents, teachers, and schools with evidencebased information on effective educational practice. The request would fund additional 

awards under existing programs of research and development in areas where our 

knowledge of learning and instruction is inadequate as well as the completion of an impact 

evaluation of whether expanding Pell Grants to support additional training and education for 

unemployed adults results in higher earnings and employment.

 $114.7 million for Statistics, an increase of $6 million over the 2012 level, to support the 

collection, analysis, and dissemination activities of the National Center for Education 

Statistics (NCES). The increase would be used by NCES to support State participation in a 

pilot Program for International Student Assessment (PISA) study that would allow States to 

benchmark the performance of their 15-year-old students against international standards.
15

 $132.3 million for Assessment, a decrease of $6 million from the 2012 level, to support the 

National Assessment of Educational Progress (NAEP), the only nationally representative 

and continuing assessment of what American students know and can do. The proposed 

funding level is sufficient to enable NAEP to fulfill its mission and continue to provide 

important information on student achievement over time.

 $53.1 million for Statewide Data Systems, an increase of $15 million over the 2012 level, to 

help States develop enhanced longitudinal student data systems that track student progress 

from early childhood to entry into the workforce. The proposed increase would support 

postsecondary data initiatives designed to improve information on students as they progress 

from high school to postsecondary education and the workforce.
16

II. THE 2013 EDUCATION BUDGET BY PROGRAM AREA

A. ELEMENTARY AND SECONDARY EDUCATION

Overview

The 2013 request for elementary and secondary education programs supports the 

Administration’s comprehensive plan for reauthorizing the Elementary and Secondary Education 

Act (ESEA), as outlined in A Blueprint for Reform: The Reauthorization of the Elementary and 

Secondary Education Act, released in March 2010 and available on the Department of 

Education website at http://www2.ed.gov/policy/elsec/leg/blueprint/blueprint.pdf. 

The reauthorization plan recognizes that addressing stubborn achievement gaps and helping all 

children to excel requires more than just tinkering around the edges; rather, we need to rethink 

the Federal role to support innovation while at the same time leveraging more productive use of 

existing resources to improve teaching and learning. The Blueprint focuses on creating the right 

incentives to encourage States, school districts, and schools to make the changes needed to 

improve educational outcomes so that by 2020 America once again leads the world in college 

completion. 

To support this strategy, the 2013 request would invest in a reformed ESEA focused on raising 

standards, encouraging innovation, and rewarding success, while allowing States and districts 

more flexibility to invest resources where they will have the greatest impact. In particular, the 

request would continue to support game-changing reforms by providing $850 million for the 

Race to the Top program as well as $150 million for the Investing in Innovation (i3) fund to 

develop and expand innovative strategies and practices that have been shown to be effective in 

improving educational outcomes for students.

The $14.5 billion request for the College- and Career-Ready Students program, which would 

replace Title I Grants to LEAs, would continue to help LEAs ensure that some 21 million 

students in high-poverty schools meet challenging State academic standards. The request also 

would support a reauthorization proposal that would restructure State accountability systems to 

target rigorous interventions on a State’s lowest-performing schools while leaving it up to States 

and school districts to determine how best to improve school performance and student 

achievement in most Title I schools. The 2013 budget also would provide $534 million for a 

reauthorized School Turnaround Grants program designed to build State and local capacity to 

intervene effectively to turn around their lowest-performing schools.

In addition, the Administration’s reauthorization plan would consolidate 38 existing program

authorities into 11 new grant programs designed to give States and districts more flexibility to 

use resources where they will have the greatest impact. The new programs would support a 

focus on projects that are achieving successful results, while safeguards would be put in place 

to ensure that geographic location does not dictate results. In particular, programs will be 

structured to ensure that rural communities have a fair chance to compete successfully.
17

Race to the Top

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $698.6 $549.0 $850.0

This program, modeled after the Race to the Top program authorized by the Recovery Act, 

would be included in the reauthorized ESEA. The purpose of the program would be to create 

incentives for comprehensive State and local reforms and innovations designed to close 

achievement gaps and produce significant improvements in student achievement, high school 

graduation rates, and college enrollment rates for all students. The program also would 

encourage the broad identification, dissemination, adoption, and use of effective policies and 

practices and the cessation of ineffective ones. Under the reauthorized program, the 

Department would make awards on a competitive basis to States, LEAs, or a combination of the 

two. 

 

In 2013, Race to the Top will be poised to deepen the Administration’s investments in the 

program’s five core reform areas—implementing rigorous standards and assessments, using 

data to improve instruction and decision-making, recruiting and retaining effective teachers and 

principals, turning around the lowest-performing schools, and improving State systems of early 

learning and care—and to address the unmet demand of States and districts that have 

demonstrated a commitment to implementing comprehensive and ambitious plans in these 

areas. Additional resources will be provided for the Race to the Top—Early Learning 

Challenge, to be paired with new investments by the Department of Health and Human Services

in improving child care quality and preparing children for success in school. 

Investing in Innovation Fund (i3)

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $149.7 $149.4 $150.0

The request would build on the first three i3 competitions by supporting grants, under a new 

ESEA authority based on the existing i3 program, to develop, validate, and scale up practices, 

strategies, or programs to improve student outcomes, with the amount of funds tied to the 

strength of evidence of effectiveness. Priority could be given to projects proposing to improve 

early learning outcomes; improve student attainment in science, technology, engineering, and 

mathematics (STEM) subjects; and increase productivity by improving student learning or other 

educational outcomes while increasing efficiency in the use of time, staff, money, or other 

resources. In addition, the request would support the Advanced Research Projects AgencyEducation (ARPA-ED), a new entity modeled after similar agencies in the Department of 

Defense and Department of Energy that would pursue breakthrough developments in 

educational technology and learning systems, support systems for educators, and educational 

tools.
18

College- and Career-Ready Students

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $14,442.9 $14,516.5 $14,516.5

The request supports the Administration’s reauthorization plan for Title I, Part A of the ESEA 

(Title I Grants to LEAs under current law), which would include changes in the areas of 

standards and assessments, accountability and support for schools and LEAs, and teacher and 

leader effectiveness. States would adopt statewide standards that build toward college- and 

career-readiness (CCR) and implement high-quality assessments that are aligned with these 

CCR standards and capable of measuring individual student growth toward CCR. These new 

standards and assessments would give families and communities the information they need to 

determine whether their students are on track to college- and career-readiness and to evaluate 

their schools' effectiveness.

The reauthorization proposal would replace the adequate yearly progress (AYP) measure in 

current law, which is based primarily on a single, static snapshot of student proficiency on 

academic assessments, with a broader, more accurate measure of school performance that 

looks at student achievement, student growth, and school progress. Performance targets would 

be aligned with the objective of ensuring that by 2020 all students are graduating or on track to 

graduate from high school ready for college and a career. States would differentiate school 

improvement assistance across schools and, in a shift from current law, local officials would 

have flexibility to determine the appropriate improvement and support strategies for most 

schools.

A new Title I Rewards authority would create incentives, including financial rewards for staff and 

students and additional flexibility for LEAs and schools in the use of ESEA funds, for schools 

that reach performance targets, significantly increase student performance for all students, 

close achievement gaps, or, at the district and State levels, turn around the lowest-performing 

schools.

States and LEAs would be required to implement one of four rigorous school turnaround models 

in the lowest-performing 5 percent of schools in each State as well as research-based, locally

determined strategies in schools that fall between the fifth and tenth percentiles in performance. 

In other schools that are not closing significant, persistent achievement gaps, LEAs would be 

required to implement data-driven interventions—which could include expanded learning time, 

supplemental educational services, or other strategies—to support those students who are 

farthest behind and help close those achievement gaps.

In addition, both States and LEAs would be required to develop meaningful plans to achieve the 

equitable distribution of effective teachers and leaders, based on the definitions of effectiveness 

that each State would be required to develop under the Administration’s reauthorization 

proposal. LEAs would use up to 20 percent of their Title I, Part A allocations to implement 

effective school improvement strategies and carry out strategies designed to ensure the 

equitable distribution of effective teachers and school leaders.

Title I funds would continue to be awarded to LEAs through the existing Basic Grants, 

Concentration Grants, Targeted Grants, and Education Finance Incentive Grants formulas. The 
19

ESEA proposal would strengthen Title I “comparability” requirements to ensure that the highpoverty schools in each LEA receive State and local funding (for personnel and relevant nonpersonnel expenditures) comparable to those received by the LEA’s low-poverty schools. 

States would be required to measure and report on resource disparities and to develop a plan to 

reduce those disparities.

The Administration’s reauthorization proposal also would permit the Department to reserve up to 

0.5 percent of Title I, Part A formula grant funds under a broad ESEA evaluation authority aimed 

at supporting the comprehensive evaluation of the implementation, outcomes, impact, and costeffectiveness of ESEA programs, including the Title I, Part A College- and Career-Ready 

Students program. The request expands upon this proposal by including appropriations 

language in the General Provisions that authorizes the Department to reserve up to 0.5 percent 

in a number of its accounts to allow for additional, more flexible resources to evaluate programs 

agency-wide.

School Turnaround Grants

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $534.6 $533.6 $533.6

The reauthorized School Turnaround Grants program (School Improvement Grants under 

current law) would play a critical role in the new Title I statewide accountability systems that 

would be created under the Administration’s ESEA reauthorization plan by providing significant 

resources for LEAs to implement rigorous school intervention models in their lowest-performing 

schools. While States and LEAs would have new flexibility under the reauthorized ESEA to 

develop their own improvement strategies and interventions for most schools, they would be 

required to implement specific, meaningful intervention models in their very lowest-performing 

schools.

States would receive formula grants and would subgrant most funds to LEAs and their partners

to implement fully and effectively the Turnaround model, the Restart model, School Closure, or 

the Transformation model in identified schools (the same four models currently required for 

persistently lowest-achieving schools under the School Improvement Grants program). LEAs 

would receive 3-year awards totaling up to $6 million for each identified school and would be 

eligible for 2 additional years of funding to support a school's ongoing improvement if the school 

is showing progress. With the exception of the closure model, each of these models allows 

flexibility for locally designed plans that recognize and meet a broad range of student needs and 

local circumstances.

States would be permitted to reserve a portion of their allocations to build their capacity to 

improve low-performing schools, including by developing and implementing effective school 

quality review teams to assist schools in identifying school needs and in supporting school 

improvement, and by reviewing and ensuring the effectiveness of external partners. The 

Department also would be authorized to reserve funds for national activities designed to 

enhance State, district, and nonprofit capacity to turn around low-performing LEAs and schools. 

In most States, the 2013 request would be used primarily for awards to a new cohort of 

approximately 500 schools following the completion in fiscal year 2012 of the 3-year SIG awards 

made by States in fiscal year 2010.
20

Assessing Achievement

(BA in millions)

Programs 2011 2012

2013

Request

State Grants................................................. $380.0 $380.0 $380.0

Enhanced Assessment Instruments............. 10.0 9.2 9.2

Total ................................................. 390.0 389.2 389.2

The request for Assessing Achievement (State Assessments under current law) would provide 

funding to assist States in developing and implementing assessments aligned with college- and 

career- ready (CCR) standards. Formula and competitive funds would support continued 

implementation of the assessments currently required by the ESEA, as well as the transition to 

CCR-based standards and assessments that would capture a fuller picture of what students 

know and are able to do. Grantees also could use funds to develop and implement CCR 

standards and assessments in other subjects, such as science and history, needed to ensure 

that all students receive a well-rounded education.

Excellent Instructional Teams

(BA in millions)

Programs 2011 2012

2013

Request

Effective Teachers and Leaders 

State Grants........................................... — — $2,466.6

Improving Teacher Quality State Grants ...... $2,464.9 $2,466.6 —

Teacher and Leader Innovation Fund .......... — — 400.0

Teacher Incentive Fund ............................... 399.2 299.4 —

Teacher and Leader Pathways .................... — — 74.7

Transition to Teaching.................................. 41.1 26.1 —

Teacher Quality Partnership......................... 42.9 42.8 —

School Leadership ....................................... 29.2 29.1 —

Total ................................................. 2,977.3 2,864.0 2,941.2

The proposed Excellent Instructional Teams initiative would have two components: the 

Effective Teachers and Leaders State Grants program, a formula program with a 25-percent 

set-aside dedicated to improving and expanding high-quality teacher and leader pathways while 

enhancing the teaching and leadership professions, and the Teacher and Leader Innovation 

Fund. In addition, the Department requests funding for continuation costs of currently 

authorized programs through the proposed Teacher and Leader Pathways authority.

Effective Teachers and Leaders State Grants would provide formula grants to States and 

districts to support the Administration’s ESEA reauthorization proposal, which would require 

States to develop definitions of “effective” and “highly effective” teachers and principals that

would be used in the development of State and local teacher and principal evaluation systems. 

In addition, both States and LEAs would be required to develop meaningful plans to achieve an
21

equitable distribution of effective teachers and leaders. States and LEAs would have flexibility 

in how they use formula grant funds, but would be accountable for improving their teacher and 

principal evaluation systems and for ensuring that low-income and minority students have 

equitable access to teachers and principals who are effective at raising student achievement.

The Department would reserve up to 25 percent of the appropriation to recruit, train, and 

support effective teachers and school leaders, including effective science, technology, 

engineering, and mathematics teachers; and to invest in efforts to enhance the teaching and 

leadership professions.

The Teacher and Leader Innovation Fund would make competitive awards to States and LEAs 

willing to implement bold approaches to improving the effectiveness of the education workforce 

in high-need schools and districts by creating the conditions needed to identify, reward, retain, 

and advance effective teachers, principals, and school leadership teams in those schools, and 

enabling schools to build the strongest teams possible.

Effective Teaching and Learning for a Complete Education

(BA in millions)

Programs 2011 2012

2013

Request

Effective Teaching and Learning: Literacy.... — — $186.9

Ready-To-Learn Television.......................... $27.2 $27.2 —

Striving Readers .......................................... — 159.7 —

Effective Teaching and Learning: STEM ...... — — 149.7

Mathematics and Science Partnerships ....... 175.1 149.7 —

Effective Teaching and Learning for a

Well-Rounded Education........................ — — 90.0

Excellence in Economic Education............... 1.4 — —

Teaching American History .......................... 45.9 — —

Arts in Education.......................................... 27.5 25.0 —

Foreign Language Assistance...................... 26.9 — —

Civic Education: Cooperative

Education Exchange .............................. 1.1 — —

Total ................................................. 305.2 361.6 426.6

The Effective Teaching and Learning for a Complete Education initiative would address the 

need to strengthen instruction and raise student achievement across the core academic content 

areas, especially in high-need LEAs, by replacing a patchwork of programs and funding streams 

in current law with three comprehensive, coherent programs that provide increased flexibility for 

States and LEAs to design, develop, and implement strategies that best meet the needs of their 

students, including students with disabilities and English learners. The initiative also would 

support State and local efforts to use technology and interdisciplinary approaches to improve 

academic instruction and to expand the use of evidence-based practices. Finally, while 

continuing to emphasize literacy and STEM (Science, Technology, Engineering, and 

Mathematics), this initiative recognizes the importance of providing every student with a wellrounded education
22

The Effective Teaching and Learning: Literacy program would provide competitive State literacy 

grants to State educational agencies (SEAs), alone or in partnership with other entities (such as 

nonprofit organizations and institutions of higher education), for comprehensive State and local 

efforts aimed at improving literacy instruction, especially in high-need schools, for children and 

youth from preschool through grade 12. The program would build on the progress the 

Department seeks to achieve through the revised Striving Readers program, which replaced 

literacy programs segmented by age and grade level with a more comprehensive program that 

serves children from birth through 12th grade. The reauthorized program would strengthen 

education for literacy by (1) ensuring that all the elements of a comprehensive literacy program 

are embedded in State and local strategies; (2) strengthening performance expectations; 

(3) supporting the identification and scaling-up of innovative methods of teaching reading, 

writing, and language arts; and (4) giving States and school districts the flexibility to target 

resources based on identified needs. 

The Effective Teaching and Learning: STEM program would provide competitive grants to 

SEAs, alone or in partnership with other entities, to implement a comprehensive strategy for the 

provision of high-quality STEM instruction and support to students. In awarding State STEM 

grants, the Department would give priority to States that have adopted and are implementing a 

set of K-12 college- and career-ready standards in at least mathematics. States would be 

permitted to reserve up to 20 percent of grant funds for State-level activities to support the 

development and implementation of a coherent approach to providing high-quality, evidencebased STEM instruction in high-need schools. States would be required to use their remaining 

grant funds to make subgrants to high-need LEAs and eligible partnerships to improve STEM 

instruction at the local level, including, for example, through online curriculum and technologybased approaches.

The Effective Teaching and Learning for a Well-Rounded Education program would support 

competitive grants to SEAs and high-need LEAs, alone or in partnership with other entities, to 

develop and expand innovative practices for improving teaching and learning in the arts, health 

education, foreign languages, civics and government, history, geography, environmental 

education, economics and financial literacy, and other subjects.

The Department would reserve funds under the Effective Teaching and Learning for a Complete 

Education authority to support a range of national activities, including identification of effective 

programs and best practices, development of high-quality educational and professionaldevelopment content, technical assistance, and dissemination. In addition, funds would be 

used to strengthen the use of technology across the core academic content areas. Finally, 

national activities funds could be used to support efforts by public telecommunications agencies, 

such as the Public Broadcasting Service and the Corporation for Public Broadcasting, and other 

entities, to create high-quality educational content for children.
23

College Pathways and Accelerated Learning

(BA in millions)

Programs 2011 2012

2013

Request

College Pathways and Accelerated

Learning................................................. — — $81.3

High School Graduation Initiative ................. $48.9 $48.8 —

Advanced Placement ................................... 43.3 27.0 —

Total ................................................. 92.2 75.8 81.3

This program would focus on increasing graduation rates and preparation for college 

matriculation and success by supporting college-level and other accelerated courses and 

instruction, including gifted and talented programs, in high-poverty schools. Grantees would 

implement such strategies as expanding the availability of Advanced Placement/International 

Baccalaureate (AP/IB) courses, dual-enrollment programs that allow students to take collegelevel courses and earn college credit while in high school, and “early college high schools” that 

allow students to earn a high school degree and an Associate’s degree or 2 years of college 

credit simultaneously. The program would fund accelerated learning opportunities for students 

across the performance spectrum, including those who exceed proficiency standards, in highpoverty elementary schools. Grants also would support projects that re-engage out-of-school 

youth or students who are not on track to graduate.

Promise Neighborhoods

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $29.9 $59.9 $100.0

The budget would support the fourth cohort of planning grants and the third cohort of 

implementation grants for the development and implementation of plans for comprehensive 

neighborhood projects, including a continuum of family and community services and ambitious 

education reforms, designed to combat the effects of poverty and improve education and life 

outcomes, from birth through college to career, for children and youth within a distressed 

geographic area. The core belief behind the initiative is that providing both effective, 

achievement-oriented schools and strong systems of support to children and youth in poverty 

will offer them the best hope for overcoming poverty and building a better life. Eligible 

applicants, which may include nonprofit organizations, institutions of higher education, and 

Indian tribes, must demonstrate their ability to sustain the Promise Neighborhood once the 

Federal grants end through effective partnerships with schools, nonprofit organizations, 

foundations, and local and State agencies. The Department also encourages grantees to 

coordinate their efforts with programs and services provided by other Federal agencies, 

including the Departments of Housing and Urban Development, Health and Human Services, 

and Justice.
24

Successful, Safe, and Healthy Students

(BA in millions)

Programs 2011 2012

2013

Request

Successful, Safe, and Healthy Students....... — — $195.9

Safe and Drug-Free Schools and

Communities National Activities ............. $119.3 $64.9 —

Elementary and Secondary School

Counseling ............................................. 52.4 52.3 —

Physical Education Program ........................ 78.8 78.7 —

Alcohol Abuse Reduction ............................. 6.9 — —

Total ................................................. 257.4 195.9 195.9

Under this proposed consolidation of several narrowly targeted programs, the Department 

would award grants to increase the capacity of States, districts, and schools to create safe, 

healthy, and drug-free environments in a comprehensive manner, so that students are able to 

focus on learning and teachers on teaching. Further, it would provide increased flexibility for 

States and local educational agencies to design strategies that best reflect the needs of their 

students and communities, including programs to (1) improve school climate by reducing drug 

use, alcohol use, bullying, harassment, or violence; (2) improve students’ physical health and 

well-being through comprehensive services that improve student nutrition, physical activity, and 

fitness; and (3) improve student’s mental health and well-being through expanded access to 

comprehensive services, such as counseling, health, mental health, and social services.

The new program would also include a national activities authority, under which the Department 

would reserve funds for school emergency preparedness initiatives; comprehensive, 

community-wide “Safe Schools/Healthy Students” drug and violence prevention projects; and 

technical assistance on improving K-12 school climates for learning, as well as technical 

assistance to institutions of higher education to help reduce drug use and violence by college 

students.

21st Century Community Learning Centers

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $1,153.9 $1,151.7 $1,151.7

The Administration’s reauthorization proposal for 21st Century Community Learning Centers 

would support before- and after-school programs, summer enrichment programs, summer 

school programs, expanded-learning-time programs, and full-service community schools. All 

local projects would provide additional time for students, including both students with the 

greatest academic needs and those who are meeting State academic achievement standards, 

to participate in (1) academic activities that are aligned with the instruction those students 

receive during the regular school day and are targeted to their academic needs; and 

(2) enrichment and other activities that complement the academic program. Projects could also 

provide teachers the time they need to collaborate, plan, and engage in professional 

development within and across grades and subjects. This enhanced flexibility would allow 
25

communities to determine the best strategies for enabling their students and teachers to get the 

time and support they need, particularly in the context of supporting rigorous and 

comprehensive interventions in their lowest-performing schools.

Expanding Educational Options

(BA in millions)

Programs 2011 2012

2013

Request

Expanding Educational Options ................... — — $255.0

Charter Schools Grants................................ $255.5 $255.0 —

Voluntary Public School Choice ................... 25.8 — —

Total ................................................. 281.3 255.0 255.0

The proposed Expanding Educational Options initiative includes two component authorizations: 

(1) Supporting Effective Charter Schools grants and (2) Promoting Public School Choice grants, 

in addition to the Magnet Schools Assistance program discussed below. The Supporting 

Effective Charter Schools grants program would support competitive grants to State educational 

agencies (SEAs), charter school authorizers, charter management organizations, local 

educational agencies (LEAs), and other nonprofit organizations to start or expand effective 

charter and other autonomous public schools. Funds would also be available for competitive 

grants for charter schools facilities programs. The Promoting Public School Choice grants 

program would support competitive grants to LEAs, individually or in a consortium, and to SEAs 

in partnership with one or more high-need LEAs, to develop and implement a comprehensive 

choice program that increases the range of high-quality educational options available to 

students in high-need schools. The new programs would also include a national activities 

authority under which the Department would reserve funds to support research, data collection, 

technical assistance to grantees, and dissemination activities. In fiscal year 2013, the 

Department would make grants under the Supporting Effective Charter Schools authorization.

Magnet Schools Assistance Program

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $99.8 $99.6 $99.6

Under the Magnet Schools Assistance program, the Department makes competitive grants to 

LEAs implementing a desegregation plan for the support of high-quality magnet schools. The 

Administration’s reauthorization proposal would expand and improve options for students and 

increase diversity by placing a greater emphasis on funding magnet school programs 

(particularly whole-school programs) or models that have a record of effectiveness in raising 

student achievement and reducing racial isolation. The Department would reserve funds for 

evaluation and dissemination activities.
26

Fund for the Improvement of Education

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $12.0 $40.8 $36.3

The Fund for the Improvement of Education (FIE) supports nationally significant activities to 

improve the quality of elementary and secondary education at the State and local levels and 

help all students meet challenging State academic achievement standards. The request 

includes $30 million to fund a STEM initiative, to be administered jointly with the National 

Science Foundation, to develop, validate, and scale up evidence-based approaches to improve 

student learning at the K-12 level, as well as efforts to improve the evidence base for STEM 

programs across the Federal Government. The request also would provide $5 million to support 

interagency strategies to strengthen services to disconnected youth (commonly defined as 

unemployed youth who lack a high school diploma) and $1.3 million to continue the Data Quality 

Initiative, which helps ensure that program management decisions are based on sound 

information. The Department would use the funding for disconnected youth in close cooperation 

with the Department of Health and Human Services (which is requesting $5 million to serve the 

same population) and the Department of Labor (which would use $10 million from the Welfare 

Innovation Fund to serve disconnected youth).

English Learner Education

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $733.5 $732.1 $732.1

Currently authorized under Title III of the ESEA, this program awards formula grants to States 

based on each State’s share of the Nation’s English Learners (ELs) and recent immigrant 

students. Grants help States design and implement statewide activities to meet the educational 

needs of their ELs. The Administration’s reauthorization proposal supports strengthened 

professional development for educators, improved accountability, and the development and 

implementation of innovative and effective programs. The proposal also would strengthen the 

conditions governing States’ receipt of formula funds and permit the Department to use more 

funds for competitive grants in order to support the development and implementation of highquality programs for ELs, including dual-language and transitional bilingual programs. 

Title I State Agency Programs 

(BA in millions)

Programs 2011 2012

2013

Request

Migrant Student Education........................... $394.0 $393.2 $393.2

Neglected and Delinquent Children

and Youth Education.............................. 50.3 50.2 50.2

Total ................................................. 444.3 443.5 443.5
27

Migrant Student Education State Grants provide formula-based assistance in meeting the 

special educational needs of approximately 241,000 children of migrant agricultural workers by 

helping States identify and pay the higher costs often associated with serving those children. 

The Department also uses a portion of funding to improve inter- and intra-State coordination of 

migrant education activities, including State exchange of migrant student data records through 

the Migrant Student Record Exchange System. The Administration’s reauthorization proposal 

would change the State allocation formula so that it better reflects shifts in State counts of 

migrant students, improve the targeting of services to high-need migrant students, and require 

States to track and report on the academic achievement of migrant students.

The Title I Neglected and Delinquent Children and Youth Education program provides formula 

grants to States in order to support education services for neglected and delinquent children 

and youth in local and State-run institutions, attending community day programs, and in 

correctional facilities. The request would help an estimated 109,000 neglected and delinquent 

students return to and complete school and obtain employment after they are released from 

State institutions.

Homeless Children and Youth Education

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $65.3 $65.2 $65.2

This program provides formula grants to States, which subgrant most funds to local educational 

agencies for services that help homeless children enroll in, attend, and succeed in school. In 

addition to academic instruction, the program helps ensure access for these children to 

preschool programs, special education, and gifted and talented programs. The Administration’s 

reauthorization proposal would improve the funding formula so it better reflects shifts in State 

counts of homeless students and targets funds where they are most needed. The proposal also 

would require States to track and report on the academic achievement of homeless students. 

Rural Education

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $174.5 $179.2 $179.2

The Rural Education Achievement program (REAP) authorizes two programs to assist rural 

school districts in carrying out activities to help improve the quality of teaching and learning in 

their schools. The Small, Rural School Achievement program provides formula funds to rural 

school districts that serve small numbers of students, and the Rural and Low-Income School 

program provides funds to rural school districts that serve concentrations of poor students, 

regardless of the district’s size. Funds appropriated for REAP are divided equally between 

these two programs. The request would maintain support for rural, often geographically 

isolated, districts that face significant challenges in meeting ESEA requirements. The 

Administration’s reauthorization proposal would address technical problems with the current 

authority, extend an existing flexibility authority to all subgrantees, and align the authorized 

activities with national priorities.
28

Indian Student Education

(BA in millions)

Programs 2011 2012

2013

Request

Grants to Local Educational Agencies.......... $104.1 $105.9 $105.9

Special Programs for Indian Children........... 19.0 19.0 19.0

National Activities......................................... 3.9 5.9 5.9

Total ................................................. 127.0 130.8 130.8

Indian Student Education programs supplement the efforts of State and local educational 

agencies and Indian tribes to improve educational opportunities for Indian children. The 

programs link these efforts to broader educational reforms underway in States and localities in 

order to ensure that Indian students benefit from those reforms and achieve to the same 

challenging academic standards as other students. The Administration’s reauthorization 

proposal would simplify the process of identifying eligible Indian students and would give 

grantees additional flexibility to conduct programs that can improve the achievement of Indian 

students, including language immersion and language restoration programs and activities 

aligned with the Administration’s broader ESEA reauthorization priorities.

Grants to Local Educational Agencies provide formula grants to local educational agencies 

(LEAs) and to schools operated and supported by the Department of the Interior’s Bureau of 

Indian Education for activities to improve the educational achievement of Indian students. 

Special Programs for Indian Children includes (1) $8.2 million in competitive grants for the 

American Indian Teacher Corps and the American Indian Administrator Corps to support 

training of Indians to become teachers and administrators in schools that serve concentrations 

of Indian children, and (2) $10.6 million for competitive demonstration grants to improve 

educational opportunities for Indian children in such areas as early childhood education and 

college preparation.

The request also provides $5.9 million for National Activities, which funds research, evaluation, 

and data collection designed to fill gaps in our understanding of the educational status and 

needs of Indians and to identify educational practices that are effective with Indian students. 

The fiscal year 2012 appropriations act included funding for grants to tribal educational agencies 

in order to build their capacity to assume certain administrative responsibilities for ESEA 

programs under arrangements with State educational agencies. These grants would be 

continued in fiscal year 2013.

Native Hawaiian Student Education

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $34.2 $34.2 $34.2

This program supports the provision of supplemental education services to the Native Hawaiian 

population by awarding competitive grants to eligible applicants for a variety of authorized 

activities in such areas as teacher training, family-based education, gifted and talented 

education, special education, higher education, and community-based education learning 
29

centers. The reauthorized program would promote greater alignment of these activities with the 

Administration’s broader education reform goals. The program also supports the activities of 

the Native Hawaiian Education Council, which helps coordinate the educational and related 

services and programs available to Native Hawaiians. 

Alaska Native Student Education

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $33.2 $33.2 $33.2

This program awards competitive grants to eligible applicants for a variety of authorized 

activities, including the development and implementation of curricula and educational programs, 

professional development activities for educators, the development and operation of home 

instruction programs that help ensure the active involvement of parents in their children’s 

education, family literacy services, student enrichment programs in science and mathematics, 

and dropout prevention programs. The reauthorized program would promote greater alignment 

of these activities with the Administration’s broader education reform goals and would eliminate 

the program’s statutory earmarks, which were not funded in fiscal year 2012.

Comprehensive Centers

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $51.2 $51.1 $51.1

The Comprehensive Centers provide intensive technical assistance to increase the capacity of 

State educational agencies (SEAs) to help districts and schools implement ESEA programs and 

requirements and meet State targets for student achievement. The current system includes 

16 regional centers that work with SEAs within specified geographic regions to help them 

implement ESEA school improvement measures and objectives. In addition, five content 

centers provide in-depth, specialized support in key areas, with separate centers focusing on 

(1) assessment and accountability; (2) instruction; (3) teacher quality; (4) innovation and 

improvement; and (5) high schools. Each content center pulls together resources and expertise 

to provide analyses, information, and materials in its focus area for use by the network of 

regional centers, SEAs, and other clients. In 2012, the Department is holding a competition to 

award grants to a second cohort of centers under the Education Technical Assistance Act. The 

2013 request would support second-year awards to this new cohort of grantees.
30

Impact Aid

(BA in millions)

Programs 2011 2012

2013

Request

Payment for Federally Connected Children:

Basic Support Payments ........................ $1,135.7 $1,153.5 $1,153.5

Payments for Children with Disabilities... 48.5 48.4 48.4

Facilities Maintenance.................................. 4.8 4.8 4.8

Construction................................................. 17.5 17.4 17.4

Payments for Federal Property .................... 67.1 67.0 —

Total ................................................. 1,273.6 1,291.2 1.224.2

The Impact Aid program provides financial support to school districts affected by Federal 

activities. The property on which certain children live is exempt from local property taxes, 

denying districts access to the primary local source of revenue used by most communities to 

finance education. Impact Aid helps to replace the lost local revenue that would otherwise be 

available to districts to pay for the education of these children.

The $1.15 billion request for Basic Support Payments would provide formula grants for both 

regular Basic Support Payments and Basic Support Payments for Heavily Impacted LEAs.

The $48.4 million request for Payments for Children with Disabilities would provide formula 

grants to help eligible districts meet their obligations under the Individuals with Disabilities 

Education Act to provide a free appropriate public education for federally connected children 

with disabilities. The $4.8 million request for Facilities Maintenance would fund essential repair 

and maintenance of the 19 school facilities serving large numbers of military dependents that 

are owned and operated by the Department of Education and allow the Department to continue 

to transfer schools to local school districts. Under the Administration’s ESEA reauthorization 

proposal, the entire $17.4 million proposed for Construction would be used for competitive 

grants to the LEAs with the greatest need and would provide sufficient assistance to enable 

those LEAs to make major repairs and renovations. The Administration requests no funds for 

Payments for Federal Property because these payments are made to LEAs without regard to 

the presence of federally connected children and do not necessarily provide for educational 

services for such children.

Training and Advisory Services (Title IV of the Civil Rights Act)

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $7.0 $7.0 $7.0

This program supports 10 regional Equity Assistance Centers, selected competitively, that 

provide services to school districts on issues related to discrimination based on race, gender, 

and national origin. Typical activities include disseminating information on successful practices 

and legal requirements related to nondiscrimination, providing training to educators to develop 

their skills in specific areas, such as in the identification of bias in instructional materials, and 

technical assistance on selection of instructional materials. The request would support the third 
31

and final year of funding for existing Equity Assistance Center grantees, as well as the annual 

administration of a customer satisfaction survey and an analysis of its results.

Supplemental Education Grants (Compact of Free Association Amendments Act)

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $17.7 $17.6 $17.6

The request would maintain support for Supplemental Education Grants to the Federated States 

of Micronesia (FSM) and the Republic of the Marshall Islands (RMI), as authorized by the 

Compact of Free Association Amendments Act of 2003 (P.L. 108-188). Under this program, the 

Department transfers funds and provides recommendations on the uses of those funds to the 

Department of the Interior, which makes grants to the FSM and RMI for educational services 

that augment the general operations of the educational systems of the two entities.

P.L. 108-188 eliminated RMI and FSM participation in most domestic formula grant programs 

funded by the Departments of Education, Health and Human Services, and Labor, and created 

this program to supplement separate education support programs under the Compact. The 

request would allow the RMI and FSM to support programs that focus on improving the 

educational achievement of students in the two Freely Associated States.
32

B. SPECIAL EDUCATION AND REHABILITATIVE SERVICES

Overview

The Administration is committed to providing Americans with disabilities the opportunities and 

services they need to succeed in school, in the workplace, and in the community. The 2013 

request funds a wide range of programs that can improve educational, employment, and 

independent living outcomes for people with disabilities. 

The $12.7 billion request for Special Education programs focuses on improving educational and 

early intervention outcomes for children with disabilities. For the Grants to States program, the 

Administration is requesting $11.6 billion, level with 2012, to maintain the Federal contribution 

toward meeting the excess cost of special education at approximately 16 percent of the national 

average per pupil expenditure (APPE) and provide an estimated average of $1,762 per student 

for about 6.6 million children ages 3 through 21. Funding for the Preschool Grants program 

would be maintained at its 2012 level. Funding for the Grants for Infants and Families program 

would increase by $20 million above the 2012 level.

The $236.1 million request for Special Education National Activities, $1.4 million below the 2012 

level, supports technical assistance, dissemination, training, and other activities that assist 

States, local educational agencies, parents, and others in improving results for children with 

disabilities. 

The request also includes $30 million for PROMISE: Promoting Readiness of Minors in SSI, 

which would fund State-level pilots to improve the educational, health, and employment 

outcomes for children with disabilities who are recipients of Supplemental Security Income 

payments, and their families.

For Rehabilitation Services and Disability Research, the budget provides $3.5 billion to support 

comprehensive and coordinated vocational rehabilitation and independent living services for 

individuals with disabilities through research, training, demonstration, technical assistance, 

evaluation, and direct service programs. The $3.2 billion request for the Vocational 

Rehabilitation (VR) State Grants program includes the consolidation of the smaller VR-related 

programs under the Rehabilitation Act in order to reduce duplication of effort and administrative 

costs, streamline program administration at the Federal and local levels, and improve 

accountability. A total of $35.7 million would be made available to the VR State Grants program 

from the consolidation of employment-related programs. In addition, the Administration is 

seeking authority to pay the fiscal year 2013 continuation costs of the remaining four Migrant 

and Seasonal Farmworkers projects from the consolidated funds.

The amount requested for VR State Grants includes $10 million that would be set aside to 

support an interagency Workforce Innovation Fund (WIF) jointly administered and funded by the 

Departments of Education and Labor. Funds would be used to encourage innovation and 

support projects to identify and validate effective strategies for improving the delivery of services 

and outcomes for beneficiaries under programs authorized by the Workforce Investment Act, 

including individuals with significant disabilities. 

The 2013 request also includes language that would allow the Secretary to use amounts under 

the VR State Grants program that would otherwise lapse to support innovative activities aimed 

at improving outcomes for individuals with disabilities, including activities under the PROMISE 
33

program, and that would provide authority for these funds to remain available for Federal 

obligation until September 30, 2014. 

The budget also provides $137.3 million for the three independent living programs, the same as 

the 2012 level. These programs provide independent living services through formula grants to 

designated State agencies and competitive grants to centers for independent living.

During the next year, the Department of Education will also participate in a Governmentwide 

review of ways to improve the effectiveness of disability programs through better coordination 

and alignment of priorities and strategies. This will build on previous efforts that have sought to 

better coordinate policies and programs across Federal, State and local governments, the 

service provider community and employers to improve the effectiveness and efficiency of 

programs serving individuals with disabilities. While some coordination efforts have proven 

successful, the Administration expects collaboration and innovation to improve efficiency and 

effectiveness as well as reduce costs even further. The focus of the upcoming review will be to 

work with agencies authorized to run disability-specific programs and those programs that affect 

people with disabilities to explore how they can achieve better results for this population.

Special Education State Grants

Grants to States

Program Information

2011 2012

2013

Request

BA in millions ............................................... $11,466.0 $11,577.9 $11,577.9

Estimated average Federal share

per child (in whole dollars)...................... $1,730 $1,762 $1,762

The Grants to States program, which is authorized under the Individuals with Disabilities 

Education Act (IDEA), makes formula grants that help States pay the additional costs of 

providing special education and related services to children with disabilities aged 3 through 

21 years. The request would maintain the Federal contribution toward meeting the excess cost 

of special education at about 16 percent of the national average per pupil expenditure and 

provide a per-child average of $1,762 for an estimated 6,558,000 children with disabilities.

Under the IDEA, States are required to provide a free appropriate public education to all 

children with disabilities. Services are provided in accordance with individualized education 

programs that are developed by teams that include the child’s parents; a special educator; a 

representative of the local educational agency; a regular educator, if appropriate; and others. In 

addition, services must be provided—to the maximum extent appropriate—in the least restrictive 

environment, which for most children means in classes with children who are not disabled. 

Students with disabilities also must be included in general State and district-wide assessments, 

including the assessments required under ESEA, and States must provide appropriate 

accommodations, where necessary, to enable children with disabilities to participate in these 

assessments, or alternate assessments for those children who cannot participate in regular 

assessments. 

The request includes $25.0 million that would be reserved for technical assistance to improve 

the capacity of States to meet the data collection requirements of the IDEA. 
34

Preschool Grants

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $373.4 $372.6 $372.6

This program provides formula grants to help States make a free appropriate public education 

available to all children with disabilities ages 3 through 5. The request would provide an 

estimated $507 per child for approximately 735,000 children to supplement funds provided 

under the Grants to States program and help to ensure that young children with disabilities are 

ready to learn when they enter school.

Grants for Infants and Families

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $438.5 $442.7 $462.7

This program provides formula grants to help States implement statewide systems of early 

intervention services for infants and toddlers with disabilities and their families, so that State and 

local agencies identify and serve children with disabilities early in life when interventions can be 

most effective in improving educational outcomes. The $20 million increase proposed for 2013 

would raise the average State allocation by approximately $325,000, enabling States to provide 

high quality early intervention services to approximately 370,000 infants and toddlers with 

disabilities and their families, and would permit the Department to award incentive grants to 

States to facilitate a seamless system of services for children with disabilities from birth up to 

age 5.

Special Education National Activities

Special Education National Activities programs support State efforts to improve early 

intervention and educational results for children with disabilities. The total request for National 

Activities is $236.1 million.

State Personnel Development

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $46.8 $43.9 $45.0

This program provides competitive grants to help States reform and enhance their systems for 

personnel preparation and professional development in the areas of early intervention, 

educational, and transition services in order to improve outcomes for children with disabilities. 

The $1 million increase proposed for 2013 would help cover the cost of approximately 

42 continuation awards to State educational agencies to improve the knowledge and skills of 

special education and regular education teachers serving children with disabilities and help 

recruit and retain highly qualified personnel providing services to children with disabilities.
35

Technical Assistance and Dissemination

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $48.8 $46.8 $46.8

This program funds competitive grants for technical assistance and dissemination of materials 

based on knowledge gained through research and practice. The request, which is in addition to 

the separate $25 million set-aside under the Grants to States program to help States meet data 

collection requirements, includes about $16.3 million for new technical assistance and 

dissemination and $30.5 million for continuation projects. The 2012 amount excludes $8 million 

used to support the Special Olympics, which would be funded under a separate line item in 

2013.

Personnel Preparation

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $88.5 $88.3 $85.8

This program helps ensure that there are adequate numbers of personnel with the skills and 

knowledge necessary to help children with disabilities succeed educationally. Program activities 

focus both on meeting the demand for personnel to serve children with disabilities and 

improving the qualifications of these personnel, with particular emphasis on incorporating 

knowledge gained from research and practice into training programs. The Department is 

required to support (1) training for leadership personnel and personnel who work with children 

with low-incidence disabilities, (2) at least one activity in the broadly defined area of personnel 

development, and (3) enhanced support for beginning special educators. The request would 

provide $15.4 million for new competitive grants and $70.4 million for continuation awards.

Parent Information Centers

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $28.0 $28.9 $28.9

These funds support centers that provide parents with the training and information they need to 

work with professionals to meet the early intervention and special education needs of their 

children with disabilities. The request would support new competitive grants and continuation 

awards for about 109 centers as well as awards to provide technical assistance to the centers.

Technology and Media Services

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $28.6 $29.6 $29.6
36

This program makes competitive awards for research, development, and other activities that 

promote the use of technology, including universal design features, in providing special 

education and early intervention services. Funds also support media-related activities, such as 

providing video description and captioning of films and television for use in classrooms for 

individuals with visual and hearing impairments and increasing the availability of books in 

accessible formats for individuals with visual impairments and other print disabilities. The 

request would support $3.7 million for new competitive grants and $25.9 million for continuation 

awards.

Other Special Education Activities

Special Olympics Education Programs

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $8.1 $8.0 $8.0

This program supports the expansion of Special Olympics and the design and implementation of 

Special Olympics education programs. The request includes funds to support Project UNIFY, a 

school-based education program designed to develop teamwork skills and increase awareness 

and social acceptance of individuals with intellectual disabilities. Funding for this activity in 

fiscal year 2012 was provided under Technical Assistance and Demonstration.

PROMISE: Promoting Readiness of Minors in SSI

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... — $2.0 $30.0

This new program would fund pilot demonstration programs in selected States to improve the 

coordination and increase the use of existing services for which children receiving Supplemental 

Security Income (SSI) payments and their families are eligible, such as those available through 

the IDEA, Vocational Rehabilitation, Medicaid’s care coordination services, Job Corps, and 

Workforce Investment Act programs. The goal of the program is to improve outcomes of 

children who receive SSI, including their physical and emotional health and educational 

attainment and employment, as well as to provide improved services and support for the 

families of SSI recipients, including education and job training for parents. 

Rehabilitation Services and Disability Research

Vocational Rehabilitation (VR) State Grants

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $3,084.7 $3,121.7 $3,167.4

This program provides formula grants to State VR agencies to help individuals with disabilities 

become gainfully employed. A wide range of services are provided each year to over 1 million 
37

individuals with disabilities, including vocational evaluation, counseling and guidance, work 

adjustment, diagnosis and treatment of physical and mental impairments, education and 

vocational training, job placement, and post-employment services. States that are unable to 

serve all eligible individuals with disabilities who apply must give priority to individuals with the 

most significant disabilities. Services are provided according to an individualized plan for 

employment. In 2011, the VR program helped over 178,000 individuals with

disabilities―91 percent with significant disabilities―achieve employment outcomes.

The request for the VR State Grants program reflects the Administration’s proposal to 

consolidate the funds of the smaller VR-related programs and eliminate their separate funding 

authorities under the Rehabilitation Act in order to reduce duplication of effort and administrative 

costs, streamline program administration at the Federal and local level, and improve 

accountability. A total of $35.7 million would be made available to the VR State Grants program 

from the consolidation of (1) the Supported Employment State Grants program ($29.1 million), 

(2) the Migrant and Seasonal Farmworkers program ($1.3 million), and (3) the portion of 

Training program funds currently provided to State VR agencies to support in-service training for 

agency personnel ($5.3 million). The request also includes $38.2 million for grants to Indian 

tribes. In addition, the amount requested for VR State Grants includes $10 million that would be 

set aside to support an interagency Workforce Innovation Fund (WIF) administered jointly by the 

Departments of Education and Labor.

Client Assistance State Grants

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $12.3 $12.2 $12.2

This program makes formula grants to States for activities to inform and advise clients of 

benefits available to them under the Rehabilitation Act, to assist them in their relationships with 

service providers, and to ensure the protection of their rights under the Act. The request would 

support advocacy services for approximately 57,350 individuals with disabilities.

Training

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $35.6 $35.5 $30.2

The Training program makes competitive grants to State and other public or nonprofit agencies 

and organizations, including institutions of higher education, to help ensure that personnel with 

adequate skills are available to provide rehabilitation services to persons with disabilities. The 

request includes a reduction of $5.3 million from the 2012 level, reflecting the consolidation of 

the In-Service Training program with the VR State Grants program. 
38

Demonstration and Training

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $6.5 $5.3 $5.8

This program supports competitive grants and contracts to expand and improve the provision 

and effectiveness of programs and services authorized under the Rehabilitation Act or further 

the purposes of the Act in promoting the employment and independence of individuals with 

disabilities in the community. Funds would be used to support model demonstrations, technical 

assistance, and projects designed to improve program performance and the delivery of 

vocational rehabilitation (VR) and independent living services. The requested increase would 

support technical assistance activities for VR State agencies to improve the provision of VR 

services. 

Independent Living

(BA in millions)

Programs 2011 2012

2013

Request

State Grants................................................. $23.4 $23.4 $23.4

Centers ........................................................ 80.1 80.0 80.0

Services for Older Blind Individuals.............. 34.1 34.0 34.0

Total ................................................. 137.6 137.3 137.3

The Independent Living programs provide services to individuals with disabilities to maximize 

their independence and productivity and to help them integrate into the mainstream of American 

society. The State Grant program awards formula grants to States to expand and improve 

independent living services and to support the operation of centers for independent living. The 

Centers for Independent Living program makes competitive grants to support a network of 

independent living services. The formula-based Services for Older Blind Individuals program 

assists individuals aged 55 or older whose severe visual impairments make competitive 

employment difficult to obtain, but for whom independent living goals are feasible. The request 

would directly support 77 designated State units under the State Grants program and 

56 grantees under the Services for Older Blind Individuals program.

Protection and Advocacy of Individual Rights (PAIR)

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $18.1 $18.0 $18.0

This formula grant program funds systems in each State to protect and advocate for the legal 

and human rights of individuals with disabilities, helping them to pursue legal and administrative 

remedies to secure their rights under Federal law. The PAIR systems also provide information 

on, and referrals to, programs and services for individuals with disabilities. The request would 

support advocacy services to approximately 58,800 individuals with disabilities.
39

National Institute on Disability and Rehabilitation Research

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $109.0 $108.8 $106.8

The National Institute on Disability and Rehabilitation Research (NIDRR) helps improve the lives 

of persons of all ages with disabilities through a comprehensive and coordinated program of 

research, demonstration projects, and related activities, including training of persons who 

provide rehabilitation services or conduct rehabilitation research. NIDRR awards discretionary 

grants that support Rehabilitation Engineering Research Centers; Rehabilitation Research and 

Training Centers; Model Systems projects for Spinal Cord Injury, Traumatic Brain Injury (TBI), 

and Burn Injury; field-initiated research and development projects. NIDRR funds support a wide 

range of additional research, demonstration, and training projects that address diverse issues 

affecting educational, employment, and independent living opportunities for persons with 

disabilities, including supporting innovations in cloud computing infrastructure and applications 

to ensure maximum accessibility and benefit to individuals with disabilities. The request 

includes $69.6 million for continuation of grants made in previous years and $26.2 million for 

new awards in 2013.

Helen Keller National Center for Deaf-Blind Youths and Adults

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $9.2 $9.2 $9.2

This program serves individuals who are deaf-blind, their families, and service providers through 

a national headquarters center with a residential training and rehabilitation facility and a network 

of 10 regional offices that provide referral, counseling, training, and technical assistance. At the 

request level, the Center would provide direct services for approximately 99 clients in its 

residential training and rehabilitation program and serve an estimated 1,500 individuals, 

500 families, and 900 agencies and organizations through its regional offices. 

Assistive Technology

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $31.0 $32.8 $30.8

Assistive Technology (AT) programs support grants to States to increase access to and funding 

for assistive technology devices and services for individuals with disabilities of all ages. The 

request includes $25.6 million for the AT State grant program, $4.3 million for the Protection and 

Advocacy for Assistive Technology program, and $1.0 million for technical assistance required 

under the AT Act’s National Activities authority. The request does not include funds for a onetime competitive grants program for alternative financing that was authorized in the fiscal year 

2012 appropriations act. 
40

Special Institutions for Persons with Disabilities

(BA in millions)

Programs 2011 2012

2013

Request

American Printing House

for the Blind (APH .................................. $24.6 $24.5 $24.5

National Technical Institute

for the Deaf (NTID)................................. 65.5 65.4 65.0

Gallaudet University..................................... 122.8 125.5 117.5

Total ................................................. 212.9 215.4 207.0

The American Printing House for the Blind manufactures and distributes specially adapted 

educational materials for students who are visually impaired, offers advisory services for 

consumers and educational agencies, and conducts applied research related to the 

development of new products. At the request level, APH would provide free educational 

materials to approximately 60,000 persons with visual impairments at an average per student 

allotment of $300, continue funding for initiatives to improve its technical assistance and 

outreach services, and support a variety of new and continuing research projects. 

The National Technical Institute for the Deaf provides postsecondary technical education and 

training for students who are deaf as well as graduate education and interpreter training for 

persons who are deaf or hearing. NTID also conducts research and provides training related to 

the education and employment of individuals who are deaf. The request would support 

education and training for approximately 1,263 undergraduate and technical students, 

111 graduate students, and 147 interpreters for persons who are deaf. The request would 

reduce operations funding by $2.4 million to the level requested in both 2011 and 2012 and 

increase construction funding to $2.0 million for the purpose of establishing a deferred 

maintenance account.

Gallaudet University offers undergraduate, continuing education, and graduate programs for 

persons who are deaf and hearing. Gallaudet also maintains and operates the Kendall 

Demonstration Elementary School and Model Secondary School for the Deaf (MSSD). The 

request provides $117.5 million for operations, including funds that may be used for the 

Endowment Grant program and for construction. The $8 million decrease reflects the 

elimination of funds specifically earmarked for construction. The request would help Gallaudet 

serve an estimated 1,922 undergraduate and graduate students and 263 elementary and 

secondary education students in the 2012-13 school year.
41

C. CAREER, TECHNICAL, AND ADULT EDUCATION

Overview

Programs in the Career, Technical, and Adult Education account provide formula grants to 

States to support State and community efforts to improve career and technical education, adult 

education and literacy systems, and competitive grants and contracts for evaluation, 

performance measurement and improvement, technical assistance, research and development, 

innovative programs, and other national activities. For 2013, the Administration is proposing to 

reauthorize the Career and Technical Education (CTE) programs to increase the rigor and 

relevance of what students learn in school to more closely align them with the demands of the 

21st century economy and workforce while creating stronger linkages between secondary and 

postsecondary education. The 2013 request also would support innovation and reform in CTE.

Career and Technical Education

(BA in millions)

Programs 2011 2012

2013

Request

Career and Technical Education

State Grants........................................... $1,122.2 $1,123.0 $1,123.0

National Programs ....................................... 7.8 7.8 7.8

Total ................................................. 1,130.0 1,130.9 1,130.9

Funds for the CTE program would support the first year of activity under a reauthorized Carl D. 

Perkins Career and Technical Education Act that would seek to ensure that all CTE programs 

become viable and rigorous pathways to postsecondary and career success. The 

Administration’s reauthorization proposal would strengthen the alignment among secondary and 

postsecondary CTE programs and business and industry; create a better accountability system; 

and provide funding to promote innovation and reform in CTE. The proposal would also support 

the Department’s secondary school agenda and the President’s 2020 college completion goal. 

CTE National Programs would support implementation of a reauthorized Perkins Act through 

research, evaluation, data collection, technical assistance, and other national leadership 

activities aimed at improving the quality and effectiveness of career and technical education. 
42

Adult Education (Adult Basic and Literacy Education)

(BA in millions)

Programs 2011 2012

2013

Request

Adult Basic and Literacy Education

State Grants........................................... $596.1 $595.0 $595.0

National Programs ....................................... 11.3 11.3 11.3

Total ................................................. 607.4 606.3 606.3

Adult Basic and Literacy Education State Grants assist adults without a high school diploma or 

equivalent to become literate and obtain the knowledge and skills necessary for postsecondary 

education, employment, and economic self-sufficiency. The request includes $15.0 million to 

support a Workforce Innovation Fund (WIF) that would be jointly administered and funded by 

the Departments of Education and Labor. From the $125 million available for the WIF from all 

sources, the two agencies will work together to award competitive grants that encourage 

innovation and identify and validate effective strategies for improving the delivery of services 

and outcomes for all beneficiaries under the programs authorized by the Workforce Investment 

Act. This investment would create strong incentives for change that, if scaled up, could improve 

the effectiveness of the workforce preparation and training system. 

The forthcoming reauthorization of the Adult Education and Family Literacy Act, which is Title II 

of the Workforce Investment Act (WIA), provides the opportunity to better align the Adult 

Education program with Federal job training programs and the postsecondary education 

system. The Administration’s proposal for reauthorization would streamline service delivery, 

require rigorous content standards and aligned assessments, ensure that workforce and adult 

education providers engage with employers, strengthen accountability requirements, promote 

innovative programs that support the use of career pathways models, and increase the level of 

support for adults in correctional settings. 

The request for State Grants includes $74.7 million for the English Literacy/Civics Education 

set-aside to help States and communities provide adults learning English with expanded access 

to high-quality English literacy programs linked to civics education. Funds proposed for National 

Leadership Activities would continue to support activities intended to increase the literacy and 

workforce skills of our Nation’s native-born adult population, as well as the ongoing need to 

address the English language acquisition, literacy, and workforce skills gaps of the immigrant 

population. 
43

D. STUDENT FINANCIAL ASSISTANCE

Overview

Providing students and their families with grant and loan assistance to help pay for 

postsecondary education is indispensable to ensuring that by 2020 America once again has the 

highest proportion of college graduates in the world. But making college affordable is only part 

of the story; students also need to complete their course of study in a reasonable amount of 

time and earn a credential that will help them realize their career aspirations. In other words, 

the quality of a postsecondary education is just as important as its affordability. The 2013 

request would support these twin goals—affordability and quality—by providing additional lowcost loans and grants to students who need it most and by directing a greater share of Federal 

support for postsecondary student financial aid to institutions that demonstrate success in 

serving low-income students, restrain growth in tuition, and provide good value.

Overall, the 2013 budget includes a combination of discretionary and mandatory funding that 

would make available $165 billion in new grants, loans, and work-study assistance—an 

increase of more than $67 billion, or 69 percent, over the amount available in 2008—to help 

more than 15.2 million students and their families pay for college. Key proposals include:

 Reforming the campus-based aid programs by targeting campus-based aid funds to 

schools with a demonstrated commitment to providing their students a high-quality 

education at a reasonable price while also emphasizing linkages between a student’s 

area of study and work-study experiences. The request would update current allocation 

formulas for Supplemental Education Opportunity Grants and Work-Study to reward 

institutions that keep their tuition and tuition increases low, enroll and graduate relatively 

high numbers of Pell-eligible students, offer work-study experiences relevant to students’ 

studies, and provide good value.

 Expanding the Perkins Loans program—the third “campus-based” student aid 

program—to provide $8.5 billion in new loan volume annually—eight and a half times the 

current Perkins volume. The expanded program would support Perkins Loans at up to 

2,700 additional postsecondary education institutions.

 Maintaining the Stafford loan interest rate at the current low rate of 3.4 percent. The 

subsidized Stafford loan interest rate is set to rise to 6.8 percent beginning July 1, 2012. 

The Budget proposes to keep the interest rate at the current 3.4 percent for new loans 

issued through June 30, 2013.

 Saving $1.8 billion over 10 years by eliminating the interest subsidy for borrowers who 

remain in-school beyond 150 percent of their program length. These savings would help 

protect the Pell Grant maximum award and maintain the financial health of the Pell Grant 

program in 2014 and beyond. In addition, the proposal would create an incentive for 

students to complete their educational programs sooner, reducing costs for both 

students and institutions alike. For borrowers who do not complete their programs within 

150 percent of their program length, their loans would begin accruing interest at that 

point in time.
44

These reforms are intended to complement and strengthen the Pell Grant program—the 

cornerstone of Federal efforts to make a postsecondary education affordable for low-income 

students. The 2013 request would provide a total of $36.1 billion in funding for Pell Grants, 

including $22.8 billion in discretionary funds and $13.3 billion in mandatory funds. The total 

request would provide Pell Grant awards to nearly 10 million students during the 2013-2014

award year, and the maximum Pell Grant award would increase to $5,635.

In addition to $165 billion in Pell Grants, low-interest student loans, and the campus-based 

student aid programs, the American Opportunity Tax Credit (AOTC) will provide an estimated 

$19.1 billion in tax relief in fiscal year 2013.

Federal Student Aid and Tax Benefits for College Students

Federal Assistance to 

College Students

Fiscal Year 

2008

Fiscal Year 

2013 Request

Change in 

Dollars

Percent

Change

Student Aid Available $97.7 billion $165.0 billion $67.3 billion 69%

Selected Tax Benefits $7.5 billion $19.1 billion $11.6 billion 155%

Finally, the budget proposes two technical changes to guaranty agencies’ compensation for 

rehabilitating defaulted loans: (1) eliminating their current retention share of the original 

defaulted student loan amount, and (2) reducing to 16 percent the fee they can charge a 

borrower on a borrower’s outstanding balance. In addition, if a guaranty agency is unable to 

locate a private sector lender willing to purchase a rehabilitated loan, the guaranty agency will 

send the loan to the Department of Education instead. In such an event, the guaranty agency 

would continue to earn a 16 percent collection fee. This proposal saves $3.4 billion over 

10 years, which will be invested into maintaining the Pell Grant program maximum award.

In addition to traditional student aid, a new Presidential Teaching Fellows program would 

support K-12 education by recruiting and preparing talented students for the teaching profession 

through top-tier teacher preparation programs. This program would replace the current TEACH 

Grants program and would provide formula grants to States to fund scholarships for students 

attending “high-performing” teacher preparation programs. Students would receive scholarships 

of up to $10,000 to cover the cost of program participation for the final year of their teacher 

preparation program (either an undergraduate or post-graduate program). By limiting eligibility 

to teacher preparation programs that have been proven successful, and to students who are 

further advanced in their program of study, the Presidential Teaching Fellows program will be 

targeted to students who have a greater likelihood of not only entering and remaining in the 

teaching profession but also of becoming effective teachers.
45

Student Aid Summary Tables

Budget Authority (dollars in millions)

Programs 2011 2012

2013

Request

Pell Grants

Pell Grant Discretionary funding....................................... $22,956.0 $22,824.0 $22,824.0

Pell Grant Mandatory funding .......................................... 19,060.0

1

18,748.2 113,294.0 1

Subtotal, Pell Grants.................................. 42,016.0 41,572.2 36,118.0

Supplemental Educational Opportunity Grants...... 736.0 734.6 734.6

Work-Study ........................................................... 978.5 976.7 1,126.7

TEACH Grants ...................................................... 21.5 241.1 210.5 2

Iraq and Afghanistan Service Grants..................... 0.2 0.3 0.3

Presidential Teaching Fellows............................... — — 190

Federal Family Education Loans ........................... -24,492.9 3-14,914.4 3-3,390.4 3

Federal Direct Loans............................................. -27,449.0 4-23,953.0 4-33,474.8

Unsubsidized Perkins Loans ................................. — — -1,378.5 5

Total .......................................................... -8,189.7 4,457.5 -63.6

1

Amounts appropriated for Pell Grants for 2011, 2012, and 2013 include mandatory funding provided by the 

Student Aid and Fiscal Responsibility Act of 2010 (SAFRA), the Full-Year Continuing Appropriations Act, 2011, the 

Consolidated Appropriations Act, 2012, and the Budget Control Act of 2011. 

2

For budget and financial management purposes, this program is operated as a credit program under the 

Federal Credit Reform Act of 1990. Budget authority reflects the estimated net present value of future Federal nonadministrative costs for awards made in a given fiscal year. Budget amounts for 2011 and 2012 include new loan 

subsidy and upward re-estimates, and exclude downward re-estimates. The downward re-estimate for 2011 was 

$5.97 million. The amount for 2013 reflects new loan subsidy. The budget proposes elimination of this program at 

the end of the 2012-2013 academic year.

3

Budget authority requested for FFEL does not include the Liquidating account. The 2011 amount includes a 

net downward re-estimate of $24.5 billion primarily related to revised interest rates. The 2012 amount includes a net 

downward re-estimate of $15.2 billion primarily related to revised interest rate assumptions; and a net upward 

modification of $249.7 million resulting from administrative action taken by the Department and the change beginning 

April 1, 2012, which gives lenders the option to calculate their special allowance payments based on the London 

Interbank Offered Rate (LIBOR), as provided for in the Consolidated Appropriations Act, 2012. The 2013 amount 

includes a net downward modification of $3.4 billion as a result of the proposed guaranty agency loan retention 

policy. (Re-estimates and modifications reflect the impact of changes on an outstanding FFEL portfolio of over $357 

billion.)

4

The 2011 amount includes a net downward re-estimate of $5.7 billion primarily related to revised interest rates. 

The 2012 amount includes a net upward re-estimate of $5.6 billion, primarily related to revised interest rates. (Reestimates and modifications reflect the impact of changes on an outstanding Direct Loan portfolio of nearly 

$342 billion.)

5

Amount in 2013 reflects proposal to shift Perkins Loan to a mandatory credit program.
46

Aid Available to Students (dollars in millions

Programs 2011 2012

2013

Request

Pell Grants ............................................................ $35,685.5 $35,649.0 $36,580.3

Supplemental Educational Opportunity Grants...... 931.6 929.9 929.9

Work-Study ........................................................... 1,163.4 1,161.2 1,348.8

Iraq and Afghanistan Service Grants..................... 0.3 0.3 0.4

Presidential Teaching Fellows............................... — — 149.0

New Student Loans:

New Federal Direct Loans....................................... 108,926.3 114,674.1 120,822.2

New Perkins Loans ................................................. 970.7 970.7 970.7

New Unsubsidized Perkins Loans ........................... — — 4,163.7

New TEACH Grants ................................................ 137.0 154.1 83.6

Subtotal, Student Loans ............................ 110,034.0 1115,798.9

1

126,040.2 1

Total .......................................................... 147,814.8 2153,539.3

2

165,048.6 2

1

In addition, consolidation loans for existing borrowers will total $23.8 billion in 2011, $63.5 billion in 2012, and 

$28.4 billion in 2013.

2

Shows total aid generated by Department programs, including Perkins Loan capital from institutional revolving 

funds, statutory, institutional and State matching funds.

Number of Student Aid Awards

(in thousands)

2011 2012

2013

Request

Pell Grants ............................................................ 9,703.0 9,607.0 9,748.0

Supplemental Educational Opportunity Grants...... 1,392.6 1,389.9 1,389.9

Work-Study 684.4 683.0 793.4

Iraq and Afghanistan Service Grants..................... —1 —1 —1

Presidential Teaching Fellows............................... — — 14.9

New Student Loans:2

New Federal Direct Loans....................................... 23,218.4 22,356.0 22,517.8

New Perkins Loans ................................................. 524.1 524.1 524.1

New Unsubsidized Perkins Loans ........................... — — 934.8

New TEACH Grants ................................................ 42.1 47.3 28.9

Total awards.............................................. 35,564.6 34,607.3 35,951.8

1

Less than 1,000 recipients in each year.

2

In addition, consolidation loans for existing borrowers will total 594,000 in 2011, 2,737,000 in 2012, and 

673,000 in 2013.

Number of Postsecondary Students Aided by Department Programs

Number of Students 2011 2012 2013

Unduplicated Count (in thousands) ................. 14,713 14,805 15,246
47

Tax Benefits for Postsecondary Students and Their Families

In addition to the Department of Education’s grant, loan, and work-study programs, significant 

support for postsecondary students and their families is available through tax credits and

deductions for higher education expenses, including tuition and fees. For example, in 2013, 

students and families will claim an estimated $13.7 billion for the American Opportunity Tax 

Credit—which provides a credit equaling 100 percent of the first $2,000 of tuition and fees, and 

25 percent of remaining expenses, up to a total credit of $2,500—and another $3.9 billion under 

the Lifetime Learning tax credit, which allows a credit of up to $2,000 for undergraduate and 

graduate tuition and fees. Additionally, another $900 million will be claimed in above-the-line 

deductions for interest paid on postsecondary student loans.

Pell Grants

Program Information

2011 2012

2013

Request

BA in millions

Discretionary budget authority................ $22,956.0 $22,824.0 $22,824.0

Mandatory budget authority.................... 5,560.0 4,953.2 5,707.0

Definite mandatory funding..................... 13,500.0 13,795.0 7,587.0

Total ................................................. 42,016.0 41,572.2 36,118.0

Program costs (dollars in millions)................ 35,734.0 35,697.0 36,629.0

Aid available (dollars in millions) .................. 35,685.5 35,649.0 36,580.3

Recipients (in thousands)............................. 9,703 9,607 9,748

Maximum grant (in whole dollars)

Maxi mum grant Discretionary portion .............................. $4,860 $4,860 $4,860

Maxi mum grant Mandatory add-on .................................. 690 690 775

Total ........................................ 5,550 5,550 5,635

Average Pell grant (in whole dollars)............ 3,678 3,711 3,753

The Pell Grant program helps ensure financial access to postsecondary education by providing 

grant aid to low- and middle-income undergraduate students. The program is the most needfocused of the Department's student aid programs, with individual awards varying according to 

the financial circumstances of students and their families. The 2013 request of $36.1 billion for 

Pell Grants would continue to make college more affordable for more than 9.7 million students. 

Additionally, this request would afford these students the opportunity to receive an increased 

maximum Pell award of $5,635 in award year 2013-14, raised from the current $5,550, and 

proposes measures to ensure full program funding through the 2014-15 academic year.

In addition to fully funding the Pell program in fiscal year 2013, the budget proposes making a 

down payment toward addressing the long-term Pell funding gap by including measures that will 

help secure funding to maintain our critical investment in Pell Grants while ensuring the prudent 

use of scarce taxpayer dollars. These measures include promoting borrowers’ timely 

completion of their educational programs and reducing the costs associated with providing 

defaulted loan borrowers opportunities to repair their credit standing. The savings associated 

with these proposals would help offset the growing costs of the Pell Grant program in future 

years while still ensuring that aid is available to the neediest college students.
48

Campus-Based Programs

The Supplemental Educational Opportunity Grant (SEOG), Work-Study, and Perkins Loan 

programs are collectively referred to as the “campus-based” programs; grants in these 

programs are made directly to participating institutions, which have considerable flexibility to 

package awards to best meet the needs of their students. The 2013 request would reform 

these programs to assist students attending those institutions that demonstrate success in 

serving low-income students, restraining growth in tuition, and providing good value. The 

request also includes a $150 million increase, or more than 15 percent, over 2012 for the WorkStudy program that would support a new emphasis on encouraging schools to provide WorkStudy opportunities that are meaningfully aligned with their academic programs, and would 

restructure Perkins Loans to significantly increase lending authority. These reforms, 

collectively, seek to provide increased access to college and make it more affordable while 

ensuring students are well-prepared for work and life after graduation. The proposed reforms 

include modifying the formulas used to allocate campus-based aid funding to institutions. 

Currently, allocations are primarily based on institutions’ longevity in the programs, reward 

institutions with high tuition rates, and fail to reflect the financial need among the students 

attending the institutions or the extent to which institutions serve their students well.

Supplemental Educational Opportunity Grants

Program Information

2011 2012

2013 

Request

BA in millions .............................................. $736.0 $734.6 $734.6

Aid available (dollars in millions) ................. 931.6 929.9 929.9

Recipients (in thousands) ............................ 1,393 1,390 1,390

Average award (in whole dollars)................. $669 $669 $669

This program provides grant assistance of up to $4,000 per academic year to undergraduate 

students with demonstrated financial need. The $734.6 million request would leverage 

$232 million in institutional matching funds to make available a total of nearly $930 million in 

grants to an estimated 1.4 million recipients. Program funds are allocated to institutions 

according to a statutory formula and require a 25 percent institutional match. Awards are 

determined at the discretion of institutional financial aid administrators, although schools are 

required to give priority to Pell Grant recipients and students with the lowest expected family 

contributions. The request would reform the institutional allocation formula to direct funding

toward institutions that do a good job of keeping tuition affordable and provide good value.

Work-Study

Program Information

2011 2012

2013

Request

BA in millions .............................................. $978.5 $976.7 $1,126.7

Aid available (dollars in millions) ................. 1,163.4 1,161.2 1,348.8

Recipients (in thousands) ............................ 684 683 793

Average award (in whole dollars)................. $1,700 $1,700 $1,700
49

The Work-Study program provides grants to participating institutions to pay up to 75 percent of 

the wages of eligible undergraduate and graduate students working part-time to help pay their 

college costs. The school or other eligible employer provides the balance of the student’s 

wages. The budget proposes an increase of $150 million for this program, for a total request of 

more than $1.1 billion that, when combined with institutional aid, would make available more 

than $1.3 billion to an estimated 793,000 Work-Study students in the 2013-14 school year. 

Funds are allocated to institutions according to a statutory formula, and individual award 

amounts to students are determined at the discretion of institutional financial aid administrators. 

The 2013 request also would change the allocation formula for Work-Study to benefit institutions 

that provide good value to students, in part by offering them more meaningful work-study 

opportunities that will help to prepare them for work and life after graduation.

Federal Perkins Loans

Program Information

2011 2012

2013 

Request

Perkins Loans (current program):

Current program Aid available (dollars in millions) ........... $970.7 $970.7 $970.7

Current program Recipients (in thousands) ...................... 524 524 524

Current program Average loan (in whole dollars).............. $1,852 $1,852 $1,852

Unsubsidized Perkins Loans:

Unsubsi dized Perki ns Loan subsidies (in millions) ................... — — $1,378.5

Unsubsi dized Perki ns Aid available (dollars in millions) ............ — — 4,163.7

Unsubsi dized Perki ns Recipients (in thousands) ...................... — — 935

Unsubsi dized Perki ns Average loan (in whole dollars) .............. — — $4,454

The Perkins Loan program provides long-term, low-interest loans to undergraduate and 

graduate students with demonstrated financial need at roughly 1,700 institutions. Total assets 

of over $8 billion represent over 40 years of Federal capital contributions, institutional matching 

funds, repayments on previous loans, and Federal reimbursements for loan cancellations. 

Perkins Loan borrowers pay no interest during in-school, grace, and deferment periods and are 

charged 5 percent interest during the principal repayment period. Annual borrowing limits are 

$5,500 for undergraduate students and $8,000 for graduate and professional students.

The Administration is proposing to create an expanded, modernized Perkins Loan program as 

part of its overall effort to improve and strengthen the impact of the campus-based programs. 

The expansion would enable the program to provide $8.5 billion in new loan volume annually—

eight and a half times the current annual Perkins volume—and reach students at as many as 

2,700 additional postsecondary education institutions. The Department of Education, rather 

than institutions under current law, would service Perkins Loans in the same cost-effective 

manner that the Department operates the current Direct Loans program. Lending authority 

would be allocated among institutions on a basis similar to the other campus-based programs. 
50

TEACH Grants/Presidential Teaching Fellows

2011 2012

2013

Request

TEACH Grants

BA in millions ........................................................ $21.5 1$41.1 1$10.5 1

TEACH Grants Recipients (in thousands) ................................ 42.1 47.3 28.9

TEACH Grants Aid available to students (in millions)............... $137.0 $154.1 $83.6

TEACH Grants Maximum grant (in whole dollars).................... $4,000 $4,000 $4,000

TEACH Grants Average grant (in whole dollars) ...................... $3,300 $3,300 $2,900

Presidential Teaching Fellows (PTF)

BA in millions ........................................................ — — $190.0

PTF Number of State formula grants ...................... — — 35-56

PTF Total aid available (in millions) ........................ — — $149.0

PTF Minimum State award (in thousands).............. — — $600

PTF Maximum scholarship amount (in whole $) ..... — — $10,000

PTF Number of Fellows (in thousands)................... — — 14.9

1

Amounts for 2011 and 2012 include new loan subsidy and upward re-estimate, and exclude downward reestimates. The downward re-estimate for 2011 was $5.97 million. Amount for 2013 reflects new loan subsidy. 

The 2013 request would replace the TEACH Grant programs with the new Presidential 

Teaching Fellows program, which is specifically focused on ensuring that recipients enter, 

remain, and thrive in the field of teaching. The new program would provide formula grants to 

States to fund scholarships of up to $10,000 for students attending “high-performing” teacher 

preparation programs. The program would limit participation to teacher preparation programs 

that have been proven successful, and to students who are further advanced in their program of 

study, to help ensure that scholarship recipients will be more likely to not only enter and remain 

in the teaching profession but also to become effective teachers.

The current TEACH Grant program awards annual grants of up to $4,000 to eligible 

undergraduate and graduate students who agree to serve as a full-time mathematics, science, 

foreign language, bilingual education or other English language acquisition program, special 

education, or reading teacher at a high-need school for not less than 4 years within 8 years of 

graduation. For students who fail to fulfill this service requirement, grants are converted to 

Direct Unsubsidized Stafford Loans with interest accrued from the date the grants were 

awarded.

For budget and financial management purposes, this program is operated as a loan program 

with 100 percent forgiveness of outstanding principal and interest upon completion of a 

student’s service requirement. The Administration currently estimates approximately 75 percent 

of participating students will not complete the required service and thus will have their grants 

converted to Direct Unsubsidized Stafford Loans. Consistent with the requirements of the 

Credit Reform Act of 1990, budget authority for this program reflects the estimated net present 

value of all future non-administrative Federal costs associated with awards made in a given 

fiscal year.
51

Federal Family Educational Loans and Direct Loans (in millions)

2011 2012

2013

Request

Federal Family Education Loans

FFEL Net modification of existing loans .................... — 1$249.7 1-$3,390.41

FFEL Net re-estimate of existing loans ..................... -$24,492.9 2,3-15,164.1 2,3 —2

Total, FFEL program BA............................ -24,492.9 -14,914.4 -3,390.4

Direct Loans

Direct Loans New loan subsidies (BA).................................. -21,759.7 2-29,519.4 2-33,474.82

Direct Loans Net re-estimate of existing loans...................... -5,689.2 3 5,566.3 3 —3

Total, new budget authority ....................... -27,449.0 -23,953.1 -33,474.8

Total, student loans (BA) ........................... -51,941.9 -38,867.5 -36,865.2

1

Under Credit Reform, costs or savings related to the impact of policy changes on existing loans are reflected in 

the current year. The amount of 2012 FFEL modification reflects the impact of administrative action taken by the 

Department and the change, beginning April 1, 2012, which gives lenders the option to calculate their special 

allowance payments based on the London Interbank Offered Rate, LIBOR, as passed in the Consolidated 

Appropriations Act, 2012; the 2013 FFEL modification reflects the impact of the proposed guaranty agency 

rehabilitated loan retention policy.

2

Total includes amount for Consolidation Loans.

3

Under Credit Reform, the subsidy amounts needed for active loan cohorts are re-estimated annually in both 

Direct Loans and FFEL to account for changes in long-term projections. Re-estimates and modifications reflect the 

impact of changes on outstanding portfolios of over $357 billion for FFEL and nearly $342 billion for Direct Loans.

New loan volume (in millions)

2011 2012

2013

Request

Direct Loans

Direct Loans Stafford loan volume........................................ $41,774.5 $35,554.3 $32,044.2

Direct Loans Unsubsidized Stafford loan volume ................. 48,081.6 58,468.2 66,160.3

Direct Loans PLUS loan volume........................................... 19,070.2 20,651.5 22,617.7

Total.......................................................... 108,926.3 1114,674.0

1

120,822.2 1

Number of new loans (in thousands)

Direct Loans

Number of Direct Stafford Loans ................................................ 10,883 9,966 9,466

Number of Direct Unsubsidized Stafford loans............................ 10,796 10,804 11,398

Number of Direct PLUS loans ..................................................... 1,539 1,586 1,654

Total.......................................................... 23,218 122,356 122,518 1

1

In addition, Consolidation Loans for existing borrowers will total $23.8 billion and 594,000 loans in 2011, 

$63.5 billion and 2,737,000 loans in 2012, and $28.4 billion and 673,000 loans in 2013.

The Department of Education operates two major student loan programs—the Federal Family 

Education Loan (FFEL) program and the William D. Ford Federal Direct Loan (Direct Loan) 

program—but makes new loans only through the Direct Loan program. The Student Aid and 

Fiscal Responsibility Act (SAFRA) eliminated the authorization to originate new FFEL loans 
52

after June 30, 2010. The legacy FFEL program made loan capital available to students and 

their families through private lenders. State and private nonprofit guaranty agencies administer 

the Federal guarantee protecting FFEL lenders against losses related to borrower default. 

These agencies also collect on defaulted loans and provide other services to lenders. Under 

the Direct Loan program, the Federal Government uses Treasury funds to provide loan capital 

directly to schools, which then disburse loan funds to students. The Department carries out its 

loan origination and servicing functions under Direct Loans through competitively selected 

private and non-profit entities.

The Direct Loan program features four types of loans with set fees and maximum borrowing 

amounts:

 Stafford Loans are subsidized, low-interest loans based on financial need. The Federal 

Government pays the interest while the student is in school and during certain grace and 

deferment periods. The current interest rate for undergraduate loans made on or after July 

1, 2011 is 3.4 percent and is scheduled to rise to 6.8 percent beginning July 1, 2012. The 

interest rate for loans to graduate students is 6.8 percent in all years, but as of July 1, 2012,

graduate students will no longer be eligible for subsidized Stafford loans. Additionally, 

interest will accrue during a student’s grace period for Stafford Loans originated between 

July 1, 2012, and June 30, 2014.

 Unsubsidized Stafford Loans have a fixed interest rate of 6.8 percent, but the Federal 

Government does not pay interest for the student during in-school, grace, and deferment 

periods.

 PLUS Loans are available to parents of dependent undergraduate students at slightly higher 

rates than Stafford or Unsubsidized Stafford Loans and the Federal Government does not 

pay interest during in-school, grace, and deferment periods. Graduate and professional 

students may also take out PLUS loans.

 Consolidation Loans allow borrowers with multiple student loans who meet certain criteria to 

combine their obligations and extend their repayment schedules. The rate for both FFEL 

and Direct Consolidation Loans is based on the weighted average of loans consolidated 

rounded up to the nearest 1/8th of 1 percent. The resulting rate for the consolidated loan is 

then fixed for the life of the loan.

The Administration proposes student loan reforms to better target subsidies and to provide 

savings for Pell Grants for the neediest postsecondary students. First, the 2013 request would 

maintain the interest rate for subsidized Stafford loans—scheduled to rise to 6.8 percent on July 

1, 2012—at the current rate of 3.4 percent in order to minimize repayment burdens on students 

and families as the economy rebounds from the recent downturn. The budget also proposes to 

limit the in-school interest subsidy provided to Subsidized Stafford loan borrowers to 150 

percent of the normal time required to complete borrowers’ educational programs. Beyond that 

point, borrowers would no longer receive the interest subsidy for the Stafford loans they have 

taken out, and interest would begin to accrue. The estimated savings from this proposal—

$1.8 billion over 10 years—would be re-appropriated to the Pell Grant program in future years.
53

Second, the President’s 2013 Budget proposes two technical changes to reduce the 

compensation paid to guaranty agencies for loan rehabilitation services: (1) eliminating the 

current retention share of the original defaulted student loan amount, and (2) reducing to 

16 percent the fee they can charge borrowers on borrowers’ outstanding loan balances. If a 

guaranty agency is unable to locate a private lender buyer for a rehabilitated loan, the agency 

would be required to assign the loan to the Department of Education. In such an event, the 

guaranty agency would continue to earn a 16 percent collection fee. The estimated savings 

from this proposal—$3.4 billion over 10 years—would be re-appropriated to the Pell Grant 

program in future years.
54

E. HIGHER EDUCATION PROGRAMS

Overview

The Administration’s 2013 request includes $3.2 billion for Higher Education Programs to help 

achieve the President’s goal of significantly increasing the percentage of Americans with 

postsecondary degrees or industry-recognized certificates. It also supports initiatives aimed at 

providing States and institutions incentives to improve affordability and quality to ensure that 

college stays in reach for all students who want to attend.

The Administration believes that it is impossible to address college costs without State-level 

action. The $1 billion request for the first year of the proposed Race to the Top: College 

Affordability and Completion fund would catalyze State efforts to pursue systemic higher 

education reform and reward States with demonstrated commitments to providing good value to 

students, such as restraining increases in what students pay for college; making use of data to 

drive policy, and improving alignment between K-12 and postsecondary education and across 

colleges. Funds would be used by States and institutions to boost quality and productivity and

provide greater value to students through improved undergraduate experiences, new paths to 

credit attainment and degrees, and increased capacity, among other purposes.

The budget also invests in driving innovation at the institutional level through a $55.5 million 

request for the “First in the World” (FITW) competition to be administered through the Fund for 

the Improvement of Postsecondary Education (FIPSE). This proposal, which would be modeled 

after the Investing in Innovation (i3) program for K-12 education, would provide incentives and 

rewards for innovation and building evidence of what works to reduce costs and improve 

outcomes in postsecondary education. Up to $20 million of these funds would be dedicated 

specifically for projects involving minority-serving institutions (MSIs) to encourage these 

institutions to leverage all available resources, including funds awarded under the Title III and 

Title V programs, to improve their college persistence and completion rates. A portion of funds 

would be used for incentive payments that reward grantees for successful outcomes.

Another priority is a $30 million request for first-time funding for the Hawkins Centers of 

Excellence program to increase the number of effective minority educators by expanding and 

reforming teacher education programs at MSIs. Supporting the preparation of effective teachers 

for high-need schools is a key strategy for closing the K-12 achievement gap between minority 

students and their White peers.

To help close gaps between racial and socioeconomic groups in college enrollment and degree 

attainment, the request provides $431.1 million in discretionary funding for the Aid for 

Institutional Development programs, the same as the 2012 level. The request would strengthen 

institutions of higher education that serve high proportions of minority and disadvantaged 

students, including Historically Black Colleges and Universities (HBCUs) and Historically Black 

Graduate Institutions (HBGIs), by improving their academic programs, institutional capacity, and 

student support services. The budget also provides $109.4 million for the Aid for Hispanicserving Institutions programs.

The request also would provide $839.9 million to maintain college preparation and completion 

activities for participants in the Federal TRIO Programs, as well as $302.2 million to serve an 

estimated 725,000 middle and high school students preparing for college through Gaining Early 

Awareness and Readiness for Undergraduate Programs (GEAR UP). These programs, 
55

together with the $150 million in mandatory funds provided through the College Access 

Challenge Grants program, provide significant investments that are crucial for helping to meet 

the President’s college completion goal by getting more students into and through

postsecondary education.

In addition, the request includes $75.7 million, an increase of $1.7 million over the 2012 level, 

for the International Education and Foreign Language Studies programs, which help meet the 

Nation's security and economic needs through the development of expertise in foreign 

languages and area and international studies. The budget also provides $30.9 million for meritand need-based scholarships and fellowships to postsecondary students under Graduate 

Assistance in Areas of National Need (GAANN) programs.
56

Title III: Aid for Institutional Development

(BA in millions)

 

Programs 2011 2012

2013 

Request

Strengthening Institutions.................................. $83.8 $80.6 $80.6

Strengthening Tribally Controlled Colleges 

and Universities........................................... 26.8 25.7 25.7

Strengthening Tribally Controlled Colleges

and Universities (mandatory)....................... 30 130 130 1

Strengthening Alaska Native and Native

Hawaiian-serving Institutions........................ 13.4 12.9 12.9

Strengthening Alaska Native and Native

Hawaiian-serving Institutions (mandatory).... 15.0 115.0 115.0 1

Strengthening Historically Black Colleges

and Universities............................................ 237.0 228.0 228.0

Strengthening Historically Black Colleges

and Universities (mandatory)....................... 85.0 185.0 185.0 1

Strengthening Historically Black Graduate

Institutions.................................................... 61.3 59.0 59.0

Master’s Degree Programs at HBCUs

and PBIs (mandatory) .................................. 11.5 211.5 211.5

2

Strengthening Predominantly Black

Institutions.................................................... 9.6 9.3 9.3

Strengthening Predominantly Black

Institutions (mandatory)............................... 15.0 115.0 115.0 1

Strengthening Asian American and Native

American Pacific Islander-serving

Institutions.................................................... 3.2 3.1 3.1

Strengthening Asian American and Native

American Pacific Islander-serving

Institutions (mandatory)................................ 5.0 15.0 15.0 1

Strengthening Native American-serving

nontribal institutions...................................... 3.2 3.1 3.1

Strengthening Native American-serving

nontribal institutions...................................... 5.0 15.0 15.0 1

Minority Science and Engineering

Improvement ................................................ 9.5 9.5 9.5

Total ...................................................... 614.3 597.6 597.6

Discretionary.................................... 447.8 431.1 431.1

Mandatory........................................ 166.5 166.5 166.5

1

These funds are mandatory appropriations provided under the Student Aid and Fiscal Responsibility Act 

(SAFRA) within the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152).

2

These funds are mandatory appropriations provided under Title VIII, Part AA, Section 897 of the HEA.

The request for Title III maintains support for institutions that serve large percentages of minority 

and disadvantaged students. Title III funding, which is awarded both competitively and by a 

formula that directs aid to specified institutions, helps provide equal educational opportunity and 

strong academic programs for these students and enhances the financial stability of the 
57

institutions that serve them. Funds may be used to plan, develop, and implement activities that 

support faculty development; funds and administrative management; development and 

improvement of academic programs; joint use of libraries and laboratories; construction, 

maintenance, and renovation of instructional facilities; student services; and endowment funds.

Strengthening Institutions supports institutions that provide educational opportunities to 

low-income and minority students. This funding level would support 150 non-competing 

continuation grants and would enable the Department to award 60 new individual development 

grants.

Strengthening Tribally Controlled Colleges and Universities (TCCUs) supports 33 Tribal 

Colleges and Universities located primarily in remote areas not served by other postsecondary 

education institutions. These institutions offer a broad range of degree and vocational certificate 

programs to students for whom these educational opportunities would otherwise be 

geographically and culturally inaccessible. TCCUs also would benefit from $30 million in 

mandatory funds provided by SAFRA in fiscal year 2013. 

Strengthening Alaska Native and Native Hawaiian-serving Institutions supports institutions with 

undergraduate enrollments that are at least 20 percent Alaska Native, and at least 10 percent 

Native Hawaiian students, respectively. The request would fund 16 non-competing continuation 

grants and 4 new individual development grants for these institutions, which typically are located 

in remote areas not served by other institutions. The Department also will use $15 million in 

fiscal year 2013 mandatory funds to award 15 non-competing continuation grants.

Strengthening Historically Black Colleges and Universities supports any accredited, legally 

authorized HBCU that was established prior to 1964 and which retains a principal mission of 

educating African-Americans. Fiscal year 2013 funding would support 96 HBCUs. In 2013, 

SAFRA would provide $85 million in mandatory funding for HBCUs. 

Strengthening Historically Black Graduate Institutions supports 24 institutions with schools of 

law, medical schools, or other graduate programs. 

Predominantly Black Institutions (PBIs) are primarily urban and rural 2-year colleges that have 

an enrollment of undergraduate students that is at least 40 percent African-American and that 

serve at least 50 percent low-income or first-generation college students. The request would 

support a third year of funding for 35 PBI grantees. In addition, SAFRA makes available 

$15 million in mandatory funds in 2013 for continuation grants for 27 PBIs.

Strengthening Asian American and Native American Pacific Islander-serving Institutions

supports institutions with undergraduate enrollments that are at least 10 percent Asian 

American and Native American Pacific Islander. This funding level would support 

8 non-competing continuation grants for institutions serving this diverse population. In addition, 

SAFRA will make available mandatory funding of $5 million to support 11 non-competing 

continuation awards for these institutions.

Strengthening Native American-serving Nontribal Institutions supports institutions that are not 

designated as TCCUs, yet enroll at least 10 percent Native American students and serve at 

least 50 percent low-income students. The discretionary request would support 6 noncompeting continuation awards and an additional $5 million in mandatory funds provided by 

SAFRA will support 13 non-competing continuation grants.
58

The Minority Science and Engineering Improvement program would fund 17 new competitive 

and 25 non-competing continuation grants that support improvement in science and engineering 

education at predominantly minority institutions and increase the participation of 

underrepresented ethnic minorities, particularly minority women, in scientific and technological 

careers.

 

Aid for Hispanic-Serving Institutions (HSIs)

(BA in millions)

Programs 2011 2012

2013

Request

Developing HSIs ................................................ $104.4 $100.4 $100.4

Mandatory Developing HSI STEM

and Articulation Programs ............................ 100.0 1100.0 1100.01

Promoting Postbaccalaureate

Opportunities for Hispanic Americans

(discretionary) ........................................ 9.3 9.0 9.0

(mandatory)............................................ 11.5 2 11.5 2 11.52

Total ....................................................... 225.2 220.9 220.9

Discretionary..................................... 113.7 109.4 109.4

Mandatory ........................................ 111.5 111.5 111.5

1

These funds are mandatory appropriations provided under the Student Aid and Fiscal Responsibility Act 

(SAFRA) within the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152).

2

These funds are mandatory appropriations provided under Title VIII, Part AA, Section 898 of the HEA.

The Developing Hispanic-Serving Institutions (HSIs) program funds competitive grants to 

expand and enhance the academic quality, institutional management, fiscal stability, and selfsufficiency of colleges and universities that enroll large percentages of Hispanic students. In 

2013, $100.4 million in discretionary funding would support approximately 21 new awards and 

149 non-competing continuation awards, while $100 million in mandatory funds would support 

111 non-competing continuation awards under the HSI Science, Technology, Engineering, and 

Mathematics (STEM) and Articulation program.

The Promoting Postbaccalaureate Opportunities for Hispanic Americans program provides 

funds to eligible HSIs that offer a postbaccalaureate certificate or postbaccalaureate degreegranting program. The program is designed to help Hispanic Americans gain entry into and 

succeed in graduate study, a level of education in which they are underrepresented. In 2013, 

$9.0 million in discretionary funding would support 20 non-competing continuation awards, while 

$11.5 million in mandatory funding would support an additional 22 non-competing continuation 

awards. 
59

Hawkins Centers of Excellence

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... — — $30.0

The Hawkins Centers of Excellence program is designed to increase the number of effective 

minority educators by expanding and reforming teacher education programs at minority-serving 

institutions (MSIs). This program would make competitive awards of at least $500,000 annually 

for up to 5 years to eligible institutions of higher education to establish Centers of Excellence in 

teacher education. Increasing the number of effective minority teachers for high-need schools 

is a key strategy for closing the achievement gap between minority students and their White 

peers.

International Education and Foreign Language Studies (IEFLS)

(BA in millions)

Programs 2011 2012

2013

Request

Domestic Programs ..................................... $66.7 $66.6 $68.3

Overseas Programs ..................................... 7.5 7.5 7.5

Institute for International Public Policy.......... 1.6 — —

Total ................................................. 75.7 74.0 75.7

These programs support comprehensive language and area study centers within the United 

States, research and curriculum development, and opportunities for American scholars to study 

abroad. In addition to promoting general understanding of the peoples of other countries, the 

Department’s international programs also serve important economic, diplomatic, defense, and 

other national security interests. The Administration also believes that a world-class education 

must integrate global competencies and is committed to increasing the global competency of all 

U.S. students, including those from traditionally disadvantaged groups. The proposed 

$1.7 million increase for Domestic Programs in 2013 will support this goal.

Race to the Top: College Affordability and Completion

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... — — $1,000.0

This proposed program would drive systemic State reforms that simultaneously lead to 

increased affordability, quality, and productivity in higher education. Funds would be awarded 

to States with strong records of increasing college affordability and quality, which could be 

demonstrated in such ways as maintaining a consistent State financial commitment to higher 

education, operating institutions that reasonably stabilize or contain the growth in what students 

pay for college and measure and publicize institutional value in terms of financial returns and 

other outcomes, making use of data to drive policy, and improving alignment between K-12 and 

postsecondary education and across colleges. Funds would be used by States and institutions 

to boost quality and productivity and provide greater value to students through improved 
60

undergraduate experiences, new paths to credit attainment and degrees, and increased 

capacity, among other purposes.

Fund for the Improvement of Postsecondary Education (FIPSE)

(BA in millions)

Programs 2011 2012

2013

Request

First in the World.......................................... — — $55.5

International Consortia................................. $12.5 $2.1 2.9

Special Focus Competitions......................... 4.8 — —

Training for Realtime Writers........................ 1.0 1.1 —

Model Transition Programs .......................... — — 11.0

Other............................................................ 1.3 0.3 0.6

Total ................................................. 19.6 3.5 70.0

FIPSE awards competitive grants to support exemplary, locally developed projects that are 

models for innovative reform and improvement in postsecondary education. The 2013 request

would provide $55.5 million for the First in the World (FITW) initiative, which would apply the 

lessons of the successful K-12 Investing in Innovation (i3) program to the challenge of improving 

college completion, particularly for minority and low-income students. First in the World would 

provide “venture capital” to encourage innovative approaches to improving college completion, 

research support to build the evidence of effectiveness needed to identify successful strategies, 

and resources to scale up and disseminate strategies we already know are successful. Up to 

$20 million of FITW funds would be dedicated to projects involving minority-serving institutions 

to encourage such institutions to leverage all available resources, including funds awarded 

under the Title III and Title V programs, to improve their college persistence and completion 

rates. A portion of funds will also be used for incentive payments that reward grantees for 

successful outcomes.

The request also includes funding that would be used to cover continuation costs for projects 

previously funded under Model Transition Programs for Students with Intellectual Disabilities in 

Higher Education.

Tribally Controlled Postsecondary Career and Technical Institutions

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $8.1 $8.1 $8.1

The request would fund awards to tribally controlled postsecondary career and technical 

institutions that meet the program’s eligibility requirements to fund instructional and student 

support services under a reauthorized Carl D. Perkins Career and Technical Education Act.
61

Special Programs for Migrant Students

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $36.6 $36.5 $36.5

Special Programs for Migrant Students include the High School Equivalency Program (HEP), 

which funds competitively selected projects to help low-income migrant and seasonal farm 

workers gain high school diplomas or equivalency certificates, and the College Assistance 

Migrant Program (CAMP), which makes competitive grants to provide stipends and special 

services, such as tutoring and counseling, to migrant students who are in their first year of 

college. The 2013 request would support approximately 43 HEP projects and 39 CAMP 

projects, as well as outreach, technical assistance and professional development activities.

Federal TRIO Programs

(BA in millions)

Programs 2011 2012

2013

Request

Talent Search .............................................. $138.7 $136.4 $135.9

Upward Bound ............................................. 248.8 266.2 267.9

Veterans Upward Bound .............................. 13.2 13.2 13.2

Upward Bound Math-Science....................... 33.8 43.8 43.8

Educational Opportunity Centers ................. 47.7 46.9 46.9

Student Support Services ............................ 290.8 291.5 291.5

McNair Post Baccalaureate Achievement .... 46.2 36.1 36.1

Staff Training ............................................... 3.5 1.4 1.4

Evaluation ................................................... — 1.5 1.5

Administration/Peer Review ......................... 3.8 3.0 1.7

Upward Bound (mandatory) ......................... 57.0 1 — 2 — 2

Total ................................................. 883.5 839.9 839.9

1 Mandatory funds are made available by section 402C(g) of the Higher Education Act of 1965, as amended.

2

The authorization for mandatory funds expired September 30, 2011. 

The TRIO programs are among the Department’s signature programs aimed at getting more 

students prepared for, into, and through postsecondary education. The request would maintain 

overall level funding for these college preparation and student support programs, including 

approximately 2,814 TRIO projects serving middle school, high school, and college students 

and adults, while also supporting Staff Training grants, evaluation, and administration for the 

TRIO programs. 
62

Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $302.8 $302.2 $302.2

GEAR UP provides funds to States and partnerships for early college preparation and 

awareness activities to help low-income elementary and secondary school students prepare for 

and pursue postsecondary education. Several features of GEAR UP, including targeting entire 

grades of students, partnering with local organizations and businesses, and matching Federal 

funds with local contributions, allow projects to serve large numbers of students. The request 

maintains funding at the 2012 level and would serve approximately 725,000 middle and high 

school students in fiscal year 2013.

Graduate Assistance in Areas of National Need (GAANN)

(BA in millions)

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $31.0 $30.9 $30.9

GAANN provides fellowships, through competitive grants to postsecondary institutions, to 

graduate students with superior ability and high financial need studying in areas of national 

need. Participating graduate schools must provide assurances that they will seek talented 

students from traditionally underrepresented backgrounds. The 2013 request would support 

approximately 687 fellowships, including non-competing continuation awards for Javits 

fellowship recipients.

Child Care Access Means Parents in School

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $16.0 $16.0 $16.0

This competitive grant program supports the participation of low-income parents in 

postsecondary education through campus-based childcare services. Grants made to 

institutions of higher education must be used to supplement childcare services or start a new 

program, not to supplant funds for current childcare services. The program gives priority to 

institutions that leverage local or institutional resources and employ a sliding fee scale. The 

2013 request would support 100 new projects and 55 existing projects.
63

GPRA Data/HEA Program Evaluation

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $0.6 $0.6 $0.6

The request would support the collection and analysis of performance data and the evaluation 

of Higher Education Act programs that either lack funding set-asides to conduct these activities 

or where such set-asides are not sufficient to cover the costs of the activities. 

Academic Facilities

(BA in millions)

Programs

2011 2012

2013

Request

HBCU Capital Financing Program................ $20.5 $20.5 $20.5

CHAFL Federal Administration..................... 0.5 0.5 0.5

These programs support the construction, reconstruction, and renovation of academic facilities 

at institutions of higher education. The request for the HBCU Capital Financing Program would 

support the management and servicing of loan guarantees on previously issued loans, and 

includes $20.2 million in loan subsidy that would allow the program to guarantee $320.4 million 

in new loans in 2013. Funds also would be used to continue technical assistance services to 

help HBCUs increase their fiscal stability and improve their access to capital markets. The 

Administration is seeking legislative authority to raise the limits on total loan authority and the 

sub-limits on authority for loans to public and private HBCUs.

Funding for CHAFL Federal Administration is used solely to manage and service existing 

portfolios of facilities loans and grants made in prior years.

Howard University

(BA in millions)

Programs 2011 2012

2013

Request

General Support........................................... $205.6 $205.2 $205.2

Howard University Hospital .......................... 28.9 28.8 28.8

Total ................................................. 234.5 234.1 234.1

The 2013 request would maintain support for Howard University’s academic programs, research 

programs, construction activities, and the Howard University Hospital at the 2012 level. Howard 

University has played a historic role in providing access to postsecondary educational 

opportunities for students from traditionally underrepresented backgrounds, especially AfricanAmericans. The request includes $3.6 million for Howard University’s endowment. The direct 

Federal appropriation accounts for approximately 42 percent of Howard University’s operating 

costs. 
64

F. INSTITUTE OF EDUCATION SCIENCES

Overview

The Institute of Education Sciences (IES) supports sustained programs of research, evaluation, 

and statistics to inform and provide solutions to the problems and challenges faced by schools 

and learners. Investment in research and statistics activities is critical in order to identify 

effective instructional and program practices, track student achievement, and measure the 

impact of educational reform. Through its four centers—the National Center for Education 

Research, the National Center for Education Statistics (NCES), the National Center for 

Education Evaluation and Regional Assistance, and the National Center for Special Education 

Research—IES ensures that the Federal investment in education research, statistics, and 

evaluation is well-managed and relevant to the needs of educators and policymakers.

For 2013, the Administration is seeking $621.2 million for IES activities, an increase of 

$27.5 million over the 2012 appropriation. This request would enable IES to award up to 

$30 million in new research and development grants in early learning and elementary, 

secondary, and postsecondary education. NCES would receive an additional $6 million to 

support State participation in the Program for International Student Assessment (PISA), and the 

Statewide Data Systems program would receive $15.0 million for initiatives to improve 

information on students as they move from high school to postsecondary education and the 

workforce.

The request would continue the Administration’s commitment to supporting the Regional 

Educational Laboratories, the Assessment program, research in special education, and special 

education studies and evaluations.

Research, Development, and Dissemination

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $199.8 $189.8 $202.3

The request includes an increase of $12.5 million over the 2012 level to support critical 

investments in education research, development, dissemination, and evaluation that provide 

parents, teachers, and schools with evidence-based information on effective educational 

practice. The request would restore funding for research and development activities to the 2010 

level, which is critical to enabling IES to conduct competitions for new awards across education 

research areas that would support the development and testing of practical approaches to 

improve education outcomes for all students. The request also includes an additional $2 million 

to complete an impact evaluation of whether expanding Pell Grants to support additional training 

and education for unemployed adults results in higher earnings and employment.

Statistics

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $108.3 $108.7 $114.7
65

The Department’s statistics programs—operated primarily through competitively awarded 

contracts administered by the National Center for Education Statistics (NCES)—provide general 

statistics about trends in education, collect data to monitor reform and measure educational 

progress, and inform the IES research agenda. The 2013 request, an increase of $6 million, 

would support the collection, analysis, and dissemination of education-related statistics in 

response both to legislative requirements and to the particular needs of data providers, data 

users, and educational researchers. The increase would be used by NCES to support State 

participation in a pilot Program for International Student Assessment (PISA) study that would 

allow States to benchmark the performance of their 15-year-old students against international

standards.

Regional Educational Laboratories (REL) 

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $57.5 $57.4 $57.4

The requested funds would be used to support the second year of the 5-year REL contracts at 

the 2012 level. The RELs serve as a necessary bridge between the research community and 

State and local educational agencies by providing expert advice, including training and technical 

assistance, to bring the latest and best research and proven practices into school improvement 

effort. Key priorities include providing technical assistance on performing data analysis 

functions, evaluating programs, and using data from State longitudinal data systems for 

research and evaluation that addresses important issues of policy and practice.

Assessment

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $138.6 $138.3 $132.3

The request would fund the ongoing National Assessment of Educational Progress (NAEP) and 

the National Assessment Governing Board. NAEP measures and reports on the status of and 

trends in student learning over time, on a subject-by-subject basis, and makes objective 

information on student performance available to policymakers, educators, parents, and the 

public. NAEP is the only nationally representative and continuing assessment of what American 

students know and can do, and it has become a key measure of our Nation’s educational 

performance. NAEP activities are conducted through contracts.

At the request level, the Department plans to conduct the 2013 national and State reading and 

math assessments at grades 4, 8, and 12, as well as support assessments in certain large 

urban districts; continue analysis and reporting of assessments conducted in prior years; and 

prepare for the 2014 assessments. The Administration believes that the funds requested are 

sufficient to enable NAEP to fulfill its mission and continue to provide important information on 

student achievement over time.
66

Research in Special Education

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $51.0 $49.9 $49.9

This program supports discretionary grants and contracts for research to address gaps in 

scientific knowledge in order to improve special education and early intervention services for 

infants, toddlers, and children with disabilities. The requested funds would maintain the 2012 

level of support for new programs of research on families of children with disabilities and 

technology for special education, as well as ongoing programs of research, including research 

intended to improve the developmental outcomes and school readiness of infants, toddlers, and 

young children with disabilities; to improve educational outcomes in core subject areas for 

children with disabilities; and to improve social and behavioral outcomes. 

Statewide Data Systems

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $42.2 $38.1 $53.1

This program supports competitive awards to State educational agencies to foster the design, 

development, and implementation of longitudinal data systems that enable States to use data 

on student learning, teacher performance, and college- and career-readiness to enhance the 

provision of education and close achievement gaps. Up to $11 million would be used for 

awards to public or private agencies and organizations to support activities to improve data 

coordination, quality, and use at the local, State, and national levels. The proposed $15 million 

increase would support postsecondary data initiatives designed to improve information on 

students as they progress from high school to postsecondary education and the workforce—

such data are essential for measuring the success of many of our programs and initiatives.

Special Education Studies and Evaluations

Program budget authority (BA)

2011 2012

2013

Request

BA in millions ............................................... $11.4 $11.4 $11.4

This program supports competitive grants, contracts, and cooperative agreements to assess the 

implementation of the Individuals with Disabilities Education Act and the effectiveness of State 

and local efforts to provide special education and early intervention programs and services to 

infants, toddlers, and children with disabilities. The request would support a new evaluation of 

Positive Behavioral Interventions and Supports, a school-wide approach to address problem 

behaviors. Funds also would be used for the required national assessment of activities 

supported with Federal special education funds and other ongoing studies and evaluations of 

special education.
67

III. PROGRAMS PROPOSED FOR CONSOLIDATION OR ELIMINATION

The current Elementary and Secondary Education Act (ESEA) authorizes numerous programs 

with similar purposes, creating fragmented and inefficient funding streams that often lead to a 

greater focus on complying with program requirements rather than improving student outcomes. 

The Administration’s reauthorization proposal would consolidate 38 currently authorized ESEA 

programs into 11 new authorities that would allow the Department to direct funding to proven or 

promising practices while providing greater flexibility to grantees. As of 2012, Congress had not 

provided funding for 22 of these 38 programs. Similarly, as part of a proposal to reauthorize the 

Workforce Investment Act (WIA), the Administration’s 2013 request would consolidate

5 programs authorized under the Rehabilitation Act into 2 programs. As of 2012, Congress had 

not provided funding for 2 of the 5 programs. The proposed consolidations would reduce 

duplication and administrative costs and improve program management and accountability.

Overall, Congress eliminated funding for 49 programs in fiscal years 2010, 2011, and 2012 for a 

total annual savings of more than $1.2 billion. However, many of these eliminations were not 

accompanied by the reformed program structure recommended by the Administration in its 

reauthorization and budget proposals. The Department continues to seek this new program 

structure, through which it would continue to support some of the eliminated activities. The 

table shown below is followed by a brief summary of each program, in alphabetical order, that 

would be consolidated or eliminated under the 2013 request.

Discretionary Program Consolidations or Eliminations by Funding Level

Program (2012 BA in millions)

Advanced Placement ................................................................................. $27.0

Arts in Education........................................................................................ 25.0

Charter School Grants ............................................................................... 255.0

Credit Enhancement for Charter School Facilities ...................................... —

Elementary and Secondary School Counseling.......................................... 52.3

High School Graduation Initiative ............................................................... 48.8

Impact Aid Payments for Federal Property................................................. 66.9

Improving Teacher Quality State Grants .................................................... 2,466.6

Mathematics and Science Partnerships ..................................................... 149.7

Vocational Rehabilitation Migrant and Seasonal Farm Workers ................. 1.3

Model Transition Programs for Students with Intellectual

Disabilities into Higher Education ......................................................... 11.0

Physical Education Program ...................................................................... 78.7

Ready-to-Learn Television ......................................................................... 27.2

Safe and Drug-Free Schools and Communities National Activities............. 64.9

School Leadership ..................................................................................... 29.1

Striving Readers ........................................................................................ 159.7

Supported Employment State Grants......................................................... 29.1

Teacher Incentive Fund ............................................................................. 299.4

Teacher Quality Partnership....................................................................... 42.8

Training for Realtime Writers...................................................................... 1.1

Transition to Teaching................................................................................ 26.1
68

Total ............................................................................................... 3,861.7

Programs Proposed for Consolidation or Elimination in Fiscal Year 2013

(2012 BA in millions)

Advanced Placement ............................................................................................... $27.0

This program supports State and local efforts to increase access to Advanced Placement and International 

Baccalaureate classes and tests for low-income students. Such activities would be supported under the proposed 

College Pathways and Accelerated Learning authority.

Arts in Education...................................................................................................... $25.0

This program supports grants for the development of model arts education programs and for professional 

development for arts educators. The proposed Effective Teaching and Learning for a Well-Rounded Education 

authority would support similar activities.

Charter Schools Grants.......................................................................................... $255.0

This program makes competitive grants to State educational agencies and charter schools to support the planning, 

design, initial implementation, and dissemination of information regarding charter schools. A portion of the funding 

supports State efforts to assist charter schools in obtaining facilities. The proposed Expanding Educational Options 

authority would continue and expand support for charter and other autonomous public schools.

Credit Enhancement for Charter School Facilities ........................................................... 0

This program, currently funded through the Charter Schools appropriation, provides assistance to help charter 

schools meet their facility needs. The new Expanding Educational Options authority would continue to make 

available such assistance.

Elementary and Secondary School Counseling........................................................ $52.3

This program makes competitive grants to assist local educational agencies in developing or expanding elementary 

and secondary school counseling programs. These activities could be supported under the proposed Successful, 

Safe, and Healthy Students program.

High School Graduation Initiative ............................................................................. $48.8

This program provides assistance to help schools implement comprehensive efforts to increase high school 

graduation rates. Such activities would be supported under the proposed College Pathways and Accelerated 

Learning authority, as well as by other reauthorized programs such as Title I College- and Career-Ready Students 

and School Turnaround Grants.

Impact Aid Payments for Federal Property............................................................... $66.9

This authority provides payments to LEAs without regard to the presence of federally connected children and 

therefore, these payments do not necessarily support the provision of educational services for federally connected 

children.

Improving Teacher Quality State Grants ............................................................. $2,466.6

This program, which provides funds to States and LEAs to develop and support a high-quality teaching force through 

activities that are grounded in scientifically based research, would be consolidated into the proposed Effective 

Teachers and Leaders State Grants program, which would emphasize the identification of effective teachers and 

leaders and improving access to such teachers and leaders across high- and low-poverty schools.
69

Program Consolidations and Eliminations, continued (2012 BA in millions)

Mathematics and Science Partnerships ................................................................. $149.7

This program, which supports State and local efforts to improve students’ academic achievement in mathematics and 

science by promoting strong teaching skills for elementary and secondary school teachers, would be replaced by the 

proposed Effective Teaching and Learning: Science, Technology, Engineering, and Mathematics (STEM) program. 

The new program would support State implementation of comprehensive, evidence-based strategies and

professional development that aligns Federal, State, and local resources to provide high-quality STEM instruction.

Vocational Rehabilitation Migrant and Seasonal Farmworkers................................... $1.3

This program makes comprehensive vocational rehabilitation (VR) services available to migrant and seasonal 

farmworkers with disabilities, with the goal of increasing employment opportunities for them. To eliminate duplication 

and administrative inefficiencies, this program would be consolidated with the VR State Grants program. 

Consolidation would allow a stronger Federal focus on increasing the employment opportunities for all eligible 

individuals, including migrant and seasonal farmworkers with disabilities.

Model Transition Programs for Students with Intellectual Disabilities

Into Higher Education......................................................................................... $11.0

This program supports competitive grants awarded to institutions of higher education or consortia of such institutions 

to create or expand model comprehensive transition and postsecondary programs for students with intellectual 

disabilities. In place of this program, the Administration is requesting increased funding for the Fund for the 

Improvement of Postsecondary Education, which can support projects to improve college access and completion for 

individuals with disabilities.

Physical Education Program .................................................................................... $78.7

This program makes grants to local educational agencies and community-based organizations to pay for initiating, 

expanding, and improving physical education programs for students in kindergarten through 12th grade, activities that 

would continue to be supported under the proposed Successful, Safe, and Healthy Students program.

Ready-to-Learn Television ....................................................................................... $27.2

This program makes competitive awards to support the development and distribution of educational television and 

video programming and related outreach materials for preschool and elementary school children and their parents 

that are designed to improve school readiness and academic achievement. Competitive funding for such activities 

could be available under two new broader programs, Effective Teaching and Learning: Literacy and Effective 

Teaching and Learning: Science, Technology, Engineering, and Mathematics (STEM).

Safe and Drug-Free Schools and Communities National Activities........................... $64.9

This program supports competitive grants and other discretionary activities to foster a safe, secure, and drug-free 

learning environment, facilitate emergency management and preparedness, and prevent drug use and violence by 

students at all educational levels. The proposed Successful, Safe, and Healthy Students program would continue to 

make available funding for such activities.

School Leadership ................................................................................................... $29.1

This program supports competitive grants to assist high-need local educational agencies (LEAs) in recruiting, 

preparing, and retaining principals and assistant principals. The proposed set-aside in Effective Teachers and 

Leaders State Grants would support similar activities.
70

Program Consolidations and Eliminations, continued (2012 BA in millions)

Striving Readers .................................................................................................... $159.7

This program supports efforts to improve the literacy skills, including pre-literacy skills, reading, and writing, of 

students from birth through grade 12. Similar activities would be a key focus of the new Effective Teaching and 

Learning: Literacy authority.

Supported Employment State Grants....................................................................... $29.1

This formula grant program provides supplemental funds to State VR agencies for providing supported employment 

services for individuals with the most significant disabilities participating in the VR State Grants program. This 

program would be consolidated with the VR State Grants program, as it has accomplished its goal and State VR 

agencies recognize supported employment as an integral part of the VR State Grants program and a viable 

employment option for individuals with the most significant disabilities.

Teacher Incentive Fund ......................................................................................... $299.4

This program makes competitive awards to improve student achievement by increasing teacher and principal 

effectiveness; reform teacher and principal compensation systems so that teachers and principals are rewarded for 

gains in student achievement; increase the number of effective teachers teaching low-income, minority, and 

disadvantaged students in hard-to-staff subjects; and create sustainable performance-based compensation systems. 

These activities would continue to be supported through the proposed Teacher and Leader Innovation Fund.

Teacher Quality Partnership..................................................................................... $42.8

This program supports the development and implementation of model teacher preparation and teaching residency 

programs to improve the quality of teaching in high-need schools and early childhood education programs. The 

proposed set-aside in Effective Teachers and Leaders State Grants would support similar activities.

Training for Realtime Writers...................................................................................... $1.1

This program promotes training and placement of individuals as realtime writers. This program is narrowly focused 

and the Administration believes limited Federal resources should be focused on building evidence of what works to 

improve postsecondary success under the First in the World initiative in the Fund for the Improvement of 

Postsecondary Education.

Transition to Teaching.............................................................................................. $26.1

This program supports competitive grants to develop and implement comprehensive approaches to training, placing, 

and supporting teacher candidates through alternative routes to teacher certification or licensure. The proposed setaside in Effective Teachers and Leaders State Grants would support similar activities.
71

IV. DEPARTMENTAL MANAGEMENT

History and Background

Congress established the Department of Education as a Cabinet level agency in 1980. Today, 

the Department supports programs that touch on every area and level of education. The 

Department's early learning, elementary, and secondary programs annually serve approximately 

16,000 school districts and 49 million students attending more than 98,000 public schools and 

28,000 private schools. Department programs also provide grant, loan, and work-study 

assistance to nearly 15 million postsecondary students.

The Department of Education is responsible for administering education programs authorized by 

Congress and signed into law by the President. This responsibility involves developing 

regulations and policy guidance that determine exactly how programs are operated, determining 

how program funds are awarded to recipients, ensuring that programs are operated fairly and in 

conformance with both authorizing statutes and laws prohibiting discrimination in federally 

funded activities, collecting data and conducting research on education, and helping to focus 

attention on education issues of national importance.

Most Federal funds for education are distributed using one of three methods: a statutory 

formula based on certain eligibility requirements, such as the number of low-income students in 

a school district; a competitive process aimed at identifying the most promising proposals or 

projects targeting a particular educational purpose; or an assessment of financial need, such as 

the ability of a student or family to pay for college.

Key programs administered by the Department include Title I of the Elementary and Secondary 

Education Act (ESEA), which under the President’s 2013 request would deliver $14.5 billion to 

help 21 million students in high poverty schools make progress toward State academic 

standards; Individuals with Disabilities Education Act Part B Grants to States, which would 

provide $11.6 billion to help States and school districts meet the special educational needs of 

students with disabilities; Federal Pell Grants, which would make available nearly $37 billion in 

need-based grant assistance to students enrolled in postsecondary institutions; and the 

postsecondary student loan programs, which would help provide roughly $121 billion in new 

low-interest direct loans to help students and families pay for college.

The Department’s programs and responsibilities have grown substantially over the past decade. 

There have been fundamental education reforms such as the No Child Left Behind Act of 2001 

(which reauthorized the ESEA) and the American Recovery and Reinvestment Act of 2009, 

which provided first-time funding for the Race to the Top and Investing in Innovation (i3) 

programs. In the postsecondary area, the Ensuring Continued Access to Student Loans Act of 

2008 (ECASLA) supported uninterrupted access by students to Federal student loans 

throughout the 2008-2009 financial crisis, while the SAFRA legislation of 2010 ended Federal 

subsidies to private lenders and re-directed the savings to help Pell Grants keep pace with 

rising college costs, to reduce the burden of loan repayment for college graduates, to expand 

career training opportunities at local community colleges, and to increase support for minorityserving institutions.

At the same time, the Administration and the Congress have succeeded in eliminating or 

consolidating 49 programs that had served their purpose, proven ineffective, or were more 
72

effectively supported through other, broader authorities. The eliminations have saved 

$1.2 billion per year in discretionary appropriations and, as the programs wind down following 

the completion and close-out of existing awards, will reduce administrative workload and permit 

the reassignment of staff to other, higher-priority activities. The Department is reducing its FTE 

in 2012 and 2013 in part to account for the decreased workload.

While there have been some program eliminations, internal administration has become more 

complex. Laws and Presidential directives, such as Homeland Security Presidential Directive 

12 and the Federal Information Security Management Act of 2002, have required significant 

ongoing resources to address physical and information security technology issues. There has 

been an enhanced focus from the Office of Management and Budget (OMB) on prudent 

financial management through instruments such as OMB Circular A-123 on internal controls. 

Finally, the Department has needed to devote more resources to information technology 

management (e.g., OMB Exhibits A-53 on IT investment portfolio and A-300 on the 

management of capital assets). In addition, contracts to perform routine tasks such as 

processing applications for student aid and loan originations have increased with the rising 

demand for college student aid.

Despite the dramatic increase in its workload over the past decade, the Department has been 

able to hold its administrative expenses down by reducing headcount and improving its 

acquisition and financial management. The following chart compares the cumulative 

percentage increases, from 2001 to 2011, of the Department’s discretionary budget, Direct Loan 

originations, and the Free Application for Federal Student Aid (FAFSA) applications, with the 

Department’s total full-time equivalent (FTE) usage.
73

Salaries and Expenses Overview

Program Management Information 2011 Footnote 2012 Footnote

 2013

Request Footnote

Departmental Management (BA in millions)

Program Administration............................... $455.3

1

$446.3 1$463.81

Office of Civil Rights .................................... 102.8 102.6 105.3

Office of Inspector General.......................... 59.9 59.8 62.4

Student Aid Administration .......................... 992.0

2

1,043.4 21,126.42

Other........................................................... 9.5

3

 9.8 3 8.93

Total ................................................ 1,619.5 1,661.9 1,766.8

Full-time equivalent employment (FTE)

Program Administration............................... 2,128 2,074 2,064

Office of Civil Rights .................................... 619 603 598

Office of Inspector General.......................... 274 273 277

Student Aid Administration .......................... 1,298 1,321 1,321

Other........................................................... 18 19 19

Subtotal............................................ 4,337 4,290 4,279

Recovery Act (Office of Inspector General) . 50 22 0

Total ................................................ 4,387 44,312 44,2794

 

1

Includes $8.2 million in 2011 and $2.2 million in 2013 for Building Modernization.

2 Excludes $151.9 million in 2011, $276.7 million in 2012, and $366.9 million in 2013 in Mandatory funds. Also 

excludes $3.0 million in 2013 from a transfer from the Department of Health and Human Services for the Health 

Education Assistance Loan (HEAL) program.

3 Includes small Federal Credit Administration accounts and S&E activities in program accounts.

4 Actual FTE usage in 2011; target for 2012 and 2013.

The 2013 budget request for Salaries and Expenses (S&E) will pay the costs of staff, overhead, 

contracts, and other activities needed to administer and monitor the Department’s educational 

assistance programs. The Department of Education has the smallest staff of the 15 Cabinet 

agencies, but its program budget and administrative workload have grown in recent years. Its 

discretionary appropriation alone is the third largest, behind only the Department of Defense 

and the Department of Health and Human Services. When adjusted for inflation, the 

Department of Education’s overall administrative budget is about the same as it was 10 years 

ago, and FTE has declined by 4 percent. As a result, our administrative funds are less than 

1 percent of the total annual program appropriations and new loan volume administered by the 

Department.

The Department is requesting $1.767 billion for its discretionary S&E budget in 2013, an 

increase of $105 million over the 2012 level. Another $367 million in mandatory funding will 

support Not-For-Profit (NFP) and new Perkins Loan Program Servicing costs in the Student Aid 

Administration account. In addition, the Department of Health and Human Services (HHS) has 
74

requested and will transfer $2.8 million to the Student Aid Administration account to manage and 

service the Health Education Assistance Loan (HEAL) Program.

Most of the increase in 2013 is to administer student aid. Fifty-two percent ($55 million) of the 

requested $105 million increase is focused on student aid application processing, origination 

and disbursement costs; student aid system hosting; and loan servicing. In addition, 31 percent 

($32 million) of the requested increase is for student aid system acquisition costs necessary for 

the continuation of core student aid operations. In addition, the Department is requesting 

essential funding for improving its acquisition system and consolidating Department staff from 

various Washington D.C. buildings into the Mary E. Switzer building ($7 million). The 

Department is also requesting fixed increases necessary to administer its programs successfully 

and to provide adequate oversight ($11 million). The following chart provides a breakout of the 

requested increases.

Department Employment

The 2013 request includes funding for 4,279 FTE, a net decrease of 33 FTE from the 2012 level 

of 4,312 FTE. Of the 4,312 FTE in 2012, 22 are funded from the Office of Inspector General, 

Recovery Act account, which will end in 2012. 

As shown in the following chart, staff is divided among the Washington, D.C. headquarters, 

11 regional offices, and 13 field offices. Most regional and field office staff are in Federal 

Student Aid (FSA), the Office of the Inspector General (OIG), and the Office for Civil Rights 

(OCR). The FSA regional office personnel conduct reviews of lenders, institutions, and 

guaranty agencies participating in the student financial aid programs, and perform debt 

collection activities on defaulted student loans. OIG staff conducts audits and investigations of 

Department programs and operations. OCR investigates civil rights complaints and conducts 

civil rights compliance reviews.
75

Program Administration

The Program Administration account provides administrative support for most programs and 

offices in the Department. The 2013 request totals $463.8 million, an increase of $17.6 million, 

or 3.9 percent, above the 2012 level. The request includes $288.9 million for personnel 

compensation and benefits to support 2,064 FTE, which reflects a decrease of 10 FTE from the 

2012 level.

 

Non-personnel costs cover such items as travel, rent, mail, telephones, utilities, printing, 

information technology, contractual services, equipment, supplies, and other services. The total 

request for non-personnel activities in 2013 is $174.9 million, an increase of $17.1 million from 

the 2012 level of $157.8 million. This increase is needed to: (1) replace the current Contracts 

and Purchasing Support System, which is at the end of its lifecycle and which is at serious risk 

of not receiving continued vendor support and maintenance; (2) consolidate staff from various 

Washington D.C. buildings into the Mary E. Switzer building; and (3) provide continued 

operations of EDCAPS, the Department’s core financial system.

Student Aid Administration

The Student Aid Administration account provides funds to administer the Federal student 

financial assistance programs authorized under Title IV of the Higher Education Act (HEA) of 

1965, as amended. The Title IV programs, which provide funds to help students and families 

pay for the cost of education beyond high school, collectively represent the Nation’s largest 

source of financial aid for postsecondary students. The Student Aid Administration account 

supports a range of functions across the student aid lifecycle, including: educating students and 

families about how to obtain aid; processing millions of student financial aid applications; 

disbursing billions of dollars in aid; overseeing billions of dollars in existing loans; and servicing 

tens of millions of loans.

Boston

New York City

Philadelphia

Washington, D.C.

Regional Offices

Field Offices

Location of the Department of Education 

Regional and Field Offices

Seattle

San

Francisco Denver Kansas

City

Chicago

Atlanta

Dallas

Cleveland Sacramento

Long Beach

Puerto Rico Pembroke 

Pines

Pittsburgh

St. Paul

Austin

Phoenix

Nashville

Ann Arbor
76

Ensuring the smooth operation of the complex array of financial transactions and participants 

involved in the student financial aid programs—and safeguarding the interests of both students 

and Federal taxpayers—is one of the Department's greatest management challenges and one 

of its highest administrative priorities. Primary responsibility for administering the Federal 

student financial assistance programs rests with Federal Student Aid (FSA) and the Office of 

Postsecondary Education (OPE).

During the 2011-2012 award year, FSA delivered or supported the delivery of approximately 

$172 billion in grant, work-study, and loan assistance to almost 15 million postsecondary 

students and their families. These students attended approximately 6,200 active institutions of 

postsecondary education accredited by dozens of agencies. Students received loans from 

approximately 2,900 lenders with 32 agencies.

The enactment of SAFRA ended the origination of new loans under the Federal Family 

Education Loan (FFEL) program and required all new loans to be originated through the Direct 

Loan (DL) program and serviced by the Department of Education effective July 1, 2010. 

Although all new lending is made through the DL program, lenders and guaranty agencies 

continue to service and collect outstanding loans from the FFEL portfolio. In addition, SAFRA 

authorized mandatory budget authority to support loan servicing performed by Not-For-Profit 

servicers. The Department has contracted with both For-Profit and Not-For-Profit servicers. In 

2013, FSA will continue to meet the growing demands of originating and servicing Direct Loans.

The Student Aid Administration account represents 64 percent of the Department’s total 

discretionary administrative budget. The 2013 discretionary request would provide $1.1 billion 

to administer student aid programs, an increase of $83 million from the 2012 level. This 

increase is necessary to cover projected increases in loan servicing, origination, and student aid 

delivery costs and will provide funding for acquiring and modernizing key student aid systems.

Office for Civil Rights

The Department’s Office for Civil Rights (OCR) investigates discrimination complaints, conducts 

compliance reviews, monitors corrective action plans, and provides technical assistance on civil 

rights issues. Over the past 5 years, OCR’s workload has dramatically increased; civil rights 

complaints received by the Department have increased from 6,194 in 2008 to an estimated 

7,841 in 2013. The 2013 request for OCR is $105.3 million, an increase of $2.7 million over the 

2012 level. Most of the requested increase is for the Civil Rights Data collection (CRDC) 

survey. About $80.1 million of the OCR budget is for staff pay and benefits for its 598 FTE; the 

remaining $25.2 million covers overhead costs as well as computer equipment, data analysis 

and reporting activities, travel, and other contractual services.

The requested funds will ensure essential program support to resolve complaints of 

discrimination filed by the public and to ensure that institutions receiving Federal financial 

assistance are in compliance with the civil rights laws enforced by OCR. The request also will 

provide resources for technical assistance to recipients, parents, and students to address civil 

rights concerns and to prevent problems from arising in the future. OCR provides extensive 

information on its Internet site, including self-assessment materials for recipients, data on school 

characteristics, brochures, and other information for the public.
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Office of the Inspector General

The Office of the Inspector General (OIG) conducts audits and investigations of the 

Department’s programs and activities to help ensure accountability for taxpayer-provided funds 

and to identify management improvements. The 2013 request for the OIG is $62.4 million, an 

increase of $2.6 million over the 2012 level. Approximately 64 percent of this amount, or 

$40 million, is for personnel compensation and benefits to support a staffing level of 277 FTE. 

The non-personnel request of $22.4 million includes $2.1 million to contract for the mandated 

annual audit of the Department’s financial statements. The scope of the audit will include the 

examination and analysis of account balances, review of applicable financial systems, and 

evaluation of internal controls and compliance with significant laws and regulations. 

Additionally, the non-personnel request includes funds to support the Council of Inspectors 

General on Integrity and Efficiency (CIGIE); and to continue to develop the ability to perform 

predictive analytics, which will be used to identify whether anomalies are fraudulent activity.
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APPENDICES

Tables:

 Summary of Discretionary Funds, Fiscal Years 2008-2013 President’s Budget

Accessible Version

 Mandatory Funding in the Department of Education

Accessible Version

 Summary of Mandatory Funds, Fiscal Years 2011-2013 President’s Budget

Accessible Version

 Advance Appropriations for Department of Education

Accessible Version

 Total Expenditures for Elementary and Secondary Education in the United 

States

Accessible Version

 Detailed Budget Table by Program

Accessible Version