Honorable William H. Gray, III
          President and CEO
          The College Fund/UNCF
          8260 Willow Oaks Corporate Drive
          P.O. Box 10444
          Fairfax, Virginia 22031-4511

Dear Dr. Gray:

This is in response to your letter of December 10 concerning the President's            fiscal year 2003 budget. I apologize for the delay in our response.            As you are probably aware, a few letters containing anthrax were sent            through the mail in October, and a D.C. mail processing facility was            contaminated and shut down. Mail destined for us is currently being            screened to ensure its safety, and we are experiencing some delivery            delays. Thanks for understanding. I also appreciate your support for            increased funding for programs that expand opportunities for disadvantaged            and underrepresented minorities, and for a larger Pell Grant maximum            award.

President Bush and I are committed to meeting the needs of all America's            students, particularly students from disadvantaged and minority backgrounds.            We fully appreciate the key role that Historically Black Colleges and            Universities (HBCUs) and Historically Black Graduate Institutions (HBGIs)            have played in providing educational opportunities for African-American            and other disadvantaged and minority students, and in encouraging these            students to prepare for, and seek careers in, fields in which they are            underrepresented. To help ensure that these institutions continue to            meet the needs of the growing number of minority and disadvantaged students            seeking postsecondary education, the President has pledged to increase            funding for HBCUs, HBGIs, and Hispanic-Serving Institutions (HSIs) by            30 percent between 2001 and 2005. Our fiscal year 2003 budget reflects            this commitment and includes $213.4 million, an increase of $7.4 million,            for HBCUs; $50.8 million, an increase of $1.8 million, for HBGIs; and            $89.1 million, an increase of $3.1 million, for HSIs.

Over the past several years, the Department has chosen to request higher            levels of funding for Part A and Part B of Title III rather than to            seek separate funding for Endowment Challenge Grants. We believe that            this approach provides institutions receiving Title III grants the maximum            amount of flexibility to determine their greatest needs. At the same            time, these institutions may use a portion of their grant for endowment            if they determine this to be a priority need.

The Pell Grant program is the Department's most need-based student            aid program, and increasing the Pell Grant maximum award has been one            of the President's priorities. The Administration's fiscal year 2003            request includes funds that would, under current estimates, sustain            the $4,000 maximum award that was authorized in fiscal year 2002. This            is a 21 percent increase over the maximum award level only three years            earlier, and will, we believe, be an important benefit to students at            the lowest income levels.

We appreciate the contribution that programs such as the Institute            for International Public Policy can make in increasing the number of            underrepresented minorities in the international field. The President's            fiscal year 2003 request of $1.5 million for the IIPP program would            continue support for a variety of activities that provide students with            education and training experiences needed to prepare them for careers            in international service.

Over the years the United Negro College Fund has been an important            voice for African-American higher education, and we look forward to            your continued support and assistance as we work toward providing equal            educational opportunity to all Americans.

Sincerely,

/s/

Rod Paige

|Last Modified: 09/15/2004
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