1. Federal Update NYSFAAA 45 Long Island, NY October 17, 2013 George Chin, Senior Federal Policy Consultant, AASCU

2. Federal Update Federal Shutdown (Budget & Debt Limit) Sequestration Negotiated Rulemaking HEA Reauthorization DOMA

3. Federal Shutdown Deal Government funded in the CR through January 15, 2014 at sequestration levels Debt Limit suspended until February 7, 2014 Budget conference to develop long term spending plans by December 13, 2013 Income verification for recipients of subsidies for people in the health insurance exchanges Backpay for furloughed federal workers Requires proactive vote to disapprove debt limit

4. What’s not in the deal No flexibility for government agencies to make budget cuts to their programs No repeal of extraordinary measures to manage the debt limit No amendment to eliminate employer contributions for health plans of Congressional staff and political executive staff No repeal or delay of medical device tax

5. What’s not in the deal No repeal or delay of the reinsurance rax No repeal, replacement, or delay of any aspects of the ACA exchanges or individual mandate No provisions related to birth control

6. Sequestration Intended to bring funding for discretionary programs down to spending caps by applying a reduction percentage to appropriations Cap for FY ’14 - $967 B, FY ’15 - $995 B, FY ‘16 - $1,006 B, FY ‘17 – $1,040 B Anticipated reduction for FY ’14 – 7.2% for non-defense discretionary programs Pell Grants protected for FY’13 but subject to reduction for FY ’14

7. Pell Grants FY ‘13 appropriation - $22.8 B FY ‘14 available mandatory - $.558 B FY ‘14 Program Cost ($4,860 max) - $28.3 B Accumulated Surplus - $9.8 B Mandatory Add-on ($870) - $5.9 B

8. Negotiated Rulemaking Gainful Employment Committee – First Meeting – September 9-11, 2013 – Second Meeting – October 21-23, 2103 (postponed) – Consensus? – NPRM – Final Reg – Effective Date

9. HEA Reauthorization Senate Hearings House Hearings Administration/ED External Forces

10. DOMA ED initiative on 2014-15 FAFSA – Unmarried Parents living together Supreme Court ruling on DOMA – IRS Ruling on treatment of same sex marriage Potential Changes for FAFSA processing