More Resources Secretary's Remarks President's FY 2005 Budget Request for ED Event Photo

President Bush today continued his commitment to America's students and their families by submitting a budget request for 2005 that provides $57.3 billion in discretionary funding for the U.S. Department of Education. The budget request includes an additional $1.7 billion--the largest dollar increase of any domestic agency--representing a 3 percent increase over 2004 and a 35.8-percent gain for education programs since the president took office.

The president's 2005 budget request continues to place a strong priority on assisting the nation's neediest students and includes historic funding increases to help states and school districts implement No Child Left Behind, the president's sweeping education reform law. The budget proposes a $1-billion increase in Title I grants to help the neediest local schools and a $1-billion increase for special education grants to states.

The 2005 request also includes $12.9 billion--an $823-million increase--for Pell Grants, to help an estimated 5.3 million students from low-income families pay for their higher education, which is one million more students than when the president took office. In total, student aid for higher education would increase to more than $73 billion--a $4.2 billion or 6-percent increase over 2004 levels. Almost 10 million students and parents--a 426,000 increase--would receive one or more grants, loans or work-study awards.

If approved by lawmakers, the $57.3 billion budget would be a 35.8-percent increase, from $42.2 billion in 2001 to the proposed $57.3 billion in 2005.

"President Bush has once again provided record support for our nation's students, parents, schools and teachers," Secretary Paige said. "In the last three years, we have witnessed watershed moments in education. I believe that one day, we will look back on these years and say that this was the turning point. In an historic partnership, the Department worked with all 50 states to develop accountability plans to ensure they will attend to the needs of all their students--every single one. Each state's plan reflects the unique circumstances of that state.

"The president and I share a vision. We believe that all children can learn. We believe that all children deserve the opportunity for a great education. I believe that today, at the start of the third year of the No Child Left Behind Act, we are closer to making that vision a reality.

"But just as we are demanding accountability of our schools, we are demanding the same of ourselves. Over the last three years, we have made some important management changes at the Department that required hard work and discipline. And because of a concerted effort on the part of the Department staff, taxpayers can rest assured that their hard-earned tax dollars will be managed responsibly."

Among the highlights of the 2005 budget request:

Implementation of No Child Left Behind

• Supporting schools with disadvantaged children: President Bush's 2005 budget request would provide $13.3 billion--a $1 billion or 8-percent increase--for Title I grants to help local school districts improve low-performing schools and teacher quality and expand choices for students and parents. If enacted, the request would be an overall increase of $4.6 billion--or 52 percent--in Title I funding since the passage of the No Child Left Behind Act.

• Increasing flexibility and reducing bureaucracy: No Child Left Behind provides states and school districts with unprecedented flexibility to pursue their own strategies to ensure that all students are able to perform at grade level in reading and mathematics. The 2005 budget proposal includes: $2.9 billion in grants to help states and school districts improve teaching and raise student achievement; $692 million for educational technology grants to improve student achievement through effective technology use; $441 million for grants to support school district and community efforts to foster a safe and drug-free learning environment that supports academic achievement; and $297 million to help states and school districts implement innovative strategies, including expanded school choice options and other reforms, to improve student achievement.

• Expanding options for parents: President Bush's proposed 2005 budget includes several proposals to ensure that parents have meaningful choices about their child's education, including: $50 million for a new Choice Incentive Fund to provide more parents with the opportunity to transfer their children to a higher-performing public, private or charter school; $27 million for Voluntary Public School Choice grants that would help states and school districts establish or expand public school choice programs, including those across a state or across school districts; $219 million for charter school grants to support 1,200 new and existing charter schools; and $100 million to assist charter schools in acquiring, leasing and renovating school facilities.

• Reading First and Early Reading First: The 2005 budget request includes $1.1 billion--an increase of $101 million, or 10 percent--to expand Reading First, which supports state efforts to provide comprehensive reading instruction for children using scientifically proven teaching methods. The proposed budget also includes $132 million--an increase of $38 million, or 40 percent--for Early Reading First, the pre-school component of Reading First.

• Jobs for the 21st Century: President Bush's 2005 budget request includes $333 million in new funds to support the goals of his new Jobs for the 21st Century initiative, including: $100 million for a new Striving Readers plan to improve the reading skills of teenage students who are reading at or below grade level; $120 million for a new Secondary Education Mathematics initiative to help ensure that high school math teachers are highly qualified and can meet the needs of struggling students; $40 million for an Adjunct Teacher Corps that would enable well-qualified individuals from business, technology, industry and other areas to serve as adjunct high school teachers; $12 million to increase the number of states in the State Scholars program; $33 million to provide an additional Pell Grant award of up to $1,000 to low-income students who are State Scholars and take a rigorous high school curriculum; and $28 million to ensure that teachers in low-income schools are qualified to teach Advanced Placement courses.

• Mentoring: The 2005 budget request includes $100 million--a 100 percent increase--to expand and support school-based mentoring programs for at-risk middle school students.

• Military Families: The 2005 budget request includes $10 million to address the challenges faced by students from military families that frequently change duty stations.

• Limited English Proficient (LEP) students: The 2005 budget request includes $681 million to help ensure that LEP students learn English and can meet the same high standards as other students.

Improving Opportunities for Students with Disabilities

• Individuals with Disabilities Education Act: President Bush's 2005 budget request contains the highest level of federal support ever provided to students with disabilities. Specifically, the proposed budget includes $11.1 billion for special education grants to states--a $1-billion increase over 2004 and the fourth consecutive $1-billion increase requested by President Bush. The president also has requested $2.7 billion--a $113 million or 4.4-percent increase--to help state vocational rehabilitation agencies increase the participation of individuals with disabilities in the labor force.

Accountability for Vocational and Adult Education

• Vocational and adult education: President Bush has several proposals aimed at ensuring accountability for academic achievement in the areas of vocational and adult education. The president has requested: $1 billion for a new, coordinated high school and technical education improvement program to improve academic achievement and outcomes in career and technical education programs, as well as to ensure that students are taught the skills necessary to make successful transitions from high school to higher education and eventually the workforce. The new program would be in place of the current Vocational Education State Grants program. The president's 2005 budget request also includes $590 million for adult basic and literacy education, which would support a stronger focus on building skills in basic reading, mathematics and English acquisition for adults.

Enhancing Opportunities for Higher Education

• Pell Grants: President Bush has proposed increasing Pell Grant funding to $12.9 billion--an $856-million increase. This increase would help an estimated 5.3 million students from low-income families pay for higher education--one million more students since President Bush took office. The increase would fully fund the cost of maintaining the $4,050 maximum award for more than 5.3 million students in 2005-06 and support increased Pell Grants for State Scholars. Since 2000, the number of Pell recipients has grown by about 25 percent, thanks in part to the overall boom in college enrollment.

• Student Loan Reauthorization--President Bush's 2005 budget request includes several proposals for the upcoming reauthorization of the Higher Education Act of 1965. The president's proposals reflect his commitment to make college more affordable for students and their families and to strengthen the financial stability of the student loan programs. Specifically, the proposals would:

  • Increase loan forgiveness for mathematics, science and special education teachers serving poor communities
  • Reduce interest rates for most borrowers under the current interest rate environment, by retaining the variable interest rate structure after July 1, 2006
  • Increase loan limits for first-year students from $2,625 to $3,000 (current loan limits have remained essentially unchanged since the early 1970s)
  • Broaden the availability of extended repayment options
  • Phase out higher special allowance payments to lenders for loans funded with the proceeds of certain tax-exempt securities
  • Allow low-default schools more flexibility in disbursing loan funds
  • Clarify that student aid applicants who are convicted of a drug-related offense are ineligible for federal student aid only if the offense was committed while they were attending school
  • Strengthen the financial stability of the federal student loan system by requiring guaranty agencies to collect the currently optional 1-percent insurance premium on all loans guaranteed or disbursed after October 1, 2004
  • Reserve $3 billion in future years for additional student benefits

• More support for minority institutions: President Bush's 2005 budget request includes $419 million--an $18.8 million or 4.7 percent increase--to assist higher education institutions with a large proportion of minority and disadvantaged students, including Historically Black Colleges and Universities and Historically Black Graduate Institutions. The president also has proposed $96 million--a $1.9 million increase--to maintain support for institutions that serve large percentages of Hispanic students; $104 million to develop expertise in foreign languages and international studies, which will help meet the nation's security and economic needs; and $833 million for additional educational outreach and support services to disadvantaged students.

Department Management

• Blueprint for Management Excellence: The President's 2005 budget request supports the Department's continued efforts to improve management and prevent fraud, waste and abuse of taxpayer dollars. The proposed 2005 budget would enable the Department to further improve its financial management and continue to modernize student aid systems, consolidate student aid administrative funding and continue to use competitive sourcing as a means to improve performance.

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