Washington, D.C. -- Congressman Lloyd Doggett (D-Texas) and Congressman Tom Perriello (D-Virginia) today announced success in including an estimated $12.5 billion for students and their families in the American Recovery and Reinvestment Plan that will be considered in the House of Representatives. This amount, over the next two years, will be available for those pursuing higher education in the form of expanded federal tax credits.

Rep. Doggett, a senior member of the Ways and Means Committee, was very pleased with the rapid progress: “This means more help, now, to more families struggling with higher education expenses.” He added: “In tough economic times like these, our families need all the help they can get. We need to do whatever we can to support those who seek more education and training to better prepare themselves for the tougher, tighter job market.”

Rep. Perriello said: “This is a great victory out of the gates, showing that the new Congress is all about moving quickly and producing tangible results for middle-class families. In this tough job market, any American who wants to become more competitive by attaining more education and training should be able to do so, and this bill will make that education more affordable. Investing in education and workforce development is what we need to do to regain our advantage in the global economy. We will make sure that this recovery package is working to benefit working families.”

Last week, Reps. Doggett and Perriello filed their bill, the College Learning Access, Simplicity, and Savings Act (H.R. 386), to make it easier for students and parents to claim tax credits for higher education expenses.

Rep. Doggett added: “For first time ever, the soaring cost of course materials, including textbooks, is included in the tax credit. In addition, for the first time, up to $1,000 of the credit is refundable. This means more working families can take advantage of this opportunity. And the help will apply this year -- $1,000 spent on tuition or textbooks this year will reduce a family’s tax bill by $1,000 next April."

This tax relief will go hand-in-hand with increasing Pell Grants to ensure more opportunities are available for students. Another victory is that the House plan includes $500 dollars for students over two years in the form of Pell Grants, making the maximum grant $5,350 per school year.

What Higher Education Leaders Are Saying About this Victory:

“The House stimulus bill rightly recognizes the importance of higher education to our families and economy, and the struggles students face in paying for college. In addition to a significant increase in the Pell Grant and needed funding for work-study jobs, a better higher-education tax credit will help many more low- and middle-income families cover tuition and textbook costs.”--Lauren Asher, Vice President, The Institute for College Access & Success

"We are very pleased about the inclusion of the higher education tax credit in the stimulus, especially with the addition of textbooks and refundability. This represents a great step in addressing factors that have inhibited students from accessing this benefit in the past. We hope it allows more students to stay in school and more adults to return to school during this economic crisis. We hope to extend this benefit long-term and expand to full refundability." -- Angela Peoples, on behalf of the United States Student Association