THE PRESIDENT'S ECONOMIC PLAN:

INVESTING IN EDUCATION AND TRAINING

The President proposes to invest more in education and training, giving average Americans the skills they need to get high-wage jobs in the new economy. He would increase investment in education and training by $9.5 billion a year by 2002. The President's plan increases education and training by $40 billion over the next 7 years; Republicans would cut it by up to $43 billion over the same period.

For National Service, the President would expand the Corporation for National and Community Service, enabling nearly 1 million young Americans to serve their communities and earn scholarships for higher education.
- The House would kill all national service programs.
For the GI Bill for America's Workers (excluding Pell grants), the President consolidates 70 programs and add an additional $2.3 billion in 2002 for adult skill grants and youth programs.
- Republicans would cut funding 25 percent below the 1995 level.
For Head Start, the President would increase annual funding by $1.5 billion by 2002 to reach another 50,000 children -- for a total of 800,000 per year -- and to improve quality.
- House Republicans would cut up to 200,000 children, compared to 1995.
For Goals 2000, the President would increase funding from $124 million in 1995 to $867 million in 2002, helping all States and school systems extend high academic standards, better teaching, and better learning to 44 million children in over 85,000 schools.
- House Republicans would kill support to help States raise education achievement.
For Pell Grants, the President would increase annual funding by $3.4 billion by 2002 to reach 960,000 more recipients (for a total of 4.8 million) and increase the maximum award from $2,340 to $3,128.
- Republicans would freeze Pell at the 1995 level.
For Safe and Drug-Free Schools and Communities, the President would maintain funding at $500 million per year, to help nearly ever school district fight drug abuse and reduce violence.
- Republicans would turn the program into a block grant and cut funding 30 percent.
The President would phase in Federal Direct Student Loans quicker, affecting $25 billion in loans to 6 million people a year, at lower cost to government, schools, and students.
- House Republicans would eliminate the in-school interest exemption for 4 million financially needy borrowers, requiring a low-income college graduate who borrowed the maximum amount to pay $3,150 more for loans than under the President's plan.

Graph: Investments in Education and Training

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