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$62B Education Cuts Proposed, College Aid Could be Slashed

PRECINCT REPORTER GROUP NEWS — Every budget defines priorities and values. To put it another way, what’s really important in life gets supported financially. For many families, having a home, food, and utilities usually rank pretty high. Then there are other budgetary concerns like saving for college or having a ‘rainy day’ fund to cover less frequent costs that can be much higher than the size of the next pay check.

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By Charlene Crowell

Every budget defines priorities and values. To put it another way, what’s really important in life gets supported financially. For many families, having a home, food, and utilities usually rank pretty high. Then there are other budgetary concerns like saving for college or having a ‘rainy day’ fund to cover less frequent costs that can be much higher than the size of the next paycheck.

Government budgets, built on taxpayer dollars, also reveal priorities.  At the federal level, budgets are proposed by the executive branch, but it is the legislative branch that passes and funds budgets. What is in the best interest of the nation is supposed to be the guiding force in government budgets.

But as Sportin’ Life sang in the folk opera Porgy and Bess, “It ain’t necessarily so”.

The White House’s FY 2020 proposal cuts Education funding by $62 billion compared to that of FY 2019. Even worse, as the cost of higher education continues to climb, federal student aid would be seriously slashed while other programs would be totally eliminated.

Some of the most disturbing college federal cuts affect programs that lessen the amount of student loans that need to be borrowed for every academic term. As rising college costs have worsened the financial challenge faced by many Black and other low-wealth families, the availability of grant programs that do not have to be repaid and/or work-study programs are key sources for many college students and their families.

Among its many revisions, the Trump Administration stands ready to risk a sizeable portion of the proposed $7.25 billion in Pell Grant funding next year. This program is the single largest source of grant aid for low-income households for post-secondary education.

On March 26, the Fiscal Year (FY) 2020 Education budget was the focus of a hearing before the House Appropriations Subcommittee for Labor-Health and Human Services-Education. Secretary Betsy Devos delivered testimony that expanded upon previously released materials from the Trump Administration.

“Since President Trump took office, Congressional appropriations for U.S. Department of Education programs have increased dramatically – in spite of the Administration’s call to slow spending,” said Secretary DeVos. “We are not doing our children any favors when we borrow from their future in order to invest in systems and policies that are not yielding better results.”

In response, Connecticut’s Rep. Rosa DeLauro, the subcommittee chairwoman did not mince words. “This budget underfunds education at every turn”, said DeLauro who added “This budget inflicts harm.”

Even Rep. Tom Cole from Oklahoma who serves as the subcommittee’s Ranking Member viewed the White House proposal as “short-sighted”.

Representatives DeLauro and Cole were absolutely correct.

The Work-Study program that brings campus-based jobs to students would suffer a double blow. Its monies would be reduced by 55 percent and remaining funds would be shared with proposed pilot program that targeted to private sector employers for workforce development of nontraditional and low-income students.  That’s the window dressing on these cuts.

The Work-Study program that received over $1.2 billion in 2019 would be cut to $500.4 million. Secondly, instead of students working on campus, they would need to figure out how to reach employment at private business.

Not every student has a car. Nor is public transit always available near college campuses. These businesses would supplement their revenue streams with public monies but the profits derived would still be private.  Previously, Work-Study was jointly funded by the federal government paying 75 percent of hourly wages, with the remaining 25 percent paid by the college employer.

What for-profit business wouldn’t want the government to pick up 75 percent of its labor costs? Seems that the private business – not the student – is the greater concern with this budget.

“Betsy DeVos has some explaining to do – her disinterest in prioritizing quality and affordable education for students is disheartening and erodes the confidence the public has in the Department of Education,” said Debbie Goldstein, an EVP with the Center for Responsible Lending.

Currently, the formula-based Pell Grant award averages $4,251 per participating student. Next year as proposed, the program’s average award will be slightly less at $4,149 and traditional grant recipient students would be forced to share those funds with others enrolled in workforce development training that does not accrue credit hours or traditional academic terms.

Regular readers of this column may recall, many career and technical training institutions are also for-profit entities that in recent years have either failed to provide the training promised, or the earnings assured by admissions personnel – or both. In the worst-case scenarios, tens of thousands of students have been enrolled at the time of closures that came with little or no notice.

The Supplemental Education Opportunity Grant is need-based and financially helps low-income, undergraduate students. For the past two fiscal years, this program was funded at $1.7 billion. If the Trump Administration’s proposal holds, no monies will support this program next year.

The Iraq and Afghanistan Service Grants are available to students whose parent or guardian was a member of the Armed Forces and died as a result of their military deployment in either Iraq or Afghanistan after September 11, 2001. In FY 2019, the average grant in this program was $5,293. In FY 2020, the White House would end it with no appropriation.

These are only a few of the cuts proposed to higher education at a time when education is more important today than ever before. The global economy requires a highly-skilled and knowledgeable workforce. It seems so ironic that this White House keeps placing businesses before the needs of people.

“Instead of punishing for-profit institutions that have deceived students and encouraged them to take on unaffordable levels of student debt, Secretary DeVos will defend President Trump’s proposal to extend taxpayer money to finance unproven short-term programs, many of which will be offered by these very same for-profit college,” added Goldstein.

Here’s hoping that Congress will hear a loud outcry on gutting federal financial aid. Enacting a budget that represents the needs of people should and must prevail.

Charlene Crowell is the Communications Deputy Director at the Center for Responsible Lending. She can be reached at Charlene.crowell@responsiblelending.org.

This article originally appeared in the Precinct Reporter Group News

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Activism

OPINION: California’s Legislature Has the Wrong Prescription for the Affordability Crisis — Gov. Newsom’s Plan Hits the Mark

Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

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Rev. Dr. Lawrence E. VanHook. Courtesy of Rev. Dr. Lawrence E. VanHook.
Rev. Dr. Lawrence E. VanHook. Courtesy of Rev. Dr. Lawrence E. VanHook.

By Rev. Dr. Lawrence E. VanHook

As a pastor and East Bay resident, I see firsthand how my community struggles with the rising cost of everyday living. A fellow pastor in Oakland recently told me he cuts his pills in half to make them last longer because of the crushing costs of drugs.

Meanwhile, community members are contending with skyrocketing grocery prices and a lack of affordable healthcare options, while businesses are being forced to close their doors.

Our community is hurting. Things have to change.

The most pressing issue that demands our leaders’ attention is rising healthcare costs, and particularly the rising cost of medications. Annual prescription drug costs in California have spiked by nearly 50% since 2018, from $9.1 billion to $13.6 billion.

Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

Some lawmakers, however, have advanced legislation that would drive up healthcare costs and set communities like mine back further.

I’m particularly concerned with Senate Bill (SB) 41, sponsored by Sen. Scott Wiener (D-San Francisco), a carbon copy of a 2024 bill that I strongly opposed and Gov. Newsom rightly vetoed. This bill would impose significant healthcare costs on patients, small businesses, and working families, while allowing big drug companies to increase their profits.

SB 41 would impose a new $10.05 pharmacy fee for every prescription filled in California. This new fee, which would apply to millions of Californians, is roughly five times higher than the current average of $2.

For example, a Bay Area family with five monthly prescriptions would be forced to shoulder about $500 more in annual health costs. If a small business covers 25 employees, each with four prescription fills per month (the national average), that would add nearly $10,000 per year in health care costs.

This bill would also restrict how health plan sponsors — like employers, unions, state plans, Medicare, and Medicaid — partner with pharmacy benefit managers (PBMs) to negotiate against big drug companies and deliver the lowest possible costs for employees and members. By mandating a flat fee for pharmacy benefit services, this misguided legislation would undercut your health plan’s ability to drive down costs while handing more profits to pharmaceutical manufacturers.

This bill would also endanger patients by eliminating safety requirements for pharmacies that dispense complex and costly specialty medications. Additionally, it would restrict home delivery for prescriptions, a convenient and affordable service that many families rely on.

Instead of repeating the same tired plan laid out in the big pharma-backed playbook, lawmakers should embrace Newsom’s transparency-first approach and prioritize our communities.

Let’s urge our state legislators to reject policies like SB 41 that would make a difficult situation even worse for communities like ours.

About the Author

Rev. Dr. VanHook is the founder and pastor of The Community Church in Oakland and the founder of The Charis House, a re-entry facility for men recovering from alcohol and drug abuse.

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Activism

Congress Says Yes to Rep. Simon’s Disability Hiring and Small Biz Support Bill

“As the first congenitally blind person to serve in Congress, I am incredibly honored to lead and excited to celebrate the House passage of the ‘ThinkDIFFERENTLY About Disability Employment Act,’” said Simon.

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U.S. Rep. Lateefah Simon (D-CA-12). File photo.
U.S. Rep. Lateefah Simon (D-CA-12). File photo.

By Bo Tefu, California Black Media

The House of Representatives unanimously passed the “ThinkDIFFERENTLY About Disability Employment Act” on June 3, marking a major win for U.S. Rep. Lateefah Simon (D-CA-12) and co-sponsor Rep. Pete Stauber (R-MN-08) in their bipartisan effort to promote inclusive hiring and boost small business accessibility.

The legislation establishes a federal partnership between the Small Business Administration (SBA) and the National Council on Disability to help small businesses across the U.S. hire more individuals with disabilities and provide resources for disabled entrepreneurs.

“As the first congenitally blind person to serve in Congress, I am incredibly honored to lead and excited to celebrate the House passage of the ‘ThinkDIFFERENTLY About Disability Employment Act,’” said Simon.

“Small businesses are the lifeblood of cities, making them accessible for all will maximize local economic activity and broaden the job market to everyone who is seeking to contribute to their communities,” she continued. “Investments in business and talent in our communities shouldn’t be limited to just those who are not disabled. Full stop, period.”

Since taking office in January 2025, Simon has introduced six bills. The House has approved two of them: this measure and the “Assisting Small Businesses, Not Fraudsters Act.”

Simon, a lifelong disability rights advocate and former BART board member, has focused her career on improving access, from public transit to the job market.

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Activism

Over 500 Join Interfaith Rally in Solidarity with Los Angeles Resistance to Trump Invasion

Over 500 people attended the Tuesday evening rally in Oakland, which was held simultaneously with a prayer vigil in Los Angeles, where rabbis, pastors, Muslim faith leaders, and indigenous spiritual leaders gathered to pray and speak out about the federal government’s abuses of power.

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Hundreds gathered at Fruitvale Plaza in Oakland on June 10 in solidarity with immigrants and opposed to Trump’s use of armed federal agents in Los Angeles. Photo by Beth LaBerge/KQED.
Hundreds gathered at Fruitvale Plaza in Oakland on June 10 in solidarity with immigrants and opposed to Trump’s use of armed federal agents in Los Angeles. Photo by Beth LaBerge/KQED.

By Post Staff

n response to last week’s “invasion” of Los Angeles by armed and masked federal agents, East Bay faith leaders and community members, joined by Oakland Mayor Barbara Lee and Alameda County Supervisor Nikki Fortunato Bas, held an Interfaith vigil Tuesday evening at Oakland’s Fruitvale Plaza in support of Los Angeles residents and immigrant communities across the country.

Over 500 people attended the Tuesday evening rally in Oakland, which was held simultaneously with a prayer vigil in Los Angeles, where rabbis, pastors, Muslim faith leaders, and indigenous spiritual leaders gathered to pray and speak out about the federal government’s abuses of power.

Earlier on the same day, hundreds of protesters at San Francisco and Concord immigration courts shut down the courts after masked, plainclothes federal ICE agents detained people seeking asylum attending their court hearings.

“Too many families in Los Angeles torn apart by this invasion still do not have access to a lawyer — and that’s not an accident. We, the people, the community, are here to say, ‘Enough!’ We must keep organizing and demand that ICE and our government respect the rights of all people and uphold the principle of due process,” said Andrés Pomart with Trabajadores Unidos Workers United.

“We know that when we organize, we win. That’s why our communities – Black, Brown, and working-class – are coming together to support each other in solidarity. Together, as immigrant communities and as a united working class, we will not be divided nor intimidated nor live in fear,” Pomart said.

“Immigrant communities — yes, our immigrant communities — are the heartbeat of Oakland, enriching our neighborhoods with diverse cultures, languages and experience, and deserve the quality of life that every human being deserves. An attack on one of us is an attack on all of us.  “Your city remains committed to protecting our immigrant neighbors,” said Mayor Lee.

“When Trump’s armed goons come for our families and communities, when they trample on our shared values of freedom and opportunity, when they make a mockery of our rights to due process, we are called to step up for our neighbors,” said Supervisor Bas. “This is not just an immigration story. It’s a story about who we are — and how we respond when our neighbors are under attack and when the president of the United States abuses his powers. When they come for one of us, they come for all of us.”

Said Kampala Taiz-Rancifer, the Oakland teachers’ union president, “It is time for us to say, ‘Not in our city.’ We will stop, we will block, we will drive out ICE. We will protect our classrooms. We will protect our streets. We will protect our homes. Together, we rise for the dignity of our families and our right to live without fear.”

“I feel that the president and the current administration is grossly overstepping and abusing their power,” Rabbi Chai Levy, speaking to KQED. “I feel that, as a religious person, communities of faith need to show up and stand in solidarity with immigrants who are threatened and afraid. “It’s important to show up as people of conscience and morality and say that we’re against what our government is doing.”

The vigil was hosted by Bay Resistance, and co-sponsoring organizations included the Alameda Labor Council, Alliance of Californians for Community Empowerment (ACCE), Faith in Action East Bay, Restore Oakland, East Bay Alliance for a Sustainable Economy (EBASE), Ella Baker Center for Human Rights, Oakland Rising, Faith Alliance for a Moral Economy, SEIU Local 1021, Communities United for Restorative Youth Justice (CURYJ), SEIU United Service Workers West, Jewish Voice for Peace Bay Area, Jobs with Justice San Francisco, Interfaith Movement for Human Integrity, Urban Peace Movement, and Trabajadores Unidos Workers United.

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