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COMMENTARY: FY 2021 White House Budget Proposal Cuts $56.6 Billion from Education

NNPA NEWSWIRE — Today there are over 44 million student loan borrowers whose growing reliance on loans corresponds with the still-rising cost of higher education. Except for the financially well-off, student loans are being used more, not less, and include consumers of varying income levels.

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“The maximum Pell grant – the federal college scholarship that helps low-income students pay tuition and living expenses – today covers only 28% of college costs, the lowest share in over 40 years,” says James Kvaal and Jessica Thompson, co-authors of a new policy brief by the University of New Hampshire’s Carsey School of Public Policy. (Photo: iStockphoto / NNPA)

More Than $2 Billion Directed to Short-Term Career and Technical Training

By Charlene Crowell, NNPA Newswire Contributor

For consumers, businesses, organizations and governments alike, annual budgets typically reflect not only line items but priorities as well. As A. Philip Randolph reminded us more than 50 years ago with the release of the “Freedom Budget,” such documents reflect the morals of our nation. Especially when they show how much we value the most vulnerable among us.

The recent White House fiscal year (FY) 2021 proposal would fund the Defense Department at $636.4 billion dollars, a slight increase above that of FY 2020. At the same time, $339.1 billion in budget cuts are proposed. These cuts would severely impact the nation’s social service safety network, comprised of a wide range of services and programs like food stamps, consumer financial protection, low-income energy assistance, enforcement of federal laws, transportation projects, environmental remediation and more.

And at a time when higher education is increasingly essential to the nation’s economic future, the White House proposal would eliminate $56.6 billion, a 7.8% reduction from current levels.

“Eliminated programs include Federal Supplemental Education Opportunity Grants, which duplicates Pell Grants but are less targeted on those who need the most help,” states the Education budget summary.” Its summary also notes how the budget “protects students by eliminating default for impoverished borrowers” and “closing loopholes currently allowing high-earning graduate degree holding borrowers to avoid repaying their student loans, leaving taxpayers holding the bag.”

To be clear — no one really chooses to default on a student loan. Defaults occur when loan payments exceed a borrower’s ability-to-repay, not a willful choice. A significant number of these defaults were incurred at high-cost for-profit colleges.

Research and analysis by the Center for Responsible Lending finds that although for-profit college enrollment represents 6% of all college students, these schools generate over 33% of all students who default on their loans. Further, CRL found that only 21% of all for-profit students in four-year programs graduate within six years.

Today there are over 44 million student loan borrowers whose growing reliance on loans corresponds with the still-rising cost of higher education. Except for the financially well-off, student loans are being used more, not less, and include consumers of varying income levels.

If these cuts take effect with Congress’ approval, the federal commitment to higher education will become yet another funding retreat begun nearly a decade ago at the state level.

“State funding for public colleges and universities has steadily declined, contributing to higher tuitions for most students,” says James Kvaal and Jessica Thompson, co-authors of a new policy brief by the University of New Hampshire’s Carsey School of Public Policy. “State funding is not only declining but it is also distributed inequitably.”

“The maximum Pell grant – the federal college scholarship that helps low-income students pay tuition and living expenses – today covers only 28% of college costs, the lowest share in over 40 years,” continued Kvaal and Thompson. “The current financial aid system is not only underfunded but is not designed to help students meet extra needs or absorb unexpected financial blows.”

Even so, the White House education budget proposal would carve out more than $2 billion for Career and Technical Education (CTE) state grants and CTE National Programs. Eligible CTE recipients could be private businesses offering short-term, training or apprenticeships. Under the proposal, Pell Grants could be also used for CTE training, siphoning off funds traditionally used at two and four-year institutions.

To put it another way, taxpayer-funded on-the-job training – as short as 30 days or as long as six months – could soon enhance the profit margins of businesses. Historically, higher education leads to a credential – an associate, bachelor, or graduate course of study that upon completion leads to a higher competitive edge in the general marketplace.

“As States begin to think about their long-term career and technical education strategies,” said Education Secretary Betsy DeVos, “I would encourage them to continue to act boldly and break down the silos that exist between education and industry so that all students are prepared for the in-demand, high-paying jobs of today’s economy and tomorrow’s.”

What does seem to be bold is an administration that consistently and deliberately seeks new ways to benefit private enterprise at the public trough. These new funding streams are also accompanied by departmental deregulation that “streamline and reduce unnecessary costs with accreditation”, states the budget summary.

Sounds like in the name of ‘deregulation’, this administration is intent on eliminating more ‘checks and balances’ on the use of public monies.

“Instead of preventing predatory institutions from wasting taxpayer dollars, Secretary DeVos is undermining the federal investment in higher education by shielding the interests of for-profit institutions and private corporations that prey on students of color, low-income borrowers, veterans, women, and older Americans,” said Ashley Harrington, CRL’s Federal Advocacy Director. “We urge Congress and the current Administration to stop protecting these predatory institutions at the expense of already vulnerable and marginalized groups.”

Charlene Crowell is the deputy director of communications with the Center for Responsible Lending. She can be reached at charlene.crowell@responsiblelending.org.

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#NNPA BlackPress

Trump Set to Sign Largest Cut to Medicaid After a Marathon Protest Speech by Leader Jeffries

BLACKPRESSUSA NEWSWIRE — The bill also represents the biggest cut in Medicare in history and is a threat to the health care coverage of over 15 million people. The spending in Trump’s signature legislation also opens the door to a second era of over-incarceration in the U.S.

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By Lauren Burke

By a vote of 218 to 214, the GOP-controlled U.S. House passed President Trump’s massive budget and spending bill that will add $3.5 trillion to the national debt, according to the Congressional Budget Office (CBO). The bill also represents the biggest cut in Medicare in history and is a threat to the health care coverage of over 15 million people. The spending in Trump’s signature legislation also opens the door to a second era of over-incarceration in the U.S. With $175 billion allocated in spending for immigration enforcement, the money for more police officers eclipsed the 2026 budget for the U.S. Marines, which is $57 billion. Almost all of the policy focus from the Trump Administration has focused on deporting immigrants of color from Mexico and Haiti.

The vote occurred as members were pressed to complete their work before the arbitrary deadline of the July 4 holiday set by President Trump. It also occurred after Democratic Leader Hakeem Jeffries took the House floor for over 8 hours in protest. Leader Jeffries broke the record in the U.S. House for the longest floor speech in history on the House floor. The Senate passed the bill days before and was tied at 50-50, with Republican Senator Lisa Murkowski saying that, “my hope is that the House is gonna look at this and recognize that we’re not there yet.” There were no changes made to the Senate bill by the House. A series of overnight phone calls to Republicans voting against, not changes, was what won over enough Republicans to pass the legislation, even though it adds trillions to the debt. The Trump spending bill also cuts money to Pell grants.

“The Big Ugly Bill steals food out of the hands of starving children, steals medicine from the cabinets of cancer patients, and equips ICE with more funding and more weapons of war than the United States Marine Corps. Is there any question of who those agents will be going to war for, or who they will be going to war against? Beyond these sadistic provisions, Republicans just voted nearly unanimously to close urban and rural hospitals, cripple the child tax credit, and to top it all off, add $3.3 trillion to the ticking time bomb that is the federal deficit – all from a party that embarrassingly pretends to stand for fiscal responsibility and lowering costs,” wrote Congressional Black Caucus Chairwoman Yvette Clarke (D-NY) in a statement on July 3.

“The Congressional Budget Office predicts that 17 million people will lose their health insurance, including over 322,000 Virginians. It will make college less affordable.  Three million people will lose access to food assistance through the Supplemental Nutrition Assistance Program (SNAP). And up to 16 million students could lose access to free school meals. The Republican bill does all of this to fund tax breaks for millionaires, billionaires, and corporations,” wrote Education and Workforce Committee ranking member Rep. Bobby Scott (D-VA) in a statement. The bill’s passage has prompted Democrats to start thinking about 2026 and the next election cycle. With the margins of victory in the U.S. House and U.S. Senate being so narrow, many are convinced that the balance of power and the question of millions being able to enjoy health care come down to only several thousand votes in congressional elections. But currently, Republicans controlled by the MAGA movement control all three branches of government. That reality was never made more stark and more clear than the last seven days of activity in the U.S. House and U.S. Senate.

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WATCH: NNPA Publishers Pivot To Survive

7.2.25 via NBC 4 Washington

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7.2.25 via NBC 4 Washington

https://youtube.com/watch?v=9oZc5Sz0jQQ&feature=oembed

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#NNPA BlackPress

Congressional Black Caucus Challenges Target on Diversity

BLACKPRESSUSA NEWSWIRE — we found that the explanations offered by the leadership of the Target Corporation fell woefully short of what our communities deserve and of the values of inclusion that Target once touted

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By Stacy M. Brown
Black Press USA Senior National Correspondent

Target is grappling with worsening financial and reputational fallout as the national selective buying and public education program launched by the Black Press of America and other national and local leaders continues to erode the retailer’s sales and foot traffic. But a recent meeting that the retailer intended to keep quiet between CEO Brian Cornell and members of the Congressional Black Caucus Diversity Task Force was publicly reported after the Black Press discovered the session, and the CBC later put Target on blast.

“The Congressional Black Caucus met with the leadership of the Target Corporation on Capitol Hill to directly address deep concerns about the impact of the company’s unconscionable decision to end a number of its diversity, equity, and inclusion efforts,” CBC Chair Yvette Clarke stated. “Like many of the coalition leaders and partner organizations that have chosen to boycott their stores across the country, we found that the explanations offered by the leadership of the Target Corporation fell woefully short of what our communities deserve and of the values of inclusion that Target once touted,” Congresswoman emphasized.  “Black consumers contribute overwhelmingly to our economy and the Target Corporation’s bottom line. Our communities deserve to shop at businesses that publicly share our values without sacrificing our dignity. It is no longer acceptable to deliver promises to our communities in private without also demonstrating those values publicly.”

Lauren Burke, Capitol Hill correspondent for Black Press of America, was present when Target CEO Cornell and a contingent of Target officials arrived at the U.S. Capitol last month. “It’s always helpful to have meetings like this and get some candid feedback and continue to evolve our thinking,” Cornell told Burke as he exited the meeting. And walked down a long hallway in the Cannon House Office Building. “We look forward to follow-up conversations,” he stated. When asked if the issue of the ongoing boycott was discussed, Cornell’s response was, “That was not a big area of focus — we’re focused on running a great business each and every day. Take care of our teams. Take care of the guests who shop with us and do the right things in our communities.”

A national public education campaign on Target, spearheaded by Dr. Benjamin F. Chavis Jr., president and CEO of the National Newspaper Publishers Association (NNPA), the NNPA’s board of directors, and with other national African American leaders, has combined consumer education efforts with a call for selective buying. The NNPA is a trade association that represents the more than 220 African American-owned newspapers and media companies known as the Black Press of America, the voice of 50 million African Americans across the nation. The coalition has requested that Target restore and expand its stated commitment to do business with local community-owned businesses inclusive of the Black Press of  America, and to significantly increase investment in Black-owned businesses and media, Historically Black Colleges and Universities (HBCU, Black-owned Banks, national Black Church denominations, and grassroots and local organizations committed to improving the quality of life of all Americans, and especially those from underserved communities. According to Target’s latest earnings report, net sales for the first quarter of 2025 fell 2.8 percent to $23.85 billion compared to the same period last year. Comparable store sales dropped 3.8 percent, and in-store foot traffic slid 5.7 percent.

Shares of Target have also struggled under the pressure. The company’s stock traded around $103.85 early Wednesday afternoon, down significantly from roughly $145 before the controversy escalated. Analysts note that Target has lost more than $12 billion in market value since the beginning of the year. “We will continue to inform and to mobilize Black consumers in every state in the United States,” Chavis said. “Target today has a profound opportunity to respond with respect and restorative commitment.”

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