Smucker Notes Disparity in Federal Education Funding

Washington—Rep. Lloyd Smucker (PA-11), a member of the House Ways & Means Committee, is shining a light on a wide funding disparity between programs supporting four-year degree programs and career and technical education programs.

Smucker commented during a recent hearing of the House Ways & Means Committee:

“Now, I wouldn’t discourage a four-year degree. It’s important. But think about the need to reconfigure and rebalance where we place our priorities…I have a bill today, as well, that would create a tax credit. And I think, when you look at the disparity in where we are putting our focus and our federal dollars…it’s really important that we pass something like [the USA Workforce Tax Credit Act], as well,” said Smucker.  

During the hearing, Smucker highlighted his USA Workforce Tax Credit Act,legislation which will supercharge investment in community-based apprenticeship initiatives, career and technical education, and workforce development. Donations made to nonprofits organizations including educational institutions, community organizations, training institutes, community colleges, scholarship groups and labor union-affiliated nonprofits, would be eligible for a limited tax credit.

The Federal Student Aid office annually spends approximately $112 billion on grants, work-study and loan programs. The Government Accountability Office estimated the cost of the federal Direct Loan program was $197 billion over the past twenty-five years. Initial estimates suggested this program would generate $114 billion in new revenue over this time.

The cost for WIOA is approximately $4 billion annually and the federal Perkins program provides nearly $1.4 billion for career and technical education each year.    

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