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Obama’s 2016 budget plan expands funding for Pell Grants, Metro line

By Jeong Park and Melyssa Cruz

Feb. 2, 2015 11:40 p.m.

President Barack Obama released a $4 trillion budget proposal on Monday for the 2016 fiscal year, which includes funding for the Los Angeles County Metro Purple Line and for several higher education items, including an increase in the federal Pell Grant program.

The U.S. House of Representatives and the Senate, both controlled by the Republican Party, will review and edit the budget throughout the year, with a deadline of Oct. 1.

The budget proposal foresees a $474 billion deficit.

Higher education budget

The budget allocated about $1.4 billion to support America’s College Promise, a proposal that seeks to make the first two years of community colleges free for those who meet federal academic requirements. The federal government estimates the initiative will cost about $60 billion over the next 10 years.

The budget will also cut up to 30 questions from the Free Application for Federal Student Aid, or FAFSA. Questions about assets and additional types of income would be removed from the application, according to the proposal.

The maximum Pell Grant award students can receive would also increase to about $5,800 for the next fiscal year. The budget would tie Pell Grants’ maximum awards to inflation beyond the 2017 fiscal year, with the government allocating an increase of $30 billion over 10 years to the grant program.

The budget proposed about $8.5 billion in expanded federal Perkins loans, which charge no interest during in-school and grace periods and 5 percent interest during the repayment period. Additionally, the Pay As You Earn repayment plan’s payment cap would be eliminated, and it would serve as the only income-driven repayment plan for students who take out their first loans on or after July 1, 2016.

University of California President Janet Napolitano praised the proposal in a statement, saying the proposal would make higher education more affordable and accessible.

She also praised the proposal for ending sequestration, which has led to lower research funding.

“For our country to continue to thrive, it is essential that sequestration ends,” Napolitano said in the statement.

Purple Line extension

The budget would allocate $100 million to the planned Metro Purple Line subway extension, which will connect downtown Los Angeles and Westwood.

If Congress approves the item, the money will fund the construction of the second section of the Purple Line extension, which will run from Beverly Hills to Century City, according to a Metro press release.

The administration also proposed a $115 million allocation for the first section of the Purple Line extension, which will extend the subway line from Koreatown to Beverly Hills.

The line currently runs from downtown Los Angeles to Koreatown. The Metro committed $4.2 billion in 2009 to extend the subway and build a Westwood/UCLA station by 2035.

The initiative is already partially funded by revenue from Measure R, which passed in 2008 and included a half-cent sales tax increase. Metro officials will still pursue alternative methods of funding to speed up the construction process, according to the press release.

Eric Garcetti, Los Angeles mayor and chair of Metro Board of Directors, said in the release that the funding would help the city reach its goals of cutting traffic, reducing air pollution and shortening commutes.

When the extension is completed, commuters will be able to travel from downtown Los Angeles to the Westwood station in 25 minutes, according to the press release.

Compiled by Melyssa Cruz, Bruin contributor, and Jeong Park, Bruin senior staff.

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