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On Monday the 2012 budget was presented by our President. Surprisingly there are very few, limited increases for education. However there is a strong commitment to protect the Pell Grant which is current at $5,550.

Obama plan now will now shore up the shaky finances of the program that has resulted from heavy use during recession by providing $41 billion without increasing the maximum Pell Grant. According to data released by the US Education Department, this is at least 18 billion more than the Federal Pell spending in the year 2010.

A series of cuts are being proposed by the administration in order to continue the $5,550 maximum grant. According to Arne Duncan, the Education Secretary, cuts are being made wherever possible to invest where it is necessary.

He says that we must not delay investments that play a major role in securing our future as these are challenging times. He says that it is imperative to invest in a responsible manner and ensure a better economy through education demanding results and advancing reforms.

New Congress has been pressurizing for drastic spending cuts and the budget plan reflects this pressure. A program was unveiled last week by the House Republicans targeting domestic programs. A cut of $100 billion in these programs included a 15 percent projected cut in the Pell funding. With the implementation of this, the maximum grant will be reduced by $845 to $4,705.

According to the United States Student Association president Lindsay McCluskey, there is increased understanding by students on the economic situation that required cuts to Pell Grant in the larger interest.

There was widespread criticism on completely scrapping Stafford Loans for graduate students apart from two Pell Grants in an award year. Critics feel that this will have a majorly negative impact on students. However, the priority in the fiscal year 2012 remains to face a $20 billion shortfall.

According to Duncan, targeted investments made by the administration in higher education are quite significant. Federal TRIO programs will receive an extra $67 million apart from protecting Pell from cuts. These programs will greatly benefit students who are at the risk of discontinuing education to persevere, continue and succeed in college.

More than $800 million will be allotted towards supporting institutions serving minorities every year. There will be an effort to enhance completion rates in colleges through allotment of $175 million in competitive grants.

Race to the Top program will continue in full swing at the K-12 level says our President. There will be fresh, new competitions across school districts for the earmarked $900 million. There will be an increase of $100 allotted for at risk children towards their after school programs.

$265 million has been cut from state funding for technical and career education by the administration. This is more than twenty percent cut. In order to accommodate reductions, tech prep grant program will be eliminated. This program has been supporting partnerships between community colleges and high schools.

Duncan says that these are tough choices. However, dollars have to be stretched to the maximum limits with rising demand to enable doing as much as possible with less. The plan is set to go to the Congress for review soon.