Subpoena: State Dept vs. Clinton Foundation

How the Clinton Foundation is organized

What We Know About WJC, LLC, Bill Clinton’s Consulting Company

Financial disclosures show that the former president started a pass-through company to channel his consulting fees.

Clinton Foundation received subpoena from State Department investigators

Investigators with the State Department issued a subpoena to the Bill, Hillary and Chelsea Clinton Foundation last fall seeking documents about the charity’s projects that may have required approval from the federal government during Hillary Clinton’s term as secretary of state, according to people familiar with the subpoena and written correspondence about it.

The subpoena also asked for records related to Huma Abedin, a longtime Clinton aide who for six months in 2012 was employed simultaneously by the State Department, the foundation, Clinton’s personal office, and a private consulting firm with ties to the Clintons.

The full scope and status of the inquiry, conducted by the State Department’s inspector general, were not clear from the material correspondence reviewed by The Washington Post.

A foundation representative, who spoke on the condition of anonymity to discuss an ongoing inquiry, said the initial document request had been narrowed by investigators and that the foundation is not the focus of the probe.

A State IG spokesman declined to comment on that assessment or on the subpoena.

Representatives for Hillary Clinton’s presidential campaign and Abedin also declined comment.

[How Huma Abedin operated at the center of the Clinton universe]

There is no indication that the watchdog is looking at Clinton. But as she runs for president in part by promoting her leadership of the State Department, an inquiry involving a top aide and the relationship between her agency and her family’s charity could further complicate her campaign.

For months, Clinton has wrangled with controversy over her use of a private email server, which has sparked a separate investigation by the same State Department inspector general’s office. There is also an FBI investigation into whether her system compromised national security.

Bill Clinton used LLC as a pass through

Clinton was asked about the FBI investigation at a debate last week and said she was “100 percent confident” nothing would come of it. Last month, Clinton denied a Fox News report that the FBI had expanded its probe to include ties between the foundation and the State Department. She called that report “an unsourced, irresponsible” claim with “no basis.”

During the years Clinton served as secretary of state, the foundation was led by her husband, former president Bill Clinton. She joined its board after leaving office in February 2013 and helped run it until launching her White House bid in April.

Abedin served as deputy chief of staff at State starting in 2009. For the second half of 2012, she participated in the “special government employee” program that enabled her to work simultaneously in the State Department, the foundation, Hillary Clinton’s personal office and Teneo, a private consultancy with close ties to the Clintons.

Abedin has been a visible part of Hillary Clinton’s world since she served as an intern in the 1990s for the then-first lady while attending George Washington University. On the campaign trail, Clinton is rarely seen in public without Abedin somewhere nearby.

Republican lawmakers have alleged that foreign officials and other powerful interests with business before the U.S. government gave large donations to the Clinton Foundation to curry favor with a sitting secretary of state and a potential future president.

Both Clintons have dismissed those accusations, saying donors contributed to the $2 billion foundation to support its core missions: improving health care, education and environmental work around the world.

Sen. Bernie Sanders (Vt.), Clinton’s opponent in the Democratic primary, has largely avoided raising either issue in his campaign. Last spring, Sanders expressed concerns about the Clinton Foundation being part of a political system “dominated by money.”

Sanders has batted away questions about the email scandal, famously saying at a debate last fall that, “The American people are sick and tired of hearing about your damn emails.”

The potential consequences of the IG investigation are unclear. Unlike federal prosecutors, inspectors general have the authority to subpoena documents without seeking approval from a grand jury or a judge.

But their power is limited. They are able to obtain documents, but they cannot compel testimony. At times, IG inquiries result in criminal charges, but sometimes they lead to administrative review, civil penalties or reports that have no legal consequences.

The IG has investigated Abedin before. Last year, the watchdog concluded she was overpaid nearly $10,000 because of violations of sick leave and vacation policies, a finding that Abedin and her attorneys have contested.

Republican lawmakers, led by Senate Judiciary Committee Chairman Charles E. Grassley (R-Iowa), have alleged that Abedin’s role at the center of overlapping public and private Clinton worlds created the potential for conflicts of interest.

Examples of fees paid for speeches

Obama, don’t let secrecy be your legacy

Imagine what Congress does NOT know and then imagine what we, don’t know. Terrifying right?

Mr. Obama, don’t let secrecy be your legacy: Republican chairmen

Shrouding government action on everything from the environment to veterans health in darkness is a big step backwards.

USAToday: When President Obama took office, he vowed to run “the most transparent administration in history.” As his presidency draws to an end, those words would be laughable if the issue were not so serious.

At nearly every turn, this administration has blocked public disclosure and ignored almost every law intended to ensure open and accountable government.

Hillary Clinton’s private email server is just the latest, most public example. Numerous other incidents involve the concealment of documents, providing only partial information, slow-walking congressional requests and using private email accounts and secret meetings to avoid official records-keeping laws. These sorts of tactics have become common practice for this administration.

The most brazen examples occasionally get media attention: Former Environmental Protection Agency (EPA) Administrator Lisa Jackson created a fictitious email address under the alias name “Richard Windsor,” hiding official actions from public scrutiny. But more typically, the pervasive stonewalling does not make headlines.

Congress isn’t alone on the Obama administration’s enemies list. According to an analysis of federal data by the Associated Press (AP), the Obama administration set new records two years in a row for denying the media access to government files. According to the AP, “The government took longer to turn over files when it provided any, said more regularly that it couldn’t find documents and refused a record number of times to turn over files.”

Moreover, in an unprecedented letter to several congressional committees, 47 inspectors general, who are the official watchdogs of federal agencies, complained that the Justice Department, EPA and others consistently obstruct their work by blocking or delaying access to critical information. Worse yet, the White House and Secretary Clinton refused to install an Inspector General during her tenure at the State Department.

It is the job of Congress and our agency watchdogs to ensure the federal government is efficient, effective and accountable to the American people. But time and time again, this administration has dismissed Americans’ right to know.

When Department of Veterans Affairs bureaucrats place themselves ahead of the veterans they are charged with serving, it’s Congress’ job to get answers. But VA’s stonewall tactics are interfering with this vital task. It’s been more than 18 months since the House Committee on Veterans’ Affairs revealed VA’s delays in care crisis to the nation, yet the department is sitting on more than 140 requests for information from the committee regarding everything from patient wait times to disciplinary actions for failed employees. VA’s disregard for congressional oversight was on full display Oct. 21, when committee Democrats and Republicans voted unanimously to subpoena five bureaucrats VA had refused to make available to explain their role in a scheme that resulted in the misuse of more than $400,000 in taxpayer money. Later, at a Nov. 2 follow-up hearing, two of the subpoenaed VA employees invoked their Fifth Amendment right against self-incrimination.

When the Internal Revenue Service improperly targets conservative organizations, it’s Congress’ job to get answers. When the Bureau of Alcohol, Tobacco, Firearms and Explosives runs a failed and flawed sting operation intentionally providing hundreds of firearms to Mexican cartels, it’s Congress’ job to get answers. When events surrounding terrorist attacks in Benghazi on the anniversary of 9/11 are hidden from the public, it’s Congress’ job to get answers.

But Congress cannot do its job when an administration refuses to turn over information. That’s why Congress has increasingly resorted to the power of the pen and has issued numerous legally-binding subpoenas to various Obama Administration agencies, including the Department of Justice, the State Department, the Treasury Department, the Department of Homeland Security, the Federal Reserve Board, the Federal Reserve Bank of New York, the Environmental Protection Agency, the National Oceanic and Atmospheric Administration and the Office of Management and Budget, among others.

Whether it is the necessity of holding agency heads in contempt of Congress or pursuing civil litigation to gain access to clearly relevant material or the improper invocation of executive privilege or a new “confidential communications” privilege this administration made up out of whole cloth, Congress has been forced to spend far too much time and resources gaining access to documents which it is clearly entitled to.

But perhaps the honor of the least transparent agency in the federal government belongs to the EPA.

Everyone wants clean air and water. But Americans want environmental regulations to be based on sound science, not science  fiction or radical political manifestos. When the EPA refused to release the data it uses to justify its proposed air regulations, the historically bipartisan House Science Committee was compelled to issue its first subpoena in 21 years to retrieve the information.

Last year, the House passed the Secret Science Reform Act of 2015 to require the EPA to base its regulations on publicly-available data, not secret science. This allows independent scientists the opportunity to evaluate EPA’s claims and check their work.  Who could argue against using open and transparent science to support regulation? Answer: the Obama administration.

It’s not surprising that the non-partisan Center for Effective Government gave the EPA a grade of “D” in its most recent report for poor performance in providing access to information.

This administration has created an unprecedented culture of secrecy that starts at the top and extends into almost every agency. While Congress is being thwarted in its efforts at oversight, it is really the American people who lose when those entrusted to enforce the law believe and act as if they are above it. It’s time to come clean, Mr. President. Don’t let a lack of transparency be your legacy.

Obama Going for it All Including Moon Shot

There are organizations out there trying to get some great bills passed. Too bad they wont affect Obama himself. But when it comes to Congress wanting a pay raise, how about a Fiscal Responsibility Act first?

Obama’s go-for-broke budget

Congress has already dismissed the proposal, sight unseen.

Politico: President Barack Obama may be a lame duck, but his aggressively liberal final budget request coming Tuesday will show he’s far from a mute one.

Even as Hillary Clinton and Bernie Sanders quarrel over who’s a “progressive” and who’s not, the president will propose a sweepingly progressive policy agenda that includes a $10-a-barrel oil tax, an expensive Medicaid expansion, a $4 billion initiative to promote computer science in public schools and the first down payment on a “moon shot” research initiative to cure cancer led by Vice President Joe Biden.

Never mind that Congress, in a break with tradition, said it won’t even hold hearings on this year’s budget request. That’s because the request “will continue to focus on new spending proposals” instead of tackling “our $19 trillion in debt,” Senate Budget Committee Chairman Mike Enzi (R-Wyo.) said last week. Complete details on proposed total spending, projected deficits and other information will be released Tuesday morning.

Given Congress’ sight-unseen dismissal, the president’s go-for-broke strategy makes sense, said Peter Orszag, who was White House budget director during Obama’s first term and director of the Congressional Budget Office before that.

“If the document is legislatively irrelevant,” Orszag said, “you might as well use it to expand the policy dialogue and lay out sensible proposals even if they will not become law this year or next.” This year’s budget proposal “lays the groundwork for Democrats to refine and embrace a more ambitious legislative agenda over time.”

Lame-duck presidential budget requests nearly always receive catcalls from Congress, especially when it’s controlled by the opposite party.

In February 2008, then-Speaker Nancy Pelosi scored President George W. Bush’s “misguided” final budget for cuts in health care and energy assistance and a too-large budget deficit. The final product was a mashup from Congress, the outgoing Bush administration and the incoming Obama administration. It yielded a $1.4 trillion deficit — the largest in U.S. history, in large part because of the financial crisis. The current deficit is an estimated $544 billion.

President Bill Clinton’s final budget, submitted in February 2000, was less contentious, in part because it adhered to a 1997 agreement with the Republican-controlled Congress on debt reduction. Clinton had the opposite problem: His budget’s spending levels were judged too high, and its budget surplus — which ended up being $1.3 billion — drew sharp criticism from Republicans, including candidate Bush, who wanted to return it to the public in the form of tax cuts. The novel problem of a budget surplus proved short-lived; it vanished the following year, and hasn’t been heard from since.

Where Obama’s lame-duck policy agenda differs, suggests presidential historian Michael Beschloss, is in the scope of its ambition. “Modern presidents have tended to focus on a particular project” in their last year, Beschloss said — “for instance, Eisenhower and Reagan trying to wind down the Cold War, or Johnson trying to find peace in Vietnam.” But Obama is different. He’s “looking for ways in his final year to pursue an agenda on many fronts” in hopes not only of “getting something done” but also “nudging his successor to do certain things.”

It is the policy, perhaps, of a departing president who — given this year’s unusually chaotic GOP primary race — feels more confident than most that his party will keep the White House.

The boldest of all the budget proposals is the $10-a-barrel crude oil tax. Energy taxes are always a hard sell — nobody’s raised the federal gasoline tax, for instance, since 1993 — and although consumers may be less resistant because of low pump prices, oil companies will be more so because falling gas prices have them reducing exploration and laying off workers.

The revenues would go not toward deficit reduction, but toward more green forms of transportation such as subways, buses and light rail. House Ways and Means Chairman Kevin Brady immediately denounced the plan as a “horrible idea” and a “waste of time,” and even some congressional Democrats will likely oppose it. But environmentalists are greeting it as an overdue down payment on reducing emissions that contribute to climate change. Sierra Club Executive Director Michael Brune said it “underscores the inevitable transition away from oil.”

The president’s proposed Medicaid expansion would extend the Affordable Care Act’s promise of three years’ full federal funding for ACA-created Medicaid coverage, which expires this year. The proposal is an inducement to the 19 states that continue not to participate in the program, which was created for families whose incomes were too low to qualify for federal subsidies to purchase private insurance plans through Obamacare exchanges.

Under the budget proposal, states would still get only three years’ full federal funding, after which they would gradually have to pick up 10 percent of program costs. The carrot is that they would no longer have to act by the end of 2016. A stick originally envisioned by the ACA’s authors — that states could not refuse the ACA Medicaid expansion without withdrawing from Medicaid entirely — was itself swatted away in the Supreme Court’s 2012 ruling that otherwise upheld Obamacare. The new extension is a rebuke of sorts to House Republicans who have voted repeatedly to repeal Obamacare and who last month sent to the White House a repeal bill that for the first time passed both the House and Senate — which the president promptly vetoed.

The budget’s new K-12 computer science program isn’t intrinsically partisan — both Democrats and Republicans favor enhancing school kids’ computer skills, not to mention big tech companies like Microsoft. But its $4 billion price tag raises GOP hackles, as does the notion of attaching more strings to federal aid to schools. “Rather than calling for additional federal programs or new funding streams,” an aide to Health Education Labor and Pensions Committee Chairman Lamar Alexander (R-Tenn.) complained, “the president can help students by using his bully pulpit to highlight states working in innovative ways to help their children succeed.”

The “cancer moon shot” is similarly uncontroversial in theory; after all, it was President Richard Nixon, a Republican, who proposed waging a federal “war on cancer” back in 1971. But the down payment of nearly $1 billion that the White House seeks is high, and congressional Republicans won’t like that the plan would largely bypass the appropriations process and give Vice President Joe Biden a relatively free hand in allocating some of the funds. In addition, the plan would compel medical researchers to quicken the pace at which they share data, an idea that is already receiving considerable pushback in academia. Jeffrey Dazen, editor of the esteemed New England Journal of Medicine, publicly decried the use of medical research by “data parasites.”

The likelihood of legislative action on any of these agenda items is virtually nil.

Still, observes Rutgers historian David Greenberg, author of a new book about presidential spin: “No one wants to admit that the last year will be an uneventful one.”

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbtYLPAO

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbtQUHcX

 

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbtHTeC9

 

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbt9O7NB

 

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbt2eChp

SCOTUS to Rule on Obama’s Executive Order

Primer: This is the White House official Fact sheet and Executive Order being challenged.

The Supreme Court has often dealt a big blow to presidents in their second term.

LATimes: Harry Truman was rebuked for claiming the power to seize strike-bound steel mills during the Korean War. Richard Nixon resigned shortly after the court ruled unanimously he must turn over the Watergate tapes.

Bill Clinton’s impeachment was triggered by the court’s decision that he must answer questions under oath in the Paula Jones sexual harassment case. And George W. Bush lost before the court when he claimed his power as commander in chief gave him almost unfettered authority over prisoners held at the Guantanamo Bay prison.

Now, as President Obama begins his last year in office, the court is set to render a verdict on his use of his executive authority. The justices will decide whether he violated the law by authorizing more than 4 million immigrants living in the U.S. illegally to come out of the shadows without fear of deportation and obtain work permits.

There are signs that at least some of the justices are ready to rein in the president’s ability to take such bold action without the approval of Congress.

Never before has the high court ruled that a president violated his constitutional duty to “take care” that laws are “faithfully executed.” Yet when justices agreed to hear the immigration case, they surprised many by asking both sides to present arguments on whether Obama’s actions violated the rarely invoked “take care” provision. That question had not even been at issue when lower courts blocked Obama’s plan from taking effect.

In a separate pending case this term, the court also will rule on whether the president and his healthcare advisors went too far by requiring Catholic charities and other faith-based employers to formally opt out of providing a full range of contraceptives to their female employees by citing their religious objections.

The faith-based entities argued that by notifying the government of their decision to opt out — which triggers a process under which employees would get contraceptive coverage by other means — they would be “complicit” in supplying “abortion-inducing drugs.”

The decisions, both due by summer, will help answer a question that looms over Obama’s presidency. Has he properly used his power as chief executive to circumvent congressional gridlock on issues such as immigration, climate change and healthcare, or has he gone too far and violated his duty to enforce the laws as set by Congress?

The cases come before the court with a backdrop of Republican claims that the president has overreached and abused his power. Former House Speaker John A. Boehner said Obama was “acting like a king” and “damaging the presidency” when he announced the deportation-relief plan now before the high court.

On the campaign trail, Sen. Ted Cruz of Texas promises GOP voters that, if he is elected president, his first task on his first day in the White House will be to “rescind every illegal and unconstitutional executive action of Barack Obama.”

White House officials and supporters of the president counter that Obama’s actions are not only legal and well within his discretionary authority, but that Congress has left him no choice by refusing to take action on pressing national problems.

Conservative scholars think Obama has left himself vulnerable by announcing broad executive actions on policies that had been considered and rejected by Congress, and which even he once said were beyond his authority.

In his first term, Obama told Latino activists who were pushing him to take unilateral action that he could not “waive away the laws Congress put in place” regarding the removal of immigrants who entered the country illegally. But later the president decided he did have the power to suspend deportation and offer “lawful presence” and work permits to as many as 5 million of those immigrants.

So far conservatives have mostly failed to derail Obama in the Supreme Court. Twice, the justices upheld the president’s healthcare law against conservative attacks, with Chief Justice John G. Roberts Jr. casting his vote with the court’s four liberals.

Four years ago, in a key test of state-versus-federal power, the court ruled for Obama after his administration sued to block Arizona from enforcing a law to crack down on immigrants in the country illegally.

In 2011, Obama and then-Atty. Gen. Eric H. Holder Jr. raised ruffles on the right when they announced the administration would not defend in court the Defense of Marriage Act, which recognized only marriages between a man and a woman. House Republicans took up the cause, but two years later the high court agreed with the administration and struck down key parts of the law as unconstitutional.

But the new immigration and contraceptive cases pose a tough test for Obama’s lawyers. In last year’s healthcare case, they were defending a law that had won approval in Congress, when both chambers were controlled by Democrats. “We must respect the role of the legislature and take care not to undo what it has done,” Roberts said in upholding its system of insurance subsidies.

This year, by contrast, Obama is defending an executive action on immigration that was taken without the approval of Congress and in the face of fierce Republican criticism.

Similarly, the “contraceptive mandate” was not spelled out in the Affordable Care Act, as lawyers for Catholic bishops often point out. It was adopted later in a regulation issued by Obama’s healthcare advisors.

But Obama’s defenders, including immigration law experts, say the critics are missing the crucial point that the deportation laws give the chief executive a free hand to decide how or whether to deport those living here illegally. Contrary to what many assume, the law does not say federal officials must arrest and deport such people. Rather, it says they are “subject” to removal, based on policies and priorities set by the executive branch.

Obama’s administration says it wants to focus on deporting criminals, security threats, gang members and drug traffickers, not parents and grandparents who have children in the United States legally.

The administration can quote a powerful voice to back up its view of the matter. “Aliens may be removed” if they entered the country illegally and committed crimes, said Justice Anthony M. Kennedy, but “a principal feature of the removal system is the broad discretion exercised by immigration officials…. Federal officials, as an initial matter, must decide whether it makes sense to pursue removal at all. As a general rule, it is not a crime for a removable alien to remain present in the United States.”

Kennedy spoke for the court four years ago in rejecting Arizona’s claim that immigrants who could not prove their citizenship should be arrested, and Roberts agreed. Kennedy’s explanation of the deportation system may also defeat any claims that Obama is violating his duty to “faithfully execute” the law.

“The president is not claiming a constitutional authority to not enforce the law. He’s claiming authority based on the immigration statute,” said Walter Dellinger, a White House lawyer under President Clinton. “And if the court says he is wrong, then he will comply with that.”

K -14 Free Education? Not so Much

Obama to propose $2.5 billion community college tax credit

TheHill: President Obama on Tuesday will propose a $2.5 billion tax credit over five years for businesses that invest in local community colleges and hire their graduates, administration officials told Reuters.
The Community College Partnership Tax Credit, which will be formally proposed in the president’s fiscal 2017 budget, would give employers who invest in schools and hire students from such programs a one-time $5,000 tax credit per individual.
“Employers can define those skills and help colleges develop the curriculum that teaches them,” James Kvaal, White House deputy director of domestic policy, told Reuters.
The administration estimated the initiative would help train 500,000 highly skilled workers over five years.
Ted Mitchell, under secretary at the Department of Education, said the proposal would receive bipartisan support.
“The idea of … bringing together community colleges and the local employer base is a very powerful one and really doesn’t break along party lines,” he said.
Under the president’s proposal, states would get a portion of the tax credit and be responsible for choosing which businesses and community colleges participate in the program.
The administration believes the program will spur employers to propose curriculums uniquely tailored to their labor needs.

FACT SHEET – White House Unveils America’s College Promise Proposal: Tuition-Free Community College for Responsible Students

Nearly a century ago, a movement that made high school widely available helped lead to rapid growth in the education and skills training of Americans, driving decades of economic growth and prosperity. America thrived in the 20th century in large part because we had the most educated workforce in the world.  But other nations have matched or exceeded the secret to our success. Today, more than ever, Americans need more knowledge and skills to meet the demands of a growing global economy without having to take on decades of debt before they even embark on their career.

Today the President is unveiling the America’s College Promise proposal to make two years of community college free for responsible students, letting students earn the first half of a bachelor’s degree and earn skills needed in the workforce at no cost. This proposal will require everyone to do their part: community colleges must strengthen their programs and increase the number of students who graduate, states must invest more in higher education and training, and students must take responsibility for their education, earn good grades, and stay on track to graduate. The program would be undertaken in partnership with states and is inspired by new programs in Tennessee and Chicago. If all states participate, an estimated 9 million students could benefit. A full-time community college student could save an average of $3,800 in tuition per year.

In addition, today the President will propose a new American Technical Training Fund to expand innovative, high-quality technical training programs similar to Tennessee Tech Centers that meet employer needs and help prepare more Americans for better paying jobs. These proposals build on a number of historic investments the President has made in college affordability and quality since taking office, including a $1,000 increase in the maximum Pell Grant award to help working and middle class families, the creation of the $2,500 American Opportunity Tax Credit, reforming student loans to eliminate subsidies to banks to invest in making college more affordable and keeping student debt manageable, and making available over $2 billion in grants to connect community colleges with employers to develop programs that are designed to get hard-working students good jobs.

The President’s Plan: Make Two Years of College as Free and Universal as High School

By 2020, an estimated 35 percent of job openings will require at least a bachelor’s degree and 30 percent will require some college or an associate’s degree. Forty percent of college students are enrolled at one of America’s more than 1,100 community colleges, which offer students affordable tuition, open admission policies, and convenient locations.  They are particularly important for students who are older, working, need remedial classes, or can only take classes part-time. For many students, they offer academic programs and an affordable route to a four-year college degree. They are also uniquely positioned to partner with employers to create tailored training programs to meet economic needs within their communities such as nursing, health information technology, and advanced manufacturing.

The America’s College Promise proposal would create a new partnership with states to help them waive tuition in high-quality programs for responsible students, while promoting key reforms to help more students complete at least two years of college. Restructuring the community college experience, coupled with free tuition, can lead to gains in student enrollment, persistence, and completion transfer, and employment. Specifically, here is what the initiative will mean:

Enhancing Student Responsibility and Cutting the Cost of College for All Americans: Students who attend at least half-time, maintain a 2.5 GPA while in college, and make steady progress toward completing their program will have their tuition eliminated. These students will be able to earn half of the academic credit they need for a four-year degree or earn a certificate or two-year degree to prepare them for a good job.

Building High-Quality Community Colleges: Community colleges will be expected to offer programs that either (1) are academic programs that fully transfer to local public four-year colleges and universities, giving students a chance to earn half of the credit they need for a four-year degree, or (2) are occupational training programs with high graduation rates and that lead to degrees and certificates that are in demand among employers.  Other types of programs will not be eligible for free tuition.  Colleges must also adopt promising and evidence-based institutional reforms to improve student outcomes, such as the effective Accelerated Study in Associate Programs (ASAP) programs at the City University of New York which waive tuition, help students pay for books and transit costs, and provide academic advising and supportive scheduling programs to better meet the needs of participating students, resulting in greater gains in college persistence and degree completion.

Ensuring Shared Responsibility with States: Federal funding will cover three-quarters of the average cost of community college. States that choose to participate will be expected to contribute the remaining funds necessary to eliminate community college tuition for eligible students. States that already invest more and charge students less can make smaller contributions, though all participating states will be required to put up some matching funds. States must also commit to continue existing investments in higher education; coordinate high schools, community colleges, and four-year institutions to reduce the need for remediation and repeated courses; and allocate a significant portion of funding based on performance, not enrollment alone. States will have flexibility to use some resources to expand quality community college offerings, improve affordability at four-year public universities, and improve college readiness, through outreach and early intervention.

Expanding Technical Training for Middle Class Jobs. Additionally, in order to spread the availability of high-quality and innovative programs like those in Tennessee and Texas, which achieve better than average completion and employment outcomes, the President is also proposing the American Technical Training Fund. This fund will award programs that have strong employer partnerships and include work-based learning opportunities, provide accelerated training, and are scheduled to accommodate part-time work. Programs could be created within current community colleges or other training institutions. The focus of the discretionary budget proposal would be to help high-potential, low-wage workers gain the skills to work into growing fields with significant numbers of middle-class jobs that local employers are trying to fill such as energy, IT, and advanced manufacturing. This program will fund the start-up of 100 centers and scale those efforts in succeeding years. Smaller grants would help to bring together partners and start a pilot program. Larger grants would be used for expanding programs based on evidence of effectiveness, which could include past performance on graduation rates, job placement rates and placement wages. Building on the President’s community college initiative, known as the Trade Adjustment Assistance Community College and Career Training Grants and for which 2014 was the final year of funding, these funds will help community colleges become more job-driven.

Building on State and Local Programs.  In the past year, Tennessee and the City of Chicago initiated free community college programs.  In the first year of the Tennessee program, 57,000 students representing almost 90 percent of the state’s high school graduating class applied for the program. The scholarship is coupled with college counseling, mentorship, and community service that early evidence suggests supports greater enrollment, persistence and college completion.  This is coupled with efforts to spur innovation and improvement by funding colleges using performance outcomes based on student success and an innovative approach to career and technical education through the Tennessee Colleges of Applied Technology.  These Tennessee Tech Centers have a graduation rate of 80 percent and a job placement rate of 85 percent.

Building on a Record of Progress. Since taking office, President Obama has taken steps to expand federal support to help more students afford college, while calling for a shared responsibility in tackling rising college costs. Key achievements include:

  • Doubling the Investment in Pell Grants: The President has raised the maximum Pell Grant award to $5,730 for the 2014-15 award year — a nearly $1,000 increase since 2008. The number of Pell Grant recipients has expanded by 50 percent over that same time.
  • Expanding Education Tax Credits: President Obama established the American Opportunity Tax Credit in 2009 to assist families with the costs of college, providing up to $10,000 for four years of college tuition.
  • Pay-As-You-Earn Loans: All new borrowers can now cap loan payments at 10 percent of their incomes. The Department of Education has begun the process to amend its regulations and will make the new plan available on all direct loans by December 2015. We expect it to benefit up to 5 million borrowers.
  • First in the World Grants: In September, the Department of Education awarded $75 million to 24 colleges and universities under the new First in the World grant program to expand college access and improve student learning while reducing costs.
  • College Ratings Program: The Department of Education continues to develop a college ratings system by the 2015-2015 school year that will recognize institutions that excel at enrolling students from all backgrounds; focus on maintaining affordability; and succeed at helping all students graduate with a degree or certificate of value.
  • Job-Driven Training Grants: Through the Trade Adjustment Community College and Career Training program more than 1,000 institutions have received $2 billion in federal funding to design education and training programs, working closely with employers and industry that prepare workers for jobs in-demand in their regional economies, such as health care, information technology and energy. These programs have shown early success — through the end of FY2013, among the nearly 164,000 individuals who had enrolled in these programs 88 percent either completed a program or continued the program into a second year.
  • White House Summit on Community Colleges: In October 2010, the President convened community college leaders, faculty and students; business leaders; philanthropic organizations; and other workforce development experts for the first White House summit dedicated to the role that community colleges play in our efforts to increase the number of college graduates and prepare those graduates to lead the 21st century workforce.
  • Center for the Analysis of Postsecondary Readiness: Last August, the Department of Education launched a new $10 million Institute for Education Sciences-funded Center for the Analysis of Postsecondary Readiness (CAPR) that is working to strengthen the research, evaluation, and support of college readiness efforts across the nation. CAPR is documenting current practices in developmental English and math education to identify innovative instructional practices that improve student success.
  • Call to Action on College Opportunity: Last December, the President, Vice President, and First Lady joined college presidents and leaders of non-profits, foundations, and other organizations to announce over 600 new commitments to produce more college graduates. Community colleges made commitments individually, and in partnership with neighboring school districts and four-year institutions, to build seamless transitions among institutions, develop clear educational and career pathways, implement strategies to increase student completion of STEM programs, and establish more accurate measures of student progress and success.