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Calendar No. 592
110th Congress Report
2d Session 110-272
SENATOR PAUL SIMON STUDY ABROAD FOUNDATION ACT
March 4, 2008.--Ordered to be printed
Mr. Biden, from the Committee on Foreign Relations,
submitted the following
[To accompany H.R. 1469]
The Committee on Foreign Relations, to which was referred
the bill (H.R. 1469) to establish the Senator Paul Simon Study
Abroad Foundation under the authorities of the Mutual
Educational and Cultural Exchange Act of 1961, having
considered the same, reports favorably, with amendments, and
recommends that the bill as amended do pass.
II. Committee Action.................................................1
IV. Section-by-Section Analysis......................................2
V. Cost Estimate....................................................4
VI. Evaluation of Regulatory Impact..................................5
VII. Changes in Existing Law..........................................5
The purpose of the bill is to establish a new governmental
foundation to promote and expand study abroad by U.S.
II. COMMITTEE ACTION
H.R. 1469 was introduced on March 12, 2007, by the Chairman
and Ranking Member of the Committee on Foreign Affairs
(Representatives Lantos and Ros-Lehtinen). It was approved by
the House of Representatives on June 5, 2007, by a voice vote.
A companion measure, S. 991, was introduced by Senators Durbin
and Coleman on March 27, 2007. It currently has 42 cosponsors,
including a majority of the members of the Committee on Foreign
On February 13, 2008, the Committee on Foreign Relations
ordered H.R. 1469 reported favorably by voice vote, after
approving several amendments.
In the FY 2004 Consolidated Appropriations Act (P.L. 108-
199), Congress created the Commission on the Abraham Lincoln
Study Abroad Program (Division H, Sec. 104). The purpose of the
Commission was to ``recommend a program to greatly expand the
opportunity for students at institutions of higher education in
the United States to study abroad, with a special emphasis on
studying in developing nations.''
The Commission, which was chaired by M. Peter McPherson
(former President of Michigan State University, and a former
Administrator of the U.S. Agency for International
Development), issued its report in November 2005. In it, the
Commission proposed that the United States send 1 million
students abroad to study annually within a decade. To achieve
this objective, it proposed a program of grants to students and
to institutions of higher education, with initial funding of
the Federal program of assistance set at $50 million in the
first year, rising to $125 million in the fifth year of the
The United States is nearly 25 percent of the way toward
reaching this objective. In the academic year 2005-06, nearly
225,000 U.S. students studied abroad, an increase of 8.5
percent from the previous year, according to the report ``Open
Doors 2007,'' an annual survey issued by the Institute for
International Education (IIE). The IIE survey also indicates
that study abroad has increased 150 percent in the last decade,
from fewer than 90,000 in 1995-96.
Study abroad by American university students is an
important means of broadening the horizons of citizens who will
lead the United States in decades to come. In an age of
globalization, and in order to remain the world's leading
economic, military, and political power, the United States
needs a workforce--for government, business, and other
sectors--educated and experienced in foreign languages and
cultures. Study abroad is a cost-effective means of helping to
provide this ``global literacy.''
IV. SECTION-BY-SECTION ANALYSIS
Section 1. Short title
The short title is the Senator Paul Simon Study Abroad
Foundation Act of 2007.
Section 2. Findings
This section contains 15 findings that, among other things,
summarize the recommendations of the Lincoln Commission and set
forth the reasons why the United States should promote study
Section 3. Purposes
This section contains four purposes of the bill.
Section 4. Definitions
This section contains definitions of terms used in the
Section 5. Establishment and management of the Senator Paul Simon Study
This section establishes in the executive branch a
government corporation named for former Senator Paul Simon, who
promoted the idea of government support for study abroad before
his death in 2003. The section sets forth a mandate that the
Foundation is to promote study abroad opportunities at diverse
institutions of higher education, including 2-year
institutions, minority-serving institutions, and institutions
that serve nontraditional students.
The Foundation will be managed by a Chief Executive Officer
who will report to a Board of Directors. The Board will be
chaired by the Secretary of State, and will also consist of the
Secretary of Education, the Secretary of Defense, the
Administrator the U.S. Agency for International Development,
and five individuals appointed from the private sector who have
Section 6. Establishment and operation of program
This section establishes a grant program to (1) U.S.
students; (2) nongovernmental organizations that provide and
promote study abroad; and (3) institutions of higher education.
One reason for grants to universities and colleges is to
promote reform of curricula, and other reforms, that may pose a
barrier to study abroad. The committee wishes to emphasize that
the large majority of funds should be used for scholarships.
The committee amended the bill approved by the House to express
the recommendation--also consistent with the recommendation of
the Lincoln Commission--that the Foundation should ensure that
not less than 85 percent of the amount awarded to institutions
of higher learning be used to award scholarships to students.
Section 7. Annual report
This section requires an annual report by the Foundation to
Section 8. Power of the Foundation; related provisions
This section provides legal authorities necessary for the
operation of the Foundation.
Section 9. General personnel authorities
This section contains personnel authorities necessary for
the operation of the Foundation.
Section 10. GAO Review
This section, which the committee added to the House-passed
bill, requires a review of the Foundation's operations by the
Comptroller General not later than 2 years after enactment of
the act. The purpose of this provision is to provide a thorough
examination of the Foundation after an initial period to
determine that it is operating efficiently, and in a manner
consistent with the purposes of the act.
Section 11. Authorization of appropriations
This section authorizes $80 million in fiscal year 2008,
and each subsequent fiscal year.
V. COST ESTIMATE
Pursuant to Rule XXVI, paragraph 11(a) of the Standing
Rules of the Senate, the following cost estimate has been
provided by the Congressional Budget Office.
Congressional Budget Office,
Washington, DC, March 4, 2008.
Hon. Joseph R. Biden, Jr.,
Chairman, Committee on Foreign Relations,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1469, the Senator
Paul Simon Study Abroad Foundation Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sunita
Robert A. Sunshine
(For Peter R. Orszag, Director).
H.R. 1469--Senator Paul Simon Study Abroad Foundation Act of 2007
H.R. 1469 would authorize the establishment of the Senator
Paul Simon Study Abroad Foundation to encourage U.S. students
to study overseas, particularly in nontraditional destinations
such as China, the Middle East, and developing countries. Over
200,000 American students currently study overseas every year,
and one of the foundation's objectives would be to increase
this number to at least 1 million within 10 years. The
foundation would be directed to make grants to students,
nongovernmental organizations, and educational institutions,
and to report annually to the Congress.
The act would authorize the appropriation of $80 million a
year for the foundation and allow it to solicit funds and
accept gifts and donations. Based on historical spending
patterns for similar educational exchange programs and assuming
enactment around the middle of fiscal year 2008, CBO estimates
that implementing this legislation would cost $20 million in
2008 and $405 million over the 2009-2013 period, subject to the
appropriation of the authorized amounts. Any gifts and
donations to the foundation would increase governmental
receipts and the spending of these receipts would increase
direct spending. CBO estimates that initially the foundation
would receive and spend gifts and donations of less than
$500,000 a year, but that those amounts could be significant in
later years. Thus, the act would increase both direct spending
and receipts, but CBO estimates that the net result would
likely be negligible in each year.
H.R. 1469 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
Some public colleges and universities would benefit from grants
to encourage students to study abroad. Any costs to those
schools would be incurred voluntarily as a condition of
receiving Federal assistance.
On April 12, 2007, CBO transmitted a cost estimate for H.R.
1469 as ordered reported by the House Committee on Foreign
Affairs on March 27, 2007. The two versions of the legislation
are similar, but CBO estimates that H.R. 1469 as ordered
reported by the Senate Committee on Foreign Relations would
have lower costs in 2008 and higher costs in 2009 and 2010, as
a result of a later assumed enactment date.
The CBO staff contact for this estimate is Sunita D'Monte.
This estimate was approved by Peter H. Fontaine, Assistant
Director for Budget Analysis.
VI. EVALUATION OF REGULATORY IMPACT
Pursuant to Rule XXVI, paragraph 11(b) of the Standing
Rules of the Senate, the committee has determined that there is
no regulatory impact as a result of this legislation.
VII. CHANGES IN EXISTING LAW
Pursuant to Rule XXVI, paragraph 12 of the Standing Rules
of the Senate, changes in existing law made by the bill, as
reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new matter is printed in
italic, existing law in which no change is proposed is shown in
31 U.S.C. 9101(C)
TITLE 31. MONEY AND FINANCE
SUBTITLE VI. MISCELLANEOUS
CHAPTER 91. GOVERNMENT CORPORATIONS
In this chapter--
(1) ``Government corporation'' means a mixed-ownership
Government corporation and a wholly owned Government
(2) ``mixed-ownership Government corporation'' means--
(A) the Central Bank for Cooperatives.
(B) the Federal Deposit Insurance Corporation.
(C) the Federal Home Loan Banks.
(D) the Federal Intermediate Credit Banks.
(E) the Federal Land Banks.
(F) the National Credit Union Administration Central
(G) the Regional Banks for Cooperatives.
(H) the Rural Telephone Bank when the ownership,
control, and operation of the Bank are converted under
section 410(a) of the Rural Electrification Act of 1936
(7 U.S.C. 950(a) ).
(I) the Financing Corporation.
(J) the Resolution Trust Corporation.
(K) the Resolution Funding Corporation.
(3) ``wholly owned Government corporation'' means--
(A) the Commodity Credit Corporation.
(B) the Community Development Financial Institutions
(C) the Export-Import Bank of the United States.
(D) the Federal Crop Insurance Corporation.
(E) Federal Prison Industries, Incorporated.
(F) the Corporation for National and Community
(G) the Government National Mortgage Association.
(H) the Overseas Private Investment Corporation.
(I) the Pennsylvania Avenue Development Corporation.
(J) the Pension Benefit Guaranty Corporation.
(K) the Rural Telephone Bank until the ownership,
control, and operation of the Bank are converted under
section 410(a) of the Rural Electrification Act of 1936
(7 U.S.C. 950(a)).
(L) the Saint Lawrence Seaway Development
(M) the Secretary of Housing and Urban Development
when carrying out duties and powers related to the
Federal Housing Administration Fund.
(N) the Tennessee Valley Authority.
[(O) Repealed. Pub. L. 104-134, Title III,
Sec. 3117(a), Apr. 26, 1996, 110 Stat. 1321-350]
(P) the Panama Canal Commission.
(Q) the Millennium Challenge Corporation.
[(R) the International Clean Energy Foundation.]
(R) the Senator Paul Simon Study Abroad Foundation.
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