University of Illinois Federal Issues

The following webpage provides a snapshot of some of the major federal issues that impact the University of Illinois System.

U of I System 2019 Federal Priorities

In January 2019, U of I System President Tim Killeen sent a letter to the Illinois Congressional delegation outlining the system's federal priorities for 2019. We have an accompanying one pager

Appropriations

As a pre-eminent public research university, the U of I System is a leader in groundbreaking research and discovery. With the support of the federal government, U of I System faculty and students are conducting research that drives innovation and economic growth. At the same time, federal financial aid plays a crucial role in helping to ensure access and affordability to higher education. Accordingly, the U of I System supports robust federal funding for research and higher education. Read more below about the U of I System's major appropriations priorities for Fiscal Year 2020.

Facilities & Administrative (F&A) Cost Reimbursement

The U of I System is concerned about proposals to cap federal reimbursement for facilities & administrative (F&A) expenses. In June 2017, U of I System President Tim Killeen and our three university chancellors sent a letter to OMB and HHS leadership expressing opposition to the proposed cap.

COGR has released a useful paper on F&A cost reimbursement entitled: "Excellence in Research: The Funding Model, F&A Reimbursement, and Why the System Works." An executive summary can be found here and full text of the paper is here.

Budget & Sequestration

The U of I System has consistently raised concerns about the potentially damaging impact of the spending caps that resulted from the enactment of the Budget Control Act of 2011. The caps, which apply to both defense and non-defense discretionary spending, are enforced by across-the-board spending cuts, or sequestration. Sequestration would cut crucial funding for federally supported research, increase origination fees on federal student loans and shrink critical financial aid programs that our students rely on, including the Supplemental Opportunity Education Grant program and Federal Work-Study. The U of I System has urged lawmakers to replace the Budget Control Act’s sequestration process and increase discretionary spending caps to more realistic levels.

Tax Reform

During debate on comprehensive tax reform legislation in 2017—H.R. 1, the Tax Cuts and Jobs Act (TCJA)—the U of I System opposed provisions that would have been damaging to higher education, students, and the U of I System. On December 7, 2017, U of I President Tim Killeen sent a letter to the House and Senate tax reform conferees expressing concerns about those provisions. Read more about how those provisions would make higher education less affordable and undermine the University's ability to promote economic growth and opportunity here.
 
While the final version of TCJA did not include several of the provisions of greatest concern, it did include some tax changes that negatively impact higher education. The U of I System strongly supports repeal of the new unrelated business income tax (UBIT) on transportation and parking fringe benefits for tax-exempt organizations. Previously, employees from across the U of I System could have money deducted from their paychecks tax-free and it would be applied to parking/transit benefits. Had the U of I System continued to provide this benefit post-TCJA, we would have had to pay an additional estimated 2019 tax bill of around $2.5 million. Instead, approximately 16,000 employees across the U of I System who had received this benefit are no longer able to deduct parking/transit fees pre-tax. The U of I System also supports efforts to fix TCJA's changes to the so-called "kiddie tax" that harms certain low- and middle-income students who rely on scholarship aid to pay for their college education.

Higher Education Act (HEA)

The U of I System is committed to enhancing affordability, completion, innovation, accountability, and transparency. As Congress considers proposals to reauthorize HEA, the U of I System is ensuring that our priorities are heard and taken into consideration. Below are some of our top priorities:
  • Simplifying loan repayment options and eliminating direct loan origination fees.
  • Maintaining mandatory and discretionary funding for the Pell grant, and prioritize extension of Pell mandatory inflation adjustments. 
  • Maintaining graduate student loan options, strong repayment terms, and loan forgiveness benefits that put graduate and professional studies within reach for all interested students. 
  • Protecting the TRIO and GEAR UP programs, which encourage and support access for low-income and first-generation students to higher education. 

The U of I System's three universities are members of national associations that have developed priorities for HEA reauthorization. View APLU's priorities.

In February 2018, U of I Executive Vice President Barb Wilson sent a letter to all 18 members of the Illinois delegation expressing concerns regarding H.R. 4508, the PROSPER Act, previously proposed legislation to reauthorize HEA.
 
Read more about the importance of federal student aid programs across the U of I System.

Health

The University of Illinois Hospital & Health Sciences System (UI Health) consists of a 495-bed tertiary care hospital, 22 outpatient clinics, Mile Square Health Center facilities, and seven health science colleges. UI Health's top federal priorities include:

  • Maintaining access to affordable healthcare
  • Protecting Medicaid for vulnerable and underserved populations 
  • Protecting Medicare payments to hospital outpatient departments 
  • Protecting vital support for medical education and training to continue to educate the next generation of healthcare professionals. 
  • Maintaining vital resources that help vulnerable patients through the 340B drug pricing program
  • Supporting efforts to delay reductions to disproportionate share hospital (DSH) payments

Read more about UI Health and its federal priorities.

Immigration

The U of I System is working to encourage Congress to pass comprehensive immigration reform that includes the DREAM Act and expands visa and citizenship opportunities for STEM graduates. The U of I System has supported efforts to, at a minimum, codify the protections of the Deferred Action for Childhood Arrivals (DACA) into law.

Deferred Action for Childhood Arrivals (DACA) 

  • On June 3, 2019, President Killeen sent a letter to the Illinois delegation urging support for H.R. 2820, the DREAM Act of 2019, which would ensure that talented undocumented Illinoisans who came to the U.S. as children can continue to make positive contributions to our state and nation.
  • On December 12, 2017, Big Ten chancellors and presidents, including Chancellor Jones, sent a letter to Congressional leadership urging them to take action on the DACA policy and pass a long-term legislative solution as soon as possible to protect Dreamers.
  • In October 2017, the U of I System and its three universities signed onto an American Council on Education (ACE) letter which urged Congress to act, as President Trump requested when he rescinded the DACA policy.
  • In September 2017, Chancellor Jones joined 56 other AAU presidents/chancellors in signing on a letter urging Congress to act immediately so DACA participants may remain in the U.S. without fear of deportation.

The U of I System continues to advocate for Congressional oversight of visa delays and rejections at the Department of State and U.S. Citizenship and Immigration Services. We have opposed efforts to restrict legal immigration through legal, legislative and regulatory means, including challenges to Optional Practical Training, which permits foreign students studying in the U.S. to apply for “practical training” with a U.S. employer in a job directly related to their major area of study.

Additional Resources