The House and the Senate approved H.Rept. 111-89, the conference report to accompany S.Con.Res. 13, the Concurrent Resolution on the Budget for Fiscal Year 2010, on April 29, 2009. The FY2010 budget resolution includes reconciliation instructions directing the Senate Committee on Health, Education, Labor, and Pensions (HELP) and the House Committee on Education and Labor to report changes in laws within their jurisdictions to reduce the deficit by $1 billion for the period of fiscal year (FY) 2009 through FY2014. The reconciliation instructions for the House specifically direct the Committee on Education and Labor to report a bill that invests in education while reducing the deficit by $1 billion over the FY2009-FY2014 period. On July 21, 2009, the House Committee on Education and Labor marked up H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009; and on July 27, 2009, the committee reported H.Rept. 111-232 to accompany H.R. 3221. H.R. 3221 would terminate authority under the Higher Education Act (HEA) of 1965, as amended, to make loans under the Federal Family Education Loan (FFEL) program after June 2010. The Congressional Budget Office (CBO) estimates that this would reduce mandatory or direct spending by $41.8 billion over the FY2009-FY2014 period, and by $86.8 billion over the FY2009-FY2019 period. These savings would be large enough to achieve the $1 billion reduction in spending specified in S.Con.Res. 13, while offsetting increases in mandatory spending that would result from the expansion of several existing HEA programs, and the establishment and funding of several proposed new programs. Overall, CBO estimates that H.R. 3221 would reduce mandatory spending by $13.3 billion over the FY2009-FY2014 period, and by $7.8 billion over the FY2009-FY2019 period. CBO also estimates that enactment of the proposals made in H.R. 3221, if fully funded, would increase discretionary spending by $3.6 billion over the FY2009-FY2014 period, and by $13.5 billion over the FY2009-FY2019 period. In addition to terminating the authority to make loans under the FFEL program, H.R. 3221 would fund expansions of several existing HEA programs and benefits, including the Federal Pell Grant program, the William D. Ford Federal Direct Loan (DL) program, programs serving Historically Black Colleges and Universities (HBCUs) and other Minority-Serving Institutions, and the College Access Challenge Grant program, and would alter procedures for determining the eligibility of students for need-based federal student aid. H.R. 3221 also would establish several new programs under the HEA, including a new Veterans Educational Equity Supplemental Grant Program, a new Federal Direct Perkins Loan offered through the DL program to replace the current Federal Perkins Loan program, and a College Access and Completion Innovation Fund. Several major non-HEA programs would also be established and funded by H.R. 3221. These include a series of Modernization, Renovation, and Repair grant programs for school facilities, an Early Learning Challenge Fund to support early childhood education, and an American Graduation Initiative to support community colleges. This report reviews and briefly describes the proposals contained in H.R. 3221 to amend programs authorized under HEA and to establish and fund additional new education programs. It will be updated as warranted to track legislative developments.