This report provides the following: an overview of postsecondary education (institutions and students), an overview of the Higher Education Act (HEA) with a focus on its most significant programs and provisions, and a discussion of major issues likely to be of interest to the Congress during the HEA reauthorization process.

In recent years conflicting budget priorities and divided political control have accentuated the institutional tensions between the executive and legislative branches inherent in the federal budget process. President Clinton, like his two predecessors, called for an item veto, or possibly expanded impoundment authority, to provide him with greater control over federal spending. This report provides a brief history of impoundment and discusses the debate surrounding the line item veto.