Judd Gregg: “I do want to make this simple point: Pell grants were expanded through SMART grants when we did the last reconciliation…”

“I do want to make this simple point: Pell grants were expanded through SMART grants when we did the last reconciliation, when I was chairman of the Budget Committee. We put $8 billion in the SMART grants, which helped kids, especially freshman and sophomores. We eliminated the origination fees, and we also increased the auto zero to $20,000, and we increased the asset protection allocation. So we did make these decisions. But at the same time we reduced the funds to lenders and put a significant amount of it into deficit reduction, $40 billion into deficit reduction. The Senator from Illinois takes the position that when we cut taxes, we were having the same impact on the budget as when they increased spending. That is the difference between the parties. It is fundamental. We believe when we leave people's dollars in their pockets and they get to spend it themselves--because it is their money to begin with--that is not necessarily aggravating the Federal budget situation.”