Congress approved a $2.9-trillion budget blueprint for 2008 and beyond on Thursday, a measure that authorizes increases in spending above inflation for education and the physical sciences. The plan, which is not subject to approval by President Bush, also calls for cutting at least $750-million from federal subsidies to student-loan companies — and possibly much more — over the next six years, money that Democratic leaders want to divert to student aid.

The House of Representatives approved the measure by 214 to 209, and the Senate by 52 to 40. The Appropriations Committees in Congress will now begin drawing up spending bills for the 2008 fiscal year, which begins on October 1. The total amounts of those bills will be governed by ceilings set in the budget blueprint. —Jeffrey Brainard