This bill makes many changes to the Federal Pell Grant program in the Higher Education Act. Key changes include: a scheduled increase in the maximum Pell Grant ($10,000 for 2026–2027, rising to $15,000 by 2031–2032, then adjusted each year by the Consumer Price Index and rounded to the nearest $50); a change to a statutory percentage from 10 percent to 5 percent; moving Pell Grant funding to an appropriation formula that "authorizes to be appropriated, and appropriates, such sums as may be necessary" beginning fiscal year 2026; increasing the share for certain student support and scholarship components to 10 percent of the total maximum; allowing students with negative student aid indexes to receive awards above the total maximum; creating a special student aid index rule (set at -$1,500) for applicants or family members who received means-tested federal benefits in the prior 2 years; restoring total Pell semesters of eligibility from 12 to 18; restoring Pell eligibility for some students with non-federal scholarships by removing a disqualifying paragraph; changing rules about satisfactory academic progress (definitions, warning and probation rules, appeal and reevaluation processes, frequency of reviews, notice requirements, and Secretary reporting and consumer testing); and adding a definition and eligibility path for "Dreamer students" to receive federal student aid, with a hardship waiver option for the age requirement. The Act takes effect July 1, 2026, and applies to award year 2026–2027 and later.
The bill includes a provision that "authorizes to be appropriated, and appropriates, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary" to provide Pell Grants for fiscal year 2026 and each subsequent year. The bill text does not include a specific dollar cost estimate or a total appropriation amount. No publicly available information on an overall budgetary estimate is included in the bill text provided.
The bill text includes findings stating that investments in higher education and the Pell Grant program help students and families afford education and that the program is especially important for students of color. The text says making Pell a mandatory program that grows with inflation, restoring prior eligibility, and expanding access will stabilize funding and give more students critical aid.
No publicly available information.