Biden Signs FY 2023 Budget Into Law With Increases to Pell Grants and Student Aid

By Hugh T. Ferguson, NASFAA Managing Editor

President Joe Biden formally signed the year-end omnibus package into law, staving off a government shutdown and completing the budget cycle for fiscal year 2023.

The law, signed on December 29, allocates $79.6 billion to the Department of Education (ED) and its programs, a $3.2 billion boost from the fiscal year (FY) 2022 enacted level. Specifically, the spending package contains $24.6 billion for federal student aid programs, including a $500 increase to the maximum Pell Grant award, bringing the total to $7,395 for the 2023-24 award year.

According to congressional leaders, this Pell Grant increase is the largest increase in the maximum award since the 2009-10 award year, and further builds off last year’s $400 increase.

Check out NASFAA’s breakdown of the spending package

The spending bill, after a lengthy amendment debate, was passed in the Senate by a vote of 68-29 and then cleared the House by a vote of 225-201.

The budget process was delayed for the 2023 fiscal year, but the 117th Congress was able to wrap up negotiations before the start of a new session. Members of the 118th Congress, set to be sworn in on Jan. 3, 2023, will begin consideration of the spending levels for fiscal year 2024 with a deadline of Sept. 30, 2023.


Publication Date: 12/30/2022

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