Student Aid Alliance Calls on Congressional Appropriators to Protect Federal Student Aid Programs
By Maria Carrasco, NASFAA Staff Reporter
The Student Aid Alliance, which NASFAA is a member of, sent a letter to the top congressional appropriators, calling on the lawmakers to protect and maintain funding for federal student aid programs in fiscal year (FY) 2026.
The letter was sent to Sens. Shelley Moore Capito (R-W.V.) and Tammy Baldwin (D-Wisc.), leaders of the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, and Reps. Robert Aderholt (R-Ala.) and Rosa DeLauro (D-Conn.), who lead the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies.
Last week, Congress passed a continuing resolution to fund the government until September 30, 2025 at FY 24 levels, with some exceptions. As Congress begins the FY 26 appropriations process, the alliance asked the lawmakers to advocate and prioritize student aid funding.
“The federal student aid programs were created to ensure low- and middle-income students have the same opportunities as their more affluent peers,” the letter reads. “These programs play a vital role in building a competitive workforce and bolstering social and economic mobility.”
The letter listed specific funding requests from the alliance. For the federal Pell Grant program, the alliance asked that the current maximum Pell Grant award be increased to $7,595 in FY 26, a $200 increase, while still working to increase the maximum award to $13,000. The alliance noted that the $200 increase would cover inflation.
The alliance stressed the importance of the federal Pell Grant program, and noted that the current maximum award only covers between 13% to 30% of a student’s average tuition, fees, housing, and food in college. Furthermore, the alliance stressed the importance of having an inflationary adjustment to the Pell Grant award since the program is so critical for low-income students and the country’s economic competitiveness.
The alliance also addressed the estimated Pell Grant funding shortfall for FY 25. In January, the Congressional Budget Office (CBO) released projections indicating that the Pell Grant program could face a funding shortfall of about $2.7 billion in FY 25. That shortfall could apply to the 2025-26 school year. By the end of FY 26, the budget shortfall would be nearly $10 billion.
The alliance requested Congress to address this funding shortfall in order to protect the program’s fiscal health.
“Adding mandatory funding in budget reconciliation legislation is one possible way to achieve this goal, and we encourage Congress to consider this avenue for protecting the Pell Grant program,” the letter reads. “Keeping the Pell Grant program on a sustainable path moving forward provides certainty that current and prospective students will be able to access vital grant aid to help pay for college.”
Other critical federal student aid programs in need of more funding to account for inflation include the Federal Supplemental Educational Opportunity Grant (FSEOG) and Federal Work-Study (FWS) programs. The alliance noted that students in the FSEOG program have higher financial need on average than students receiving only Pell Grants, with over 99 percent of FSEOG recipients also receiving a Pell Grant award. The FWS program also provides financial support to students, while also giving them valuable work experience.
The alliance requested that funding for FSEOG be increased to $966.26 million and funding for FWS increased to $1.31 billion.
Other programs the alliance advocated for increased funding include the Federal TRIO programs, the Gaining Early Awareness and Readiness in Undergraduate Programs (GEAR UP), and the Graduate Assistance in Areas of National Need (GAANN).
Specifically, the alliance requested that Federal TRIO programs receive $1.23 billion as an investment from Congress to ensure that low-income students, first-generation students, and students with disabilities successfully enroll and graduate from college.
GEAR UP funding should be increased to $410 million, the alliance wrote, in order to bring about 40,000 new students into the program, and GAANN program funding should be increased to $28.6 million to provide more competitive grants to students studying in competitive fields.
“Without the strong partnership between the federal government, states, institutions, and families, millions of students would not be able to pursue their postsecondary education,” the letter reads. “We call on Congress to continue its bipartisan support of federal student aid programs—which combine grants, work-study, and loan programs—to enable low- and middle-income students to succeed.”
Publication Date: 3/24/2025
Armand R | 3/25/2025 7:4:30 PM
So a special interest group is asking congress for more money even though there isn't enough money to fund the current government spending. In other words "y'all have to tighten your belts but we need more!"
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