Trump’s FY 2026 Budget Request Calls for Decreasing Maximum Pell Grant and More Reductions for Student Aid Programs
By Hugh T. Ferguson, NASFAA Managing Editor
The White House has unveiled a more detailed budget request for fiscal year (FY) 2026, with reduced funding levels for the Department of Education (ED) that the administration says are meant to reflect a responsible “winding down” of the federal agency.
According to the more detailed budget, unveiled on Friday evening, the overall request calls for $66.7 billion in new discretionary budget authority for ED, which is $12 billion less – a 15.3% reduction – than the enacted level for FY 2025.
The documents follow the administration’s “skinny budget” request, which first outlined massive funding cuts to ED programs but did not offer specific requests for all programs. Instead, the administration highlighted that they sought to cut $163 billion in non-defense discretionary funding across the federal government.
As previously noted in the “skinny budget,” the proposal requests that the Federal Supplemental Educational Opportunity Grant (FSEOG) program be eliminated, losing all of its $910 million in funding. The Federal Work-Study (FWS) program would lose $980 million in funding, leaving the program funded at $250 million. Employers would also be required to pay 75% of a student’s hourly wages and the federal contribution for FWS would be reduced to 25%. Other programs eliminated in the administration’s proposal include the TRIO programs and Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP).
Discretionary funding for the Pell Grant program, which was not detailed in the “skinny budget,” would be the same as the FY 24 level – since FY 25 was completed through a year-long continuing resolution the funding levels from the previous cycle are the same – and set the maximum award to $5,710 for the 2026-27 award year, a decrease of $1,685 from the current fiscal year.
“Even during politically polarizing times, the federal Pell Grant program has historically seen broad bipartisan support,” said NASFAA President & CEO Melanie Storey. “Significantly reducing the maximum Pell Grant — an award targeted to low-income students — while cutting or eliminating complementary programs reverses decades of commitment to the promise of the Higher Education Act and would result in considerable harm for students pursuing postsecondary education.”
The budget request also highlights federal investments in workforce development and states that the administration will work with Congress on Workforce Pell, which the administration said would boost the workforce in a “more cost-effective and efficient manner.”
According to ED’s budget documents, this request “will continue to cover the average published in-state tuition and fees for community college students.” The department also said that the decision to seek a decrease in the maximum Pell Grant is in part due to a growing shortfall for the program.
Funding for Career and Technical Education (CTE) State Grants would also be kept consistent with FY 24, with an allocation of $1.4 billion. However, the budget request seeks $10.2 million for Career and Technical Education (CTE) National Programs, which is $2.3 million less than FY 24.
The budget requests $256.3 million in discretionary funding for Hispanic-serving Institutions (HSIs) through Title V and $667.6 million in discretionary funding (a 14.4% decrease compared to current funding levels) for the Aid for Institutional Development (AID) programs under Title III, which includes funding for Historically Black Colleges and Universities (HBCUs), Tribally Controlled Colleges and Universities (TCCUs), and Alaska Native and Native Hawaiian-serving Institutions (ANNHs).
Rep. Bobby Scott (D-Va.), ranking member of the House Education & Workforce Committee, said that the budget request would weaken the economy and harm working families in particular.
“The budget continues the illegal dismantling of the Department of Education, with no suggestion on how this downsized Department will be able to fulfill its statutory duties,” Scott said. “By cutting funding for K-12 schools, eliminating a program that provides child care on campus, eliminating programs that provide direct support services for disadvantaged students that promotes college access, President Trump’s budget proposal does nothing to deliver for students.”
Education Secretary Linda McMahon will testify before House and Senate committees during the week of June 2. Both panels will focus on the president’s budget request.
NASFAA opposes cuts to essential student aid programs that have been proven to reduce drop-out rates and improve student persistence and academic success.
“We urge Congress to reject these proposals and invest in America’s postsecondary students,” Storey said. “We look forward to working with lawmakers to find common-sense reforms to increase access and affordability to a postsecondary education in a fiscally responsible manner.”
Stay tuned to Today’s News for more details. As a reminder, the president’s budget request is the starting point of negotiations over federal funding levels for the upcoming fiscal year, and congressional leaders will now turn to drafting their own priorities. NASFAA will continue to provide updates on the FY 26 appropriations process and upcoming congressional hearings.
Publication Date: 6/2/2025
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