Trump’s FY 2027 Budget Request Would Eliminate FSEOG, Slash FWS Funding, Increase Pell Grant
By Maria Carrasco, NASFAA Staff Reporter
The Trump administration on Friday unveiled its budget proposal for fiscal year (FY) 2027, once again calling for the elimination of the Federal Supplemental Educational Opportunity Grant (FSEOG) program and drastic cuts to the Federal Work-Study (FWS) program, while also seeking increased funding for the federal Pell Grant program.
Specifically, the administration requested $76.5 billion in discretionary funding for the Department of Education (ED) for FY 27, a $2.3 billion, or 2.9%, decrease from the FY 26 enacted level. For the administration of federal student aid, ED would receive roughly $2 billion in funding. And including both mandatory and discretionary funding, the administration requested $124.4 billion for federal student aid for FY 27. Discretionary funding is determined by Congress each year through the appropriations process, while mandatory funding is set in law and does not require annual approval.
The Trump administration proposed a $10.5 billion increase for the Pell Grant program, bringing the total discretionary funding to over $33 billion. The proposal noted that this increase addresses the projected program funding shortfall while maintaining the discretionary maximum award of $6,335. Overall, including both mandatory and discretionary funding, the maximum Pell Grant award would be set at $7,395 for the 2027-28 award year under this proposal, the same amount as the 2026-27 maximum award.
The administration previously proposed a $5,710 maximum Pell Grant award for FY 26, a $1,685 decrease from the FY 25 enacted level. Congress ultimately maintained funding for the maximum award at $7,395 for the 2026-27 award year.
Additionally, the Trump administration once again proposed eliminating FSEOG for FY 27. A similar proposal was put forward in FY 26, which Education Secretary Linda McMahon defended before Congress.
The administration also proposed changes to the FWS program for FY 27, including requiring that employers now pay 90% of a student’s hourly wage, significantly up from the traditional 25% share, while reducing the federal share from 75% to 10%, totaling $123 million in funding for the program. A similar push to scale back the program was included in the FY 26 budget request, though Congress ultimately voted to flat-fund both the FSEOG and FWS programs in early February.
The Trump administration also proposed to eliminate funding for the federal TRIO programs, Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), and Graduate Assistance in Areas of National Need (GAANN) program, which the administration also proposed last year.
The Trump administration noted that this budget request puts ED on the “path to elimination.”
“The Budget advances efforts underway to dismantle the Federal education bureaucracy, including reducing ED’s staff and transferring programs to other agencies that can deliver better results,” the request reads.
NASFAA President and CEO Melanie Storey expressed serious concerns over the Trump administration’s budget request, noting that critical financial aid programs, which students and families depend on, would be gutted.
“American families are facing rising costs of basic necessities, and forthcoming changes to federal student aid programs from the One Big Beautiful Bill Act will give many of them fewer options to pay for college,” Storey said in a statement. “Now is not the time to abandon critical need-based aid programs with a proven track record of improving student outcomes and academic success.”
Notably, the Trump administration’s budget request would mark the fourth consecutive year of a flat maximum Pell Grant award, which is a level similar to 1978 when adjusting for inflation. Storey called on Congress to right-size funding for the Pell Grant program to keep pace with rising inflation and student need.
NASFAA, as part of the Student Aid Alliance (SAA), sent a letter to the leaders of the congressional appropriations committees to “protect and maintain” funding for federal student aid programs in FY 27.
The budget request noted that ED would transfer its Office of Career, Technical, and Adult Education to the Department of Labor (DOL), reducing ED funding by $1.5 billion. There are also several proposed funding cuts to postsecondary programs, including a $354 million cut to Minority-Serving Institutions (MSI) programs and a $136 million cut to the Fund for the Improvement of Postsecondary Education (FIPSE).
Rep. Tim Walberg (R-Mich.), chair of the House Education & Workforce Committee, on Friday praised the Trump administration’s budget request, saying he is “eager to work with the administration to deliver on these shared goals.”
“Families across the country are sitting at their kitchen tables making tough decisions about how to stretch every dollar—we owe it to them to do the same in government,” Walberg said in a statement. “This budget proposal is a blueprint for cutting wasteful spending, improving government efficiency, and ensuring that every dollar spent delivers real value to taxpayers.”
However, Rep. Bobby Scott (D-Va.), ranking member of the House Education & Workforce Committee, criticized the Trump administration’s budget request, saying it would threaten the future of public education.
“The President’s budget fails to deliver for students, teachers, or families,” Scott said in a statement. “It continues the illegal dismantling of the Department of Education, and eliminates funding for preschoolers with disabilities, teacher training grants, and Minority-Serving Institutions (including Asian American and Native American Pacific Islander-Serving Institutions, Hispanic-Serving Institutions, and Predominantly Black Institutions), which are traditionally underserved in higher education. “
The Trump administration’s budget request is a proposal and a first step in the appropriations process. From here, both the Senate and the House must work together to draft their own budget proposals and ultimately agree and pass legislation to fund the federal government by September 30, 2026, or risk another government shutdown. Stay tuned to Today’s News for more updates on the appropriations process.
Publication Date: 4/3/2026
Peter G | 4/8/2026 3:45:30 PM
Any presidential budget has to be taken with a large grain of salt since it's more political statement than policy roadmap, but the approach to Pell here strikes me as actually 'good' news given the options they had and some of the political chatter.
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