Democrats Unveil Bill to Double Pell Grant, Shift to Mandatory Funding
By Maria Carrasco, NASFAA Staff Reporter
A group of congressional Democrats last week unveiled bicameral legislation to make college more affordable by nearly doubling the maximum Pell Grant award, indexing it to inflation, shifting the program to mandatory funding, and more.
The Pell Grant Preservation and Expansion Act was reintroduced by Reps. Mark Pocan (D-Wisc.) and Bobby Scott (D-Va.), ranking member for the House Committee on Education and the Workforce, and Sens. Mazie Hirono (D-Hawaii), Jack Reed (D-R.I.), Sheldon Whitehouse (D-R.I.), and Patty Murray (D-Wash.), vice chair of the Senate Appropriations Committee. Previous versions of this legislation were introduced in 2024, 2021, and 2017.
The bill would make several changes to the Pell Grant program. First, the bill would increase the maximum Pell award to $10,000 for the 2026-27 award year – the current maximum is $7,395. From there, the maximum award would double over five years to $15,000. After the five-year period, the maximum award would be indexed to inflation to ensure its purchasing power remains strong in future years, the lawmakers wrote.
The bill would also shift the Pell Grant program to full mandatory funding. Currently, the program is funded through both discretionary and mandatory funding. Discretionary funding is determined by Congress each year through the appropriations process, while mandatory funding is set in the law and does not require annual approval. By shifting the program to full mandatory funding, this bill would ensure that students can count on their awards being fully funded now and into the future and would protect the program from future funding shortfalls.
NASFAA recently published an issue brief that walks through several frequently asked questions about a funding shortfall in the Pell Grant program.
Under this bill, Pell Grant access would also be expanded to DREAMers, undocumented immigrants who came to the United States as children. Additionally, a student’s Pell Grant lifetime eligibility would be expanded to 18 semesters. Currently, a student’s lifetime eligibility is capped at 12 semesters.
The bill also includes a provision that would automatically qualify a student for the maximum Pell Grant award if the student or their family participates in Medicaid and SNAP. These students would also receive an additional award of up to $1,500, in addition to the maximum award.
There would also be changes to Satisfactory Academic Progress (SAP) requirements under this bill. The lawmakers noted that nearly 40% of first-year Pell Grant recipients risk losing access to Pell Grants due to “confusing SAP requirements.”
The bill would reduce financial aid penalties tied to SAP and impose new mandates on institutional SAP policies. An institution’s Title IV SAP policy could be no more burdensome than any policy it applies to students not receiving Title IV aid, and it would have to be applied consistently to all students, regardless of grade level, enrollment level, or educational program.
Additionally, institutions would no longer have the option to review SAP annually and would instead be required to review SAP each payment period and provide a one-payment-period financial aid warning. Institutions would still have the option to provide a payment period for financial aid probation based on an approved appeal or after developing an academic plan. Students who fail SAP after the mandatory warning and optional probation, leave school, and do not re-enroll anywhere for two years would qualify for a SAP reset, usable only twice. Under the reset, attempted and earned courses would still count, but unearned credits from withdrawal, failing grades, or incompletes would not. The bill would also require ED to notify students who left without re-enrolling after failing SAP that they are again eligible for Title IV aid, which would require additional reporting to ED on behalf of institutions.
The lawmakers also aim to expand Pell Grant eligibility for part-time students. Under the bill, the minimum award level would be set at 5% of the maximum award, rather than the current 10%. The lawmakers wrote that this will ensure that part-time students, such as returning adults who may only be able to take a few classes at a time, retain access to aid as the maximum award grows. The lawmakers noted that as the maximum award increases to $15,000 under this bill, a student would be able to receive a minimum award of $750.
Lastly, the bill would repeal a provision of the One Big Beautiful Bill Act (OBBBA) that makes students whose total non-federal grants and scholarship assistance alone equals or exceeds their cost of attendance ineligible for a Pell Grant. Under this legislation, these students would be eligible for a Pell award.
In a statement, Scott stressed that the Pell Grant is the “most important tool we have to help students afford college.”
“Simply put, Pell Grants' purchasing power has severely eroded, making it even more difficult for students to afford higher education,” Scott said in a statement. “By doubling the maximum Pell Grant award and moving the program to mandatory funding, the Pell Grant Preservation and Expansion Act directly addresses this shortfall and begins to restore purchasing power to help millions of students earn a quality degree without being forced to take on excessive debt.”
Murray also stressed the importance of the Pell Grant in making college affordable for students.
“There is absolutely no reason students should be saddled with mountains of debt if they want to get a college degree,” Murray said in a statement. “Government should be helping to open doors for American students, not slamming them shut like Trump is doing. Every year, I fight to protect and expand the Pell Grant—this bill would increase Pell Grants for millions of students to help them afford a postsecondary education and further their careers while helping ensure the Pell Grant is there to support students for generations to come.”
Publication Date: 6/30/2026
Armand R | 6/30/2026 7:51:09 PM
Where do they plan on getting the money to pay for this? Obviously, higher taxes.
Here is a novel idea - colleges and universities cut costs to make college more affordable. Get rid of useless spending, like the cost of creation and upkeep for rooftop gardens, and the production of green energy that outcosts traditional energy. Get rid of useless departments that are divisive to students and staff, such as DEI offices.
Regarding "The lawmakers noted that nearly 40% of first-year Pell Grant recipients risk losing access to Pell Grants due to 'confusing SAP requirements.'” If SAP requirements are confusing for some students, perhaps those students are not yet ready for college.
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