Statement on Trump Administration’s Fiscal Year 2027 Budget Proposal
FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Sr. Director, Strategic Communications
[email protected]
WASHINGTON, D.C., APRIL 3, 2026 — 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 calling for increased funding for the federal Pell Grant program to cover a projected funding shortfall.
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 administration proposed a $10.5 billion increase for the Pell Grant program to address 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 as the 2026-27 maximum award.
In response to this news, NASFAA President & CEO Melanie Storey released the following statement:
“The President’s budget proposes gutting critical financial aid programs that students and families depend on to finance their college education.
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. Now is not the time to abandon critical need-based aid programs with a proven track record of improving student outcomes and academic success.
NASFAA stands opposed to the proposed elimination of the Federal Supplemental Educational Opportunity Grant (FSEOG) program, which helps students from the lowest income backgrounds, and steep cuts to the Federal Work-Study program, which allows students to contribute to financing their education.
We are pleased to see a commitment to fully fund the federal Pell Grant program as Congress has sought to expand eligibility for low-income students. However, the proposed increase for Pell would mark the fourth consecutive year of a flat maximum grant, a level similar to 1978 when adjusting for inflation.
Congress is long overdue to right-size funding for the Pell Grant program to keep pace with rising inflation and student need.
We urge Congress to reject these proposals and invest in America’s postsecondary students. 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.”
NASFAA policy experts are available to speak to members of the media about the Trump administration’s fiscal year 2027 budget proposal. To set up an interview, please email [email protected].
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About NASFAA
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.
Publication Date: 4/3/2026
