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Protect Pell

Protecting the Pell Grant for College Affordability

The Pell Grant has served as the cornerstone of financial aid for students from low-income backgrounds pursuing higher education since its creation in 1972. This need-based grant provides crucial support for around 7 million students each year, or about one-third of undergraduates. Since it was created 50 years ago, the Pell Grant has helped 80 million low-income students go to college.

Unfortunately, the purchasing power of the Pell Grant has continuously declined since the mid-1970s. At its peak in 1975-76, the maximum Pell award was worth more than three-fourths of the average cost of attendance – tuition, fees, and living expenses – for a four-year public university. Today, it's worth roughly one-third. 

With bipartisan leadership, Congress has attempted to keep the Pell Grant on pace with inflation by including increases during appropriations cycles. In 2022 and 2023, the maximum Pell Grant saw the largest boosts in the past decade of $400 and $500, respectively, and the 2025 budget reconciliation bill included $10.5 billion to shore up the program's finances. Still, bolder investment is needed to make college a real choice for all students. The maximum Pell Grant has not increased since 2023. 

NCAN’s “Growing Gap” research found that only 33% of public, four-year institutions and fewer than half of public, two-year institutions are affordable to the average Pell Grant recipient.

Why is Pell a Good Investment?

Pell Grants are:

  • Targeted: The majority of the approximately 7 million annual Pell Grant recipients have family incomes of under $40,000.
  • Immediate: Eligibility is determined through the Free Application for Federal Student Aid (FAFSA) and administered through a student’s institution. An investment in this program is the fastest way to increase support to the largest number of students.
  • Widespread: The Pell Grant is available for a student to use at any Title IV eligible institution in any state.

Why is Now the Right Time to Invest in Pell?

  • College enrollment remains below pre-pandemic levels: College enrollment grew by 3% in the spring of 2025, but college enrollment is still lower than before the pandemic. Students at community colleges, those attending public universities, and women have been most acutely impacted. 
  • College remains unaffordable: The number of public postsecondary options that are in reach for the average Pell Grant recipient is falling, and affordability gaps persist – with few exceptions. 

How Should Congress Invest in the Pell Grant?

  • Increase the maximum Pell Grant to restore its purchasing power: If the maximum Pell Grant had kept pace with inflation since 2023, it would be approximately $7,840 today, an increase of $445. Instead, the program has been flat funded. Congress should provide annual increases in the maximum Pell Grant at least equal to the annual inflation rate to ensure that students can keep up with the rising cost of housing, food, and tuition and fees.
  • Ensure strong guardrails on Workforce Pell: The U.S. Department of Education should ensure that Workforce Pell programs are high-quality and meaningfully prepare students for good jobs. Pell funding should not be diverted to pay for programs that leave students no better off.

 


What Would the Increase Mean for Students?

  • Investing in the Pell Grant would help close college affordability gaps across the country: Holding all other factors constant, if the Pell Grant maximum increased by $500, and was used in the NCAN affordability definition, the affordability gap would close in most states for community colleges and shrink for public bachelor’s degree institutions.