Today, President Biden released his full budget for fiscal year 2022, which addresses several NCAN priorities including a historic Pell Grant investment, access to aid for DACA recipients, and support for the implementation of the FAFSA Simplification
Act (signed into law in December 2020).
This budget proposal includes President Biden’s commitment to doubling the Pell Grant in future years, beginning with a significant increase of $1,875 to bring the Pell Grant to $8,370 for the 2022-23 award year. In doing so, he delivers on a campaign
promise and addresses NCAN’s top policy priority.
“This historic increase to the Pell Grant will have a significant impact on closing equity gaps in postsecondary education,” said Kim Cook, NCAN's executive director. “Further, NCAN applauds President Biden’s proposal to expand Pell Grants to DACA recipients
who meet the income eligibility requirements. This change in Pell Grant eligibility is a step toward a more equitable need-based federal aid system.”
Cook also said: “I appreciate the fierce advocacy of our member programs and students to highlight the need to address college affordability for students from low-income backgrounds.”
Doubling the maximum Pell Grant would restore the purchasing power to half the average cost of attendance for a bachelor’s degree at an in-state, public institution. For the current academic year, that would mean increasing from $6,345 to $12,690, raising
the purchasing power to 56%.
If Congress passes the President’s budget request, the maximum Pell Grant would be $8,370, lifting its purchasing power from the current 28% to 36%.
In addition to investments in the Pell Grant program, President Biden also proposes expanding Pell Grant and campus-based aid program eligibility to DACA recipients. Further, President Biden proposes working with Congress to explore granting DACA recipients
access to student loans.
President Biden’s first budget also includes the funding for his American Families Plan, which contains his proposal to create a federal-state partnership that would provide two years of free community college, among other benefits.
Additionally, this budget proposal requests a $200 million increase in administrative funding for student aid management, including the implementation of the FAFSA Simplification Act and FUTURE Act. These two new laws are crucial to achieving the goal
of FAFSA simplification, which NCAN has long championed.
The budget request also includes a $200.8 million increase for Federal TRIO Programs that provide services to encourage college access and completion; and a $40 million increase for Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR
UP) that assist middle and high school students in preparing for postsecondary education.
Funding levels for federal campus-based aid remained unchanged from the previous fiscal year in the request. The Federal Supplemental Educational Opportunity Grant (FSEOG) program that provides need-based grant aid to eligible undergraduate students would
be funded at $880 million for the fiscal year, and the Federal Work-Study program that provides grants to participating institutions to spur employment for undergraduate and graduate students remains at $1.19 billion.
President Biden’s budget proposal will now go to Congress, which must write and vote on 12 appropriations bills that set the funding amounts for the 2022 federal fiscal year, which begins on Oct. 1, 2021. Once Congress passes those bills, President Biden
will need to sign them into law.
Students have much to celebrate in this budget proposal, but there is a journey ahead to make this proposal a reality.
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