By: Louisa Woodhouse, Senior Associate, Policy and Advocacy
Reading time: Two minutes
On Tuesday, January 20, the House and Senate Appropriations Committees released a bipartisan package of bills, including the Labor, Health and Human Services, Education and Related Agencies (LHHS) bill for fiscal year (FY) 2026, which passed in the House on Thursday evening. The proposal maintains level funding for many of the National College Attainment Network's (NCAN's) priorities, including the Pell Grant, TRIO and GEAR UP, Federal Work Study, the Supplemental Educational Opportunity Grant, and AmeriCorps.
The funding levels included in the bill represent a significant departure from the President’s budget request in May, and the initial House of Representatives FY26 proposal in September, both of which called for eliminating or making deep cuts to many federal higher education programs.
NCAN was relieved to see no cuts to the Pell Grant maximum. That said, a third year of level funding at $7,395 effectively erodes the grant’s value for students. While tuition and fees have largely stabilized in the last couple of years, the cost of living – including food, housing, and transportation – continues to rise. If Pell Grant funding had kept pace with inflation, the maximum award would cover approximately $7,800 today.
"A third year of flat funding is better than a cut, but it is still not adequate to cover the costs we know students are facing," said NCAN CEO, Kim Cook. "With increased access to Pell, and Workforce Pell launching this fall, it is critical that funding for the program keeps pace with growing demand."
Congress has taken steps in recent years to expand access to Pell through the FAFSA Simplification Act and the creation of a Workforce Pell Grant program, expected to open as early as July 2026. Early data suggest that in the 2024-25 academic year, 730,000 more students received a Pell Grant than in the year prior. While the full scope of Workforce Pell Grant participation is not yet clear, estimates suggest the program may cost upwards of $2 billion – all pulling down from the same pot of Pell dollars. As students continue to gain access to Pell Grants, it is imperative that Congress allocates sufficient funding to meet that demand.
In addition to maintaining funding for the Pell Grant and other key federal education programs, the LHHS bill restores funding for previous program priorities under the Fund for the Improvement of Postsecondary Education (FIPSE), and includes language designed to constrain the Administration’s attempts to reallocate key functions and grants away from the Department of Education (ED).
As the next step in the process, the Senate will need to vote on the bill before January 30. NCAN will continue to keep you informed as the FY26 appropriations process unfolds.
Questions? Please reach out to Louisa Woodhouse, Senior Associate, Policy and Advocacy, at woodhouse@ncan.org.
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