By Elizabeth Morgan, Chief External Relations Officer
Reading time: Three minutes
The Pell Grant program is at a crossroads. Congress’s improvements to the program in the last several years have significantly expanded Pell-eligibility. Now, it is time to fully fund the program to deliver on this foundation of need-based aid for students
furthest from opportunity.
If Congress fails to act this year, it will jeopardize the 2027-28 academic year Pell Grant awards and the more than 7.2 million students who have made college decisions assuming they can
rely on Pell Grant support. Without additional funding, the maximum grant will need to be reduced drastically from its current $7,395 to as low as $5,000 along with changes to Pell eligibility, enrollment status, or lifetime usage that would hinder
student success.
Recent Congressional Budget Office projections call for a $17 billion investment in the fiscal year (FY) 27 budget and an additional $10 billion each year that follows
(see figure 1 below). The National College Attainment Network (NCAN) believes it is critical for Congress to enact this $17 billion investment before it adjourns for the November 2026 elections.
“More students receiving Pell Grants is the definition of a ‘good problem to have,’” NCAN CEO Kim Cook said. “Pell Grants are the single best investment we can make in a skilled workforce and prosperous US economy. Now Congress must appropriate the funds
to match the growth in low-income students enrolling in postsecondary education.”
The Pell funding shortfall comes just as the simpler Free Application for Federal Student Aid (FAFSA) process and widened eligibility criteria enacted by the bipartisan FAFSA Simplification Act are paying dividends,
with more students completing the FAFSA, applying to college, and eligible for Pell grants.
In 2024, 730,000 more students were awarded a Pell Grant than in
the prior year, a 14% increase. That trend is holding strong; almost 1.7 million more students were eligible for the maximum
Pell Grant in 2025-26 academic year, compared to 2023-24, based on NCAN’s analysis of data from the Office of Federal Student Aid.
Ensuring all eligible students can rely on Pell being fully funded, would take the program from a $22 billion annual appropriation to a $37 billion annual appropriation by 2035 to maintain level funding of the maximum award.
Historically, Pell Grants have enjoyed bipartisan support and supplemental appropriations when needed. As recently as January, Congress’ FY26 appropriations rejected a plan to significantly cut the maximum grant amount. However, during the fallout of the Great Recession in 2011, when the program faced a funding shortfall, Congress maintained the maximum grant ($5,500 at the time) but reduced lifetime
eligibility from 200% to 150% (6 years) of degree requirements and eliminated summer term Pell Grants. It took until 2017 for Congress to reinstate summer Pell grants, and lifetime eligibility remains 150%. We cannot risk similar cuts, that may never
be reversed, to happen again.
This is a critical year for a robust conversation about the long-term economic importance of investing in the Pell Grant to counter possible permanent eligibility cuts. Congress has intentionally expanded Pell Grant eligibility for workforce needs, for
the lowest-income students, and for incarcerated learners because postsecondary education is the single best way to increase economic mobility and prosperity. Now is not the time to retreat on who can take advantage of this life-changing opportunity.
Support student access and success by helping NCAN spread the word to your community stakeholders that Pell Grant funding is at risk and stay tuned to NCAN communications channels for timely updates.
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