The US House and Senate both passed budget resolutions recently, which call for massive cuts to federal education spending. The House resolution directs the Committee on Education & Workforce to make cuts of at least $330 billion in funding over ten years while the Senate resolution calls for cuts of at least $1 billion to key health, education, and labor programs over the same time period.

The House and Senate are working now to reconcile their different approaches. While the contents of the final bill have not been decided, budget reconciliation bills are limited to mandatory spending (see below for an explainer), making the Pell Grant program, Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) the likeliest targets for higher education cuts.

Advocacy surrounding Pell Grant funding is particularly important given recent projections from the Congressional Budget Office (CBO) that the Pell surplus will be depleted this year. It is important to note that Pell Grants for the 2024-25 and 2025-26 school years are safe and adequately funded, since the program is forward funded, but without additional funding, we may see eligibility cuts in future years that will have lasting impacts on students’ access to financial aid.

For more information on the potential budget cuts under consideration, see here:

• The Committee for a Responsible Federal Budget identified a list of options that Congress may consider during reconciliation that includes tightening Pell eligibility, eliminating time-based student loan forgiveness, and eliminating PSLF for new borrowers.
• The House GOP Budget Committee produced a menu of options cuts that includes capping Pell Grants at the median cost of attendance and limiting eligibility for PSLF.
• The College Cost Reduction Act, which was passed by the House Committee on Education and Workforce last year, offers more detail on the changes to student loan repayment options that may be included in reconciliation.

It’s also important to note that that large cuts to Medicaid and SNAP are also under consideration. Many students served by National College Attainment Network (NCAN) members rely on these safety net programs to meet their basic needs while attending college. In addition, massive cuts to these programs are likely to create a domino effect that could result in higher tuition and decreased access for students, as states shift funding away from higher education.

This process is moving quickly and now is the time for impact. Reach out to tell your Congressional representatives to protect Pell, PSLF, and IDR in budget reconciliation.

Read More:

• NCAN Urges Congress to Protect Pell, Federal Student Loans, SNAP, and Medicaid in Reconciliation
• Federal Update: House Passes Budget Resolution Calling for Massive Cuts
• What to Expect from the Congressional Budget Reconciliation
• CBO Predicts Pell Reserve Will be Depleted This Year
• NCAN Joins Coalition Calling to Protect Pell