What Will It Take to Address the Pell Shortfall?

"Priority No. 1 is making sure that the program available to the current generation of students continues to be made available to the next at the same levels ... We should not go backwards. As a need-based scholarship program proven to promote socioeconomic mobility, Pell has long received overwhelming bipartisan support."

"If annual Pell appropriations remain flat at about $22.5 billion and the deficit is left unaddressed, the program will be short by nearly $17 billion in September 2027, according to the CBO; that number could reach as high as $132 billion by 2036."

"The Trump administration-which unsuccessfully sought to cut Pell last year-could seek to avert the shortfall by slashing the maximum award per student, restricting the eligibility criteria or making other cuts to the Education Department's budget. But any cuts to Pell would be devastating, higher education leaders say."

The Pell Grant program faces a severe funding crisis, with the Congressional Budget Office projecting a $17 billion shortfall by September 2027 if annual appropriations remain flat at $22.5 billion. The deficit could escalate to $132 billion by 2036. Higher education leaders and college access advocates are urging Congress to allocate $39.4 billion toward Pell Grants to maintain current funding levels. The Trump administration previously attempted to cut Pell and could address the shortfall through reduced maximum awards, restricted eligibility, or other Education Department budget cuts. However, education experts warn that any cuts would be devastating. Pell has historically enjoyed bipartisan support as a proven tool for socioeconomic mobility. Since 2020, Congress expanded access through simplified applications and increased maximum awards by $1,000.

Read at Inside Higher Ed | Higher Education News, Events and Jobs