Pell Grant Sustainability Act
Summary
What This Bill Does
The Pell Grant Sustainability Act responds to the declining purchasing power of the Federal Pell Grant. Its findings say the maximum Pell Grant covered 80 percent of base educational costs at public four-year colleges in 1974-1975 but only 31 percent in 2022-2023. The operative section amends Higher Education Act section 401(b) so the add-on portion of the total maximum Federal Pell Grant is $1,060 for award year 2024-2025 and then rises each subsequent award year by the annual adjustment percentage. That adjustment is the estimated Consumer Price Index change for the most recent calendar year ending before the award year. The total maximum grant is rounded to the nearest $5 and still includes the amount specified in the last enacted appropriations act for that award year.
Who Benefits and How
Pell Grant students benefit because the statutory add-on portion of the maximum award keeps pace with inflation instead of staying flat. Low-income college families benefit if larger maximum grants reduce unmet need or borrowing pressure. College financial aid offices benefit from a clear CPI-indexing formula for future award-year packaging. Student affordability advocates benefit because the bill ties grant value to educational cost inflation concerns.
Who Bears the Burden and How
Department of Education student aid staff must calculate annual CPI adjustments and update award schedules. Congressional appropriations committees must account for an indexed statutory add-on when setting Pell funding levels. Federal taxpayers bear higher grant costs when inflation increases the maximum award. Budget analysts must project Pell spending under automatic inflation adjustments rather than a static add-on.
Key Provisions
- Requires the Federal Pell Grant add-on amount to rise with inflation after award year 2024-2025.
- Uses the Consumer Price Index annual adjustment percentage to calculate future increases.
- Rounds the total maximum Pell Grant to the nearest $5.
- Preserves the appropriated maximum grant amount while indexing the statutory add-on.
- Documents the drop in Pell purchasing power at public four-year institutions.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Indexes the non-appropriated add-on portion of the Federal Pell Grant maximum award to inflation for award year 2025-2026 and later award years.
Key Policy Areas
Higher Education, Student Aid, Inflation Indexing
Primary Purpose
Indexes the non-appropriated add-on portion of the Federal Pell Grant maximum award to inflation for award year 2025-2026 and later award years.
Policy Domains
Resolution provisions
Identified Gains
- Pell Grant students
- Low-income college families
- College financial aid offices
- Student affordability advocates
Identified Costs
- Department of Education student aid staff
- Congressional appropriations committees
- Federal taxpayers
- Budget analysts
Sponsors
Legislative Progress
In CommitteeMr. Casten (for himself, Ms. Lee of Nevada, Mr. Moulton, …
Referred to the House Committee on Education and Workforce.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
College financial aid offices, Low-income college families, Pell Grant students
Positive-direction: Low-income college families, Pell Grant students
Negative-direction: College financial aid offices
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology