Section 1 Short title
This Act may be cited as the “Pell Grant Sustainability Act”.
Pell Grant Sustainability Act
A BILL
To index the maximum value of Federal Pell Grants to inflation.
Sec. 2 Findings
Congress finds the following:
The purchasing power of the Federal Pell Grant has declined rapidly since the 1970s. In academic year 1974–1975, the total maximum Federal Pell Grant covered 80 percent of base educational costs at public 4-year institutions of higher education. By academic year 2022–2023, the maximum Federal Pell Grant covered just 31 percent of those base costs.
The value of Federal Pell Grants must keep pace with students’ costs in order to fulfill their mission of enabling lower-income students to attend college.
Sec. 3 Indexing Federal Pell Grants to inflation
Section 401(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)) is amended—
by amending paragraph (5) to read as follows:
“(5) Total maximum Federal Pell Grant
“(A) In general—For award year 2024–2025 and each subsequent award year, the total maximum Federal Pell Grant award per student shall be equal to the sum of—
“(i)
“(I) for award year 2024–2025, $1,060; or
“(II) for award year 2025–2026 and each subsequent award year, the amount determined under this clause for the preceding award year, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this clause is being determined; and
“(ii) the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year.
“(B) Rounding—The total maximum Federal Pell Grant for any award year shall be rounded to the nearest $5.
“(C) Annual adjustment percentage defined—In this paragraph, the term annual adjustment percentage, as applied to an award year, is equal to the estimated percentage change in the Consumer Price Index (as determined by the Secretary, using the definition in section 478(f)) for the most recent calendar year ending prior to the beginning of that award year.”
in paragraph (6)(A)(ii)—
by striking “each of the fiscal years” and inserting “fiscal year”; and
by striking “through 2034” and inserting “and each subsequent fiscal year”; and
in paragraph (8)(A), by striking “through fiscal year 2034”.