Section 1 Short title
This Act may be cited as the “Degrees Not Debt Act of 2025”.
Degrees Not Debt Act of 2025
A BILL
To increase the total maximum Federal Pell Grant, and for other purposes.
Sec. 2 Increase in the maximum amount of a Federal Pell Grant
Award year 2026–2027 and subsequent award years—
Amendment to award amount— Section 401(b)(5)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)), is amended to read as follows:
“(A)
“(i) Award years 2026–2027 and 2027–2028—For award years 2026–2027 and 2027–2028, the total maximum Federal Pell Grant award per student shall be equal to $14,800, reduced by the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year.
“(ii) Subsequent award years—For award year 2028–2029, and each subsequent award year, the total maximum Federal Pell Grant award per student shall be equal to the amount that is equal to $14,800, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined, then reduced by the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year.”
Definition— Section 401(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)) is amended—
in subparagraph (E), by striking “and” after the semicolon;
in subparagraph (F), by striking the period and inserting “; and”; and
by adding at the end the following:
“(G) 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.”
Effective date— The amendments made by subsection (a) shall take effect on July 1, 2026, and shall apply with respect to each award year (as defined in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088)) beginning on or after such date.