The Pell Grant Sustainability Act would change how the total maximum Federal Pell Grant is set each award year. It amends section 401(b) of the Higher Education Act to make the total maximum award equal to the sum of two parts: (A)(i) a base amount (for award year 2024–2025 that base is $1,060; for 2025–2026 and later years that base is the prior year’s base increased by the annual adjustment percentage) and (A)(ii) the amount listed as the maximum Pell Grant in the most recent appropriations Act that applies to that award year. The bill requires the total maximum award to be rounded to the nearest $5. It defines the annual adjustment percentage as the estimated percentage change in the Consumer Price Index for the most recent calendar year ending before the award year. The bill also removes language that limited certain provisions through 2034, making those provisions apply to subsequent years.
If you are eligible for a Federal Pell Grant, the maximum Pell award used to determine your grant eligibility and award calculation would be adjusted each award year using the Consumer Price Index change for the most recent calendar year. The statute sets a base dollar amount for 2024–2025 and a method for annual adjustments thereafter. The final stated maximum will be rounded to the nearest $5.
No publicly available information on estimated federal costs or budgetary effects is included in the bill text. The bill changes how the maximum award is calculated but does not include a cost estimate or appropriations in the text provided.
The bill text includes findings that the Pell Grant’s purchasing power has fallen (from covering about 80% of base costs at public 4‑year institutions in 1974–75 to about 31% in 2022–23) and that the grant’s value should keep pace with student costs. Supporters, as reflected in these findings, say indexing the maximum award to inflation will help the grant track students’ costs over time.
No publicly available information on opponents’ arguments or concerns is included in the bill text or metadata provided.