Pell Grant Preservation and Expansion Act of 2026

Key Points

• The bill would nearly double the maximum Pell Grant award, starting at $10,000 for the 2026-2027 school year and rising by $1,000 each year until it reaches $15,000 in 2031-2032. After that, the amount would automatically increase each year to keep up with inflation.
• Pell Grant funding would shift from depending on yearly Congressional budget decisions to becoming fully mandatory spending, meaning every qualifying student is guaranteed to receive their grant without the risk of budget shortfalls.
• The bill would open Pell Grant eligibility to Dreamer students, meaning young people who were brought to the U.S. as children and are not citizens or permanent residents could qualify for federal college aid for the first time.
• Students could use their Pell Grants for up to 18 semesters instead of the current 12, giving people more time to finish degrees or return to school after a break. The bill also restores eligibility for students who lost access because their outside scholarships covered their full cost of attendance.
• The lowest-income students who receive means-tested benefits like SNAP or Medicaid would get an extra $1,500 on top of the maximum Pell Grant, through a special negative student aid index rule.
• The bill creates a more forgiving system for students who fall behind academically, including a financial aid warning period, a probation system with appeal rights, and the ability to reset eligibility after staying out of school for two years.