Biden Seeks Another Pell Grant Increase, but Shortfall Looms
Katherine Knott
March 12, 2024
The president’s latest proposed budget would boost the maximum Pell Grant by $750 for students at nonprofit private and public colleges. Whether and how Congress will pay for such an increase is unclear.
President Biden wants $2.1 billion next fiscal year to increase the Pell Grant and cover a funding gap in the $29 billion program that could lead to eligibility cuts if not addressed. The increase is part of a proposed 2025 budget released Monday that includes free community college and new funding for student support programs and institutions that serve underrepresented students.
Spending on the Pell program, which helps low-income students pay for college, has gone up by nearly 15 percent in the past year following a series of increases to the maximum award and changes to eligibility that expanded access to the pot of money, according to the Office of Management and Budget, which projected a $1.3 billion shortfall for fiscal year 2025. The additional $2.1 billion will help but not avert a shortfall, according to OMB projections, leaving a gap of $4.6 billion in 2026.
