What Will It Take to Address the Pell Shortfall?
Jessica Blake
March 17, 2026
Most experts say the primary goal should be finding the funds needed to plug an immediate $17 billion gap. But it remains undecided where those funds would come from or how to resolve the larger $100 billion deficit over the next 10 years.
Higher education experts and college access advocates are urging Congress to set aside nearly $40 billion in funding for the Pell Grant program this upcoming fiscal year, as the Congressional Budget Office projects the need-based scholarship will face a historic multibillion-dollar shortfall.
If annual Pell appropriations remain flat at about $22.5 billion and the deficit is left unaddressed, the program will be short by nearly $17 billion in September 2027, according to the CBO; that number could reach as high as $132 billion by 2036.
The Trump administration—which unsuccessfully sought to cut Pell last year—could seek to avert the shortfall by slashing the maximum award per student, restricting the eligibility criteria or making other cuts to the Education Department’s budget. But any cuts to Pell would be devastating, higher education leaders say. In their view, lawmakers must find a way to not only keep existing funds flat but also to cut and redirect dollars from other areas of the budget to put a total of $39.4 billion toward Pell.
