House Republicans’ Budget Could Cut Pell Grants for Millions of Students

The Pell Grant—the backbone of the nation’s college financial aid system—is facing a funding shortfall at the exact moment students need it most. Even as college enrollment rebounds, the program is projected to face a $2.7 billion deficiency by the end of the fiscal year. As part of the ongoing budget reconciliation process, both the House and Senate have proposed $10.5 billion to stabilize Pell, a crucial step in keeping it solvent.

On Tuesday, the Senate narrowly passed President Donald Trump’s “Big, Beautiful Bill,” sending it back to the House. But the House’s version of the bill comes with some unexpected—and troubling—strings attached that could put college out of reach for millions of students. Lawmakers have proposed increasing the number of credits Pell recipients must take each year, potentially cutting billions in Pell Grant funds and disproportionately hurting working students and students with families.

For decades, the Pell Grant has served as the cornerstone of college affordability, helping generations of students from low-income backgrounds attend and graduate from college. Today, it supports more than 7 million students annually, most from families earning less than $40,000 per year. It leverages critical additional aid from states, institutions, and private scholarships. Yet the purchasing power of the Pell Grant has steadily eroded. It now covers less than one-third of the average cost of attending a public four-year college, down from more than 75% in the 1970s.

That erosion has real consequences. Students are working longer hours, taking on more debt, or attending part-time, all of which slow or derail progress toward a degree. These students aren’t just pursuing bachelor’s degrees; they’re enrolling in associate degree programs, technical credentials, and other pathways that lead to in-demand careers and fill critical workforce gaps. When we invest in Pell, we’re investing in the skilled workforce our economy needs.

Today, the program is facing not just financial strain but also reeling from unprecedented disruption. The federal government’s troubled rollout of the new “Better FAFSA” left millions of students and families unsure whether they could afford college at all. By the end of last August, only 51.4% of high school seniors had completed the form, leaving an estimated $4.4 billion in Pell Grants unclaimed.

A coordinated emergency response from school counselors, community organizations, and higher education institutions helped students recover more than $1.1 billion in aid between June and August. As technical problems were resolved and public awareness grew, the class of 2025 showed renewed determination to go to college. FAFSA completions are already up 28% percent compared to last year, signaling a clear desire among students to access federal aid and pursue postsecondary education. Simply put, the need for Pell Grants is only getting greater.

Congress’ plans to fund the program would go a long way toward continuing to realize Pell’s promise as an engine of upward mobility. But the House proposal comes with a surprising addition: a provision that would increase the number of credits required for students to receive a maximum Pell Grant from 12 to 15 each semester. The provision cuts the maximum Pell Grant by almost $1,500 for students taking only 12 credits. That may not seem like a big shift, but many students—particularly those who are working or have caregiving responsibilities—will not be able to reach the new 15-credit threshold. In a recent report, the Congressional Budget Office estimated that the change would mean smaller grants for more than half of Pell recipients—effectively cutting $7.1 billion from Pell recipients over the next decade. It’s a small policy change that would put serious financial strain on millions of students trying to afford a college degree.

Pell Grants are a smart investment with wide-reaching returns for students, communities, and the economy—but the investment loses value if deserving recipients aren’t getting the financial support they need. The Senate’s version of the bill affirms that bipartisan Congressional support for Pell remains intact, both providing $10.5 billion to address the Pell shortfall and leaving out the full-time credit requirement from the House version. As the two chambers work to reconcile their bills, it’s imperative to include the Senate’s Pell language in the final version if we hope to make good on the program’s promise of driving economic mobility for the American learners who need it most. 

The Pell Grant remains one of our country’s most effective engines of economic opportunity. Congress has taken important steps to secure its future, but proposed restrictions in the Big Beautiful Bill threaten to undermine that progress. While lawmakers face legitimate pressure to rein in federal spending, it cannot come at the expense of students striving to improve their lives through education. The path to a more prosperous future for all Americans runs through Pell—and now is the time to ensure it reaches all the students who need it.