How Congress Can Strengthen the Pell Grant Program to Make College More Affordable for Millions of Americans

Last night, the House Appropriations Committee advanced its fiscal year (FY) 2027 Labor, Health and Human Services, Education, and Related Agencies funding bill.

A coalition of 65+ organizations is urging Congress to act immediately to address a looming funding shortfall for the federal Pell Grant program by “providing new funding that fully covers the current and projected Pell Grant shortfall for the current and upcoming fiscal years to prevent any loss in student eligibility or aid.” 

This fact sheet explains how the Pell Grant program is funded, how its funding structure puts students at risk, and how Congress can make changes to ensure the future viability of this essential program.  

The Pell Grant program helps more than seven million students attend and complete college each year. There is clear evidence that need-based grant aid increases college enrollment and completion among low- and moderate-income students. Our fact sheet outlines what Congress can do to reform and protect the Pell Grant to make college more accessible and affordable for all. 

TICAS’ 2026 Federal Policy Agenda advises members of the 119th Congress how to make it possible for any student—regardless of their financial circumstances—to earn a high-quality postsecondary degree or credential without taking on burdensome debt. 

In February 2026, the Congressional Budget Office released new funding projections for the Pell Grant program. Absent congressional action, the Pell program is now projected to face a funding gap of $5.4 billion for fiscal year (FY) 2026, which would grow to nearly $11.5 billion for FY 2027. Lawmakers face a choice: invest enough to keep the program whole or make harmful cuts.