Pell Grant 2025-26: What’s Confirmed — and What’s Still on the Table
For higher-education leaders, financial-aid officers, and journalists following federal policy.
Key Takeaways
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Maximum award locked in: $7,395 for 2025-26—the same as last year.fsapartners.ed.gov
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Eligibility formula refreshed: Last year’s FAFSA Simplification Act now ties Pell to poverty guidelines and family size, widening access without raising the cap.studentaid.gov
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House plan (“One Big Beautiful Bill”): Would require 30 credits a year for full-time Pell, eliminate aid for < ½-time students, and tighten income/asset rules—cuts affecting an estimated $7.1 billion over 10 years.time.compolitico.com
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Senate plan: Keeps the 12-credit standard, bars Pell only for students whose other grants already cover full cost of attendance, and funds the $10.5 billion shortfall without most House restrictions.politico.compolitico.com
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Bottom line: Until a final reconciliation bill passes, current rules apply—12 credits equals full-time, half-time students remain eligible, and the cap stays at $7,395.
1. Why Pell Still Matters
The Pell Grant remains the primary federal lifeline for more than 7 million low-income students each year, yet its buying power now covers less than one-third of the price of a public four-year college (down from over 75 % in the 1970s).time.com That erosion, paired with a projected $2.7 billion program shortfall by 2025, pushed both parties to propose an emergency $10.5 billion funding infusion.time.com
2. What’s Fully Settled for 2025-26
2.1 Award Levels
Congress’s January 2025 continuing-appropriations law fixed the maximum Pell Grant at $7,395 and the minimum at $740 for the 2025-26 award year. The Department of Education confirmed the figures in a May 29, 2025 Dear Colleague Letter.fsapartners.ed.gov
2.2 New Poverty-Indexed Formula
Because of the FAFSA Simplification Act (enacted in 2021 and rolled out in 2024-25), Pell eligibility now hinges on the Student Aid Index (SAI), family size, and federal-poverty-level multiples. The shift is already allowing many students just above prior income cut-offs to qualify for higher—or even maximum—awards.studentaid.gov
Takeaway: Barring new legislation, every eligible student in 2025-26 can rely on the established award table and the redesigned FAFSA.
3. The House Proposal: Higher Bars, Deeper Cuts
Passed on a party-line vote in late June, the House reconciliation package—branded the “One Big Beautiful Bill”—would overhaul Pell eligibility starting July 1, 2025. Key provisions:
| Proposal | Practical Impact | Source |
|---|---|---|
| 30-credit rule (15/term) for full award | A student taking the traditional 12 credits per term would lose about $1,479 of Pell; CBO estimates a decadal cut of $7.1 billion. | politico.comtime.com |
| No aid for < ½-time students | Working parents, veterans, or learners easing back into college would receive $0 Pell. | politico.comnasfaa.org |
| Tighter need analysis | Counts foreign-earned income and disqualifies “Pellionaires” (SAI ≥ 2 × max Pell) from any grant. | nasfaa.org |
| “Workforce Pell” expansion (2026-27) | Opens Pell to 150–600-hour credential programs that meet state workforce benchmarks. | nasfaa.org |
| Other changes | Narrows non-citizen eligibility; rescinds ED’s credit-hour rule; creates a new campus-based aid fund. | nasfaa.org |
Who gets hit hardest?
A Center for American Progress review found that only 45 % of Pell recipients at four-year schools and 21 % at two-year colleges attempted 30+ credits in 2024-25.nasfaa.org The rest would see smaller grants—or none at all.
Case in point: Maria, a pharmacy-tech major balancing two jobs, typically registers for 12 credits. Under current law she receives roughly $6,000 in Pell. Under the House bill, that would fall to about $4,500—a gap she says would force her to drop to one class per term.
4. The Senate Proposal: Funding Fix, Fewer Restrictions
Approved 51-50 on June 30, 2025, the Senate megabill keeps the traditional 12-credit definition of full-time and retains aid for half-time students.politico.com Instead, it:
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Bars so-called “double-dippers.” Students whose other grants already meet or exceed their cost of attendance would receive no Pell.politico.com
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Authorizes Short-Term Pell—but only for accredited programs, after the parliamentarian struck unaccredited training from the House text.politico.com
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Fully finances the $10.5 billion shortfall without trimming existing award levels.time.com
Advocacy groups see the Senate language as a compromise that “avoids punishing working students while still policing over-awards.”politico.com
5. Comparative Impact: Who Gains, Who Loses?
| Student Profile | Current Law (12 credits) | House Bill | Senate Bill |
|---|---|---|---|
| David, first-year community-college student, 9 credits/term | 75 % Pell ($5,546) | Ineligible | 75 % Pell |
| Rosa, nursing student, 15 credits/term, tuition covered by state grant | Max Pell $7,395 | Max Pell $7,395 | $0 Pell (cost covered) |
| Kelvin, displaced worker in a 400-hour IT certificate (Fall 2026) | No Pell | Workforce Pell (pending rules) | Workforce Pell (must be accredited) |
Figures assume 2025-26 award schedule. (Illustrative; individual awards depend on SAI, COA, and enrollment status.)
6. Timeline & Next Steps
| Date | Milestone |
|---|---|
| July–Sept 2025 | Conference committee must reconcile House/Senate bills. |
| Oct 1, 2025 | New fiscal year—Congress must pass final budget or another CR to keep current Pell levels funded. |
| July 1, 2026 | Earliest effective date for any enacted changes to enrollment rules. |
| 2026-27 | Workforce Pell pilot could begin (if included in final law). |
Action Items for Schools & Students
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Award letters: Use the confirmed $7,395 max for all 2025-26 packaging.
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Communications: Alert students that credit-hour rules may change after July 2025; monitor final legislation.
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Data prep: Model enrollment and revenue scenarios if 30-credit or “fully funded” exclusions take effect.
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Advocacy: Submit comments to conferees; gather student stories illustrating potential impacts.
7. Outlook
Negotiators are under pressure to finish a compromise before the October deadline. If they deadlock, a continuing resolution would extend current Pell rules. If the House prevails, millions of part-time or 12-credit students could see cuts; if the Senate’s version sticks, aid remains largely intact but Pell will no longer “double-pay” students whose costs are already covered. The stakes—for student persistence, institutional budgets, and workforce readiness—could hardly be higher.time.compolitico.com
Sources
For full sourcing—including statutory text, Dear Colleague Letters, CBO tables, and in-depth NASFAA analyses—see inline citations.