“If Congress doesn’t add money to the Federal Student Aid account by Sept. 30, students could face dramatic grant cuts or eligibility restrictions”, according to research done by Inside Higher Ed.
With that, the Congressional Budget Office (CBO) says that Pell Grant is facing a $11.5B Shortfall.
Inside Higher Ed reports, “And while the Legislature tried to address it with a $10.5 billion Band-Aid, the Congressional Budget Office’s latest projection shows that even such an emergency action won’t be enough to prevent devastating deficits for the long-standing financial aid program that helps low-income students pay for college. The report, released late Thursday evening, projects that by the end of fiscal year 2026, which ends Sept. 30, the Pell Grant program will be short $5.5 billion; that number skyrockets to $11.5 billion in fiscal year 2027 if Congress doesn’t make cuts or put in new money.”
It is not new information that colleges and universities are already draining the pockets of students and families and therefore significantly affecting low-income students and first-generation college students. However, since the Pell Grant program seems to be crumbling, this is going to put a lot of students at risk and open a door to financial troubles.
Everyone deserves equal access to education, regardless of their financial standing, and the Pell Grant program has done an adequate job of providing students with opportunities.
When I think of large amounts of money, I think about luxuries like a large yacht, designer fashion, real estate and jewelry. Notice how I did not include education? That’s because education is not a luxury and should be accessible to everyone.
“Pell awards are already set for the 2025–26 academic year, and many
grants have already gone out the door, so Congress can’t address the shortfall by clawing back federal dollars, experts said. That means lawmakers will have to find the $5.5 billion before grappling with the larger long-term shortfall,” stated Inside Higher Ed.
It’s honestly all the more upsetting that Congress is failing with this. Pell Grant awards are necessary for students, and it is not their fault that education is not being prioritized.
It is important to recognize that nobody would be where they are today without some sort of education. Why it is not prioritized is beyond me.
As reported by Inside Higher Ed, “Without new money, students in future years could see changes to the maximum award, how many semesters they can use the grant for, and when. The last time Pell faced a shortfall, Congress cut eligibility for the grant during the summer term, which was restored in 2017. And last year, when the CBO projected a $2.7 billion funding gap, the Trump administration proposed cutting the maximum award by more than $1,600
a year and blamed Congress for the program’s “chronic mismanagement.” Any cuts to the program would be a blow for the more than seven million low-income students who rely on it, advocates say.”
Likewise, “18.4 million students were enrolled in U.S. colleges in spring 2025,” reports Best Colleges. Therefore, the fact that this would affect seven million students is depressing to consider.
Ali Barretta can be contacted at
