Pell Grant Preservation and Expansion Act of 2026
- Bill Number
- S. 4859
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2026-06-23: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2026-07-08T16:45:04Z
AI-Generated Summary
Pell Grant Preservation and Expansion Act of 2026
Purpose
This legislation aims to strengthen the Federal Pell Grant program under the Higher Education Act of 1965 by increasing grant amounts, shifting to mandatory funding, expanding eligibility to additional groups, restoring prior benefits, and reducing barriers to continued aid. It addresses findings that the program is vital for low-income and minority students but requires stabilization after recent changes in Public Law 119-21.
Key Provisions
- Doubling grants and mandatory funding: Sets the total maximum Pell Grant at $10,000 for 2026-2027, rising annually to $15,000 by 2031-2032 (adjusted for inflation via Consumer Price Index and rounded to nearest $50). All grants become fully mandatory, with automatic appropriations from the Treasury.
- Increased aid for certain students: Students with a negative student aid index (SAI) receive grants exceeding the maximum by the negative amount. Recipients of means-tested federal benefits (or their parents/spouses) receive a special SAI of -$1,500.
- Dreamer student eligibility: Extends federal student aid to individuals who entered the U.S. before age 18 (or meet DACA-related criteria) and satisfy education, military service, or credential requirements, with a hardship waiver option.
- Restored semesters: Increases lifetime Pell Grant eligibility from 12 to 18 semesters.
- Satisfactory academic progress (SAP) changes: Replaces strict rules with a detailed policy allowing financial aid warnings, probations, appeals, and up to two resets of eligibility after a 2-year enrollment gap. Institutions must notify students and follow specific evaluation timelines.
- Scholarship eligibility restoration: Removes the rule making students ineligible for Pell Grants if non-federal scholarships alone meet or exceed cost of attendance.
- Other adjustments: Lowers minimum grant thresholds, updates related programs like TRIO and GEAR UP, and includes conforming amendments.
Significant Changes to Existing Law
- Converts Pell Grants from discretionary to mandatory spending, eliminating annual appropriations uncertainty.
- Reverses eligibility restrictions from Public Law 119-21 regarding short-term programs and scholarship offsets.
- Expands aid access to Dreamer students, previously limited by citizenship rules.
- Lengthens eligibility periods and softens SAP penalties compared to current strict loss-of-aid triggers.
- Introduces inflation adjustments and automatic funding mechanisms not present in prior versions.
Potential Impacts
- On government agencies: The Department of Education gains implementation authority before July 1, 2026, including consumer testing for SAP notices and annual reporting on reset outcomes; shifts increase mandatory spending obligations.
- On citizens: Expands support for low-income, minority, and first-generation students, potentially increasing college access and completion rates.
- On international relations: No direct effects outlined.
Main Stakeholders Affected
- Current and prospective Pell Grant recipients, including low-income undergraduates, students of color, and Dreamer students.
- Institutions of higher education, which must update SAP policies, notifications, and aid calculations.
- The Department of Education, responsible for administration and oversight.
- Congress, due to changes in funding structure and reporting requirements.
Notable Legal, Constitutional, or Political Implications
- Alters eligibility criteria under the Higher Education Act, potentially affecting interpretations of federal student aid rules.
- Creates new mandatory spending authority, which may influence future budget processes.
- Introduces explicit provisions for Dreamer students, tying aid to specific immigration-related criteria without altering broader immigration law.
- Requires detailed institutional policies and student notifications, adding compliance elements to existing aid administration.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (28)
Sen. Murray, Patty [D-WA], Sen. Reed, Jack [D-RI], Sen. Whitehouse, Sheldon [D-RI], Sen. Kaine, Tim [D-VA], Sen. Padilla, Alex [D-CA], Sen. Shaheen, Jeanne [D-NH], Sen. Bennet, Michael F. [D-CO], Sen. Blumenthal, Richard [D-CT], Sen. Markey, Edward J. [D-MA], Sen. Duckworth, Tammy [D-IL], Sen. Heinrich, Martin [D-NM], Sen. Warnock, Raphael G. [D-GA], Sen. Warren, Elizabeth [D-MA], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Smith, Tina [D-MN], Sen. Van Hollen, Chris [D-MD], Sen. Murphy, Christopher [D-CT], Sen. Booker, Cory A. [D-NJ], Sen. Wyden, Ron [D-OR], Sen. Klobuchar, Amy [D-MN], Sen. Durbin, Richard J. [D-IL], Sen. King, Angus S., Jr. [I-ME], Sen. Merkley, Jeff [D-OR], Sen. Fetterman, John [D-PA], Sen. Ossoff, Jon [D-GA], Sen. Baldwin, Tammy [D-WI], Sen. Schiff, Adam B. [D-CA], Sen. Luján, Ben Ray [D-NM]
Recent Actions
- 2026-06-23: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2026-06-23: Introduced in Senate
Bill Versions
- Pell Grant Preservation and Expansion Act of 2026 — issued 2026-06-23 — PDF (31 pages)