Legislative Tracker: Pell Grants
On this page, you'll find proposals that include recommendations for expanding or altering the Federal Pell Grant Program.
H.R.5675 — Degrees Not Debt Act of 2025
Sponsor: Rep. Carbajal [D-CA]
Introduced: 10/03/2025
NASFAA Summary & Analysis: This bill would double the maximum Pell Grant award to $14,800 and index the award cap to inflation, effective for the 2028-2029 school year.
S.1683 — PELL Act of 2025
Sponsor: Sen. Budd [R-NC]
Introduced: 05/08/2025
NASFAA Summary & Analysis: This bill would expand the Federal Pell Grant program to include "Workforce Pell Grants" for students enrolled in short-term, high-quality workforce training programs. Eligible students must meet standard Pell Grant requirements and enroll in programs aligned with in-demand jobs that meet strict completion, job placement, and earnings benchmarks.
S.1610 — Tax-Free Pell Grant Act
Sponsor: Sen. Whitehouse [D-RI]
Introduced: 05/06/2025
NASFAA Summary & Analysis: This bill would expand the tax exclusion for Pell Grants, excluding them from gross income regardless of how the funds are used, making them entirely tax-free. It also ensures that Pell Grants are not subtracted from qualified expenses when calculating the American Opportunity and Lifetime Learning tax credits. The changes would take effect for tax years beginning after December 31, 2025.
H.R.2733 — The Pell Grant Flexibility Act
Sponsor: Rep. Morelle [D-NY]
Introduced: 04/08/2025
NASFAA Summary & Analysis: This bill would allow students with disabilities who are approved by their institution for a reduced course load—or who are enrolled in at least 5 credits, whichever is greater—to be treated as full-time students for the purposes of determining Pell Grant amounts. This full-time status designation would not apply when calculating the student's overall semester-based Pell Grant eligibility limit.
H.R.2543 — Tax-Free Pell Grant Act
Sponsor: Rep. Doggett [D-TX]
Introduced: 04/01/2025
NASFAA Summary & Analysis: This bill would expand the tax exclusion for Pell Grants and change education-related tax credits. Specifically, it would exclude all Pell Grant amounts from gross income, regardless of how they are used, aligning with how scholarships for qualified expenses are already treated. It also ensures that Pell Grants do not reduce eligibility for the American Opportunity and Lifetime Learning tax credits. The bill would also broaden the definition of qualified expenses under these credits to include not only tuition and fees, but also computer equipment, internet access, course materials, and child and dependent care expenses
H.R.1666 — Pell Grant Sustainability Act
Sponsor: Rep. Casten [D-IL]
Introduced: 02/27/2025
NASFAA Summary & Analysis: This bill would index the maximum Federal Pell Grant to inflation by automatically adjusting the maximum Pell Grant each year based on changes in the Consumer Price Index (CPI). Beginning in the 2025–2026 award year, the grant amount will increase annually by the estimated percentage change in inflation, rounded to the nearest $5. Additionally, the bill removes the current expiration date for mandatory Pell Grant funding, ensuring continued appropriations beyond 2034. Repayment would be 15 years for undergraduate and 25 years for graduate students. Loan forgiveness programs would be eliminated. The bill would require a significant amount of information be published on the institutions website annually including, percentage of student receiving each aid type, breakdown of student population by enrollment level, average length to degree completion, and default and non-repayment rates, as well as additional information. Additionally, each institution would pay a default rate fine annually in an amount that is equal to the applicable percentage of outstanding loans.
H.R.1635 — Pell to Grad Act
Sponsor: Rep. Stevens [D-MI]
Introduced: 02/26/2025
NASFAA Summary & Analysis: This bill would expand Federal Pell Grant eligibility by increasing the maximum period from 12 to 16 semesters. It also allows students who received Pell Grants for fewer than 16 semesters as undergraduates to use remaining eligibility for a postbaccalaureate program at an eligible institution.
S.383 — JOBS Act of 2025
Sponsor: Sen. Kaine [D-VA]
Introduced: 02/04/2025
NASFAA Summary & Analysis: This would allow Pell Grants to be used for high-quality job training programs that are at least eight weeks in length and lead to industry-recognized credentials or certificates. It would define eligible job training programs as those providing career and technical education instruction at an institution of higher education that provides at least 150 clock hours of instruction time over a period of at least 8 weeks and licenses, certifications, or credentials that meet the hiring requirements of multiple employers in the field for which the job training is offered.
Publication Date: 10/3/2025