NASFAA Statement on Fiscal Year 2026 Budget Deal
FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Sr. Director, Strategic Communications
[email protected]
WASHINGTON, D.C., FEBRUARY 4, 2026 — Congress on Tuesday ended a short-lived government shutdown when the House passed a spending agreement to fund the federal government through September 30. President Donald Trump signed the budget bill into law on Tuesday evening.
The budget bill allots $79 billion in discretionary funding for the Department of Education (ED), and flat-funds the Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), and Federal Work-Study (FWS) programs at fiscal year 2025 levels. The law also includes a provision that would block funding for ED from being transferred to other agencies, unless specified in the appropriations law.
NASFAA President & CEO Melanie Storey released the following statement:
“With the budget now passed, it’s a relief to avoid steep cuts and the complete elimination of programs that were on the chopping block in earlier proposals. But flat funding should not be viewed as a long-term solution. While preserving essential programs like Federal Work-Study and FSEOG provides important stability for students, funding that fails to keep pace with inflation and rising living costs effectively functions as a cut — leaving students with fewer resources and higher costs, and underscoring the need for a more timely, predictable, and student-centered budgeting process.”
NASFAA policy experts are available to speak to members of the media about the federal budget and funding for federal student aid programs. To set up an interview, please email [email protected].
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About NASFAA
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.
Publication Date: 2/4/2026