Pell Grant Sustainability Act

The "Pell Grant Sustainability Act" aims to counteract the significant decline in the purchasing power of Federal Pell Grants, which have fallen from covering 80 percent of base educational costs in 1974-1975 to just 31 percent by 2022-2023. To ensure these grants effectively support lower-income students, the bill amends the Higher Education Act of 1965 to index the maximum Pell Grant value to inflation. Beginning in award year 2024-2025, the maximum grant will include a base amount that is annually adjusted by the Consumer Price Index , in addition to the amount provided by appropriations. This mechanism, which rounds the total to the nearest $5, is designed to provide consistent increases to offset inflationary pressures. Furthermore, the legislation removes previous expiration dates, ensuring the long-term continuation of certain Pell Grant provisions beyond fiscal year 2034.