The "Pell Grant Preservation and Expansion Act of 2026" seeks to substantially enhance the Federal Pell Grant program, making it more robust and accessible for students pursuing higher education. A central provision is the plan to double the maximum Pell Grant award incrementally, reaching $15,000 by award year 2031-2032, with subsequent awards indexed to inflation. Crucially, the bill mandates that the Federal Pell Grant program become a fully mandatory program , ensuring stable and predictable funding for future generations of students. The legislation expands eligibility for federal student aid to "Dreamer students," defining specific criteria for their inclusion, such as having entered the U.S. as a minor and meeting educational or military service requirements. It also provides increased Pell Grants for students receiving means-tested federal benefits by setting their Student Aid Index (SAI) to -$1,500, allowing for awards that can exceed the maximum Pell Grant. Furthermore, the bill restores the total semesters of Pell Grant eligibility from 12 to 18 semesters, offering students more time to complete their studies. To reduce financial aid penalties, the bill reforms satisfactory academic progress (SAP) determinations. It introduces concepts like "financial aid warning" and "financial aid probation," requiring institutions to apply SAP policies consistently and not more stringently than for non-aid students. The legislation also allows for up to two "resets" of SAP eligibility for students who have been out of school for at least two years, and it restores Pell Grant eligibility for students with scholarships by removing the previous restriction that made students ineligible if their non-federal grants equaled or exceeded their cost of attendance. These changes aim to provide greater flexibility and support for students facing academic or financial challenges.