Pell Grant Sustainability Act

Subjects: Education


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1742 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 1742

    To index the maximum value of Federal Pell Grants to inflation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2023

 Mr. Casten (for himself, Mrs. Lee of Nevada, Mr. Moulton, Mr. Allred, 
 Mr. Thompson of Mississippi, Ms. Garcia of Texas, Mr. Peters, Ms. Lee 
   of California, Mr. Garcia of Illinois, Mr. Kildee, Ms. Tlaib, Ms. 
   Tokuda, Mr. DeSaulnier, Mr. Trone, Mr. Cicilline, Ms. Adams, Ms. 
Bonamici, Ms. Sewell, Mr. Krishnamoorthi, Ms. Jacobs, and Ms. Schrier) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
    To index the maximum value of Federal Pell Grants to inflation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pell Grant Sustainability Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The purchasing power of the Federal Pell Grant has 
        declined rapidly since the 1970s. In academic year 1974-1975, 
        the total maximum Federal Pell Grant covered 80 percent of base 
        educational costs at public 4-year institutions of higher 
        education. By academic year 2020-2021, the maximum Federal Pell 
        Grant covered just 30 percent of those base costs.
            (2) The value of Federal Pell Grants must keep pace with 
        students' costs in order to fulfill their mission of enabling 
        lower-income students to attend college.

SEC. 3. INDEXING FEDERAL PELL GRANTS TO INFLATION.

    (a) Award Year 2023-2024.--Section 401 of the Higher Education Act 
of 1965 (20 U.S.C. 1070a) is amended--
            (1) in subsection (a)(1), by striking ``through fiscal year 
        2017'' and inserting ``through fiscal year 2023''; and
            (2) in subsection (b)(7)(C), by amending clause (iii) to 
        read as follows:
                            ``(iii) Subsequent award years.--
                                    ``(I) Award years 2018-2019 through 
                                2022-2023.--For each of the award years 
                                2018-2019 through 2022-2023, the amount 
                                determined under this subparagraph for 
                                purposes of subparagraph (B)(iii) shall 
                                be equal to the amount determined under 
                                clause (ii) for award year 2017-2018.
                                    ``(II) Award year 2023-2024.--For 
                                award year 2023-2024 and each 
                                subsequent award year, the amount 
                                determined under this subparagraph for 
                                purposes of subparagraph (B)(iii) shall 
                                be equal to--
                                            ``(aa)(AA) $6,895 or the 
                                        total maximum Federal Pell 
                                        Grant for the preceding award 
                                        year (as determined under 
                                        clause (iv)(II)), whichever is 
                                        greater, increased by a 
                                        percentage equal to the annual 
                                        adjustment percentage for the 
                                        award year for which the amount 
                                        under this subparagraph is 
                                        being determined; reduced by
                                            ``(BB) $6,495 or the 
                                        maximum Federal Pell Grant for 
                                        which a student was eligible 
                                        for the preceding award year, 
                                        as specified in the last 
                                        enacted appropriation Act 
                                        applicable to that year, 
                                        whichever is greater; and
                                            ``(bb) rounded to the 
                                        nearest $5.''.
    (b) Award Year 2024-2025, and Each Subsequent Award Year.--
            (1) In general.--Section 401(b) of the Higher Education Act 
        of 1965 (20 U.S.C. 1070a(b)), as amended by section 703 of the 
        FAFSA Simplification Act (title VII of division FF of Public 
        Law 116-260), is further amended--
                    (A) by amending paragraph (5) to read as follows:
            ``(5) Total maximum federal pell grant.--
                    ``(A) Award year 2024-2025 and each subsequent 
                award year.--For award year 2024-2025, and each 
                subsequent award year, the total maximum Federal Pell 
                Grant award per student shall be equal to the sum of--
                            ``(i)(I) in the case of award year 2024-
                        2025, $1,060; or
                            ``(II) in the case of award year 2025-2026 
                        and each subsequent award year, the amount 
                        determined under this clause for the preceding 
                        award year, increased by a percentage equal to 
                        the annual adjustment percentage for the award 
                        year for which the amount under this clause is 
                        being determined; and
                            ``(ii) the amount specified as the maximum 
                        Federal Pell Grant in the last enacted 
                        appropriation Act applicable to that award 
                        year.
                    ``(B) Rounding.--The total maximum Federal Pell 
                Grant for any award year shall be rounded to the 
                nearest $5.
                    ``(C) Annual adjustment percentage defined.--In 
                this paragraph, the term `annual adjustment 
                percentage', as applied to an award year, is equal to 
                the estimated percentage change in the Consumer Price 
                Index (as determined by the Secretary, using the 
                definition in section 478(f)) for the most recent 
                calendar year ending prior to the beginning of that 
                award year.'';
                    (B) in paragraph (6)(A)(ii), by striking ``each of 
                the fiscal years 2024 through 2034'' and inserting 
                ``fiscal year 2024 and each subsequent fiscal year''; 
                and
                    (C) in paragraph (8)(A), by striking ``through 
                fiscal year 2034''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect as if included in section 703 of the FAFSA 
        Simplification Act (title VII of division FF of Public Law 116-
        260) and subject to the effective date of section 701(b) of 
        such Act.
                                 &lt;all&gt;
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