Pell Grant Sustainability Act

To index the maximum value of Federal Pell Grants to inflation. 1. Short title This Act may be cited as the Pell Grant Sustainability Act 2. Findings Congress finds the following: (1) From 2009 through 2018, the maximum discretionary Federal Pell Grants under section 401 of the Higher Education Act of 1965 stayed flat while inflation was 17 percent. (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. 3. Indexing Federal Pell Grants to inflation (a) Award year 2022–2023 Section 401 of the Higher Education Act of 1965 ( 20 U.S.C. 1070a (1) in subsection (a)(1), by striking through fiscal year 2017 through fiscal year 2022 (2) in subsection (b)(7)(C), by amending clause (iii) to read as follows: (iii) Subsequent award years (I) Award years 2018–2019 through 2021–2022 For each of the award years 2018–2019 through 2021–2022, 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 2022–2023 For award year 2022–2023 and each subsequent award year, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to— (aa) (AA) $6,495 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) $5,435 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 2023–2024, and each subsequent award year Section 401(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(b) Public Law 116–260 (1) by amending paragraph (5) to read as follows: (5) Total maximum Federal Pell Grant (A) In general For award year 2023–2024, and each subsequent award year, the total maximum Federal Pell Grant award per student shall be equal to the sum of— (i) $1,060, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this paragraph 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 ; (2) in paragraph (6)(A)(ii), by striking each of the fiscal years 2023 through 2033 fiscal year 2023 and each subsequent fiscal year (3) in paragraph (8)(A), by striking through fiscal year 2033

Summary: Pell Grant Sustainability Act This bill requires the Department of Education to calculate the maximum award amount for Pell Grants for award year 2022-2023 and each subsequent award year by indexing the award amount to the rate of inflation.