"The report, released late Thursday evening, projects that by the end of fiscal year 2026, which ends Sept. 30, the Pell Grant program will be short $5.5 billion; that number skyrockets to $11.5 billion in fiscal year 2027 if Congress doesn't make cuts or put in new money. And by 2036, the final year included in the CBO's 10-year projection, the cumulative toll could reach up to $132 billion if Congress doesn't up its spending to keep pace with inflation."
"Pell awards are already set for the 2025-26 academic year and many grants have already gone out the door, so Congress can't address the shortfall by clawing back federal dollars, experts said. That means lawmakers will have to find the $5.5 billion before grappling with the larger long-term shortfall. Without new money, students in future years could see changes to the maximum award, how many semesters they can use the grant for and when."
Analysts projected a significant long-term budget shortfall for the Pell Grant program, prompting an emergency $10.5 billion allocation by Congress. The CBO projects a $5.5 billion shortfall by the end of fiscal year 2026 and $11.5 billion in 2027 without additional action. By 2036 the cumulative shortfall could reach up to $132 billion (about $104 billion adjusted for inflation). Pell awards for 2025-26 are already set, so lawmakers must find immediate funds rather than claw back distributed dollars. Without new funding, future students could face reduced maximum awards, fewer eligible semesters, or timing changes to benefits.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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