Pell Grant Preservation and Expansion Act of 2026

Increased Financial Support for Students: The bill increases the maximum Federal Pell Grant award from current levels to $10,000 for 2026-2027, $11,000 for 2027-2028, and up to $15,000 for 2031-2032 and beyond (Section 4).

Inflation Protection: By tying the grant increases to the Consumer Price Index, the program aims to grow with inflation to remain a reliable source of funding (Section 4).

Support for Low-Income Students: Students with a student aid index of less than zero can receive a grant that exceeds the total maximum amount by the amount their index is below zero (Section 5).

Special Consideration for Means-Tested Benefit Recipients: The Secretary will consider the student aid index as -$1,500 for applicants who received certain means-tested Federal benefits during the previous two-year period (Section 5).

Expanded Access for Dreamer Students: The bill provides federal aid eligibility for "Dreamer students," including those who have earned high school diplomas, served in the uniformed services, or completed postsecondary programs (Section 6).

Increased Duration of Aid: The Act increases the total semesters of Federal Pell Grant eligibility from 12 to 18 (Section 7).

Reduced Financial Aid Penalties: The bill adjusts satisfactory academic progress policies, allowing students on "financial aid warning" or "financial aid probation" to continue receiving assistance for specific periods (Section 8).

Restored Eligibility for Scholarship Recipients: The bill removes previous restrictions that made students ineligible for Pell Grants if their non-federal grants and scholarships equaled or exceeded their cost of attendance (Section 9).