Bill · S. 5403· Senate(119-S-5403)
Debt-Free College Act of 2026
- Introduced
- 9/15/2026
- Last activity
- 9/15/2026 — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Sponsored by
- Brian Schatz
- Cosponsors
- - 9 - 0
- Introduced
- In Committee
What this bill would do
This bill establishes State-Federal partnerships to help students attend in-state public colleges without debt. It provides federal grant funding to states that commit to covering students' unmet financial needs. The legislation also creates a debt-free college grant program specifically for Historically Black Colleges and Universities (HBCUs) and Minority-Serving Institutions (MSIs). Additionally, the bill expands federal financial aid eligibility to include DREAMer students who meet specific criteria. Finally, it sets rules for keeping states and institutions accountable, capping tuition, and maintaining existing funding levels.
Yes· 3 of 19
Would students be better off under this?+9
Students across participating public institutions and MSIs gain access to debt-free education, tuition caps, and student success services.
Does this make college cost less?+9
The legislation establishes debt-free college partnerships and caps tuition increases tied to the Consumer Price Index.
Would people in their twenties and thirties be better off under this?+8
Young adults pursuing higher education benefit directly from debt-free college initiatives and expanded Pell Grant eligibility.
The opposite
Does this reduce what the federal government spends?-5
The bill authorizes significant new federal spending through grants for state partnerships and Minority-Serving Institutions.
Does this make the government pay for what it commits to?-3
The legislation commits substantial federal funds without corresponding revenue offsets or spending reductions elsewhere.
Who it would affect, and how
Potential Positive Impacts for People
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Debt-Free College Opportunities: Under Section 2 (adding section 499A-3), the bill authorizes grants to states to establish partnerships with the goal of providing debt-free college for all eligible students at in-state public institutions. This helps individuals attain higher education without taking on debt.
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Support for DREAMer Students: Under Section 4, the bill amends the Higher Education Act of 1965 to provide Federal Pell Grant and Title IV eligibility to DREAMer students. This gives these students access to federal financial aid for their education.
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Aid for HBCUs and MSIs: Under Section 3 (adding section 372), the bill creates a grant program for HBCUs and Minority-Serving Institutions to provide need-based financial aid. This covers the unmet financial needs of students enrolled at these specific institutions.
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Tuition Capping: Under Section 2 (adding section 499A-4) and Section 3 (adding section 372), participating states and eligible institutions must cap tuition and fees at levels tied to the date of enactment, allowing only yearly increases based on the Consumer Price Index. This protects students from unexpected or steep tuition hikes.
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Student Support Services: Under Section 2 (adding section 499A-5), the bill requires states to use a portion of their grant funds to establish or increase funding for student success programs. This provides counseling, academic support, and microgrants to help students complete their degrees.
Potential Negative Impacts for People
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Risk of Institutional Ineligibility: Under Section 3 (adding section 372), if an HBCU or MSI loses its eligibility or breaches its grant terms, it must notify students and families of its ineligibility. This could disrupt financial planning and cause uncertainty for students relying on those specific grants.
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Uncertainty During State Withdrawal: Under Section 2 (adding section 499A-8), if a participating State decides to withdraw from the partnership or becomes ineligible, it must notify students. While coverage may continue for certain Pell Grant recipients, state withdrawal creates potential uncertainty regarding long-term debt-free commitments for other enrolled students.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Students+9Good For Low Income Households+8Good For Young Adults+8Good For African Americans+7Good For Hispanic Americans+7Good For Immigrants+7Good For Asian Americans+6Good For Middle Class Households+6Good For Native Americans+6
- Education And Technology
- Improves College Affordability+9Improves Student Loan Relief+8Increases Public School Funding+7
- Social Issues And Justice
- Improves Poverty Reduction+5Improves Racial Equity+5Improves Pathway To Citizenship+4
- Governance And Ideology
- Improves Government Transparency+4Increase States Rights+4Increases Federal Power+3
- Economy And Finance
- Improves Economic Growth+3Reduces Government Spending-5Improves Fiscal Responsibility-3
- 9/28/2026
- 1 Cosponsor added.
- 9/15/2026
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 8 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Tammy BaldwinDemocrat · Wisconsin
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Richard DurbinDemocrat · Illinois
Ben LujánDemocrat · New Mexico
Jeff MerkleyDemocrat · Oregon
Alex PadillaDemocrat · California
Adam SchiffDemocrat · California
Elizabeth WarrenDemocrat · Massachusetts