May 20, 2024

Reed, Whitehouse Seek to Strengthen Federal Pell Grant Program

WASHINGTON, DC – In an effort to make college more affordable for working families and further the legacy of the late U.S. Senator Claiborne Pell (D-RI), U.S. Senators Jack Reed (D-RI), and Sheldon Whitehouse (D-RI) joined with Senator Mazie K. Hirono (D-HI) and 41 of their colleagues in urging the Senate Appropriations Committee to provide robust investment in the Pell Grant program for Fiscal Year 2025. In the letter, the senators request a discretionary increase to the award as Congress works towards doubling the Pell Grant for students.

A 2024 federal analysis estimated that the Pell Grant program could be short $1.3 billion unless Congress allocates more funding.

Created in 1972, the Pell Grant is need-based financial aid that offers up to $7,395 in federal assistance to help students of all backgrounds pursue a college degree.  Today, over 6 million students nationwide rely on Pell Grants to cover the costs of their higher education.  But the current maximum Pell Grant award only covers about one-fifth of the average cost of an American four-year college.

“We remain concerned that the value of the Pell Grant has steadily declined since it was first created – now covering the lowest share of the cost of attendance in its 50-year history,” wrote the senators. “Increasing the maximum award would provide a substantial investment toward reversing this decades-long decline.”

Specifically, the letter requests that the discretionary allocation for the Pell Grant effectively:

  • Meets the needs of students;
  • Protects all Pell Grant program reserves; and
  • Expands eligibility to students who have been historically excluded or previously cut out from being eligible for the Pell Grant.

“The need for Congress to provide robust investment in the Pell Grant program is clear. In the wake of the COVID-19 pandemic, students are still struggling just to meet their basic needs as they pursue higher education,” continued the senators. “It is critically important that the Subcommittee continues to protect all Pell Grant reserves from any reallocation, raid, or rescission that would hasten any shortfalls in the program.”

“The Pell Grant is the cornerstone of federal student aid, and currently helps over 6 million students pursue higher education in the United States,” the senators concluded. “With a continued investment in the Pell Grant, we can better extend educational opportunity to more students from low- and moderate- income families, who will be critical to meeting the demand for a highly educated-workforce.”

Congress appropriates money for the Pell Grant program on an annual basis.  Senators Reed and Whitehouse helped raise the maximum Pell award for the 2024-2025 school year to $7,395 — $500 higher than the previous year and $900 higher than 2022.  The Pell Grant amount has increased twice during President Biden’s term, after previously going untouched since 2009.

Students can find out if they qualify for a Pell Grant by filling out the Federal Application for Student Aid (FAFSA).  In the 2021-2022 school year, students in Rhode Island received over $89 million in Pell Grant funding and the Ocean State had 21,422 Pell Grant recipients.

In addition to Senators Hirono, Reed, and Whitehouse, the letter is signed by Senators Angus King (I-ME), Tom Carper (D-DE), Tammy Duckworth (D-IL), Tim Kaine (D-VA), Raphael Warnock (D-GA), Alex Padilla (D-CA), Brian Schatz (D-HI), Kirsten Gillibrand (D-NY), Ben Cardin (D-MD), Richard Blumenthal (D-CT), Debbie Stabenow (D-MI), Maria Cantwell (D-WA), Amy Klobuchar (D-MN), Ed Markey (D-MA), Chris Murphy (D-CT), Bob Casey (D-PA), Gary Peters (D-MI), Michael Bennet (D-CO), Peter Welch (D-VT), Mark Kelly (D-AZ), Jon Ossoff (D-GA), Cory Booker (D-NJ), Chris Van Hollen (D-MD), Jeff Merkley (D-OR), Elizabeth Warren (D-MA), Catherine Cortez Masto (D-NV), Maggie Hassan (D-NH), Sherron Brown (D-OH), Jon Tester (D-MT), Ben Ray Lujan (D-NM), Tina Smith (D-MN), Jeanne Shaheen (D-NH), Dick Durbin (D-IL), Kyrsten Sinema (I-AZ), Ron Wyden (D-OR), Chris Coons (D-DE), Bernie Sanders (I-VT), John Hickenlooper (D-CO), Jacky Rosen (D-NV), Mark Warner (D-VA), and Laphonza Butler (D-CA). 

The full text of the letter follows:

Dear Chair Baldwin and Ranking Member Capito:

As you begin your work on Fiscal Year 2025 (FY 2025) appropriations, we urge the Labor, Health and Human Services, Education, and Related Agencies (LHHS) Subcommittee to make sure the discretionary allocation for the Pell Grant effectively meets the needs of students, protects all Pell Grant program reserves, and expands eligibility to students who have been historically excluded or previously cut out from being eligible for the Pell Grant. We respectfully request you provide a discretionary increase to the award as Congress works toward doubling the Pell Grant for students.

We appreciate the LHHS Subcommittee’s work to increase the Pell Grant maximum award in recent years. But we remain concerned that the value of the Pell Grant has steadily declined since it was first created – now covering the lowest share of the cost of attendance in its 50-year history. Increasing the maximum award would provide a substantial investment toward reversing this decades-long decline.

The need for Congress to provide robust investment in the Pell Grant program is clear. In the wake of the COVID-19 pandemic, students are still struggling just to meet their basic needs as they pursue higher education. Recently, for example, the Center for Community College Student Engagement (CCCSE) reported that 29 percent of the students they surveyed were food insecure, and 14 percent were housing insecure. Especially at a time of expected shortfalls in the Pell Grant program, it is critically important that the Subcommittee continues to protect all Pell Grant reserves from any reallocation, raid, or rescission that would hasten any shortfalls in the program. Pell Grant funds should be retained in the program to increase the maximum award, reverse prior eligibility cuts, and provide new opportunities to provide higher education to historically underrepresented students.

The Pell Grant is the cornerstone of federal student aid, and currently helps over 6 million students pursue higher education in the United States. With a continued investment in the Pell Grant, we can better extend educational opportunity to more students from low- and moderate- income families, who will be critical to meeting the demand for a highly educated-workforce.

Thank you for your continued commitment to the Pell Grant. We appreciate your consideration of these requests.

Sincerely,

Press Contact

Meaghan McCabe, (202) 224-2921
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