This bill significantly expands and restructures the Federal Pell Grant program, which provides need-based grants to low-income college students. The legislation doubles the maximum Pell Grant amount gradually over time, increasing from the current level to $10,000 for the 2025-2026 school year and reaching $14,000 by 2030-2031, with automatic increases thereafter tied to inflation. To ensure stable, predictable funding, the bill converts Pell Grants from discretionary to mandatory spending, guaranteeing that eligible students receive grants regardless of budget constraints. The bill also expands eligibility to include undocumented students who meet certain criteria, students who receive means-tested federal benefits like SNAP or Medicaid, and increases the maximum number of semesters students can receive grants from 12 to 18. Additionally, the legislation reduces penalties on students who fail to maintain satisfactory academic progress, allowing them to continue receiving aid through a warning and probation system with opportunities to appeal and recover eligibility. The bill takes effect July 1, 2025.
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