118 HR 1742 IH: Pell Grant Sustainability Act
U.S. House of Representatives
2023-03-23
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EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Pell Grant Sustainability Act
. 2.Congress finds the following:
(1)The purchasing power of the Federal Pell Grant has declined rapidly since the 1970s. In academic year 1974–1975, the total maximum Federal Pell Grant covered 80 percent of base educational costs at public 4-year institutions of higher education. By academic year 2020–2021, the maximum Federal Pell Grant covered just 30 percent of those base costs. (2)The value of Federal Pell Grants must keep pace with students’ costs in order to fulfill their mission of enabling lower-income students to attend college.
3.Indexing Federal Pell Grants to inflation
(a)Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is amended— (1)in subsection (a)(1), by striking through fiscal year 2017
and inserting through fiscal year 2023
; and
(2)in subsection (b)(7)(C), by amending clause (iii) to read as follows: (iii) (I)Award years 2018–2019 through 2022–2023For each of the award years 2018–2019 through 2022–2023, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to the amount determined under clause (ii) for award year 2017–2018.
(II)For award year 2023–2024 and each subsequent award year, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to— - (aa) (AA)$6,895 or the total maximum Federal Pell Grant for the preceding award year (as determined under clause (iv)(II)), whichever is greater, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined; reduced by
(BB)$6,495 or the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year, whichever is greater; and
- (bb)rounded to the nearest $5.
.
(b)Award year 2024–2025, and each subsequent award year
(1)Section 401(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260), is further amended— (A)by amending paragraph (5) to read as follows:
(5)Total maximum Federal Pell Grant
(A)Award year 2024–2025 and each subsequent award yearFor award year 2024–2025, and each subsequent award year, the total maximum Federal Pell Grant award per student shall be equal to the sum of— (i) (I)in the case of award year 2024–2025, $1,060; or
(II)in the case of award year 2025–2026 and each subsequent award year, the amount determined under this clause for the preceding award year, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this clause is being determined; and (ii)the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year.
(B)The total maximum Federal Pell Grant for any award year shall be rounded to the nearest $5. (C)Annual adjustment percentage definedIn this paragraph, the term annual adjustment percentage, as applied to an award year, is equal to the estimated percentage change in the Consumer Price Index (as determined by the Secretary, using the definition in section 478(f)) for the most recent calendar year ending prior to the beginning of that award year.;
(B)in paragraph (6)(A)(ii), by striking each of the fiscal years 2024 through 2034
and inserting fiscal year 2024 and each subsequent fiscal year
; and (C)in paragraph (8)(A), by striking through fiscal year 2034
.
(2)The amendments made by paragraph (1) shall take effect as if included in section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260) and subject to the effective date of section 701(b) of such Act.