January 05, 2023
Student Aid Receives Significant Boost in FY 23 Spending Bill
In one of its final actions of the year, the 117th Congress passed the FY 2023 Consolidated Appropriations Act and sent it to President Biden, thus avoiding a government shutdown. The bill, which includes important increases in both student and institutional aid, passed the Senate 68-29, and the House 225-201. President Biden signed it on December 29.
Getting this bill to the president’s desk took compromises from both parties, and bipartisan votes for passage. Democrats got the higher total spending amount of $1.7 trillion they wanted, and Republicans got the increased defense spending they requested. Republicans blocked administrative funding increases to help implement the president’s student loan forgiveness proposal but supported Education Department increases that brought the agency’s overall budget to $80 billion.
Fortunately, Pell Grants and student and institutional aid maintained bipartisan support in both chambers and received increases in the final bill. Both parties agreed to include community projects, also known as earmarks, in many agencies throughout the government. Community projects in the education portion of the omnibus bill totaled $430 million and many of these projects are at private, nonprofit colleges.
Student Aid
The highlight of the bill for students is the $500 increase in the Pell Grant maximum award, raising it to $7,395 for the 2023-24 Academic Year. Coupled with last year’s $400 increase, the Pell Grant maximum award continues to track toward our goal of doubling it to $13,000. These increases during the 117th Congress are the largest students have received in the maximum grant since the 2009 stimulus package.
Increased funding is also provided for additional student aid programs that make up a low-income student’s financial aid package. This includes a $15 million increase for Supplemental Educational Opportunity Grants, bringing the program total to $910 million, and a $20 million increase for Federal-Work Study, resulting in a program total of $1.2 billion.
Student support programs through TRIO increased by $54 million to $1.2 billion, and early college preparation through GEAR UP was increased by $10 million to $388 million.
Institutional Aid
Institutional aid under the Strengthening Institutions Programs in Titles III and V was increased by $137 million, to a total of $1.02 billion across all programs for Historically Black Colleges and Universities, Hispanic-Serving Institutions, and other Minority-Serving Institutions.
Funding for all student and institutional aid programs becomes available July 1, 2023.
Getting this bill to the president’s desk took compromises from both parties, and bipartisan votes for passage. Democrats got the higher total spending amount of $1.7 trillion they wanted, and Republicans got the increased defense spending they requested. Republicans blocked administrative funding increases to help implement the president’s student loan forgiveness proposal but supported Education Department increases that brought the agency’s overall budget to $80 billion.
Fortunately, Pell Grants and student and institutional aid maintained bipartisan support in both chambers and received increases in the final bill. Both parties agreed to include community projects, also known as earmarks, in many agencies throughout the government. Community projects in the education portion of the omnibus bill totaled $430 million and many of these projects are at private, nonprofit colleges.
Student Aid
The highlight of the bill for students is the $500 increase in the Pell Grant maximum award, raising it to $7,395 for the 2023-24 Academic Year. Coupled with last year’s $400 increase, the Pell Grant maximum award continues to track toward our goal of doubling it to $13,000. These increases during the 117th Congress are the largest students have received in the maximum grant since the 2009 stimulus package.
Increased funding is also provided for additional student aid programs that make up a low-income student’s financial aid package. This includes a $15 million increase for Supplemental Educational Opportunity Grants, bringing the program total to $910 million, and a $20 million increase for Federal-Work Study, resulting in a program total of $1.2 billion.
Student support programs through TRIO increased by $54 million to $1.2 billion, and early college preparation through GEAR UP was increased by $10 million to $388 million.
Institutional Aid
Institutional aid under the Strengthening Institutions Programs in Titles III and V was increased by $137 million, to a total of $1.02 billion across all programs for Historically Black Colleges and Universities, Hispanic-Serving Institutions, and other Minority-Serving Institutions.
Funding for all student and institutional aid programs becomes available July 1, 2023.
For more information, please contact:
Stephanie T. Giesecke