Political Turmoil Leaves Student Aid Funding Levels Up in the Air
Congress continues to haggle over a final funding deal to keep the government from shutting down on December 20. As Washington Update went to print on Thursday, House republicans had just offered a plan that would extend funding at the current level through mid-March. The good news for student aid funding is that it has stayed out of the political back and forth during the recent negotiations. If that holds, the most likely scenario going forward, based on what is currently known, is that the decision on academic year 2025-26 funding will not be settled until March.
Waiting until March, unfortunately, coincides with the time of year many colleges and universities send the bulk of their financial aid award letters to students. If delays extend beyond March, it could negatively affect the ability of low- and middle-income students to choose the best fit college whether they are freshmen or returning students planning their continuing education.
By punting final budget decisions by several months, the power to make decisions on FY 2025 spending is being given to the 119th Congress, which could result in lower spending levels for the student aid programs because of the transition to an all Republican-led government. The House and Senate appropriations committees currently have different funding levels and have not agreed on a top line spending total because House Republicans want to spend less than the Senate. The House bill currently provides for no increase in the Pell Grant maximum, keeping it at $7,395, and cuts in half the funding for SEOG and FWS. The Senate bill provides for a $100 increase in the Pell Grant maximum and level funding for SEOG and FWS.
Finalizing FY 2025 student aid funding will be a top NAICU priority in the new year.
For more information, please contact:
Stephanie Giesecke