Issue Briefs
Student Aid Funding
The federal government provides roughly $130 billion each year to the student aid programs, which help more than 9 million students pay for college. Authorized under the Higher Education Act of 1965, the federal student aid programs include the Pell Grant program, student loans, Supplemental Educational Opportunity Grants (SEOG), Federal Work-Study (FWS), TRIO, and GEAR UP.
About
NAICU supports increased federal funding for the annually appropriated student aid programs, which work together to ensure that qualified low- and middle-income students who are prepared for college have the same opportunity to get into, persist, and complete college as students with greater resources.
For FY 2027, NAICU supports sufficient funding for the Pell Grant program to ensure the continuation of the current maximum grant award of $7,395, while maintaining funding for the other student aid and higher education programs.
Status of FY 2027 Student Aid Funding
The President's Budget Request for FY 2027 was released on April 3. For the student aid programs, the budget proposes to increase funding for the Pell Grant program by $10.5 billion to ensure the maximum grant award remains $7,395. However, the budget proposes to cut Federal Work-Study funding by 90% to $123 million, and eliminate all other student aid funding.
The president's budget is the first step in the process. In Congress, the student aid programs are funded in the Labor-HHS-Education appropriations subcommittee bill.
The House FY 2027 education spending bill, written on June 9, increases the Pell Grant maximum award by $50, to $7,445 and covers the Pell Grant shortfall for two years. The bill also provides an additional $6 million each for TRIO and GEAR UP. The bill would pay for these increases through reductions in Supplemental Educational Opportunity Grant funding to $546 million and Federal Work-Study funding to $908 million, while the Pell Grant shortfall would be addressed by eliminating subsidized loans for undergraduate students.
The Senate has not yet scheduled a markup for its version of the Labor-HHS-Education appropriations bill.
Status of FY 2026 Student Aid Funding
Because student aid programs are forward-funded, the following funding will be available starting July 1, 2026, for the 2026-27 award year:
Pell Grant Maximum: $7,395
SEOG: $910 million
FWS: $1.23 billion
TRIO: $1.2 billion
GEAR UP: $388 million
College presidents are one of the most respected voices heard by Members of Congress.
- Communicate regularly with your congressional delegation to reinforce the importance of the federal student aid programs to your students.
- Use your NAICU Student Aid Data Sheet to show how federal funding helps students at your school.
- Bring a student or student story with you when you meet with your congressional representatives.
- Stephanie Giesecke: Stephanie@NAICU.edu
In the News
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NAICU Washington Update (6/12/26)House Education Funding Bill Offers Mixed Results
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NAICU Washington Update (4/10/26)President’s Budget Maintains Pell but Cuts Other Student Aid
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NAICU Washington Update (2/6/26)Federal Government Opens After Brief Shutdown
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NAICU Washington Update (11/14/25)Federal Government Reopens After 43-Day Shutdown
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NAICU Washington Update (9/19/25)Congress Takes Steps to Avoid a Government Shutdown
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NAICU Washington Update (9/12/25)House Appropriations Committee Approves Education Cuts
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NAICU Washington Update (8/8/25)Senate Education Spending Bill Rejects President’s Proposed Cuts and Program Eliminations
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NAICU Washington Update (7/18/25)Outlook for FY 2026 Funding
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NAICU Washington Update (6/6/25)President’s Budget Proposes Deep Cuts to Student Aid Programs
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NAICU Washington Update (5/9/25)President’s Skinny Budget Proposes Student Aid Cuts