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 2026, NAICU supports increases for all programs to keep pace with inflation, which is detailed in NAICU’s request letter to Congress.
Status of FY 2026 Student Aid Funding
After the longest government shutdown in history and an additional continuing resolution, the final funding bills for FY 2026 were enacted February 3, 2026, with level funding for all the student aid programs.
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
The President’s FY 2026 Budget Request in June proposed deep cuts to the student aid programs that included significant reductions for Pell Grants and FWS and the elimination of SEOG, TRIO, and GEAR UP.
In Congress, the student aid programs are funded in the Labor-HHS-Education appropriations subcommittee bill. In the House, its subcommittee bill maintained funding for the Pell Grant maximum at $7,395, reduced Federal Work-Study funding from $1.23 billion to $779 million, eliminated funding for SEOG, and maintained TRIO and GEAR UP funding. The Senate subcommittee bill maintained level funding for all programs. In the final bill, the House agreed to the Senate funding levels.
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 (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
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NAICU Washington Update (3/7/25)Potential Government Shutdown Looming
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NAICU Washington Update (2/14/25)$900 Million in Education Department Contracts Cancelled