Pell Grant Sustainability Act
This bill restores the automatic annual inflation adjustment for Pell Grants. (This inflation adjustment expired after the 2017-2018 award year.)
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1742 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 1742
To index the maximum value of Federal Pell Grants to inflation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 23, 2023
Mr. Casten (for himself, Mrs. Lee of Nevada, Mr. Moulton, Mr. Allred,
Mr. Thompson of Mississippi, Ms. Garcia of Texas, Mr. Peters, Ms. Lee
of California, Mr. Garcia of Illinois, Mr. Kildee, Ms. Tlaib, Ms.
Tokuda, Mr. DeSaulnier, Mr. Trone, Mr. Cicilline, Ms. Adams, Ms.
Bonamici, Ms. Sewell, Mr. Krishnamoorthi, Ms. Jacobs, and Ms. Schrier)
introduced the following bill; which was referred to the Committee on
Education and the Workforce
_______________________________________________________________________
A BILL
To index the maximum value of Federal Pell Grants to inflation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pell Grant Sustainability Act''.
SEC. 2. FINDINGS.
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.
SEC. 3. INDEXING FEDERAL PELL GRANTS TO INFLATION.
(a) Award Year 2023-2024.--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) Subsequent award years.--
``(I) Award years 2018-2019 through
2022-2023.--For 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) Award year 2023-2024.--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) In general.--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 year.--For 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) Rounding.--The total maximum Federal Pell
Grant for any award year shall be rounded to the
nearest $5.
``(C) Annual adjustment percentage defined.--In
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) Effective date.--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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
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