Federal Pell Grant Program of the Higher Education Act: Primer

Changes from September 9, 2021 to January 24, 2023

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Federal Pell Grant Program of the Higher
~~September 9, 2021~~January 24, 2023
Education Act: Primer
Cassandria Dortch
The federal The federal ~~Pel~~ Pell Grant program, authorized by Title IV of the Higher Education Act of Grant program, authorized by Title IV of the Higher Education Act of
1965, as Specialist in Education Specialist in Education
~~1965, as~~ amended (HEA; P.L. 89-329), is the single largest source of federal grant aid amended (HEA; P.L. 89-329), is the single largest source of federal grant aid
supporting Policy Policy
~~supporting~~ postsecondary education students. postsecondary education students. ~~Pel~~ Pell Grants, and their predecessor, Basic Grants, and their predecessor, Basic
Education
~~Education~~ Opportunity Grants, have been awarded since 1973. The program provided Opportunity Grants, have been awarded since 1973. The program provided

~~approximately $27 bil ion~~ $26 billion in aid to approximately 6.in aid to approximately 6.~~3 mil ion~~1 million undergraduate students in undergraduate students in
~~FY2020. Pel~~ FY2021. Pell Grants are need-based aid that Grants are need-based aid that is intended to be the foundation for is intended to be the foundation for al all need-based federal student aid need-based federal student aid
awarded to undergraduates. Unlike loans, students do not repay awarded to undergraduates. Unlike loans, students do not repay ~~Pel~~ Pell Grants. Grants.
Effective in award year Effective in award year ~~2023-2024~~2024-2025, the FAFSA Simplification Act (FSA; Title VII of Division FF of P.L. 116-260, , the FAFSA Simplification Act (FSA; Title VII of Division FF of P.L. 116-260,
Consolidated Appropriations Act, 2021) makes several changes to the program. This report describes the Consolidated Appropriations Act, 2021) makes several changes to the program. This report describes the ~~Pel~~
Pell Grant program prior to award year Grant program prior to award year ~~2023-2024.~~
~~To be eligible for a Pel~~ 2024-2025. Beginning on July 1, 2023, as enacted by the FSA, incarcerated students may be eligible for a Pell Grant if enrolled in a prison education program. To be eligible for a Pell Grant, an undergraduate student must meet several requirements. One key requirement is Grant, an undergraduate student must meet several requirements. One key requirement is
that the student and his or her family demonstrate financial need. Financial need is determined through the that the student and his or her family demonstrate financial need. Financial need is determined through the
calculation of an expected family contribution (EFC), which is based on applicable family financial information calculation of an expected family contribution (EFC), which is based on applicable family financial information
provided on the Free Application for Federal Student Aid (FAFSA). Although there is no absolute income provided on the Free Application for Federal Student Aid (FAFSA). Although there is no absolute income
threshold that determines who is eligiblethreshold that determines who is eligible or ineligibleor ineligible ~~for Pel~~ for Pell Grants, an estimated Grants, an estimated 9597% of % of ~~Pel~~ Pell Grant recipients Grant recipients
had a total family income at or below $60,000 in academic year had a total family income at or below $60,000 in academic year ~~2017-2018~~2020-2021. Other requirements include, but are . Other requirements include, but are
not limited to, the student not having earned a bachelor’s degree and being enrolled in an eligiblenot limited to, the student not having earned a bachelor’s degree and being enrolled in an eligible program at an program at an
~~HEA~~ HEA Title IV-participating institution of higher education for the purpose of earning a certificate or degree.Title IV-participating institution of higher education for the purpose of earning a certificate or degree.
The maximum annual award a student may receive during an academic year is calculated in accordance with the The maximum annual award a student may receive during an academic year is calculated in accordance with the
~~Pel~~ Pell Grant award rules. The student’s scheduled award is the least of (1) the total maximum Grant award rules. The student’s scheduled award is the least of (1) the total maximum ~~Pel~~ Pell Grant minus the Grant minus the
student’s EFC, or (2) Cost of Attendance (COA) minus EFC. For a student who enrolls on a less-than-full-time student’s EFC, or (2) Cost of Attendance (COA) minus EFC. For a student who enrolls on a less-than-full-time
basis, the student’s maximum annual award is the scheduled award ratably reduced. For basis, the student’s maximum annual award is the scheduled award ratably reduced. For ~~FY2021~~FY2023 (academic year (academic year
~~2021-2022~~2023-2024), the total maximum ), the total maximum ~~Pel~~ Pell Grant Grant is $7,395~~is $6,495~~. The COA is a measure of a student’s educational expenses . The COA is a measure of a student’s educational expenses
for the academic year. Qualified students who exhaust their scheduled award and remain enrolled beyond the for the academic year. Qualified students who exhaust their scheduled award and remain enrolled beyond the
academic year (e.g., enroll in a summer semester) during an award year receive a academic year (e.g., enroll in a summer semester) during an award year receive a year-round or or summer ~~Pel~~
Pell Grant such that they may receive up to 1½ scheduled grants in each award year. Grant such that they may receive up to 1½ scheduled grants in each award year. ~~Final y~~Finally, a student may receive the , a student may receive the
value of no more than 12 full-time semesters (or the equivalent) of value of no more than 12 full-time semesters (or the equivalent) of ~~Pel~~ Pell Grant awards over a lifetime. Grant awards over a lifetime.
The program is funded primarily through annual discretionary appropriations, but the HEA provides mandatory The program is funded primarily through annual discretionary appropriations, but the HEA provides mandatory
appropriations. The total maximum appropriations. The total maximum ~~Pel~~ Pell Grant is the sum of two components: the discretionary maximum award Grant is the sum of two components: the discretionary maximum award
and the mandatory add-on award. The discretionary maximum award amount is funded by discretionary and the mandatory add-on award. The discretionary maximum award amount is funded by discretionary
appropriations enacted in annual appropriations acts, and augmented by permanent and definite mandatory appropriations enacted in annual appropriations acts, and augmented by permanent and definite mandatory
appropriations. For appropriations. For ~~FY2021~~FY2023, the discretionary appropriation is $22.475 , the discretionary appropriation is $22.475 ~~bil ion~~billion and the augmenting mandatory and the augmenting mandatory
funds total $1.funds total $1.~~170 bil ion~~163 billion. The mandatory add-on award amount is funded entirely by a permanent and indefinite . The mandatory add-on award amount is funded entirely by a permanent and indefinite
mandatory appropriation of such sums as necessary, as authorized in the HEA. mandatory appropriation of such sums as necessary, as authorized in the HEA. ~~The mandatory add-on is estimated~~
~~to require $5.412 bil ion in FY2021.~~ Funding provided for the Funding provided for the ~~Pel~~ Pell Grant program is exempt from sequestration. Grant program is exempt from sequestration.
The The ~~Pel~~ Pell Grant program is often referred to as a Grant program is often referred to as a quasi-entitlement because for the most part eligible students because for the most part eligible students
receive the receive the ~~Pel~~ Pell Grant award level calculated for them without regard to available appropriations. In a given year, Grant award level calculated for them without regard to available appropriations. In a given year,
the discretionary appropriation level may be the discretionary appropriation level may be ~~smal er~~smaller or larger than the actual cost to fund the discretionary or larger than the actual cost to fund the discretionary
maximum award, despite the maximum award, despite the augmenting mandatory appropriation. The annual discretionary appropriation is available for obligation on October 1 of the fiscal year for which the appropriation is made and remains available for obligation through September 30 of the following fiscal year. Thus, the funds may support multiple award years, allowing the discretionary appropriation to operate at a surplus or shortfall in any given year. ~~augmenting mandatory appropriation.~~ When the discretionary appropriation is too When the discretionary appropriation is too
~~smal~~ small, the program carries a , the program carries a ~~shortfal~~ shortfall into the subsequent fiscal year. When the discretionary appropriation is too into the subsequent fiscal year. When the discretionary appropriation is too
large, the program carries a surplus into the following fiscal year. Since FY2012, the program has had a surplus. large, the program carries a surplus into the following fiscal year. Since FY2012, the program has had a surplus.
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Federal Pell Grant Program ~~of the Higher Education Act~~: Primer

Introduction
The Federal The Federal ~~Pel~~ Pell Grant program, authorized by Title IV-A-1 of the Higher Education Act of 1965, Grant program, authorized by Title IV-A-1 of the Higher Education Act of 1965,
(HEA; P.L. 89-329), as amended, is the single largest source of federal grant aid supporting (HEA; P.L. 89-329), as amended, is the single largest source of federal grant aid supporting
undergraduate students. The program provided approximately $undergraduate students. The program provided approximately $~~27 bil ion~~ 26 billion in aid to approximately in aid to approximately
6.6.~~3 mil ion~~ 1 million undergraduate students in undergraduate students in ~~FY2020.1 Pel~~ FY2021.1 Pell Grants are need-based aid that is intended to Grants are need-based aid that is intended to
be the foundation for be the foundation for al all federal need-based student aid awarded to undergraduates. In award year federal need-based student aid awarded to undergraduates. In award year
~~2015-2016, Pel Grants represented 72% of al federal undergraduate grant aid; 53% of federal,~~
~~state, and institutional undergraduate need-based grant aid; and 28% of total grant aid for~~
~~undergraduates coming from federal, state, institutional, and private sources~~(AY) 2017-2018, 44% of undergraduates received Federal Pell Grants.2 Unlike loans, ~~.2 Unlike loans,~~
students are not required to repay students are not required to repay ~~Pel~~ Pell Grants.Grants.
~~Prior to July 1, 2023, the~~ The discretionary statutory authority for the discretionary statutory authority for the ~~Pel~~ Pell Grant program was Grant program was
reauthorized through FY2017 by the Higher Education Opportunity Act of 2008 (HEOA;reauthorized through FY2017 by the Higher Education Opportunity Act of 2008 (HEOA; P.L. P.L.
110-315). The discretionary authorization was extended through FY2018 under the General 110-315). The discretionary authorization was extended through FY2018 under the General
Education Provisions Act (GEPA), although the program has continued to receive appropriations.3 Education Provisions Act (GEPA), although the program has continued to receive appropriations.3
Effective July 1, Effective July 1, ~~2023~~2024, the FAFSA Simplification Act (FSA; Title VII of Division FF of P.L. 116-, the FAFSA Simplification Act (FSA; Title VII of Division FF of P.L. 116-
260, Consolidated Appropriations Act, 2021)260, Consolidated Appropriations Act, 2021) ~~authorizes discretionary appropriations for FY2023~~
~~through FY2033.4 HEA~~ , as amended by the Consolidated Appropriations Act, 2022 (P.L. 117-103), authorizes discretionary appropriations for FY2024 through FY2034. HEA also provides permanent mandatory program appropriations.also provides permanent mandatory program appropriations.
This report provides descriptions of key elements of the This report provides descriptions of key elements of the ~~Pel~~ Pell Grant program and information on Grant program and information on
recipient demographics, award levels, award value, program costs, and program funding prior to recipient demographics, award levels, award value, program costs, and program funding prior to
the effective date of the FSAthe effective date of the FSA.5 , as amended.4 (For information on key changes authorized by the FSA that go into For information on key changes authorized by the FSA that go into
effect for award year effect for award year ~~2023-2024~~2024-2025, see CRS Report R46909, , see CRS Report R46909, The FAFSA Simplification Act). The . The
first section of first section of ~~the~~this report addresses how the program works and describes the basic process for report addresses how the program works and describes the basic process for
awarding awarding ~~Pel Grants~~Pell Grants, including the application process, student including the application process, student ~~eligibility~~ eligibility requirements, award requirements, award
rules and calculations, and the role of the institution of higher education (IHE) in the process. The rules and calculations, and the role of the institution of higher education (IHE) in the process. The
subsequent sections provide information on recipient characteristics and the role the program subsequent sections provide information on recipient characteristics and the role the program
plays in relation to other student aid.plays in relation to other student aid.65 The report explains the complex The report explains the complex ~~Pel~~ Pell Grant funding streams Grant funding streams
and their implications. and their implications. ~~Final y~~Finally, program costs and estimates are presented. In addition, the , program costs and estimates are presented. In addition, the
appendices provide historical appendices provide historical ~~Pel~~ Pell Grant award amounts Grant award amounts ((Appendix AAppendix A), Pell ~~), Pel~~ Grant recipient Grant recipient

~~1 U.S. Department of Education, Fiscal Year 2022 Budget, pp. O-4–O-5.~~
~~2 CRS analysis of AY2015-2016 data from the Department of Education,~~counts (Appendix B), recent and future program funding (Appendix C), surplus and shortfall levels (Appendix D), and acronyms commonly used in the report (Appendix E). 1 U.S. Department of Education, Fiscal Year 2023 Budget, Student Aid Overview pp. 4-5. 2 R. Burns, R. Johnson, T.A. Lacy, M. Cameron, J. Holley, S. Lew, J. Wu, P. Siegel, and J. Wine, 2017–18 National Postsecondary Student Aid Study National Postsecondary Student Aid Study
~~(NPSAS). T his survey, which is conducted about every four or more years, was most recently conducted for award year~~
~~2015-2016~~, Administrative Collection (NPSAS:18-AC): First Look at Student Financial Aid Estimates for 2017–18 (NCES 2021-476rev), U.S. Department of Education (Washington, DC: National Center for Education Statistics, 2022), retrieved December 7, 2022, from https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2021476rev. .
3 For more information on GEPA’s Contingent Extension of Programs, see CRS 3 For more information on GEPA’s Contingent Extension of Programs, see CRS Report R41119, Report R41119, General Education
Provisions Act (GEPA): Overview and Issues. .
4 4 ~~T he Department of Education has indicated that it is anticipating a phased implementation that would extend to award~~
~~year 2024-25. Department of Education, Federal Student Aid,~~ ~~Beginning Phased Im plem entation of the FAFSA~~
~~Sim plification Act (EA ID: GENERAL-21-39), June 11, 2021.~~
~~5 T his CRS~~ This CRS report supersedes CRSreport supersedes CRS Report Report ~~422446~~R42446, , Federal Pell Grant Program of the Higher Education Act: How the
Program ~~Works~~ Works and Recent Legislative Changes. . ~~T he~~The current report contains updated information. current report contains updated information.
~~6 T itle~~5 Title IV of HEA authorizes several student aid programs: Pell Grant program, Iraq and Afghanistan service grants, IV of HEA authorizes several student aid programs: Pell Grant program, Iraq and Afghanistan service grants,
William D. Ford FederalWilliam D. Ford Federal Direct Loan (DL) Program, Federal Supplemental Educational Opportunity Grant (FSEOG) Direct Loan (DL) Program, Federal Supplemental Educational Opportunity Grant (FSEOG)
program, and Federal Work-Study (FWS) program. Seeprogram, and Federal Work-Study (FWS) program. See ~~CRS~~ CRS Report RL31618, Report RL31618, ~~Cam pus~~Campus-Based Student Financial Aid
~~Program s~~Programs Under the Higher Education Act,; and CRS and CRS Report Report ~~R40122~~R45931, , Federal Student Loans Made ~~Under the Federal~~
~~Fam ily Education Loan Program and the William~~ Through the William D. Ford Federal Direct Loan Program ~~: Term s~~: Terms and Conditions for
Borrowers. .
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link to page link to page 2120 Federal Pell Grant Program: Primer ~~Federal Pell Grant Program of the Higher Education Act: Primer~~

~~counts (Appendix B), recent and future program funding (Appendix C), surplus and shortfal~~
~~levels (Appendix D), and acronyms commonly used in the report (Appendix E).~~
Student Eligibility and Program Award Rules
This section of the report provides an overview of the structure of the This section of the report provides an overview of the structure of the ~~Pel~~ Pell Grant program and the Grant program and the
process through which grants are made to students. It describes student eligibility, underlying process through which grants are made to students. It describes student eligibility, underlying
concepts and award rules for determining students’ grants, and the role played by postsecondary concepts and award rules for determining students’ grants, and the role played by postsecondary
institutions in the program. institutions in the program.
Briefly, the Briefly, the ~~Pel~~ Pell Grant program provides grants (i.e., aid that does not have to be repaid) to Grant program provides grants (i.e., aid that does not have to be repaid) to
~~financial y~~financially needy undergraduates. To apply for a needy undergraduates. To apply for a ~~Pel~~ Pell Grant or any HEAGrant or any HEA Title IV student aid, Title IV student aid,
students must complete and submit the Free Application for Federal Student Aid (FAFSA), students must complete and submit the Free Application for Federal Student Aid (FAFSA),
providing requested financial and other information.providing requested financial and other information.76 When the FAFSA is processed, the When the FAFSA is processed, the
individual’s expected family contribution (EFC) is calculated. The EFC is the amount expected to individual’s expected family contribution (EFC) is calculated. The EFC is the amount expected to
be contributed by the student and the student’s family toward postsecondary education expenses be contributed by the student and the student’s family toward postsecondary education expenses
for the upcoming academic year. After processing, each applicant receives a Student Aid Record for the upcoming academic year. After processing, each applicant receives a Student Aid Record
(SAR). Each institution of higher education (IHE) designated by the applicant on the FAFSA (SAR). Each institution of higher education (IHE) designated by the applicant on the FAFSA
receives an Institutional Student Information Record (ISIR). The SAR and ISIR contain the receives an Institutional Student Information Record (ISIR). The SAR and ISIR contain the
information submitted on the FAFSA and the individual’sinformation submitted on the FAFSA and the individual’s EFC.EFC.8
7 Institutions that receive valid SARs or valid ISIRs for eligible Institutions that receive valid SARs or valid ISIRs for eligible ~~Pel~~ Pell Grant applicants are required Grant applicants are required
to disburse to disburse ~~Pel~~ Pell Grant funds to students who Grant funds to students who ~~successful y~~successfully enroll in approved coursework. enroll in approved coursework. ~~Pel~~
Pell Grants are Grants are portable aid, that is, the grant aid follows students to the eligible postsecondary , that is, the grant aid follows students to the eligible postsecondary
education institutions in which they enroll. In addition, the education institutions in which they enroll. In addition, the ~~Pel~~ Pell Grant program is often referred to Grant program is often referred to
as a as a quasi-entitlement because for the most part eligible students receive the because for the most part eligible students receive the ~~Pel~~ Pell Grant award Grant award
level calculated for them without regard to available appropriations (for more on program level calculated for them without regard to available appropriations (for more on program
funding, see the funding, see the “Program Funding” section). section).98 The size of each student’s grant is based, The size of each student’s grant is based,
~~principal y~~principally, on EFC, the total maximum , on EFC, the total maximum ~~Pel~~ Pell Grant for the award year,Grant for the award year,109 and the student’s and the student’s
enrollment rate, but may not exceed the student’s cost of attendance. enrollment rate, but may not exceed the student’s cost of attendance.
Student Eligibility
To be eligibleTo be eligible for a for a ~~Pel~~ Pell Grant, a student must meet requirements that apply to HEA Title IV Grant, a student must meet requirements that apply to HEA Title IV
student aid programs in general as student aid programs in general as ~~wel~~ well as requirements specific to the as requirements specific to the ~~Pel~~ Pell Grant program.Grant program.1110
Among the requirements Among the requirements ~~general y~~generally applicable to the HEA applicable to the HEA Title IV student aid programs for Title IV student aid programs for ~~award~~
~~year (AY) 2021-2022~~AY2022-2023 are the following: are the following:

~~7 T here are two ways~~ 6 There are two ways to complete and submit a FAFSAto complete and submit a FAFSA for consideration of federal student aid. For instance, students for consideration of federal student aid. For instance, students
and families may useand families may use FAFSA on the Web, which which is an interactive online process. Alternatively, they may obtain a paper is an interactive online process. Alternatively, they may obtain a paper
FAFSAFAFSA from their financial aid office or other locations and submit it to the address listedfrom their financial aid office or other locations and submit it to the address listed on the form, although most on the form, although most
applications are submitted electronically. applications are submitted electronically.
87 For more information on the FAFSA processes and For more information on the FAFSA processes and calculation of EFC, see CRScalculation of EFC, see CRS Report R44503, Report R44503, Federal Student
Aid: Need Analysis ~~Form ulas~~Formulas and Expected ~~Fam ily~~Family Contribution . .
9 8 Student awards Student awards have not been reducedhave not been reduced nor recipient caps imposed since AY1990-AY1991. nor recipient caps imposed since AY1990-AY1991.
~~10 T he~~9 The Pell Grant award Pell Grant award year beginsyear begins the first day of Julythe first day of July in a given year and endsin a given year and ends the last day of June the following the last day of June the following
year. year.
1110 See See Higher Education Act, as amendedHigher Education Act, as amended prior to the effective date of the FSA (prior to the effective date of the FSA (~~hereinaft er~~hereinafter referred to as HEA), referred to as HEA),
Section 484 (34 C.F.R. part 668, subpart C) for general requirements and Section 401 (34 C.F.R. part 690, subpart A) Section 484 (34 C.F.R. part 668, subpart C) for general requirements and Section 401 (34 C.F.R. part 690, subpart A)
for Pell Grant specific requirements. for Pell Grant specific requirements.
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 Students must be accepted for enrollment or enrolled in an eligible  Students must be accepted for enrollment or enrolled in an eligible program at an program at an
eligible eligible institution of higher education for the purpose of earning a certificate or institution of higher education for the purpose of earning a certificate or
degree.degree.12
11  Students must not be enrolled in an elementary or secondary school and must  Students must not be enrolled in an elementary or secondary school and must
have a high school diploma (or equivalent). have a high school diploma (or equivalent).1312
 Students must meet citizenship requirements.  Students must meet citizenship requirements.1413
 Students must maintain satisfactory academic progress while enrolled.  Students must maintain satisfactory academic progress while enrolled.
Satisfactory academic progress requires a minimum grade point average (or its Satisfactory academic progress requires a minimum grade point average (or its
equivalent) and passing a minimum percentage of attempted credits or hours. equivalent) and passing a minimum percentage of attempted credits or hours.
 Students must not be in default on a Title IV student loan, or have failed to repay  Students must not be in default on a Title IV student loan, or have failed to repay
or make an arrangement to repay an overpayment on a Title IV grant or loan, or or make an arrangement to repay an overpayment on a Title IV grant or loan, or
be subject to a judgment lien for a debt owed to the United States. Students must be subject to a judgment lien for a debt owed to the United States. Students must
have repaid any Title IV funds obtained fraudulently. have repaid any Title IV funds obtained fraudulently.
 Students may be disqualified for an  Students may be disqualified for an unusual enrollment history—receiving HEA —receiving HEA
Title IV aid at multiple schools in the same semester, or receiving aid and Title IV aid at multiple schools in the same semester, or receiving aid and
withdrawing before earning any credit. withdrawing before earning any credit.
Specific eligibility Specific eligibility requirements for the requirements for the ~~Pel~~ Pell Grant program include the following: Grant program include the following:
 Students must not have already completed the curriculum requirements of a  Students must not have already completed the curriculum requirements of a
bachelor’s or higher degree. bachelor’s or higher degree.15
14  Students must be enrolled in non-foreign institutions.  Students must be enrolled in non-foreign institutions.

12 11 For purposes of the Pell Grant program, an eligible For purposes of the Pell Grant program, an eligible program requiresprogram requires at least 16 semester hours (or the equivalent) at least 16 semester hours (or the equivalent)
offered duringoffered during a minimum of 15 weeks.a minimum of 15 weeks. Alternatively, an eligible program may be at least 8 semester hours (or the Alternatively, an eligible program may be at least 8 semester hours (or the
equivalent) offered duringequivalent) offered during a minimum of 10 weeks, if an associate’s degreea minimum of 10 weeks, if an associate’s degree is requiredis required for admissions.for admissions. One semester One semester
hour ishour is an amount of student work definedan amount of student work defined by an institution and approved by the institution’s accrediting agency that is by an institution and approved by the institution’s accrediting agency that is
consistent with commonly accepted practice consistent with commonly accepted practice ~~in postsecondary education~~ and that approximates oneand that approximates one hour of classroom hour of classroom
or direct faculty instruction and at least two hours of outor direct faculty instruction and at least two hours of out -of-class work each week-of-class work each week for approximately 15 weeksfor approximately 15 weeks (or an equivalent amount of work). . For For
information on HEA information on HEA ~~T itle~~Title IV eligible IV eligible programs and eligibleprograms and eligible institutions, see CRSinstitutions, see CRS Report R43159, Report R43159, Institutional
Eligibility for Participation in Title IV Student Financial Aid ~~Program s~~.
~~13 T he~~Programs. 12 The equivalent of a high school diploma may include equivalent of a high school diploma may include a general educational development (GED) certificate; the a general educational development (GED) certificate; the
completion of an eligiblecompletion of an eligible homeschool program; or the completion of one of the homeschool program; or the completion of one of the ability to benefit alternatives and either alternatives and either
beingbeing enrolled in an eligibleenrolled in an eligible career pathway program or beingcareer pathway program or being first enrolled in an eligiblefirst enrolled in an eligible postsecondary program prior postsecondary program prior
to July 1, 2012. to July 1, 2012. ~~T he~~The ability to benefit may be demonstrated by passingmay be demonstrated by passing an examination approved by ED to be eligible an examination approved by ED to be eligible
for federal student aid,for federal student aid, or by successfullyor by successfully completing six credits or 225 clock hours of college work applicable to a completing six credits or 225 clock hours of college work applicable to a
certificate or degree offered by a postsecondary institution. A career pathway program is designedcertificate or degree offered by a postsecondary institution. A career pathway program is designed to combine to combine
occupational skills training, counseling, workforce preparation, high school completion, and postsecondary credential occupational skills training, counseling, workforce preparation, high school completion, and postsecondary credential
attainment. attainment.
14 13 In general, students must be In general, students must be U.S. citizens or permanent U.S. residents. IndividualsU.S. citizens or permanent U.S. residents. Individuals with several other entrance with several other entrance
statuses can qualifystatuses can qualify for aid. Individualsfor aid. Individuals in the United States on a temporary basis, such asin the United States on a temporary basis, such as those with a student visa or those with a student visa or
an exchange visitor visa, are not eligible for federal student aid. Studentsan exchange visitor visa, are not eligible for federal student aid. Students with Deferred Action for Childhood Arrivals with Deferred Action for Childhood Arrivals
(DACA) status, conferred by the U.S.(DACA) status, conferred by the U.S. Citizenship & Immigration Services (USCIS)Citizenship & Immigration Services (USCIS) office in the Department of office in the Department of
Homeland Security, are not eligibleHomeland Security, are not eligible for HEA for HEA ~~T itle~~Title IV aid. IV aid.
1514 Students with a bachelor’s degree may be enrolled at least half-time in a Students with a bachelor’s degree may be enrolled at least half-time in a postbaccalaureate teacher education
program . Half-time enrollment is at least 6 credit hours in a standard semester. A postbaccalaureate teacher education . Half-time enrollment is at least 6 credit hours in a standard semester. A postbaccalaureate teacher education
program does not lead to a graduateprogram does not lead to a graduate degree;degree; is offered by a school that does not also offer a bachelor’s degreeis offered by a school that does not also offer a bachelor’s degree in in
education; and leadseducation; and leads to certification or licensure necessary for employment as an elementary or secondary school to certification or licensure necessary for employment as an elementary or secondary school
teacher in the state. teacher in the state. ~~T o~~To be eligible be eligible for a Pell Grant, the student enrolled in the postbaccalaureate teacher education for a Pell Grant, the student enrolled in the postbaccalaureate teacher education
program must be pursuingprogram must be pursuing an initial teacher certification or licensing credential within the state. an initial teacher certification or licensing credential within the state.
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Federal Pell Grant Program ~~of the Higher Education Act~~: Primer

 Students must be  Students must be ~~financial y~~financially needy students as determined under the program’s needy students as determined under the program’s
award rules (see below). award rules (see below).
 Students must not be incarcerated in a federal or state penal institution.  Students must not be incarcerated in a federal or state penal institution.
Beginning July 1, 2023, however, incarcerated students enrolled in a prison education program can be eligible recipients.15  Students must not be subject to an involuntary civil commitment following  Students must not be subject to an involuntary civil commitment following
incarceration for a sexual offense (as determined under the FBI’s Uniform Crime incarceration for a sexual offense (as determined under the FBI’s Uniform Crime
Reporting Program).Reporting Program).
Beginning July 1, 2023, however, such students can be eligible recipients.16  Students with a  Students with a significant ~~intel ectual~~intellectual disability disability must be accepted for enrollment must be accepted for enrollment
or enrolled in a comprehensive transition and postsecondary program. or enrolled in a comprehensive transition and postsecondary program.1617
Underlying Concepts and Award Rules
The amount of an eligibleThe amount of an eligible student’s student’s ~~Pel~~ Pell Grant award is determined on the basis of a set of award Grant award is determined on the basis of a set of award
rules. In general, these award rules are designed to ensure that the rules. In general, these award rules are designed to ensure that the ~~neediest students~~students with the least financial resources (as (as
determined by their EFC) receive the highest determined by their EFC) receive the highest ~~Pel~~ Pell Grant awards in each award year.Grant awards in each award year.~~17 As need~~
~~decreases~~18 As student financial resources decrease or EFC increases, or EFC increases, ~~Pel~~ Pell Grant awards decrease until they phase out completely. Grant awards decrease until they phase out completely.
~~Additional y, Pel~~ Additionally, Pell Grant awards are prorated for students who attend on a less-than-full-time, full-Grant awards are prorated for students who attend on a less-than-full-time, full-
year basis. An important feature of the year basis. An important feature of the ~~Pel~~ Pell Grant award rules is that the grant is determined Grant award rules is that the grant is determined
without consideration of any other financial assistance a student may be without consideration of any other financial assistance a student may be ~~eligible~~ eligible to receive or may to receive or may
be receiving. This reflects the intention to make the be receiving. This reflects the intention to make the ~~Pel~~ Pell Grant the foundation of federal need-Grant the foundation of federal need-
based aid in a financial aid package. Other HEA federal aid is added to the aid package after the based aid in a financial aid package. Other HEA federal aid is added to the aid package after the
~~Pel~~ Pell Grant is awarded. Grant is awarded.
Some of the underlying concepts associated with the Some of the underlying concepts associated with the ~~Pel~~ Pell Grant program, as Grant program, as ~~wel~~ well as the program’s as the program’s
award rules, are discussed below. In general, the discussion reflects provisions in effect for award rules, are discussed below. In general, the discussion reflects provisions in effect for
~~AY2021-2022.~~
~~Award Year~~
~~The HEA Title IV award year begins the first day of July in a given year and ends the last day of~~
~~June the following year. For example, award year (AY) 2021-2022 begins July 1, 2021, and ends~~
~~June 30, 2022.~~
~~Academic Year~~
~~The HEA Title IV academic year is an IHE-determined instructional unit. For credit hour~~
~~programs, the academic year requires a minimum of 30 weeks of instructional time. For a clock~~
~~hour program, the academic year requires a minimum of 26 weeks of instructional time. A full-~~

16AY2022-2023. 15 The FAFSA Simplification Act established Pell Grant eligibility for confined or incarcerated students if they are enrolled in a prison education program as of July 1, 2023. For more information, see U.S. Department of Education, Office of Postsecondary Education, “Pell Grants for Prison Education Programs; Determining the Amount of Federal Education Assistance Funds Received by Institutions of Higher Education (90/10); Change in Ownership and Change in Control,” 87 Federal Register 65426-65498, October 28, 2022. 16 The FAFSA Simplification Act eliminated the Pell Grant eligibility prohibition against students subject to an involuntary civil commitment following incarceration for a sexual offense beginning July 1, 2023. 17 A student with a A student with a significant intellectual disability has a cognitive impairment, characterized by significant limitations intellectual disability has a cognitive impairment, characterized by significant limitations
in intellectual and cognitive functioning and significant limitations in adaptive behavior as expressed in conceptual, in intellectual and cognitive functioning and significant limitations in adaptive behavior as expressed in conceptual,
social, and practical adaptive skills; and is or wassocial, and practical adaptive skills; and is or was ~~eligible~~ eligible for a free appropriate public education under the Individuals for a free appropriate public education under the Individuals
with Disabilitieswith Disabilities Education Act. For a description of the IndividualsEducation Act. For a description of the Individuals ~~wit h~~ with Disabilities Disabilities Education Act, see CRSEducation Act, see CRS Report Report
R41833, R41833, The Individuals with Disabilities Education Act (IDEA), Part B: Key Statutory and Regulatory Provisions . .
Comprehensive transition and postsecondary (Comprehensive transition and postsecondary (~~CT P~~CTP) programs are not required to lead to a recognized credential (e.g., ) programs are not required to lead to a recognized credential (e.g.,
bachelor’s degree) or adhere to the same durational requirements that regular postsecondary programs must meet (e.g., bachelor’s degree) or adhere to the same durational requirements that regular postsecondary programs must meet (e.g.,
a certain number of credita certain number of credit -bearing clock hours). Instead, -bearing clock hours). Instead, ~~CT P~~CTP programs require programs require students with intellectual disabilitiesstudents with intellectual disabilities to to
receive curriculumreceive curriculum advising,advising, participate at least partparticipate at least part -time in courses or training with students who-time in courses or training with students who do not have do not have
intellectual disabilities,intellectual disabilities, and prepare for gainful employment. A student with a and prepare for gainful employment. A student with a significant intellectual disability intellectual disability in a CTP in a CTP
program does not require a high school diploma (or equivalent) and doesprogram does not require a high school diploma (or equivalent) and does not have to be enrolled for the purpose of not have to be enrolled for the purpose of
obtaining a certificate or degree. A student with a obtaining a certificate or degree. A student with a significant intellectual disability in a intellectual disability in a ~~CT P~~CTP program must maintain program must maintain
satisfactory academic progress as determined bysatisfactory academic progress as determined by the school for the the school for the ~~CT P~~CTP program. program.
17 18 HEA §401. HEA §401.
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31 Federal Pell Grant Program: Primer Award Year The HEA Title IV award year begins the first day of July in a given year and ends the last day of June the following year. For example, award year AY2022-2023 begins July 1, 2022, and ends June 30, 2023. Academic Year The HEA Title IV academic year is an IHE-determined instructional unit. For credit hour programs, the academic year requires a minimum of 30 weeks of instructional time. For a clock hour program, the academic year requires a minimum of 26 weeks of instructional time. A full-time, full-academic-year student is expected to complete at least 24 semester hours, 36 quarter time, full-academic-year student is expected to complete at least 24 semester hours, 36 quarter
credit hours, or 900 clock hours. Each IHE establishes an academic year for each educational credit hours, or 900 clock hours. Each IHE establishes an academic year for each educational
program. There may be more than one academic year within an award year. program. There may be more than one academic year within an award year.
Payment Period
The payment period is an academic period or period of enrollment for which The payment period is an academic period or period of enrollment for which ~~Pel~~ Pell Grant aid is Grant aid is
disbursed. Each academic year must have at least two payment periods. For example, an IHE on a disbursed. Each academic year must have at least two payment periods. For example, an IHE on a
standard semester calendar may disburse standard semester calendar may disburse ~~Pel~~ Pell Grant funds two timesGrant funds two times in an academic year, once for each of two , once for each of two
semesters: semesters: ~~fal~~ fall and spring. and spring.
Cost of Attendance (COA)
For For ~~Pel~~ Pell Grant award purposes, the cost of attendance (COA) is an IHE-determined measure of Grant award purposes, the cost of attendance (COA) is an IHE-determined measure of
educational expenses for a student enrolled full-time for a full academic year. In general, it is the educational expenses for a student enrolled full-time for a full academic year. In general, it is the
sum of (1) tuition and fees; (2) an sum of (1) tuition and fees; (2) an ~~al owance~~allowance for books, supplies, transportation, and for books, supplies, transportation, and
~~miscel aneous~~miscellaneous personal expenses; (3) an personal expenses; (3) an ~~al owance~~allowance for room and board for room and board (i.e., housing and food); ; and (4) for a student with and (4) for a student with
dependents, an dependents, an ~~al owance~~allowance for costs expected to be incurred for dependent care. for costs expected to be incurred for dependent care.1819 Institutions may Institutions may
use average costs for students at their school, rather than calculating actual expenses for each use average costs for students at their school, rather than calculating actual expenses for each
student. Average COA amounts must be based on the same category of students. For example, student. Average COA amounts must be based on the same category of students. For example,
institutions may establish separate averages by residency: in-state or out-of-state, or housing: on-institutions may establish separate averages by residency: in-state or out-of-state, or housing: on-
campus or off-campus. campus or off-campus.
Discretionary Base Maximum Award
The discretionary base maximum award is the amount specified in annual appropriations laws. The discretionary base maximum award is the amount specified in annual appropriations laws.
~~For AY2021-2022~~For AY2022-2023, the discretionary base maximum award is $5,, the discretionary base maximum award is $5,~~435~~835. The annual appropriations . The annual appropriations
laws also establish the amount of discretionary funding available to fund the discretionary base laws also establish the amount of discretionary funding available to fund the discretionary base
maximum award for the program for the corresponding award yearmaximum award for the program for the corresponding award year. Table 1 presents the presents the
discretionary base maximum award for the last five years, discretionary base maximum award for the last five years, andand Table A-1 provides a history of provides a history of
discretionary base maximum award amounts since AY1973-1974. discretionary base maximum award amounts since AY1973-1974.
Table 1. Pell Grant Award Amounts, ~~AY2017-2018 through AY2021-2022~~AY2018-2019 through AY2022-2023
Discretionary
Award Year
Base Maximum
Mandatory Add-On
Total Maximum
(AY)
Award
Award
Award
~~2017-2018~~
~~$4,860~~
~~$1,060~~
~~$5,920~~
~~2018-2019~~
~~5,035~~
~~1,060~~
~~6,095~~
~~2019-2020~~
~~5,135~~
~~1,060~~
~~6,195~~
~~2020-2021~~
~~5,285~~
~~1,060~~
~~6,345~~
~~2021-2022~~
~~5,435~~
~~1,060~~
~~6,495~~
Sources: U.S. Department of Education, Department of Education Budget Tables, Congressional Action tables for
~~FY2018-FY2021, downloaded from https://www2.ed.gov/about/overview/budget/tables.html?src=ct.~~
Notes: For a history of Pel Grant award amounts since AY1973-1974, see Table A-1.

~~18 T here are exceptions and allowable additions depending on the program of study, the student’s enrollment rate,~~
~~whether the student has a disability, and the student’s living situation. See HEA §472.~~
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~~Mandatory Add-On Award~~
The mandatory add-on ~~award is an amount established by the HEA. Since AY2018-2019~~2018-2019 5,035 1,060 6,095 2019-2020 5,135 1,060 6,195 19 There are exceptions and allowable additions depending on the program of study, the student’s enrollment rate, whether the student has a disability, and the student’s living situation. See HEA §472. Congressional Research Service 5 link to page 31 link to page 9 link to page 31 link to page 9 link to page 31 Federal Pell Grant Program: Primer Discretionary Award Year Base Maximum Mandatory Add-On Total Maximum (AY) Award Award Award 2020-2021 5,285 1,060 6,345 2021-2022 5,435 1,060 6,495 2022-2023 5,835 1,060 6,895 Source: U.S. Department of Education, Department of Education Budget Tables, Congressional Action tables for FY2018-FY2022, downloaded from https://www2.ed.gov/about/overview/budget/tables.html?src=ct. Note: For a history of Pell Grant award amounts since AY1973-1974, see Table A-1. Mandatory Add-On Award The mandatory add-on award is an amount established by the HEA. Since AY2017-2018, the , the
mandatory add-on award has been $1,060. The HEA provides permanent and indefinite mandatory add-on award has been $1,060. The HEA provides permanent and indefinite
mandatory appropriations to fund the mandatory add-on award. From AY2013-2014 through mandatory appropriations to fund the mandatory add-on award. From AY2013-2014 through
AY2017-2018, statutory provisions established a formula to AY2017-2018, statutory provisions established a formula to ~~annual y~~annually modify the mandatory add- modify the mandatory add-
on amount to account for inflation. For on amount to account for inflation. For ~~AY2017-2018 and al~~ AY2018-2019 and all subsequent award years, the subsequent award years, the
mandatory add-on amount remains the same in accordance with statutory provisionsmandatory add-on amount remains the same in accordance with statutory provisions. Table 1
presents the mandatory add-on award for the most recent five years, apresents the mandatory add-on award for the most recent five years, and Table A-1 provides a provides a
history of mandatory add-on award amounts when provided since AY1973-1974. history of mandatory add-on award amounts when provided since AY1973-1974.
Total Maximum Award
The total maximum award amount is the maximum The total maximum award amount is the maximum ~~Pel~~ Pell Grant amount that a student may receive Grant amount that a student may receive
in an academic year. The total maximum award is the sum of the discretionary base maximum in an academic year. The total maximum award is the sum of the discretionary base maximum
award and the mandatory add-on award. For award and the mandatory add-on award. For ~~AY2021-2022~~AY2022-2023, the total maximum award is $6,, the total maximum award is $6,~~495~~895. .
Table 1 presents the total maximum award for the last five years, presents the total maximum award for the last five years, andand Table A-1 provides a provides a
history of total maximum award amounts since AY1973-1974. history of total maximum award amounts since AY1973-1974.
Expected Family Contribution (EFC)
The EFC is a dollar amount calculated in accordance with an HEA-defined methodology that is The EFC is a dollar amount calculated in accordance with an HEA-defined methodology that is
used to establish how much the student’s family is expected to contribute to the student’s used to establish how much the student’s family is expected to contribute to the student’s
educational costs. The EFC is used in conjunction with COA to determine whether a student is educational costs. The EFC is used in conjunction with COA to determine whether a student is
eligibleeligible for Title IV need-based aid (aid based on the student’s and the student’s family’s for Title IV need-based aid (aid based on the student’s and the student’s family’s
financial need).financial need).~~19 General y~~20 Generally, a student with an EFC greater than 90% of the maximum , a student with an EFC greater than 90% of the maximum ~~Pel~~ Pell Grant Grant
~~wil~~ will not be eligiblenot be eligible for a for a ~~Pel~~ Pell Grant, and a student with an EFC higher than their COA Grant, and a student with an EFC higher than their COA ~~wil~~ will not not
qualify for any federal need-based aid. The EFC calculation methodology differs for dependent qualify for any federal need-based aid. The EFC calculation methodology differs for dependent
students, independent students with no dependents other than a spouse, and independent students students, independent students with no dependents other than a spouse, and independent students
with one or more dependents other than a spouse. with one or more dependents other than a spouse. ~~General y~~Generally speaking, an independent student is speaking, an independent student is
an individualan individual who is age 24 or over or meets another criterion specified in the HEA.who is age 24 or over or meets another criterion specified in the HEA.~~20 A student~~
~~under the age of 24 cannot qualify as independent on the basis of being financial y independent of~~
~~his or her parents or not being claimed on the parents’ tax return. The lowest EFC is $0, and there~~
~~is no maximum EFC. The EFC is determined utilizing family and financial (income and asset)~~
~~information submitted by the aid applicant on the FAFSA.~~
~~Automatic (Auto) Zero EFC~~
~~Students who apply for federal student aid and meet certain qualifications automatical y receive a~~
~~zero EFC ($0).21 The qualifications are based on either the family’s reporting income being below~~
~~a specified threshold or meeting other criteria.~~

1921 A student 20 For more information on the federal needs analysis methodology and calculation of EFC, see CRS For more information on the federal needs analysis methodology and calculation of EFC, see CRS Report R44503, Report R44503,
Federal Student Aid: Need Analysis ~~Form ulas~~Formulas and Expected ~~Fam ily~~Family Contribution . .
2021 For HEA For HEA ~~T itle~~Title IV aid purposes, an independent student is an individual IV aid purposes, an independent student is an individual who is at least 24 years of agewho is at least 24 years of age by December by December
31 of the award31 of the award year; isyear; is married; is a graduate or professional student; is a veteran of the U.S. Armed Forces or is married; is a graduate or professional student; is a veteran of the U.S. Armed Forces or is
currently serving on active duty in the military; has dependents other than a spouse; has been in foster care, an orphan, currently serving on active duty in the military; has dependents other than a spouse; has been in foster care, an orphan,
or a wardor a ward of the court (anytime since the age of 13); is an emancipated minor or in legal guardianshipof the court (anytime since the age of 13); is an emancipated minor or in legal guardianship as determined by as determined by
a court; is an unaccompanied, homeless youth or self-supporting, at risk of being homeless; or isa court; is an unaccompanied, homeless youth or self-supporting, at risk of being homeless; or is ~~deemed~~ deemed independent independent
by a financial aidby a financial aid officer for officer for other unusual ~~circum stances~~~~. See HEA §480(d).~~
~~21 One of the benefits of qualifying for an automatic zero EFC is that it may reduce the number of questions the student~~
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~~Federal Pell Grant Program of the Higher Education Act: Primer~~

circumstances. See HEA §480(d). Congressional Research Service 6 Federal Pell Grant Program: Primer under the age of 24 cannot qualify as independent on the basis of being financially independent of his or her parents or not being claimed on the parents’ tax return. The lowest EFC is $0, and there is no maximum EFC. The EFC is determined utilizing family and financial (income and asset) information submitted by the aid applicant on the FAFSA. Automatic (Auto) Zero EFC Students who apply for federal student aid and meet certain qualifications automatically receive a zero EFC ($0).22 The qualifications are based on the family’s reporting income being below a specified threshold and other criteria. To qualify for an auto zero, the parents of the dependent student or the independent student (and To qualify for an auto zero, the parents of the dependent student or the independent student (and
spouse, as appropriate) must have an adjusted gross income (AGI) below a specific threshold and spouse, as appropriate) must have an adjusted gross income (AGI) below a specific threshold and
meet one of three additionalmeet one of three additional criteria. The AGI threshold is $27,000 for criteria. The AGI threshold is $27,000 for ~~AY2021-2022.22~~AY2022-2023.23 The The
additional criteria are receipt of means-tested benefits from other federal programs, eligibility to additional criteria are receipt of means-tested benefits from other federal programs, eligibility to
file or having filed certain federal income tax returns, or having been a dislocated worker. file or having filed certain federal income tax returns, or having been a dislocated worker.
Independent students without dependents other than a spouse are not eligible for an automatic Independent students without dependents other than a spouse are not eligible for an automatic
zero based on their financial situation. zero based on their financial situation.
Zero EFC
An otherwise An otherwise ~~Pel~~ Pell Grant-eligibleGrant-eligible student whose parent or guardian dies under specified student whose parent or guardian dies under specified
circumstances receives a zero EFC provided the student was under 24 years old or was enrolled at circumstances receives a zero EFC provided the student was under 24 years old or was enrolled at
an IHE at the time of the parent’s or guardian’s death.an IHE at the time of the parent’s or guardian’s death.2324 The specified circumstances occur when The specified circumstances occur when
the parent or guardian was the parent or guardian was
 a member of the U.S. Armed Forces and died as a result of performing military  a member of the U.S. Armed Forces and died as a result of performing military
service in Iraq or Afghanistan after September 11, 2001, service in Iraq or Afghanistan after September 11, 2001,2425 or or
 actively serving as a public safety officer and died in the line of duty while  actively serving as a public safety officer and died in the line of duty while
performing as a public safety officer. performing as a public safety officer.2526
The zero EFC is used to award The zero EFC is used to award ~~al HEA~~ all HEA Title IV aid. A Title IV aid. A ~~Pel~~ Pell Grant so awarded to the child of a Grant so awarded to the child of a
public safety officer is referred to as the public safety officer is referred to as the Fallen Heroes Scholarship. .
In cases where a student does not qualify for an automatic zero or zero EFC, the student may In cases where a student does not qualify for an automatic zero or zero EFC, the student may ~~stil~~
still qualify for a qualify for a calculated zero EFC on the basis of the full EFC formula and information provided EFC on the basis of the full EFC formula and information provided
~~on the FAFSA.~~
~~Scheduled Award Rule~~
~~The scheduled award is the maximum Pel Grant aid a full-time, full-academic-year student can~~
~~receive. In accordance with the HEA, the scheduled award is the least of (1) the total maximum~~
~~Pel Grant minus the student’s EFC, or (2) Cost of Attendance (COA) minus EFC.26 Most~~
~~students are awarded Pel Grant aid based on the first condition of this rule (i.e., Pel Grant Award~~
~~= Total Maximum Pel Grant – EFC), since the total maximum Pel Grant award available to a~~
~~student in an award year is typical y less than the student’s COA at the attending institution. For~~
~~example, a student with a zero EFC would be eligible for a scheduled Pel Grant award that is~~
~~equivalent to the total maximum award, as long as the amount did not exceed the student’s COA.~~

~~must answer when~~ on the FAFSA. 22 One of the benefits of qualifying for an automatic zero EFC is that it may reduce the number of questions the student must answer when completing the FAFSA. HEA §479(c). completing the FAFSA. HEA §479(c).
22 23 U.S. U.S. Department of Education, Department of Education, ~~2021-2022~~2022-2023 Federal Student Aid Handbook, , ~~p. AVG-48.~~
~~23 See~~ Application and Verification Guide. 24 See HEA §473(b). HEA §473(b).
2425 For students who are not eligible for Pell Grants due For students who are not eligible for Pell Grants due to their EFC and who had a parent or guardian dieto their EFC and who had a parent or guardian die as a result of as a result of
military service in Iraq or Afghanistan after September 11, 2001, nonmilitary service in Iraq or Afghanistan after September 11, 2001, non -need-based grants called-need-based grants called Iraq and Afghanistan Iraq and Afghanistan
ServiceService Grants (IASG)Grants (IASG) are available.are available. ~~T he~~ The amount of the IASG is amount of the IASG is the same as the Pell Grant the student wouldthe same as the Pell Grant the student would be be
eligibleeligible for if he or she had a zero EFC. IASGfor if he or she had a zero EFC. IASG payments are adjustedpayments are adjusted like Pell Grants for students who are enrolled less like Pell Grants for students who are enrolled less
than full time, but unlike Pell Grants, these nonthan full time, but unlike Pell Grants, these non -need-based grants do not count as estimated financial assistance. In -need-based grants do not count as estimated financial assistance. In
addition, IASGaddition, IASG is subjectis subject to sequestration. to sequestration.
2526 A public A public safety officer is assafety officer is as defined in 42 U.S.C.defined in 42 U.S.C. §3796b or an eligible§3796b or an eligible fire police officer. Seefire police officer. See HEA §473(b)(5). Congressional Research Service 7 Federal Pell Grant Program: Primer Scheduled Award Rule The scheduled award is the maximum Pell Grant aid a full-time, full-academic-year student can receive. In accordance with the HEA, the scheduled award is the least of (1) the total maximum Pell Grant minus the student’s EFC, or (2) Cost of Attendance (COA) minus EFC.27 Most students are awarded Pell Grant aid based on the first condition of this rule (i.e., Pell Grant Award = Total Maximum Pell Grant – EFC), since the total maximum Pell Grant award available to a student in an award year is typically less than the student’s COA at the attending institution. For example, a student with a zero EFC would be eligible for a scheduled Pell Grant award that is equivalent to the total maximum award, as long as the amount did not exceed the student’s COA. ~~HEA §473(b)(5).~~
~~26 T he HEA prohibits the Pell Grant from exceeding the difference between the COA and the EFC. T his precludes the~~
~~awarding of a Pell Grant in excess of what a student might need to cover the COA after taking the EFC into account.~~
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Annual Award Rule
The annual award is the maximum The annual award is the maximum ~~Pel~~ Pell Grant aid a full-academic-year student can receive at the Grant aid a full-academic-year student can receive at the
student’s enrollment rate.student’s enrollment rate.2728 The HEA requires ED to The HEA requires ED to ~~annual y~~annually publish a schedule of annual award publish a schedule of annual award
amounts that are amounts that are ~~proportional y~~proportionally reduced scheduled awards for students who are not enrolled full- reduced scheduled awards for students who are not enrolled full-
time for the full academic year.time for the full academic year.2829 In practice, ED publishes four disbursement schedules: full- In practice, ED publishes four disbursement schedules: full-
time; less than full-time, but at least ¾ -time; less than ¾-time, but at least ½-time; and less than time; less than full-time, but at least ¾ -time; less than ¾-time, but at least ½-time; and less than
½-time. Each schedule provides a table of annual award amounts by COA increments and EFC ½-time. Each schedule provides a table of annual award amounts by COA increments and EFC
increments. The annual award for a student increments. The annual award for a student ~~enrol ed~~enrolled at least ½-time in a clock-hour or non-term at least ½-time in a clock-hour or non-term
credit-hour program is taken from the full-time disbursement schedule. credit-hour program is taken from the full-time disbursement schedule.
Minimum Award
The minimum The minimum ~~Pel~~ Pell Grant award is the Grant award is the ~~smal est~~smallest annual award amount for which a student must annual award amount for which a student must
qualify to receive a qualify to receive a ~~Pel~~ Pell Grant award. In other words, a student must qualify for at least this Grant award. In other words, a student must qualify for at least this
minimum amount to be eligibleminimum amount to be eligible for the program. The minimum award is 10% of the total for the program. The minimum award is 10% of the total
maximum award. For maximum award. For ~~AY2021-2022~~AY2022-2023, the minimum , the minimum ~~Pel~~ Pell Grant award is $Grant award is $~~650, or 10% of $6,495.29~~692, or approximately 10% of $6,895.30
Alternatively, Alternatively, the minimum the minimum ~~Pel~~ Pell Grant award may be conceptualized as a maximum EFC. To Grant award may be conceptualized as a maximum EFC. To
qualify for a qualify for a ~~Pel~~ Pell Grant award, a student’s EFC must be no more than 90% of the total maximum Grant award, a student’s EFC must be no more than 90% of the total maximum
award. In award. In ~~AY2021-2022~~AY2022-2023, a student with an EFC above $, a student with an EFC above $~~5,846~~6,206, or 90% of $6,, or 90% of $6,~~495~~895 rounded to the rounded to the
nearest whole number, would not be eligiblenearest whole number, would not be eligible for a for a ~~Pel~~ Pell Grant. Grant.
Pell Grant Award Disbursements
~~Pel~~ Pell Grant aid awards are disbursed in each payment period for which a student is eligible. Grant aid awards are disbursed in each payment period for which a student is eligible. ~~Pel~~
Pell Grants must be paid out in Grants must be paid out in ~~instal ments~~installments over the academic year. In general, the annual award 27 The HEA prohibits the Pell Grant from exceeding the difference between the COA and the EFC. This precludes the awarding of a Pell Grant in excess of what a student might need to cover the COA after taking the EFC into account. 28 The annual award for a student in a clock-hour or nonterm credit-hour program is always the scheduled award even if the student is attending less than full time. 29 In recent years, ED has published the Federal Pell Grant Payment and Disbursement Schedules as a Dear Colleague Letter (DCL). For the 2022-2023 Federal Pell Grant Payment and Disbursement Schedules, see https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2022-03-24/revised-2022-2023- ~~over the academic year. In general, the annual award~~
~~amount is proportional y divided among each payment period in the academic year.30 Each~~
~~academic year must have at least two payment periods. For example at an IHE on a traditional~~
~~semester calendar in AY2021-2022, a full-time, full-academic-year student with a zero EFC could~~
~~receive $3,247.50 in the fal semester and $3,247.50 in the spring semester. See Figure 1 for an~~
~~example of Pel Grant award disbursements.~~

~~27 T he annual award for a student in a clock-hour or nonterm credit -hour program is always the scheduled award even if~~
~~the student is attending less than full time.~~
~~28 In recent years, ED has published the Federal Pell Grant Payment and Disbursement Schedules as a Dear Colleague~~
~~Letter (DCL). For the 2021-2022 Federal Pell Grant Payment and Disbursement Schedules, see~~
~~https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2021-01-22/2021-2022-~~federal-pell-grant-federal-pell-grant-
~~payment~~ payment-and-disbursement-and-disbursement -schedules. -schedules.
~~29 T he~~30 The actual minimum award actual minimum award ~~differs because ED uses~~ is not exactly 10% of the total maximum award because ED uses midpoints for both the expected family contribution (EFC) and midpoints for both the expected family contribution (EFC) and
the cost of attendance (COA) in the scheduledthe cost of attendance (COA) in the scheduled ~~award~~ award rule. ED’s Federal Pell Grant Payment and Disbursement rule. ED’s Federal Pell Grant Payment and Disbursement
~~Schedules~~ Schedules group COAgroup COA and EFCand EFC in approximately $100 increments and calculate the in approximately $100 increments and calculate the ~~award~~ award levels for each increment levels for each increment
~~based~~ based on the increment midpoints. on the increment midpoints.
~~30 T he proportional division takes into consideration the number of weeks of each payment period and the number of~~
~~full-time credit or clock hours in each payment period in comparison to the academic year definition.~~
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~~Federal Pell Grant Program of the Higher Education Act: Primer~~
Congressional Research Service 8 link to page 13 link to page 14 Federal Pell Grant Program: Primer amount is proportionally divided among each payment period in the academic year.31 Each academic year must have at least two payment periods. For example at an IHE on a traditional semester calendar in AY2022-2023, a full-time, full-academic-year student with a zero EFC could receive $3,447.50 in the fall semester and $3,447.50 in the spring semester. See Figure 1 for an example of Pell Grant award disbursements.
Figure 1. Example of Pell Grant Award Disbursement

Source: Example created by CRS based on provisions in the HEA and information in the Department of Example created by CRS based on provisions in the HEA and information in the Department of
Education, FederalEducation, Federal Student Aid,Student Aid, Federal Student Aid Handbook ~~2021-2022~~2022-2023. .
Notes: Actual award amounts differ because of rounding rules and because ED uses midpoints for both the Actual award amounts differ because of rounding rules and because ED uses midpoints for both the
expected family contribution (EFC) and the cost of attendance (COA) in the annual award rule.expected family contribution (EFC) and the cost of attendance (COA) in the annual award rule. The student or The student or
IHE may have to return a portion of the actual awards if the student reduces her enrol mentIHE may have to return a portion of the actual awards if the student reduces her enrol ment rate during a rate during a
quarter or withdraws before the end of a quarter. Alternatively,quarter or withdraws before the end of a quarter. Alternatively, the student may receivethe student may receive a largera larger actual award if actual award if
the student increasesthe student increases her enrol menther enrol ment rate. rate.

Year-Round (Summer ) Pell Grants
Since award year 2017-2018, Since award year 2017-2018,3132 qualified students may receive up to 1½ scheduled qualified students may receive up to 1½ scheduled ~~Pel~~ Pell Grants, or Grants, or
up to 150% of the scheduled award, in each award year.up to 150% of the scheduled award, in each award year.3233 To qualify for the additional funds, a To qualify for the additional funds, a
~~Pel~~ Pell Grant-eligible student must be enrolled at least ½-time in a payment period after receiving Grant-eligible student must be enrolled at least ½-time in a payment period after receiving
most or most or al all of the student’s scheduled award in previous payment periods of the award year. For of the student’s scheduled award in previous payment periods of the award year. For
example at an IHE on a traditional semester calendar in award year example at an IHE on a traditional semester calendar in award year ~~2021-2022~~2022-2023, a full-time, full-, a full-time, full-
academic-year student with a zero EFC could receive $3,academic-year student with a zero EFC could receive $3,~~247~~447.50 in the .50 in the ~~fal~~ fall semester, $3,semester, $3,~~247~~447.50 in .50 in
the spring semester, and $3,the spring semester, and $3,~~247~~447.50 in the summer .50 in the summer ~~semeste~~rsemester. Figure 2 provides an additional provides an additional
~~example.~~

~~31 T his~~example. 31 The proportional division takes into consideration the number of weeks of each payment period and the number of full-time credit or clock hours in each payment period in comparison to the academic year definition. 32 This provision was enacted by the Consolidated Appropriations Act, 2017 (P.L. 115-31). provision was enacted by the Consolidated Appropriations Act, 2017 (P.L. 115-31).
3233 Eligible Eligible students enrolled from July 1, 2009, to June 30, 2011, were eligiblestudents enrolled from July 1, 2009, to June 30, 2011, were eligible to receive so-calledto receive so-called year-round Pell Pell
Grants, or up to two scheduledGrants, or up to two scheduled ~~awards~~ awards in a singlein a single ~~award~~ award year. year.
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Figure 2. Example of Pell Grant Award Disbursement with Year-Round (Summer)
Pell Grant

Source: Example created by CRS based on provisions in the HEA and information in the Department of Example created by CRS based on provisions in the HEA and information in the Department of
Education, 2017 FSA Training Conference for Financial Aid Professionals,Education, 2017 FSA Training Conference for Financial Aid Professionals, Session 19: A Guide to Year-Round Federal
~~Pel~~ Pell Grants,, dated November-Decemberdated November-December 2017. 2017.
Notes: Actual award amounts differ because of rounding rules and because ED uses midpoints for both the Actual award amounts differ because of rounding rules and because ED uses midpoints for both the
expected family contribution (EFC) and the cost of attendance (COA) in the annual award rule.expected family contribution (EFC) and the cost of attendance (COA) in the annual award rule. The student or The student or
IHE may have to return a portion of the actual awards if the student reduces her enrol mentIHE may have to return a portion of the actual awards if the student reduces her enrol ment rate during a rate during a
quarter or withdraws before the end of a quarter. Alternatively,quarter or withdraws before the end of a quarter. Alternatively, the student may receivethe student may receive a largera larger actual award if actual award if
the student increasesthe student increases her enrol menther enrol ment rate. rate.

Maximum Pell Grant Lifetime Eligibility
The HEA The HEA establishes a maximum cumulative lifetime eligibilityestablishes a maximum cumulative lifetime eligibility cap on cap on ~~Pel~~ Pell Grant aid.Grant aid.3334 Over her Over her
lifetime, a student may receive the value of no more than 12 full-time semesters (or the lifetime, a student may receive the value of no more than 12 full-time semesters (or the
equivalent) of equivalent) of ~~Pel~~ Pell Grant awards or six scheduled awards.Grant awards or six scheduled awards.~~34 Pel~~ 35 Pell Grant lifetime eligibilityGrant lifetime eligibility used used
(LEU) at a closed school from which the student did not graduate does not count toward the (LEU) at a closed school from which the student did not graduate does not count toward the
lifetime cap—the eligibilitylifetime cap—the eligibility used is restored.used is restored.35

~~33 T he~~36 Beginning July 1, 2023, LEU is restored for the 34 The HEOA amendments introduced lifetime eligibility limitations for Pell Grants. Effective for students who HEOA amendments introduced lifetime eligibility limitations for Pell Grants. Effective for students who
received their first Pell Grant on or after July 1, 2008, cumulative Pell Grant lifetime eligibilityreceived their first Pell Grant on or after July 1, 2008, cumulative Pell Grant lifetime eligibility ~~was~~ was limited to 18 full-limited to 18 full-
time semesters (or the equivalent). time semesters (or the equivalent). ~~T he~~The Consolidated Appropriations Act, 2012 (P.L. 112-74) reduced the cumulative Consolidated Appropriations Act, 2012 (P.L. 112-74) reduced the cumulative
lifetime eligibility for Pell Grant aidlifetime eligibility for Pell Grant aid from 18 semesters to 12 semesters starting in AY2012-2013. Any Pell Grant aid from 18 semesters to 12 semesters starting in AY2012-2013. Any Pell Grant aid
received prior to AY2012-2013 is includedreceived prior to AY2012-2013 is included in a student’s lifetime limit. in a student’s lifetime limit.
34 35 For example, students who consistently enroll half-time in standard terms throughout their progression to a For example, students who consistently enroll half-time in standard terms throughout their progression to a
bachelor’s degree couldbachelor’s degree could receive Pell Grant aidreceive Pell Grant aid for 24 semesters, or 12 years. Students whofor 24 semesters, or 12 years. Students who consistently enroll full-time consistently enroll full-time
in standard terms throughout their degree progression to a bachelor’s degreein standard terms throughout their degree progression to a bachelor’s degree ~~could~~ could receive Pell Grant aid for 12 receive Pell Grant aid for 12
semesters, or six years. semesters, or six years. ~~T his~~This change does change does not affect the measurement of full-time enrollment for the purposes of federal not affect the measurement of full-time enrollment for the purposes of federal
student aid,student aid, which is currently 12 semester hours (or the equivalent for nonwhich is currently 12 semester hours (or the equivalent for non -standard terms). -standard terms).
~~35 HEA §437(c)(3).~~
36 HEA §437(c)(3). For restoration, the school’s main location must have closed after 1994; the student must not have completed her program; and the student must have been enrolled at the closed school within two years of the school’s closure. Congressional Research Service Congressional Research Service

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: Primer period of attendance for which the student received a Title IV loan discharge associated with closed schools, false certifications, identity theft, or successful borrower defense claims.37
Institutional Role
To be eligibleTo be eligible for the HEA Title IV programs, including the for the HEA Title IV programs, including the ~~Pel~~ Pell Grant program, an IHE must Grant program, an IHE must
meet several statutory and regulatory eligibilitymeet several statutory and regulatory eligibility criteria. For a description of institutional criteria. For a description of institutional
eligibilityeligibility requirements, see CRS Report R43159, requirements, see CRS Report R43159, Institutional Eligibility for Participation in
Title IV Student Financial Aid Programs..3638 The IHE may be a public or private nonprofit IHE, a The IHE may be a public or private nonprofit IHE, a
private for-profit (sometimes referred to as proprietary) postsecondary institution, or a private for-profit (sometimes referred to as proprietary) postsecondary institution, or a
postsecondary vocational institution. postsecondary vocational institution.
An eligible An eligible institution’s role in administering the institution’s role in administering the ~~Pel~~ Pell Grant program primarily involves Grant program primarily involves
reviewing and verifying information submitted by students on the FAFSA, calculating awards, reviewing and verifying information submitted by students on the FAFSA, calculating awards,
disbursing awards, adjusting awards to ensure students do not receive more assistance than they disbursing awards, adjusting awards to ensure students do not receive more assistance than they
are eligibleare eligible for, record keeping, and reporting to ED. for, record keeping, and reporting to ED.
An eligible An eligible institution calculates a student’s institution calculates a student’s ~~Pel~~ Pell Grant disbursement using the award rules. Grant disbursement using the award rules.
~~General y~~Generally, institutions credit a student’s account with the , institutions credit a student’s account with the ~~Pel~~ Pell Grant disbursement payment to Grant disbursement payment to
meet unpaid tuition, fees, meet unpaid tuition, fees, and institutionally provided room~~room,~~ and board; any remaining and board; any remaining ~~Pel~~ Pell Grant funds are paid directly to Grant funds are paid directly to
the student to cover other living expenses. the student to cover other living expenses.
ED makes funds available to schools so that they can disburse ED makes funds available to schools so that they can disburse ~~Pel~~ Pell Grant awards. In addition, the Grant awards. In addition, the
~~Pel~~ Pell Grant program pays participating institutions an administrative cost Grant program pays participating institutions an administrative cost ~~al owance~~allowance of $5 per of $5 per
enrolled recipient. enrolled recipient.
Description of Pell Grant Recipients and
Participation
This section provides descriptive statistics of This section provides descriptive statistics of ~~Pel~~ Pell Grant recipients (numbers and characteristics) Grant recipients (numbers and characteristics)
and the institutions that they attend. The data may inform discussion regarding the extent to and the institutions that they attend. The data may inform discussion regarding the extent to
which the program achieves the policy goal of improving access to higher education for which the program achieves the policy goal of improving access to higher education for
~~financial y needy individuals.~~
individuals with limited financial resources. Number of Recipients
The The ~~Pel~~ Pell Grant program reaches a significant portion of undergraduates each year. In Grant program reaches a significant portion of undergraduates each year. In ~~AY2015-~~
~~2016~~AY2017-2018, the latest year for which data are available, , the latest year for which data are available, 3944% of % of al all undergraduates were estimated to undergraduates were estimated to
have received have received ~~Pel Grants.~~37Pell Grants.39 Table 2 shows the number of shows the number of ~~Pel~~ Pell Grant recipients over the most Grant recipients over the most
recent five years, from recent five years, from ~~AY2015-2016 to AY2019-2020, as wel~~ AY2017-2018 to AY2021-2022, as well as the annual change and annual as the annual change and annual
percentage change during this time. The number of percentage change during this time. The number of ~~Pel~~ Pell Grant recipients has declined from over Grant recipients has declined from over
7.7.~~6 mil ion in AY2015-2016 to over 6.7 mil ion in AY2019-2020~~.1 million in AY2017-2018 to over 6.1 million in AY2021-2022. Table B-1 displays displays ~~Pel Grant~~

~~36 See also HEA T itles I and IV.~~
~~37 CRS analysis of AY2015-2016 data from the National Postsecondary Student Aid Study (NPSAS). A CRS~~ Pell Grant 37 U.S. Department of Education, Office of Postsecondary Education, FAFSA® Simplification Act Changes for Implementation in 2023-24, GEN-22-15, November 4, 2022. 38 See also HEA Titles I and IV. 39 CRS analysis of AY2017-2018 data (PELLAMT and SECTOR3) from the National Postsecondary Student Aid Study (NPSAS). A CRS analysis analysis
of AY2003-2004, AY2007-2008, of AY2003-2004, AY2007-2008, ~~and~~ AY2011-2012AY2011-2012, and AY2015-2016 NPSAS data NPSAS data ~~shows~~ shows that the percentage of all undergraduates that the percentage of all undergraduates
estimated to have received Pell Grants in each of these academic years estimated to have received Pell Grants in each of these academic years ~~was~~ was 27%, 28%, 27%, 28%, 41%, and 39~~and 41~~%, respectively.%, respectively.
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recipients since AY1973-1974. It is important to note that myriad factors, recipients since AY1973-1974. It is important to note that myriad factors,3840 including the labor including the labor
market, can affect the number of market, can affect the number of ~~Pel~~ Pell Grant recipients in any given award year.Grant recipients in any given award year.
Table 2. Federal Pell Grant Recipients, ~~AY2015-2016 to AY2019-2020~~AY2017-2018 to AY2021-2022
Award Year
Pell Grant Recipients
Change from Prior Year
% Change
~~2015-2016~~
~~7,660,000~~
~~(655,000)~~
~~-7.9%~~
~~2016-2017~~
~~7,195,000~~
~~(465,000)~~
~~-6.1%~~
~~2017-2018~~
~~7,111,000~~
~~(84,000)~~
~~-1.2%~~
~~2018-2019~~
~~6,863,000~~
~~(248,000)~~
~~-3.5%~~
~~2019-2020~~
~~6,746,000~~
~~(117,000)~~
~~-1.7~~2017-2018 7,112,000 (83,000) -1.2% 2018-2019 6,865,000 (248,000) -3.5% 2019-2020 6,746,000 (118,000) -1.7% 2020-2021 6,221,000 (525,000) -7.8% 2021-2022 6,104,000 (117,000) -1.9% %
Source: U.S. Department of Education, U.S. Department of Education, ~~AY2017-2018~~ ~~Pel~~ AY2020-2021 Pell Grant End-of-Year Report; and President’s; and President’s budget budget
~~FY2022.~~
~~Note~~FY2023. Notes: Recipient figures rounded to the nearest thousand. Numbers in parentheses are negative numbers.Recipient figures rounded to the nearest thousand. Numbers in parentheses are negative numbers. For a For a
history of history of ~~Pel~~ Pell Grant award amounts since AY1973-1974, Grant award amounts since AY1973-1974, seesee Table B-1.
Income of Recipients
Since Since ~~Pel~~ Pell Grant awards are heavily dependent on EFC levels and the complex EFC formula can Grant awards are heavily dependent on EFC levels and the complex EFC formula can
yield different EFCs for students with similar incomes, there is no absolute income threshold that yield different EFCs for students with similar incomes, there is no absolute income threshold that
determines who is eligibledetermines who is eligible or ineligibleor ineligible for a for a ~~Pel~~ Pell Grant award. Nevertheless, Grant award. Nevertheless, ~~Pel~~ Pell Grant recipients Grant recipients
are primarily low-income. In are primarily low-income. In ~~AY2017-2018~~AY2020-2021, an estimated , an estimated 9597% of % of ~~Pel~~ Pell Grant recipients had a total Grant recipients had a total
family family ~~income39~~income41 at or below $60,000. at or below $60,000.4042 Independent Independent ~~Pel~~ Pell Grant recipients’ income is Grant recipients’ income is ~~general y~~
generally lower than their dependent counterpartslower than their dependent counterparts’ family income. As a point of reference, median household income for . As a point of reference, median household income for al
all U.S. households with or without students was $U.S. households with or without students was $~~62,626 in 2017 and $63,179 in 2018.41~~71,186 in 2020 and $70,784 in 2021.43
It is important to note, however, that a It is important to note, however, that a ~~smal~~ small percentage of percentage of ~~Pel~~ Pell Grant awards go to mid- and high- Grant awards go to mid- and high-
income families. For the most part, these awards are income families. For the most part, these awards are ~~smal er~~smaller than the average than the average ~~Pel~~ Pell Grant award Grant award
for for al all students and are students and are ~~typical y~~typically provided to dependent students from families provided to dependent students from families ~~w ho~~who have multiple have multiple
students enrolled in postsecondary education at the same time.students enrolled in postsecondary education at the same time.42

~~38 Such~~ 44 40 Such factors include, but are not limited to, (1) amendments to the HEA that affect the federal need analysis factors include, but are not limited to, (1) amendments to the HEA that affect the federal need analysis
calculation and Pell Grant awardcalculation and Pell Grant award rules;rules; (2) changes in the maximum grant level specified(2) changes in the maximum grant level specified in annual appropriations bills; in annual appropriations bills;
(3) trends in enrollment at postsecondary institutions; (4) demographic factors; and (5) macroeconomic and (3) trends in enrollment at postsecondary institutions; (4) demographic factors; and (5) macroeconomic and
microeconomic variables. microeconomic variables.
~~39 T otal~~41 Total family income is defined here as the adjusted family income is defined here as the adjusted gross income (if a tax filer), any taxable income (if not a tax gross income (if a tax filer), any taxable income (if not a tax
filer), and any filer), and any ~~non-taxable~~nontaxable income. income.
~~40 T able~~42 Table 003 of the 003 of the ~~AY2017-2018~~AY2020-2021 Pell Grant End-of-Year Report. .
~~41 Semega, Jessica, Melissa Kollar, John Creamer, and Abinash Mohanty~~43 Jessica Semega and Melissa Kollar, U.S. Census, U.S. Census ~~Bureau, Current Population~~
~~Reports, P60-266(RV), Incom e and Poverty in the United States: 2018 , U.S. Government Printing Office, Washington,~~
~~DC, 2020.~~
~~42 According to T able 003 of the~~ ~~AY2017-2018~~ Bureau, P60-276, Income in the United States: 2021. 44 According to Table 003 of the AY2020-2021 Pell Grant End-of-Year Report, ~~4,701~~9,344 Pell Grant recipients, or 0. Pell Grant recipients, or 0.12% of % of
the total recipient population, had a family income of $100,000 or more. In cases where the family has more the total recipient population, had a family income of $100,000 or more. In cases where the family has more ~~t han~~than one one
student enrolled in or accepted to college for the awardstudent enrolled in or accepted to college for the award year, the EFC is reducedyear, the EFC is reduced to account for the number of students to account for the number of students
expected to be enrolled in the upcoming year. expected to be enrolled in the upcoming year.
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Distribution of Pell Grant Recipients and Funds by
Institutional Type
~~The types of institutions in which Pel Grant recipients enroll may not reflect the overal~~
~~enrollment patterns of undergraduate students who do not receive Pel Grants.~~ Pell Grant recipients and nonrecipients are not equally distributed across institutions by sector. For example, a For example, a
larger proportion of larger proportion of ~~Pel~~ Pell Grant recipients attend private for-profit institutions than do students not Grant recipients attend private for-profit institutions than do students not
receiving receiving ~~Pel Grants~~Pell Grants. Table 3 shows the shows the ~~AY2015-2016~~AY2017-2018 enrollment distribution by institutional enrollment distribution by institutional
sector of undergraduates who do not receive a sector of undergraduates who do not receive a ~~Pel~~ Pell Grant and undergraduates who do receive Grant and undergraduates who do receive ~~Pel~~
Pell Grants. Each group is disaggregated for dependent and independent students. For both Grants. Each group is disaggregated for dependent and independent students. For both
independent and dependent students, the share of independent and dependent students, the share of ~~Pel~~ Pell Grant recipients attending private-for profit Grant recipients attending private-for profit
institutions was institutions was ~~more than double~~ higher than the share of undergraduate students who do not receive the share of undergraduate students who do not receive ~~Pel~~
Pell Grants attending such institutions. One possible explanation for this disparity is that for-profit Grants attending such institutions. One possible explanation for this disparity is that for-profit
institutions may target marketing to low-income students.institutions may target marketing to low-income students.4345 Most undergraduates, whether Most undergraduates, whether
receiving receiving ~~Pel~~ Pell Grants or not, attend public four-year or public two-year institutions. For example, Grants or not, attend public four-year or public two-year institutions. For example,
over half of independent over half of independent ~~Pel~~ Pell Grant recipients attend either public four-year (Grant recipients attend either public four-year (~~22.0~~25.4%) or public %) or public
two-year (two-year (~~32.5~~29.6%) institutions. %) institutions.
Table 3. Estimated Distribution of Pell Grant Recipients and Undergraduates not
Receiving Pell Grants by Sector of Enrolling Institution, ~~AY2015-2016~~AY2017-2018

Dependent Undergraduates
Independent Undergraduates
% Not
% Not
Type and Control of
% Pell Grant
Receiving Pell
% Pell Grant
Receiving Pell
Institution
Recipients
Grant
Recipients
Grant
Public four-year Public four-year
4041.5 43.5 25.4 28.2.5
~~40.2~~
~~22.0~~
~~22.9~~
Private nonprofit four-year Private nonprofit four-year
14. 14.1
~~17.6~~
~~11.8~~
~~11.0~~
~~Public two-year~~
~~27.7~~
~~29.0~~
~~32.5~~
493 19.7 12.2 12.3 Public two-year 25.6 23.7 29.6 40.2 .2
Private for-profi Private for-profita
~~6.4~~
~~2.4~~
~~21.6~~
~~8.3~~4.2 1.8 14.6 9.1
Other or more Other or more than one than one
institutioinstitutionb
~~11.2~~
~~10.9~~
~~12.1~~
~~8.6~~14.4 11.3 18.1 10.2
Total Total
100.0 100.0
100.0 100.0
100.0 100.0
100.0 100.0
Source: CRS estimatesCRS estimates ~~from 2015-2016 NPSAS.~~
from 2017-2018 NPSAS. Notes: Due to rounding, sum of column entriesDue to rounding, sum of column entries may not equal column totals. may not equal column totals.
a. Private for-profit institutions are sometimesa. Private for-profit institutions are sometimes ~~referred~~ referred to as to as proprietary institutions. institutions.
b. The other or moreb. The other or more than one institution category is for students who attended an institution that is not a than one institution category is for students who attended an institution that is not a
public four-year, private nonprofit four-year, public two-year, or private for-profit institution and for public four-year, private nonprofit four-year, public two-year, or private for-profit institution and for
students who attended morestudents who attended more than one eligiblethan one eligible institution during the year. institution during the year.
Role of the Pell Grant
The The ~~Pel~~ Pell Grant is intended to function as the foundation of federal need-based aid for Grant is intended to function as the foundation of federal need-based aid for ~~financial y~~financially
needy undergraduates. As described earlier, other financial aid received by a student is not taken needy undergraduates. As described earlier, other financial aid received by a student is not taken

43 45 “How For-Profit Colleges Sell “How For-Profit Colleges Sell ‘Risky Education’ ‘Risky Education’ ~~T o T he~~To The Most Vulnerable,” NPR, March 27, 2017; Elizabeth A. Most Vulnerable,” NPR, March 27, 2017; Elizabeth A.
Harris, “New York City Consumer Agency Investigating Four For-Profit Colleges,” Harris, “New York City Consumer Agency Investigating Four For-Profit Colleges,” The New York Times, April 2, , April 2,
2015; and Caroline Simon, “For-Profit Colleges’ 2015; and Caroline Simon, “For-Profit Colleges’ ~~T eachable~~Teachable Moment: ‘ Moment: ‘~~T errible~~Terrible Outcomes Are Very Profitable’,” Outcomes Are Very Profitable’,”
Forbes, March 19, 2018. , March 19, 2018.
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into account in determining a student’s into account in determining a student’s ~~Pel~~ Pell Grant. This section explores the role Grant. This section explores the role ~~Pel~~ Pell Grants and Grants and
other sources of aid play in helping students meet postsecondary costs. other sources of aid play in helping students meet postsecondary costs.
Purchasing Power
The total maximum The total maximum ~~Pel~~ Pell Grant, available to students with a zero EFC who enroll on a full-time, Grant, available to students with a zero EFC who enroll on a full-time,
full-year basis, is often used as a gauge of the full-year basis, is often used as a gauge of the ~~Pel~~ Pell Grant program’s level of support in each year. Grant program’s level of support in each year.
Figure 3 compares the total maximum grant to average undergraduate tuition, fees, room, and compares the total maximum grant to average undergraduate tuition, fees, room, and
board charges (base educational costs) at public two-year, public four-year, private two-year, and board charges (base educational costs) at public two-year, public four-year, private two-year, and
private four-year institutions between AY1973-1974 and private four-year institutions between AY1973-1974 and ~~AY2019-2020~~AY2020-2021. It is evident that the . It is evident that the
maximum was at its peak relative to these average charges during the 1970s. Since the 1990s, the maximum was at its peak relative to these average charges during the 1970s. Since the 1990s, the
extent to which the total maximum extent to which the total maximum ~~Pel~~ Pell Grant covers average base educational costs has been Grant covers average base educational costs has been
variable; however, despite some increases, the total maximum variable; however, despite some increases, the total maximum ~~Pel~~ Pell Grant has lost ground relative Grant has lost ground relative
to average base educational costs at public four-year institutions. In to average base educational costs at public four-year institutions. In ~~AY2019-2020~~AY2020-2021, the total , the total
maximum grant ($6,maximum grant ($6,~~195~~345) covered approximately ) covered approximately 5655% of the average base educational costs at % of the average base educational costs at
public two-year institutions, public two-year institutions, 2930% at public four-year institutions, % at public four-year institutions, 2325% at private two-year % at private two-year
~~institutions, and 14% at private four-year institutions.44~~

~~44 Under HEA §472, other allowances for the cost of attendance for the purpose of awarding Pell Grant aid are~~
~~provided, such as costs associated with transportation and dependent care expenses. T hese costs are not considered in~~
~~this section of the report in order to maintain a comparable trend across institutional sectors. If these costs are included,~~
~~the average amount of coverage by the Pell Grant maximum would be less for all types of institutions.~~
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institutions, and 14% at private four-year institutions.46 Figure 3. Percentage of Tuition, Fees, Room, and Board Covered by the Total
Maximum Pell Grant, by Institutional Sector: AY1973-1974 to ~~AY2019-2020~~AY2020-2021

Source: CRS calculations using data from National Center for Education Statistics (NCES), CRS calculations using data from National Center for Education Statistics (NCES), Digest of Education
Statistics, ~~2020~~ 2021, Table 330.10. , Table 330.10.
Notes: The purchasing power of the The purchasing power of the ~~Pel~~ Pell Grant through AY1992-1993 was constrained by a statutory cap on Grant through AY1992-1993 was constrained by a statutory cap on
the percentage of cost of attendance (COA) that a the percentage of cost of attendance (COA) that a ~~Pel~~ Pell Grant could cover.Grant could cover. From AY1973From AY1973 -1974 to AY1984-1985, -1974 to AY1984-1985,
the cap was 50%; fromthe cap was 50%; from AY1985-1986 to AY1992-1993, the cap was 60%. After that timeAY1985-1986 to AY1992-1993, the cap was 60%. After that time there has been no 46 Under HEA §472, other allowances for the cost of attendance for the purpose of awarding Pell Grant aid are provided, such as costs associated with transportation and dependent care expenses. These costs are not considered in this section of the report in order to maintain a comparable trend across institutional sectors. If these costs are included, the average amount of coverage by the Pell Grant maximum would be less for all types of institutions. Congressional Research Service 14 link to page 19 link to page 19 link to page 20 link to page 20 link to page 20 link to page 20 Federal Pell Grant Program: Primer ~~there has been no~~
absolute limitabsolute limit on the percentage of COA that can be covered. on the percentage of COA that can be covered.

For public institutions, in-district tuition and required fees are used. It is also important to note that in It is also important to note that in al all sectors of higher education, published tuition, fees, and room sectors of higher education, published tuition, fees, and room
and board have consistently risen more rapidly than average prices in the economy for a number and board have consistently risen more rapidly than average prices in the economy for a number
of years. An analysis of the purchasing power of the of years. An analysis of the purchasing power of the ~~Pel~~ Pell Grant maximum award, therefore, could Grant maximum award, therefore, could
also include an examination of why published prices at institutions of higher education have risen also include an examination of why published prices at institutions of higher education have risen
at such a rapid rate and what is the role of federal student aid, including at such a rapid rate and what is the role of federal student aid, including ~~Pel~~ Pell Grants, in Grants, in
~~contributing to rising published prices.45~~

~~45 For more information on college prices and potential explanations for escalating college prices, see CRS Report~~
~~R43692, Overview of the Relationship between Federal Student Aid and Increases in College Prices.~~
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contributing to rising published prices.47 Receipt of Pell Grants and Other Aid
The The ~~Pel~~ Pell Grant is intended to be the foundation of federal need-based student aid from Title IV of Grant is intended to be the foundation of federal need-based student aid from Title IV of
the HEA.the HEA.~~46 In AY2015-2016~~48 In AY2017-2018, an estimated , an estimated 1617% of % of ~~Pel~~ Pell Grant recipients relied on a Grant recipients relied on a ~~Pel~~ Pell Grant as Grant as
their only source of aid from their only source of aid from al all sources, and sources, and 3427% of % of ~~Pel~~ Pell Grant recipients Grant recipients ~~did not receive other~~
~~HEA Title IV aid funds.47~~
~~Most Pel Grant recipients (84~~received other HEA Title IV aid funds but no other sources of aid.49 Most Pell Grant recipients (83%) participate in other student aid programs. For those %) participate in other student aid programs. For those ~~Pel~~ Pell Grant Grant
recipients with a zero EFCrecipients with a zero EFC,, Table 4 shows estimates of the average percentage of cost of shows estimates of the average percentage of cost of
attendance (COA) covered by their attendance (COA) covered by their ~~Pel~~ Pell Grant award, their loans from Grant award, their loans from al all sources, and their total sources, and their total
aid package in aid package in ~~AY2015-2016~~AY2017-2018, by total family income. This table , by total family income. This table ~~al ows~~allows for examination of the for examination of the
extent to which Pell Grants and other aid helped extent to which Pell Grants and other aid helped ~~Pel~~ Pell Grant recipients with a zero EFC meet their Grant recipients with a zero EFC meet their
COA.COA.5048 Table 4 shows, for example, that among shows, for example, that among ~~al Pel Grant recipients, Pel~~ all Pell Grant recipients with a zero EFC, Pell Grant aid covered, Grant aid covered,
on average, on average, ~~27.1~~24.7% of the COA and % of the COA and al all loan sources covered, on average, an additional loan sources covered, on average, an additional 2019.3% of .3% of
the COA for these recipients. For the COA for these recipients. For ~~Pel~~ Pell Grant recipientsGrant recipients with a zero EFC, total aid from , total aid from al all sources supplies less sources supplies less
than two-thirds (than two-thirds (~~62.9~~61.3%) of the COA, on average. %) of the COA, on average.
Table 4. Pell Grant Aid, Student Loans, and Total Aid from All Sources as Average
Percentages of Cost of Attendance for Undergraduate Students Who Have a Zero
EFC and Received a Pell Grant, by Total Family Income (~~2014)~~
~~(AY2015-2016~~2015) (AY2017-2018) )
Pell Grant
All Loansasb as Total Aidc as Aida as
~~Total Aidb~~
~~Aid~~ as a
a
as a
Percentage
Percentage
Percentage

of COA
of COA
of COA
Al All Zero EFC Zero EFC ~~Pel~~ Pell Grant Recipients Grant Recipients
~~27.1%~~
~~20.3%~~
~~62.9~~24.7% 19.3% 61.3% %
Total Family Income (Dependent)d)c

Less Less than $20,000 than $20,000
~~29.7%~~
~~15.0~~30.4% 13.8% %
63. 63.86% %
$20,000 to $29,999 $20,000 to $29,999
29. 29.62% %
~~15.9%~~
~~66.6~~14.0% 64.5% %
$30,000 to $49,999 $30,000 to $49,999
~~27.7%~~
~~14.7%~~
~~67.3%~~
~~$50,000 or more~~
NR
NR
NR
Total Family Income (Independent)d

~~Less than $20,000~~
~~25.6%~~
~~23.6%~~
~~61.7%~~
~~$20,000 to $29,999~~
~~25.9%~~
~~24.6%~~
~~62.2%~~
~~$30,000 to $49,999~~
~~25.8%~~
~~22.1%~~
~~61.8%~~
~~$50,000 or more~~
~~25.5%~~
~~24.8%~~
~~62.2%~~
Source: CRS estimates from 2015-2016 NPSAS.
Notes: NR means reporting standards were not met. COA means cost of attendance.

~~46 Federal need-based student aid from the HEA is defined~~ 22.0% 16.0% 60.9% 47 For more information on college prices and potential explanations for escalating college prices, see CRS Report R43692, Overview of the Relationship between Federal Student Aid and Increases in College Prices. 48 Federal need-based student aid from the HEA is defined here as Pell Grants, Federal Supplemental Educational here as Pell Grants, Federal Supplemental Educational
Opportunity Grants (FSEOG), FederalOpportunity Grants (FSEOG), Federal ~~Work~~ Work-Study earnings, and Direct Subsidized-Study earnings, and Direct Subsidized Loans. Loans.
4749 CRS CRS estimates from estimates from ~~2015-2016~~2017-2018 NPSAS. NPSAS.
~~48 T he~~50 The cost of attendance is the sum of tuition and fees and non-tuition expenses for students who attended only one cost of attendance is the sum of tuition and fees and non-tuition expenses for students who attended only one
institution. institution. ~~T he~~The cost is adjusted to accommodate private alternative loans that may exceed total aid ( cost is adjusted to accommodate private alternative loans that may exceed total aid ( federal, state, federal, state,
institutional, and private financial aid received by the student in the forminstitutional, and private financial aid received by the student in the form of grants, loans, work-study assistance, or of grants, loans, work-study assistance, or
other types of aid). other types of aid).
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~~a. Al loans column includes federal loans to students, state loans, institutional loans, Direct PLUS loans to~~
~~parents, and other private commercial or alternative loans. Data include loan amounts for Pel Grant~~
~~recipients who did not borrow as wel as those who did borrow.~~
~~b. Total aid includes al federal, state, institutional, and private financial aid received by the student in th e form~~
~~of grants, loans, work-study assistance, or other types of aid.~~
~~c. Includes income of dependent student and parents.~~
d: Primer Pell Grant All Loansb as Total Aidc as Aida as a a a Percentage Percentage Percentage of COA of COA of COA $50,000 or more 12.3% 19.9% 57.9% Total Family Income (Independent)e Less than $20,000 26.1% 22.6% 61.1% $20,000 to $29,999 21.8% 24.0% 60.2% $30,000 to $49,999 25.1% 24.3% 60.5% $50,000 or more 17.2% 27.6% 56.8% Source: CRS estimates from 2017-2018 NPSAS. Notes: COA = cost of attendance. a. Students who attended more than one institution are excluded. b. All loans column includes federal loans to students, state loans, institutional loans, Direct PLUS loans to parents, and other private commercial or alternative loans. Data include loan amounts for Pell Grant recipients who did not borrow as well as those who did borrow. c. Total aid includes all federal, state, institutional, and private financial aid received by the student in the form of grants, loans, work-study assistance, or other types of aid. Students who attended more than one institution are excluded. d. Includes the income of the parents of dependent students but does not include the income or earnings of the student. e. Includes income of independent student and spouse when applicable. . Includes income of independent student and spouse when applicable.
Program Funding
This section of the report reviews the latest This section of the report reviews the latest ~~Pel~~ Pell Grant program funding trends and reviews Grant program funding trends and reviews ~~Pel~~
Pell Grant funding sources and procedures. The program has somewhat unique funding characteristics Grant funding sources and procedures. The program has somewhat unique funding characteristics
because of the mix of discretionary and mandatory funding, the 2006 budget scoring rule, and its because of the mix of discretionary and mandatory funding, the 2006 budget scoring rule, and its
~~ability~~ ability to carry over a surplus or to carry over a surplus or ~~shortfal~~ shortfall of discretionary funding to subsequent fiscal years. This of discretionary funding to subsequent fiscal years. This
section explores these concepts and the effect that they have on section explores these concepts and the effect that they have on amounts provided in annual appropriations acts. appropriations acts.
The The ~~Pel~~ Pell Grant program since approximately FY2008 has been funded through three funding Grant program since approximately FY2008 has been funded through three funding
streams. A discretionary appropriation is the primary source of funds for the discretionary award streams. A discretionary appropriation is the primary source of funds for the discretionary award
amounts. There are two mandatory funding streams. The amounts. There are two mandatory funding streams. The ~~smal er~~smaller mandatory funding stream mandatory funding stream
augments the discretionary appropriations to fund the discretionary award level. Therefore, a augments the discretionary appropriations to fund the discretionary award level. Therefore, a
portion of the discretionary award level is funded through mandatory appropriations. A larger portion of the discretionary award level is funded through mandatory appropriations. A larger
mandatory appropriation funds the mandatory add-on award amounts. Recent and historical mandatory appropriation funds the mandatory add-on award amounts. Recent and historical
discretionary maximum award levels and mandatory add-on award levels are shown idiscretionary maximum award levels and mandatory add-on award levels are shown in Table 1
andand Appendix A, respectively respectively. Appendix C presents the three distinct funding streams and presents the three distinct funding streams and
enacting legislationenacting legislation since FY2008. since FY2008.
Funding provided for the Funding provided for the ~~Pel~~ Pell Grant program is exempt from sequestration, pursuant to provisions Grant program is exempt from sequestration, pursuant to provisions
included in Section 255(h) of the Balanced Budget and Emergency Deficit Control Act of 1985 included in Section 255(h) of the Balanced Budget and Emergency Deficit Control Act of 1985
(BBEDCA,(BBEDCA, Title II of P.L. 99-177, as amended).Title II of P.L. 99-177, as amended). Congressional Research Service 16 Federal Pell Grant Program: Primer
Role of Discretionary Funding
Annual discretionary appropriations Annual discretionary appropriations ~~bil s~~acts provide the largest portion of funding for the provide the largest portion of funding for the ~~Pel~~ Pell Grant Grant
program, and this funding program, and this funding ~~typical y~~typically remains available remains available for use for two fiscal years. An annual for use for two fiscal years. An annual
appropriation is appropriation is ~~usual y available~~ available for obligation on October 1 of the fiscal year for which the for obligation on October 1 of the fiscal year for which the
appropriation is made and remains availableappropriation is made and remains available for obligation through September 30 of the following for obligation through September 30 of the following
fiscal year.fiscal year.4951 Thus, while Thus, while ~~FY2021~~FY2022 funds are provided for the purpose of supporting awards made funds are provided for the purpose of supporting awards made
from July 1, from July 1, ~~2021~~2022, to June 30, , to June 30, ~~2022~~2023, these funds are available for obligation from October 1, , these funds are available for obligation from October 1,
~~2020~~2021, to September 30, , to September 30, ~~2022~~2023, and may support multiple award years. This multiyear availability , and may support multiple award years. This multiyear availability
~~al ows~~allows the discretionary appropriation to operate at a surplus or the discretionary appropriation to operate at a surplus or ~~shortfal~~ shortfall in any given year. In in any given year. In
addition, this multiyear availabilityaddition, this multiyear availability ~~al ows~~ allows the program to operate as a the program to operate as a quasi entitlement, making , making
grant payments to eligiblegrant payments to eligible students who apply for aid and enroll in eligiblestudents who apply for aid and enroll in eligible programs programs
notwithstanding the appropriation level availablenotwithstanding the appropriation level available in any one year. As mentioned earlier, annual in any one year. As mentioned earlier, annual
discretionary appropriation discretionary appropriation ~~bil s~~acts also establish the base discretionary maximum grant for also establish the base discretionary maximum grant for ~~eac h~~each applicable award year. Role of Mandatory Funding Specified Mandatory Appropriations to Augment Discretionary Funding
~~applicable award year.~~

~~49 T he annual appropriation for the Pell Grant program is available immediately upon enactment at any point on or after~~
~~October 1. In the event the annual appropriation is not enacted at the beginning of the fiscal year, a continuing~~
~~resolution typically provides prorated funding for the program until an appropriation measure is enacted.~~
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~~Role of Mandatory Funding~~
~~Specified Mandatory Appropriations to Augment Discretionary Funding~~
The SAFRA Act (enacted as part of the Health Care and Education Reconciliation Act of 2010; The SAFRA Act (enacted as part of the Health Care and Education Reconciliation Act of 2010;
P.L. 111-152), the FY2011 Continuing Appropriations Act (P.L. 112-10), the Budget Control Act P.L. 111-152), the FY2011 Continuing Appropriations Act (P.L. 112-10), the Budget Control Act
of FY2011 (P.L. 112-25), the FY2012 Consolidated Appropriations Act (P.L. 112-74), and most of FY2011 (P.L. 112-25), the FY2012 Consolidated Appropriations Act (P.L. 112-74), and most
recently the FUTURE Act (P.L. 116-91) amended the HEArecently the FUTURE Act (P.L. 116-91) amended the HEA to provide specified mandatory to provide specified mandatory
appropriations for the appropriations for the ~~Pel~~ Pell Grant program to augment current and future discretionary Grant program to augment current and future discretionary
appropriations. That is, these funds, while mandatory from a budgetary perspective, can be used appropriations. That is, these funds, while mandatory from a budgetary perspective, can be used
to pay for costs in the program for which annual discretionary appropriations are to pay for costs in the program for which annual discretionary appropriations are ~~typical y~~typically
provided. The concept of providing advance mandatory funding to augment or supplant provided. The concept of providing advance mandatory funding to augment or supplant
discretionary funding in the program is relatively new. Prior to FY2007, mandatory funding had discretionary funding in the program is relatively new. Prior to FY2007, mandatory funding had
been infrequently provided for the been infrequently provided for the ~~Pel~~ Pell Grant program, but Grant program, but ~~usual y~~usually to supplement discretionary to supplement discretionary
funding to pay for accumulated funding funding to pay for accumulated funding ~~shortfal s.50~~
shortfalls.52 Permanent, Indefinite Mandatory Appropriations for the Add-On Award
The SAFRA Act also established permanent, indefinite mandatory appropriations for the program The SAFRA Act also established permanent, indefinite mandatory appropriations for the program
to provide for the mandatory add-on award amount in FY2010 and beyond.to provide for the mandatory add-on award amount in FY2010 and beyond.5153 Although the Although the
mandatory appropriations that fund add-on award amounts are available permanently for mandatory appropriations that fund add-on award amounts are available permanently for such
sums as necessary, the amount provided for each year , the amount provided for each year ~~wil~~ will be determined based on actual costs associated with the applicable add-on amount. 51 The annual appropriation for the Pell Grant program is available immediately upon enactment at any point on or after October 1. In the event the annual appropriation is not enacted at the beginning of the fiscal year, a continuing resolution typically provides prorated funding for the program until an appropriation measure is enacted. 52 For example, mandatory funding in the amount of $4.3 billion was provided in P.L. 109-149 to pay exclusively for the accumulated funding shortfall through AY2005-2006. 53 Prior to the SAFRA Act, the College Cost Reduction and Access ~~be determined based on actual costs~~
~~associated with the applicable add-on amount.~~
~~Summary of Recent and Projected Funding~~
~~Table 5~~ ~~provides a summary of recent and projected Pel Grant program funding from FY2017~~
~~through FY2026.52 A distinction is made between discretionary appropriations, mandatory~~
~~appropriations provided to augment discretionary appropriations, and mandatory appropriations~~
~~provided to fund add-on award amounts. Table 5 also displays the mandatory appropriations that~~
~~have been provided through FY2026.~~
~~From a budgetary perspective, these recent mandatory appropriations have been offset largely by~~
~~enacted provisions that were estimated to have resulted in savings from the federal student loan~~
~~programs, which are classified as mandatory programs. Additional y, some of the mandatory~~
~~appropriations provided for the program in the FY2011 Continuing Appropriations Act and~~
~~FY2012 Consolidated Appropriations Act were offset by enacted provisions that resulted in~~
~~mandatory savings in other aspects of the Pel Grant program.53~~

~~50 For example, mandatory funding in the amount of $4.3 billion was provided in P.L. 109-149 to pay exclusively for~~
~~the accumulated funding shortfall through AY2005 -2006.~~
~~51 Prior to the SAFRA Act, the College Cost Reduction and Access~~ Act of 2007 (CCRAA) provided annual specified Act of 2007 (CCRAA) provided annual specified
mandatory appropriation levels from FY2008 to FY2017 to fund annual add-on awardmandatory appropriation levels from FY2008 to FY2017 to fund annual add-on award amounts. amounts. ~~T he~~The SAFRA SAFRA Act Act
eliminated the specified mandatory appropriation levels for FY2010 and all subsequenteliminated the specified mandatory appropriation levels for FY2010 and all subsequent years and replaced these levels years and replaced these levels
with indefinite mandatory appropriations, while revising the add-on awardwith indefinite mandatory appropriations, while revising the add-on award amounts. Congressional Research Service 17 link to page 22 link to page 22 link to page 23 link to page 23 link to page 23 link to page 38 Federal Pell Grant Program: Primer Summary of Recent and Projected Funding Table 5 provides a summary of recent and projected Pell Grant program funding from FY2017 through FY2026.54 A distinction is made between discretionary appropriations, mandatory appropriations provided to augment discretionary appropriations, and mandatory appropriations provided to fund add-on award amounts. Table 5 also displays the mandatory appropriations that have been provided through FY2026. From a budget scoring perspective, these recent increases in mandatory appropriations were offset largely by enacted provisions that were estimated to have resulted in savings from the federal student loan programs, which are classified as mandatory programs. Additionally, some of the mandatory appropriations provided for the program in the FY2011 Continuing Appropriations Act and FY2012 Consolidated Appropriations Act were offset by enacted provisions that resulted in mandatory savings in other aspects of the Pell Grant program.55 Mandatory appropriations that will be necessary to fully fund the add-on award amount are available ~~amounts.~~
~~52 Table D-1 in this report provides a more comprehensive history of the discretionary funding levels in the program~~
~~since FY1973.~~
~~53 Since the enactment of the SAFRA Act, legislative changes that affect t he eligibility and award rules of the Pell~~
~~Grant program are measured separately on the budget ledger between discretionary and mandatory funding. T hat is, a~~
~~distinction is made between savings or additional costs associated with funding the discretionary base maximum award~~
~~and the mandatory add-on award when changes to the program are enacted. For example, eliminating eligibility for a~~
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~~Mandatory appropriations that wil be necessary to fully fund the add-on award amount are~~
~~available~~ permanently, but the specific amount required in each year cannot be reported until the permanently, but the specific amount required in each year cannot be reported until the
add-on amount is determined and add-on amount is determined and al all funds are disbursed to eligible students. ED does, however, funds are disbursed to eligible students. ED does, however,
estimate the amount of mandatory appropriations estimate the amount of mandatory appropriations ~~provided~~ required to fund add-on award required to fund add-on award
amounts for the current and subsequent fiscal years. amounts for the current and subsequent fiscal years.
Table 5. Pell Grant Funding (FY2017 to FY2026)
( (~~dol ars in mil ions~~dollars in millions) )
Funds ~~Supporting~~
~~Funds Supporting Discretionary~~ Supporting
Mandatory Add-On

On Award Funds Supporting Discretionary Award Amounts
~~Award~~ Amounts
~~Fiscal~~
~~Discretionary~~
~~Mandatory~~ Fiscal Discretionary
Mandatory
~~Total~~
~~Yea~~raMandatory Yeara
Appropriationb
Appropriation
Subtotal
Appropriationc
Total Funding
2017 2017
22,475 22,475
1,320 1,320
23,795 23,795
5,680 5,680
29,475 29,475
2018 2018
22,475 22,475
1,334 1,334
23,809 23,809
5,997 5,997
29,806 29,806
2019 2019
22,475 22,475
1,370 1,370
23,845 23,845
5,388 5,388
29,233 29,233
2020 2020
22,475 22,475
1,405 1,405
23,880 23,880
5,571 5,571
29,451 29,451
2021 2021
22,475 22,475
1,142 1,142
23,617 23,617
5,412 5,412
29,029 29,029
2022 2022
~~TBD~~
~~1,170~~
~~TBD~~
~~SSAN~~
~~TBD~~22,475 1,085 23,560 4,749 28,309 2023 TBD 1,170 TBD SSAN TBD 2024 TBD 1,170 TBD SSAN TBD 54 Table D-1 in this report provides a more comprehensive history of the discretionary funding levels in the program since FY1973. 55 Since the enactment of the SAFRA Act, legislative changes that affect the eligibility and award rules of the Pell Grant program are measured separately on the budget ledger between discretionary and mandatory funding. That is, a distinction is made between savings or additional costs associated with funding the discretionary base maximum award and the mandatory add-on award when changes to the program are enacted. For example, eliminating eligibility for a student to receive two scheduled Pell Grant awards in one award year resulted in savings associated with both the discretionary base maximum award and the mandatory add-on award. In general, savings associated with the mandatory award was redirected back to the program as specified mandatory appropriations for future use in specified years. Congressional Research Service 18 link to page 23 link to page 23 link to page 23 link to page 23 link to page 35 Federal Pell Grant Program: Primer Funds Supporting Mandatory Add- On Award Funds Supporting Discretionary Award Amounts Amounts Fiscal Discretionary Mandatory Mandatory Yeara Appropriationb Appropriation Subtotal Appropriationc Total Funding
~~2023~~
~~TBD~~
~~1,170~~
~~TBD~~
~~SSAN~~
~~TBD~~
~~2024~~
~~TBD~~
~~1,170~~
~~TBD~~
~~SSAN~~
~~TBD~~
2025 2025
TBD TBD
1,170 1,170
TBD TBD
SSAN SSAN
TBD TBD
2026 2026
TBD TBD
1,17 1,170d
TBD TBD
SSAN SSAN
TBD TBD
Source: CRS analysis of the HEA, as amended, CRS analysis of the HEA, as amended, ~~President’s budget FY2022~~U.S. Department of Education Budget Tables, and respective, and respective appropriations appropriations
measures. measures.
Notes: Totals may not add due to roundingTotals may not add due to rounding;
. TBD = to be determinedTBD = to be determined;
. SSAN = Such sums as necessary.SSAN = Such sums as necessary. In effect, this means the amount of mandatory appropriations that wilIn effect, this means the amount of mandatory appropriations that wil be be
necessary to ful y fund the add-on award amount specifiednecessary to ful y fund the add-on award amount specified in the HEA for a given year. In other words, in the HEA for a given year. In other words,
mandatory funding has been available to support the add-on amount beginning in FY2010 onward permanently, mandatory funding has been available to support the add-on amount beginning in FY2010 onward permanently,
but the amount required in each yearbut the amount required in each year is indefinite and cannot be reported until the add-on amount is determined is indefinite and cannot be reported until the add-on amount is determined
and and al all funds are disbursed to eligiblefunds are disbursed to eligible students. students.
For the specific amounts provided and rescinded by enacting legislationFor the specific amounts provided and rescinded by enacting legislation since FY2008, since FY2008, ~~see~~ see Table C-1.
a. The fiscal year in this table representsa. The fiscal year in this table represents the first year the funds appropriated in each column are available for the first year the funds appropriated in each column are available for
use. Most funds are available for two fiscal years. use. Most funds are available for two fiscal years.
b. This amount reflects b. This amount reflects the annual discretionary appropriation level and excludes any rescissionthe annual discretionary appropriation level and excludes any rescission of the of the ~~Pel~~
Pell Grant program cumulative surplus. Grant program cumulative surplus.
c. This is the estimated c. This is the estimated amount of mandatory appropriations required to increaseamount of mandatory appropriations required to increase the discretionarythe discretionary base base
maximum maximum grant by $1,060 in the fiscal year, as estimated in the President’sgrant by $1,060 in the fiscal year, as estimated in the President’s ~~FY2022~~ budget. budget.
d. Additional annual mandatory appropriations in the amount of $1,170,000,000 are also provided for each d. Additional annual mandatory appropriations in the amount of $1,170,000,000 are also provided for each
succeeding year beyond FY2026. succeeding year beyond FY2026.

~~student to receive two scheduled Pell Grant awards in one award year resulted in savings associated with both the~~
~~discretionary base maximum award and the mandatory add-on award. In general, savings associated with the~~
~~mandatory award was redirected back to the program as specified mandatory appropriations for future use in specified~~
~~years.~~
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~~Discretionary Funding Shortfalls and Surpluses~~
~~The Pel~~ Discretionary Funding Shortfalls and Surpluses The Pell Grant program is often referred to as a Grant program is often referred to as a quasi-entitlement and has in some respects been and has in some respects been
operated as an appropriated entitlement. An operated as an appropriated entitlement. An appropriated entitlement is a program that receives is a program that receives
mandatory funding in the annual appropriations acts, but the level of spending is not controlled mandatory funding in the annual appropriations acts, but the level of spending is not controlled
through the annual appropriations process.through the annual appropriations process.5456 Instead, the level of mandatory spending for Instead, the level of mandatory spending for
appropriated entitlements, like other entitlements, is based on the benefit and eligibilityappropriated entitlements, like other entitlements, is based on the benefit and eligibility criteria criteria
established in law, and the amount provided in appropriations acts is based on meeting this established in law, and the amount provided in appropriations acts is based on meeting this
projected level. The projected level. The ~~Pel~~ Pell Grant program is not an entitlement because the program is primarily Grant program is not an entitlement because the program is primarily
funded through discretionary appropriations. In addition in the past, statutory benefit and funded through discretionary appropriations. In addition in the past, statutory benefit and
eligibilityeligibility criteria were adjusted so that spending would not exceed appropriations. criteria were adjusted so that spending would not exceed appropriations. ~~Final y~~Finally, annual , annual
~~Pel~~ Pell Grant discretionary appropriations are determined on the basis of estimates of program costs Grant discretionary appropriations are determined on the basis of estimates of program costs
and other policy considerations. and other policy considerations.
To the extent that the annual appropriation may be higher or lower than actual program costs, the To the extent that the annual appropriation may be higher or lower than actual program costs, the
program may operate at a surplus or program may operate at a surplus or ~~shortfal~~ shortfall. The surplus or . The surplus or ~~shortfal~~ shortfall may accumulate over more may accumulate over more
than one year. The HEAthan one year. The HEA requires that the Secretary of Education, when he has determined that the requires that the Secretary of Education, when he has determined that the
appropriated funds are insufficient to satisfy appropriated funds are insufficient to satisfy ~~al Pel~~ all Pell Grant entitlements,Grant entitlements,5557 notify each chamber of 56 For more information about appropriated entitlements, see CRS Report RS20129, Entitlements and Appropriated Entitlements in the Federal Budget Process. 57 The authorizing statue speaks of entitlements when it describes the award determined for a student based on the published award schedule. Congressional Research Service 19 link to page 24 link to page 24 link to page 25 link to page 25 link to page 25 link to page 25 link to page 25 Federal Pell Grant Program: Primer ~~notify each chamber of~~
Congress of the funding Congress of the funding ~~shortfal~~ shortfall, identifying how much more funding is needed to meet those , identifying how much more funding is needed to meet those
entitlements. The Secretary can respond to a entitlements. The Secretary can respond to a ~~shortfal in Pel~~ shortfall in Pell Grant funding by Grant funding by ~~al ocating~~allocating funds funds
from the most recently enacted appropriation to pay for obligations incurred in previous award from the most recently enacted appropriation to pay for obligations incurred in previous award
years.years.5658 For example, although the For example, although the ~~FY2019~~FY2023 appropriation is expected to fund award year appropriation is expected to fund award year ~~2019-~~
~~2020~~2023-2024 program costs, the appropriation may fund award year program costs, the appropriation may fund award year ~~2018-2019~~2022-2023 costs since obligations for costs since obligations for
these costs occur in these costs occur in ~~FY2019~~FY2023. This permits ED to use funds from multiple fiscal years’ . This permits ED to use funds from multiple fiscal years’
appropriations to meet one award year’s cost.appropriations to meet one award year’s cost.
The misalignment between estimated program costs (appropriations) and actual expenditures is The misalignment between estimated program costs (appropriations) and actual expenditures is
often related to economic and statutory changes. When the general economy weakens, often related to economic and statutory changes. When the general economy weakens,
postsecondary enrollment often increases and thus postsecondary enrollment often increases and thus ~~Pel~~ Pell Grant participation and cost increases. Grant participation and cost increases.
Table 6 provides a 5-year history of estimated provides a 5-year history of estimated ~~shortfal~~ shortfall or surplus levels, funding for the or surplus levels, funding for the
discretionary award amounts, and estimated expenditures (Appendix Ddiscretionary award amounts, and estimated expenditures (Appendix D provides data from provides data from
FY1973 to FY1973 to ~~FY2021~~FY2022). Although discretionary award amounts are funded by discretionary and ). Although discretionary award amounts are funded by discretionary and
mandatory appropriations, the surplus or mandatory appropriations, the surplus or ~~shortfal~~ shortfall is accounted for using only discretionary is accounted for using only discretionary
funding. The annual funding funding. The annual funding ~~shortfal~~ shortfall or surplus differs from the cumulative or surplus differs from the cumulative ~~shortfal~~ shortfall or surplus, or surplus,
which may accumulate over multiple award years.which may accumulate over multiple award years.5759 It is also important to note that Congress may It is also important to note that Congress may
have provided a reduced appropriation level in a given year when a funding surplus was available have provided a reduced appropriation level in a given year when a funding surplus was available
for use from the previous year. Conversely, Congress may have provided additional for use from the previous year. Conversely, Congress may have provided additional

~~54 For more information about appropriated entitlements, see CRS Report RS20129,~~ ~~Entitlements and Appropriated~~
~~Entitlem ents in the Federal Budget Process~~.
~~55 T he authorizing statue speaks of entitlements when it describes the award determined for a student based on the~~
~~published award schedule.~~
~~56 T his response to the shortfall is only feasible if ED determines enough funds are available from the most recently~~
~~enacted appropriation to meet obligations from multiple award years. A series of le gal opinions at ED and other~~
~~agencies in the 1990s provides the basis for the authority to use funds in an annual appropriation for multiple award~~
~~years. In general, absent specific language in an annual appropriations measure limiting funds to a specific award year~~
~~or purpose, the Secretary may use such funds for any award year during the period of availability specified in an~~
~~appropriations measure.~~
~~57 In general, the annual surplus or shortfall is a measure of the difference between one year’s appropriation, which is~~
~~typically provided for a particular award year, and the estimated expenditures for that particular award year. T he~~
~~cumulative surplus is a measure that, in addition to including the annual surplus or shortfall, takes into account the prior~~
~~years’ surplus or shortfall amount.~~
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~~appropriations in a given year to pay for an estimated cumulative funding shortfal from the~~
~~previous years.~~
Table 6 shows that the cumulative surplus over the last five years has exceeded $9.0 bil ion,
~~which is approximately 40% of the annual funding made available for the discretionary award.~~
~~The two subsequent sections of the report describe the policy implications of and surpluses and~~
~~shortfal s the measures to address them.~~
~~Table 6. Estimated Annual and Cumulative Discretionary Funding Shortfalls in~~
~~the Pell Grant Program, FY2017-FY2021~~
~~(dol ars in mil ions)~~
~~Annual~~
~~Funding for~~
~~Discretionary~~
~~Estimated~~
~~Cumulative~~
~~Award~~
~~Total~~
~~Annual Surplus~~
~~Surplus or~~
~~Fiscal Year~~
~~Award Year~~
~~Amountsa~~
~~Expendituresb~~
~~or (Shortfall)~~
~~(Shortfall)~~
~~2017~~
~~2017-2018~~
~~23,795~~
~~22,773~~
~~1,022~~
~~9,007c~~
~~2018~~
~~2018-2019~~
~~23,809~~
~~22,692~~
~~1,117~~
~~10,124~~
~~2019~~
~~2019-2020~~
~~23,845~~
~~22,746~~
~~1,099~~
~~10,623d~~
~~2020~~
~~2020-2021~~
~~23,880~~
~~21,483~~
~~2,397~~
~~12,520e~~
~~2021~~
~~2021-2022~~
~~23,618~~
~~23,654~~
~~(36)~~
~~11,983f~~
Sources: Congressional Budget Office, Pel Grant Program—CBO’S February 2021 Baseline.
Notes: Numbers in parentheses are negative numbers. For a history of surpluses and shortfal s in the Pel Grant
~~program since AY1973-1974, see Table D-1.~~
~~a. This number includes annual discretionary appropriations and may include additional mandatory and~~
~~discretionary~~ appropriations in a given year to pay for an estimated cumulative funding shortfall from the previous years. Table 6 shows that the cumulative surplus over the last five years has exceeded $10.0 billion, or 51% of the annual funding made available for the discretionary award, on average. The two subsequent sections of the report describe the policy implications of surpluses and shortfalls and the measures that have been used to address them. Table 6. Estimated Annual and Cumulative Discretionary Funding Shortfalls in the Pell Grant Program, FY2018-FY2022 (dollars in millions) Annual Funding for Discretionary Estimated Cumulative Award Total Annual Surplus Surplus or Fiscal Year Award Year Amountsa Expendituresb or (Shortfall) (Shortfall) 2018 2018-2019 $23,809 $22,690 $1,119 $10,132 2019 2019-2020 $23,845 $22,746 $1,099 $10,631c 2020 2020-2021 $23,880 $21,864 $2,016 $12,147d 2021 2021-2022 $23,617 $21,343 $2,274 $13,921e 58 This response to the shortfall is only feasible if ED determines enough funds are available from the most recently enacted appropriation to meet obligations from multiple award years. A series of legal opinions at ED and other agencies in the 1990s provides the basis for the authority to use funds in an annual appropriation for multiple award years. In general, absent specific language in an annual appropriations measure limiting funds to a specific award year or purpose, the Secretary may use such funds for any award year during the period of availability specified in an appropriations measure. 59 In general, the annual surplus or shortfall is a measure of the difference between one year’s appropriation, which is typically provided for a particular award year, and the estimated expenditures for that particular award year. The cumulative surplus is a measure that, in addition to including the annual surplus or shortfall, takes into account the prior years’ surplus or shortfall amount. Congressional Research Service 20 link to page 25 link to page 25 link to page 25 link to page 38 link to page 35 Federal Pell Grant Program: Primer Annual Funding for Discretionary Estimated Cumulative Award Total Annual Surplus Surplus or Fiscal Year Award Year Amountsa Expendituresb or (Shortfall) (Shortfall) 2022 2022-2023 $23,560 $22,643 $917 $13,788f Source: Congressional Budget Office, Pell Grant Program—CBO’S May 2022 Baseline; and appropriations acts. Notes: Numbers in parentheses are negative numbers. For a history of surpluses and shortfalls in the Pell Grant program since AY1973-1974, see Table D-1. a. This number includes annual discretionary appropriations and mandatory appropriations to augment discretionary funding and may include additional discretionary and mandatory funding. For a list of the applicable legislationfunding. For a list of the applicable legislation and amounts, and amounts, ~~see~~ see Table C-1..
~~b. Al estimates~~ b. All estimates of expenditures are subject to change. of expenditures are subject to change.
c. The c. The ~~Consolidated Appropriations Act, 2017 (P.L. 115-31) rescinded $1.310 bil ion of the cumulative surplus.~~
~~d. The Department of Defense~~ Department of Defense and Labor, Health and Human Services,and Labor, Health and Human Services, and Education Appropriations Act, and Education Appropriations Act,
2019 and Continuing Appropriations Act, 2019 (P.L. 115-245) rescinded $600 mil ion 2019 and Continuing Appropriations Act, 2019 (P.L. 115-245) rescinded $600 mil ion of the cumulative of the cumulative
surplus. surplus.
ed. The Further Consolidated Appropriations. The Further Consolidated Appropriations Act, 2020 (P.L. 116-94) rescinded $500 mil ionAct, 2020 (P.L. 116-94) rescinded $500 mil ion ~~from~~ from the the
cumulative surplus. cumulative surplus.
f.
e. The Consolidated Appropriations Act, 2021 The Consolidated Appropriations Act, 2021 ~~rescinded $500 mil ion~~ (P.L. 116-260) rescinded $500 mil ion from the cumulative surplus. f. The Consolidated Appropriations Act, 2022 (P.L. 117-103) rescinded $1.050 bil ion from the cumulative surplus.from the cumulative surplus.
Policy Implications and Measures to Address Funding Surpluses
The policy implications of a funding surplus are very different from those of a The policy implications of a funding surplus are very different from those of a ~~shortfal~~ shortfall. An . An
increasing or high cumulative surplus may be viewed as presenting a potential opportunity. The increasing or high cumulative surplus may be viewed as presenting a potential opportunity. The
surplus may be viewed as representing a pot of availablesurplus may be viewed as representing a pot of available funding. The surplus may be invested funding. The surplus may be invested
back into the back into the ~~Pel~~ Pell Grant program or it may be used to pursue other policy priorities. Grant program or it may be used to pursue other policy priorities. ~~General y~~
Generally speaking, spending across the federal government and for specific programs is controlled by speaking, spending across the federal government and for specific programs is controlled by
~~legislation~~ legislation adopted by Congress with input from the Administration and other stakeholders.adopted by Congress with input from the Administration and other stakeholders.58

~~58 For more information on the budget and appropriations process, see CRS Report R40472,~~ ~~The Budget Resolution and~~
~~Spending Legislation~~.
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60
Pursuing Other Policy Priorities
The surplus may be used to fund or increase funding for other programs or to reduce a budget The surplus may be used to fund or increase funding for other programs or to reduce a budget
deficit. deficit. Al All or a portion of the surplus may be rescinded in an appropriations act. For example, the or a portion of the surplus may be rescinded in an appropriations act. For example, the
Consolidated Appropriations Act, Consolidated Appropriations Act, ~~2017 (P.L. 115-31) included a rescission of $1.3 bil ion from~~
~~the Pel~~ 2022 (P.L. 117-103) rescinded $1.050 billion from the Pell Grant program surplus. The rescission offsets the cost of appropriations in the act. Grant program surplus. The rescission offsets the cost of appropriations in the act.
Expanding the Pell Grant Program
Alternatively, Alternatively, there are several approaches for investing the surplus into the program or there are several approaches for investing the surplus into the program or
expanding the program. expanding the program.
 Appropriations levels and statutory provisions may be maintained under the  Appropriations levels and statutory provisions may be maintained under the
assumption that assumption that ~~Pel~~ Pell Grant program costs would Grant program costs would ~~eventual y~~eventually use the surplus. For use the surplus. For
example as the U.S. population growsexample as the U.S. population grows or a recession occurs, postsecondary enrollment and , postsecondary enrollment and ~~Pel~~ Pell Grant Grant
~~participation may grow.~~
~~ Award levels for Pel~~ participation may grow. 60 For more information on the budget and appropriations process, see CRS Report R40472, The Budget Resolution and Spending Legislation. Congressional Research Service 21 Federal Pell Grant Program: Primer  Award levels for Pell Grant recipients may be increased in order to increase the Grant recipients may be increased in order to increase the
size of a size of a ~~Pel~~ Pell Grant. For example, the discretionary base maximum award Grant. For example, the discretionary base maximum award ~~was~~has
increased from $4,860 in FY2009-FY2017 to $5,increased from $4,860 in FY2009-FY2017 to $5,~~035 in FY2018~~835 in FY2022. .
 Student eligibility  Student eligibility ~~for Pel~~ for Pell Grants may be expanded. For example, increasing the Grants may be expanded. For example, increasing the
discretionary base maximum award from $4,860 in FY2009-FY2017 to $5,035 in discretionary base maximum award from $4,860 in FY2009-FY2017 to $5,035 in
FY2018 also FY2018 also ~~increases~~increased the number of students who the number of students who ~~are~~were eligible. eligible.
 Statutory provisions that establish  Statutory provisions that establish ~~Pel~~ Pell Grant award rules may be modified to Grant award rules may be modified to
increase the amount of funds that some students may receive. For example, increase the amount of funds that some students may receive. For example, year-
round ~~Pel~~ Pell Grants were reauthorized beginning in AY2017-2018. Grants were reauthorized beginning in AY2017-2018.
 Statutory provisions that establish the calculation of EFC may be modified to  Statutory provisions that establish the calculation of EFC may be modified to
increase the numbers of students eligible for increase the numbers of students eligible for ~~Pel~~ Pell Grants and other HEA Title IV Grants and other HEA Title IV
need-based financial aid. need-based financial aid.
 Statutory provisions that establish student eligibility  Statutory provisions that establish student eligibility for any HEAfor any HEA Title IV aid Title IV aid
programs may be amended to increase eligibility. programs may be amended to increase eligibility.
Enacted legislation that expands the Enacted legislation that expands the ~~Pel~~ Pell Grant program results in increased program costs. Grant program results in increased program costs.
Because of the combination of discretionary appropriations for the discretionary award and Because of the combination of discretionary appropriations for the discretionary award and
mandatory appropriations for the mandatory add-on award, a program expansion is likely to mandatory appropriations for the mandatory add-on award, a program expansion is likely to
increase both the discretionary and mandatory (direct) spending requirements. Such expansions increase both the discretionary and mandatory (direct) spending requirements. Such expansions
may be enacted through authorizing or appropriations acts. may be enacted through authorizing or appropriations acts.
Program Reauthorization
~~The Pel~~ The Pell Grant program may be expanded in a reauthorization of the Higher Education Act such Grant program may be expanded in a reauthorization of the Higher Education Act such
that the mandatory spending for the program is increased. The Statutory Pay-As-You-Go Act of that the mandatory spending for the program is increased. The Statutory Pay-As-You-Go Act of
2010 (PAYGO; P.L. 111-139) establishes a process that is intended to prevent new direct spending 2010 (PAYGO; P.L. 111-139) establishes a process that is intended to prevent new direct spending
and revenue laws from increasing the deficit.and revenue laws from increasing the deficit.5961 In effect, PAYGO requires that any legislation In effect, PAYGO requires that any legislation
projected to increase direct spending or reduce revenues must be offset by equivalent amounts of projected to increase direct spending or reduce revenues must be offset by equivalent amounts of
direct spending cuts, revenue increases, or a combination of the two, over a 5-year and 10-year direct spending cuts, revenue increases, or a combination of the two, over a 5-year and 10-year

~~59 For more information on PAYGO, see CRS~~ budget period.62 Therefore, it is generally expected that any increase in Pell Grant direct spending for each of the applicable budget periods in a reauthorization would be offset. The offset may, but need not necessarily, occur in the same law as the increase.63 Annual Appropriations Act Measures In recent years, several Pell Grant program expansions have been enacted in annual appropriations acts. Through the budget resolution process, a 302(b) allocation is established for each of the 12 appropriations bills. These allocations, referred to as 302(b) subdivisions, establish the maximum discretionary amount that can be spent through each bill. Therefore generally but 61 For more information on PAYGO, see CRS Report R41157, Report R41157, The Statutory Pay-As-You-Go Act of 2010: Summary
and Legislative History;; CBO, CBO, The Statutory Pay-As-You Go Act and the Role of the Congress, August, August 18, 2020, 18, 2020,
https://www.cbo.gov/system/files/2020-08/56506-S-PAYGO.pdf https://www.cbo.gov/system/files/2020-08/56506-S-PAYGO.pdf
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~~budget period.60 Therefore, it is general y expected that any increase in Pel Grant direct spending~~
~~for each of the applicable budget periods in a reauthorization would be offset. The offset may but~~
~~need not necessarily occur in the same law as the increase.61~~
~~Annual Appropriations Act Measures~~
~~In recent years, several Pel Grant program expansions have been enacted in annual~~
~~appropriations acts. Through the budget resolution process, a 302(b) al ocation is established for~~
~~each of the 12 appropriations bil s. These al ocations, referred to as 302(b) subdivisions, establish~~
~~the maximum discretionary amount that can be spent through each bil . Therefore general y but~~
62 Both the House and Senate have their own internal PAYGO rules that differ somewhat from Statutory PAYGO, but that also may have the effect of requiring that certain increases to mandatory spending or decreases to revenue be offset. For more information, see CRS Report RL31943, Budget Enforcement Procedures: The Senate Pay-As-You-Go (PAYGO) Rule; and CRS Report R41510, Budget Enforcement Procedures: House Pay-As-You-Go (PAYGO) Rule. 63 The Pell Grant program has not been amended by authorizing laws subject to PAYGO since enactment of PAYGO. The SAFRA Act, which amended the program, was subject to reconciliation instructions. The FAFSA Simplification Act (Division FF-VII of the Consolidated Appropriations Act, 2021 [P.L. 116-260]), which amended the program, was excluded from PAYGO under the terms of the act. Congressional Research Service 22 Federal Pell Grant Program: Primer with exceptions, individual program-level discretionary appropriations within the annual with exceptions, individual program-level discretionary appropriations within the annual
Departments of Labor, Health and Human Services, and Education, and Related Agencies Departments of Labor, Health and Human Services, and Education, and Related Agencies
appropriations appropriations ~~bil~~ bill must be balanced within its established 302(b) must be balanced within its established 302(b) ~~al ocation~~allocation. In other words, . In other words,
increased discretionary appropriations for one program may coincide with decreased increased discretionary appropriations for one program may coincide with decreased
discretionary appropriations for one or more other programs. discretionary appropriations for one or more other programs.
In accordance with budget enforcement mechanisms, substantive changes to or restrictions on In accordance with budget enforcement mechanisms, substantive changes to or restrictions on
mandatory spending in appropriations laws are scored against the 302(b) discretionary mandatory spending in appropriations laws are scored against the 302(b) discretionary ~~al ocations~~allocations
that apply to the budget year in appropriations that apply to the budget year in appropriations ~~bil s~~bills. Provisions that make substantive changes to . Provisions that make substantive changes to
mandatory spending programs are mandatory spending programs are ~~cal ed~~called changes in mandatory program spending (CHIMPS). In changes in mandatory program spending (CHIMPS). In
other words, CHIMPS are scored as discretionary spending that along with other words, CHIMPS are scored as discretionary spending that along with al all of the other of the other
discretionary spending in the appropriations discretionary spending in the appropriations ~~bil~~ bill must not exceed the 302(b) must not exceed the 302(b) ~~al ocations~~allocations. (Those . (Those
provisions also might be under the purview of statutory PAYGO if they made substantive changes provisions also might be under the purview of statutory PAYGO if they made substantive changes
or modifications to mandatory spending in the years beyond the budget year.) or modifications to mandatory spending in the years beyond the budget year.)
In response to these budget enforcement mechanisms for appropriations laws, recent substantive In response to these budget enforcement mechanisms for appropriations laws, recent substantive
~~Pel~~ Pell Grant program changes that increased the estimated mandatory spending for the add-on Grant program changes that increased the estimated mandatory spending for the add-on
award have been offset by a decrease in the award have been offset by a decrease in the ~~Pel~~ Pell Grant mandatory appropriations to augment Grant mandatory appropriations to augment
discretionary funding in the budget year of the appropriations law.discretionary funding in the budget year of the appropriations law.6264 For example, the For example, the
Consolidated Appropriations Act, 2017 (P.L. 115-31) enacted year-round Consolidated Appropriations Act, 2017 (P.L. 115-31) enacted year-round ~~Pel~~ Pell Grants, increasing Grants, increasing
estimated direct spending for the mandatory add-on award in FY2017 and every year thereafter. estimated direct spending for the mandatory add-on award in FY2017 and every year thereafter.
As a consequence, P.L. 115-31 rescinded $254 As a consequence, P.L. 115-31 rescinded $254 ~~mil ion~~million of the FY2017 specified mandatory of the FY2017 specified mandatory
appropriations to augment discretionary funding in order to offset the estimated increase in the appropriations to augment discretionary funding in order to offset the estimated increase in the
FY2017 mandatory spending for the add-on award. Also for example, each of the FY2018-FY2017 mandatory spending for the add-on award. Also for example, each of the FY2018-
~~FY2021~~FY2023 appropriations acts increased the discretionary base maximum award level. appropriations acts increased the discretionary base maximum award level. ~~General y~~Generally
speaking, an increase in the discretionary base maximum award level increases program speaking, an increase in the discretionary base maximum award level increases program
~~eligibility~~ eligibility and results in an increase in direct spending for the mandatory add-on award. As a and results in an increase in direct spending for the mandatory add-on award. As a
result, each of the FY2018-result, each of the FY2018-~~FY2021~~FY2023 appropriations acts rescinded a portion of the specified appropriations acts rescinded a portion of the specified
mandatory appropriations to augment discretionary funding in order to offset estimated increases mandatory appropriations to augment discretionary funding in order to offset estimated increases
~~in the mandatory spending for the add-on award.~~

~~60 Both the House and Senate have their own internal PAYGO rules that differ somewhat from Statutory PAYGO, but~~
~~that also may have the effect of requiring that certain increases to mandatory spending or decreases to revenue be~~
~~offset. For more information, see CRS Report RL31943,~~ ~~Budget Enforcem ent Procedures: The Sen ate Pay-As-You-Go~~
~~(PAYGO) Rule~~ ~~and CRS Report R41510, Budget Enforcem ent Procedures: House Pay-As-You-Go (PAYGO) Rule.~~
~~61 T he Pell Grant program has not been amended by authorizing laws subject to PAYGO since enactment of PAYGO.~~
~~T he SAFRA Act, which amended the program, was subject to reconciliation instructions. The FAFSA Simplification~~
~~Act (Division FF-VII of the Consolidated Appropriations Act, 2021 [P.L. 116-260]), which amended the program, was~~
~~excluded from PAYGO under the terms of the act.~~
~~62 T he decrease in the Pell Grant mandatory appropriations to augment discretionary funding may be larger or smaller~~
~~than the estimated increase in mandatory spending for the add-on award since changes to other programs may~~
~~contribute to the offset.~~
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~~Federal Pell Grant Program of the Higher Education Act: Primer~~

in the mandatory spending for the add-on award. Policy Implications and Measures to Address Funding Shortfalls
For the most part, funding For the most part, funding ~~shortfal s~~shortfalls in the in the ~~Pel~~ Pell Grant program have been recognized as common Grant program have been recognized as common
occurrences. Persistent or high funding occurrences. Persistent or high funding ~~shortfal s~~shortfalls, as in FY2010, may be viewed as , as in FY2010, may be viewed as ~~fiscal y~~fiscally
irresponsible. In essence when there is a irresponsible. In essence when there is a ~~shortfal~~ shortfall, the program is in debt, and , the program is in debt, and ~~eventual y~~eventually the debt the debt
must be paid. The higher the debt level, the more difficult it is to resolve. As a result of the 302(b) must be paid. The higher the debt level, the more difficult it is to resolve. As a result of the 302(b)
~~al ocations~~allocations, resolving a , resolving a ~~Pel~~ Pell Grant program Grant program ~~shortfal~~ shortfall may lead to a difficult decision about which may lead to a difficult decision about which
program(s) to reduce discretionary funding for. program(s) to reduce discretionary funding for.
Over the years, federal policymakers and Congress have taken a variety of measures to address Over the years, federal policymakers and Congress have taken a variety of measures to address
the vexing issues associated with funding the vexing issues associated with funding ~~shortfal s~~shortfalls in the in the ~~Pel~~ Pell Grant program. The measures have Grant program. The measures have
included modified budget scoring, reductions in students’ awards, recipient caps, reductions in included modified budget scoring, reductions in students’ awards, recipient caps, reductions in
~~program costs, and supplemental appropriations.~~program costs, and supplemental appropriations. 64 The decrease in the Pell Grant mandatory appropriations to augment discretionary funding may be larger or smaller than the estimated increase in mandatory spending for the add-on award since changes to other programs may contribute to the offset. Congressional Research Service 23 Federal Pell Grant Program: Primer
Reductions in Students’ Awards and Recipient Caps Before 1992
From the inception of the program in 1972 until the enactment of the Higher Education From the inception of the program in 1972 until the enactment of the Higher Education
Amendments of 1992 (P.L. 102-325), the Secretary of Education had statutory authority under the Amendments of 1992 (P.L. 102-325), the Secretary of Education had statutory authority under the
HEAHEA to reduce awards to respond to a to reduce awards to respond to a ~~shortfal~~ shortfall in appropriated funds.in appropriated funds.6365 Reductions were made in Reductions were made in
awards in eight years using this authority (the last in AY1990-AY1991). After this HEAawards in eight years using this authority (the last in AY1990-AY1991). After this HEA authority authority
was repealed, appropriations legislation for FY1994-FY2001 continued to provide the Secretary was repealed, appropriations legislation for FY1994-FY2001 continued to provide the Secretary
with reduction authority, but that authority was not used.with reduction authority, but that authority was not used.6466 FY2002 and subsequent appropriations FY2002 and subsequent appropriations
~~legislation~~ legislation have not included such language. have not included such language.
CBO Scoring Rule
Congress took steps in FY2006 to limit the possibility of large accumulated funding Congress took steps in FY2006 to limit the possibility of large accumulated funding ~~shortfal s~~shortfalls in in
the future. H.Con.Res. 95 (109th Congress) established a permanent rule that applies to the the future. H.Con.Res. 95 (109th Congress) established a permanent rule that applies to the
~~scoring65~~scoring67 of the of the ~~Pel~~ Pell Grant program by the Congressional Budget Office (CBO). The rule provides Grant program by the Congressional Budget Office (CBO). The rule provides
that if the appropriation of new discretionary budget that if the appropriation of new discretionary budget ~~authority66~~authority68 enacted for the program is enacted for the program is
insufficient to cover the full estimated costs in the upcoming year—including any funding surplus insufficient to cover the full estimated costs in the upcoming year—including any funding surplus
~~or shortfal~~ or shortfall from prior years—the budget authority counted against the from prior years—the budget authority counted against the ~~bil~~ bill for the program for the program ~~wil~~
will be equal to the adjusted full cost (i.e., total need). The full estimated costs must be based on the be equal to the adjusted full cost (i.e., total need). The full estimated costs must be based on the
maximum discretionary award amount and any changes to the eligibilitymaximum discretionary award amount and any changes to the eligibility criteria. For most criteria. For most

~~63 Some form of authority to reduce awards was~~ discretionary programs, CBO equates the budget authority to the level provided in each appropriation bill. As a result of the scoring rule, Congress cannot fund new programs or increase the funding of existing programs subject to discretionary appropriations while providing less funding than required for the Pell Grant program. The scoring rule, however, cannot fully account for the challenges of estimating the cost of the program. Discretionary program costs are estimated in advance of the award year they are intended to support, and based on the chosen discretionary base maximum award level and estimated program participation. The scoring rule does constrain the accumulation of the funding shortfall, such as by requiring Congress annually to reconcile previous years’ appropriation levels with updated estimates of previous years’ program obligations. 65 Some form of authority to reduce awards was available to the Secretary between the inception of the program in available to the Secretary between the inception of the program in
1972 and the 1992 amendments. Immediately prior to its repeal in 1992, the HEA provision permitted 1972 and the 1992 amendments. Immediately prior to its repeal in 1992, the HEA provision permitted ~~reducti on~~reduction in in
awardsawards only within certain limits. No awardonly within certain limits. No award could becould be ~~reduced~~ reduced for students whose expected family contribution (EFC) for students whose expected family contribution (EFC)
waswas $200 or less (i.e., the awards$200 or less (i.e., the awards for the neediest students wouldfor the neediest students would be protected). A schedule of reductions for other be protected). A schedule of reductions for other
awardsawards had to use a had to use a single linear reduction ~~form ula~~formula that applied uniformly. No award that applied uniformly. No award ~~could~~ could be made to a student whose be made to a student whose
initial awardinitial award ~~was reduced~~ was reduced to less than $100 under the reduction formula. to less than $100 under the reduction formula. ~~T he~~The original language original language creating the Basic creating the Basic
Educational Opportunity Grants (BEOG), the predecessor to Pell Grants, in the Education Amendments of 1972 Educational Opportunity Grants (BEOG), the predecessor to Pell Grants, in the Education Amendments of 1972
allowedallowed for payments on a pro rata reducedfor payments on a pro rata reduced ~~basis~~ basis and specifiedand specified a minimum grant of $50 whenever the program was less a minimum grant of $50 whenever the program was less
than fully funded. than fully funded.
~~64 T he~~ 66 The appropriations legislation during this time period required appropriations legislation during this time period required the Secretary to reducethe Secretary to reduce ~~awards using~~ awards using fixed or variable fixed or variable
percentages, or usingpercentages, or using a fixed dollar reduction, if, prior to issuinga fixed dollar reduction, if, prior to issuing the payment schedules, he or she determined that the payment schedules, he or she determined that
appropriated funds couldappropriated funds could not fully fund the appropriated maximum grant. A schedule of reducednot fully fund the appropriated maximum grant. A schedule of reduced grants wouldgrants would then be then be
published. published.
6567 CBO CBO keeps score for Congress by monitoring the results of congressional action on individual for Congress by monitoring the results of congressional action on individual authorization, authorization,
appropriation, and revenue billsappropriation, and revenue bills against budgetagainst budget authority and outlay targets that are specified in the concurrent authority and outlay targets that are specified in the concurrent
resolutions. resolutions.
66 68 Budget Budget authority is defined asauthority is defined as the broad responsibility conferred by Congress that empowers government agencies to the broad responsibility conferred by Congress that empowers government agencies to
spend federal funds.spend federal funds.
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~~Federal Pell Grant Program of the Higher Education Act: Primer~~

~~discretionary programs, CBO equates the budget authority to the level provided in each~~
~~appropriation bil .~~
~~As a result of the scoring rule, Congress cannot fund new programs or increase the funding of~~
~~existing programs subject to discretionary appropriations while providing less funding than~~
~~required for the Pel Grant program. The scoring rule, however, cannot fully account for the~~
~~chal enges of estimating the cost of the program. Discretionary program costs are estimated in~~
~~advance of the award year they are intended to support, and based on the chosen discretionary~~
~~base maximum award level and estimated program participation. The scoring rule does constrain~~
~~the accumulation of the funding shortfal by requiring Congress to annual y reconcile previous~~
~~years’ appropriation levels with updated estimates of previous years’ program obligations.~~
Reductions in Program Costs
Given the CBO scoring rule, there are several levers that have been used to reduce or prevent an Given the CBO scoring rule, there are several levers that have been used to reduce or prevent an
increase in increase in ~~Pel~~ Pell Grant program costs and thus reduce or eliminate a Grant program costs and thus reduce or eliminate a ~~shortfal~~ shortfall. .
 The discretionary maximum award level has been reduced or not increased.  The discretionary maximum award level has been reduced or not increased.
 Statutory provisions that establish  Statutory provisions that establish ~~Pel~~ Pell Grant award rules have been modified to Grant award rules have been modified to
reduce the amount of funds that some students may receive. For example, reduce the amount of funds that some students may receive. For example, year-
round ~~Pel~~ Pell Grants were eliminated beginning in AY2011-2012. Grants were eliminated beginning in AY2011-2012.
 Statutory provisions that establish  Statutory provisions that establish ~~Pel~~ Pell Grant eligibilityGrant eligibility have been modified to have been modified to
reduce the number of recipients. For example, the qualifying minimum award reduce the number of recipients. For example, the qualifying minimum award
amount was increased beginning in AY2012-2013. amount was increased beginning in AY2012-2013.
 Statutory provisions that establish the calculation of EFC have been modified to  Statutory provisions that establish the calculation of EFC have been modified to
reduce the numbers of students eligible for reduce the numbers of students eligible for ~~Pel~~ Pell Grants and other HEA Title IV Grants and other HEA Title IV
need-based financial aid. For example, the income threshold for an automatic need-based financial aid. For example, the income threshold for an automatic
zero EFC was increased beginning in AY2012-2013 in order to reduce the zero EFC was increased beginning in AY2012-2013 in order to reduce the
number of students receiving an automatic zero EFC. number of students receiving an automatic zero EFC.
 Statutory  Statutory ~~provision~~provisions that establish student eligibility that establish student eligibility for any HEA Title IV aid for any HEA Title IV aid
programs have been amended to reduce eligibility. programs have been amended to reduce eligibility. For example, the abilityFor example, the ability of of
new students without a high school diploma (or equivalent) to qualify for HEA new students without a high school diploma (or equivalent) to qualify for HEA
Title IV aid was temporarily eliminated from July 1, 2012, through June 30, Title IV aid was temporarily eliminated from July 1, 2012, through June 30,
2014. 2014.
Supplementary Appropriations
In addition to reducing program costs or in lieu of reducing program costs to reduce or eliminate In addition to reducing program costs or in lieu of reducing program costs to reduce or eliminate
a funding a funding ~~shortfal~~ shortfall, legislation has provided supplementary appropriations to address the CBO , legislation has provided supplementary appropriations to address the CBO
scoring rule. scoring rule.
 Supplementary mandatory appropriations have been provided for general use in  Supplementary mandatory appropriations have been provided for general use in
the program, often by generating savings in the Direct Loan program that is the program, often by generating savings in the Direct Loan program that is
funded by mandatory budget authority. funded by mandatory budget authority.
 Supplementary discretionary appropriations have been provided during periods  Supplementary discretionary appropriations have been provided during periods
of expansionary fiscal policy such as through the American Recovery and of expansionary fiscal policy such as through the American Recovery and
Reinvestment Act (ARRA; P.L. 111-5). Reinvestment Act (ARRA; P.L. 111-5).
In addition to supplementary appropriations, the regular discretionary appropriations amount may In addition to supplementary appropriations, the regular discretionary appropriations amount may
~~be increased.~~
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be increased. Estimated Program Costs for Recent and
Future Years
Grant payments are made to eligibleGrant payments are made to eligible students who apply for aid and enroll in eligiblestudents who apply for aid and enroll in eligible programs programs
notwithstanding the prescribed appropriation levels in any one year in such a way that some liken notwithstanding the prescribed appropriation levels in any one year in such a way that some liken
the program to a the program to a quasi entitlement. Costs for the . Costs for the ~~Pel~~ Pell Grant program are award year-specific and Grant program are award year-specific and
are primarily affected by the number of eligibleare primarily affected by the number of eligible students who apply for aid and enroll in eligible students who apply for aid and enroll in eligible
programs, the total maximum award amount, and award rules. The number of eligible students programs, the total maximum award amount, and award rules. The number of eligible students
may be affected by economic conditions and legislative changes to the federal need analysis may be affected by economic conditions and legislative changes to the federal need analysis
methodology and award rules. As discussed earlier, the total maximum award amount is methodology and award rules. As discussed earlier, the total maximum award amount is
Congressional Research Service 25 link to page 30 link to page 30 link to page 16 link to page 31 link to page 30 Federal Pell Grant Program: Primer determined by both the annual appropriations act and the HEA. Other factors that contribute to determined by both the annual appropriations act and the HEA. Other factors that contribute to
changes in program costs include the cost of higher education. changes in program costs include the cost of higher education.
The Congressional Budget Office reports and estimates program costs at least The Congressional Budget Office reports and estimates program costs at least ~~annual y~~annually.. Table 7
provides a summary of current and future estimated provides a summary of current and future estimated ~~Pel~~ Pell Grant program costs from AY2017-2018 Grant program costs from AY2017-2018
through AY2026-2027, as of through AY2026-2027, as of ~~February 2021~~May 2022. Costs associated with the discretionary base . Costs associated with the discretionary base
maximum award and costs associated with the mandatory add-on award are maximum award and costs associated with the mandatory add-on award are ~~specifie~~dspecified. Table 7
shows a dip in costs in AY2020-2021 shows a dip in costs in AY2020-2021 and AY2021-2022 that followed fairly levelthat followed fairly level but higher costs during the but higher costs during the
AY2017-2018 to AY2019-2020 period and that precedes an estimated period of ever increasing AY2017-2018 to AY2019-2020 period and that precedes an estimated period of ever increasing
costs thereafter. costs thereafter.
From AY2017-2018 to AY2019-2020, the number of From AY2017-2018 to AY2019-2020, the number of ~~Pel~~ Pell Grant recipients decreased Grant recipients decreased ~~annual y~~
annually (Table 2) although the total maximum award amount increased although the total maximum award amount increased ~~annual y~~annually since AY2017-2018 since AY2017-2018
(Table A-1). Declining undergraduate enrollment in degree-granting postsecondary institutions . Declining undergraduate enrollment in degree-granting postsecondary institutions
from 16.8 from 16.8 ~~mil ion~~million in 2017 to 16.6 in 2017 to 16.6 ~~mil ion~~ million in 2019 is reflected in a reduction of in 2019 is reflected in a reduction of ~~Pel~~ Pell Grant Grant
recipients.recipients.67
69 Program costs after Program costs after ~~AY2020-2021~~AY2021-2022 are estimated to are estimated to ~~increase~~increase (Table 7). The increase would . The increase would
primarily be a result of an estimated increase in the number of primarily be a result of an estimated increase in the number of ~~Pel~~ Pell Grant recipients. The CBO Grant recipients. The CBO
baseline does not account for any potential change in the total maximum baseline does not account for any potential change in the total maximum ~~Pel~~ Pell Grant award after Grant award after
the the ~~AY2021-2022~~AY2022-2023 discretionary maximum award increase included in the Consolidated discretionary maximum award increase included in the Consolidated
Appropriations Act, Appropriations Act, ~~2021~~2022 (P.L. (P.L. ~~116-260~~117-103). ).
Table 7. Estimated Pell Grant Program Costs, AY2017-2018 to AY2026-2027
( (~~dol ars in bil ions~~dollars in billions) )
Cost Associated with
Cost Associated with
Discretionary Award
Mandatory Award
Award Year (AY)
Levels
Levels
Total Program Cost
~~AY2017~~2017-2018 -2018
22.8 22.8
5.9 5.9
28.6 28.6
~~AY2018~~2018-2019 -2019
22.7 22.7
6.1 6.1
28.8 28.8
~~AY2019~~2019-2020 -2020
22.7 22.7
5.9 5.9
28.7 28.7
~~AY2020~~2020-2021 -2021
21.5 21.5
5.5 5.5
27. 27.0
~~AY2021~~4 2021-2022 -2022
~~23.7~~21.3
5. 5.6
~~29.2~~
~~AY2022-2023~~
~~24.5~~
~~5.9~~
~~30.5~~
~~AY2023-2024~~
~~27.9~~
~~6.3~~
~~34.2~~

~~67 National Center for Education Statistics (NCES), Digest of Education Statistics 2020, T able 303.70.~~
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~~Cost Associated with~~
~~Cost Associated with~~
~~Discretionary Award~~
~~Mandatory Award~~
~~Award Year (AY)~~
~~Levels~~
~~Levels~~
~~Total Program Cost~~
~~AY2024-2025~~
~~28.4~~
~~6.4~~
~~34.8~~
~~AY2025-2026~~
~~28.8~~
~~6.5~~
~~35.3~~
~~AY2026-2027~~
~~29.2~~
~~6.6~~
~~35.8~~
~~Source: Congressional Budget Office (CBO), Baseline of the Federal Pel Grant Program~~ 3 26.7 2022-2023 22.6 4.7 27.4 2023-2024 22.6 5.0 27.6 2024-2025 25.3 5.3 30.6 2025-2026 25.9 5.4 31.3 2026-2027 26.4 5.6 31.9 Source: Congressional Budget Office (CBO), Baseline of the Federal Pell Grant Program dated June 2017, April dated June 2017, April
2018, May 2019, March 2020, 2018, May 2019, March 2020, July 2021, and May 2022~~and February 2021~~. .
Notes: Estimates of program costs are not adjusted for inflation and are subject to change. Costs for Estimates of program costs are not adjusted for inflation and are subject to change. Costs for ~~AY2022-~~
~~2023~~AY2023-2024 and subsequent years assume and subsequent years assume the discretionary base maximumthe discretionary base maximum award and mandatory addaward and mandatory add -on award remain -on award remain
at the at the ~~FY2021 levels.~~

FY2022 levels. 69 National Center for Education Statistics (NCES), Digest of Education Statistics 2020, Table 303.70. Congressional Research Service Congressional Research Service

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Appendix A. Historical Pell Grant Award Amounts
Table A-1. Pell Grant Award Amounts, AY1973-1974 and Subsequent Years
Discretionary
Authorized
Base
Mandatory
Total
Effective
Award Year
Maximum
Maximum
Add-On
Maximum
Minimum
(AY)
Awarda
Award
Award
Award
Awardb
1973-1974 1973-1974
$1,400 $1,400
$452 $452
N/A N/A
$452 $452
$50 $50
1974-1975 1974-1975
1,400 1,400
1,050 1,050
N/A N/A
1,050 1,050
50 50
1975-1976 1975-1976
1,400 1,400
1,400 1,400
N/A N/A
1,400 1,400
200 200
1976-1977 1976-1977
1,400 1,400
1,400 1,400
N/A N/A
1,400 1,400
200 200
1977-1978 1977-1978
1,800 1,800
1,400 1,400
N/A N/A
1,400 1,400
200 200
1978-1979 1978-1979
1,800 1,800
1,600 1,600
N/A N/A
1,600 1,600
50 50
1979-1980 1979-1980
1,800 1,800
1,800 1,800
N/A N/A
1,800 1,800
200 200
1980-1981 1980-1981
1,800 1,800
1,750 1,750
N/A N/A
1,750 1,750
150 150
1981-1982 1981-1982
1,900 1,900
1,670 1,670
N/A N/A
1,670 1,670
120 120
1982-1983 1982-1983
2,100 2,100
1,800 1,800
N/A N/A
1,800 1,800
50 50
1983-1984 1983-1984
2,300 2,300
1,800 1,800
N/A N/A
1,800 1,800
200 200
1984-1985 1984-1985
2,500 2,500
1,900 1,900
N/A N/A
1,900 1,900
200 200
1985-1986 1985-1986
2,600 2,600
2,100 2,100
N/A N/A
2,100 2,100
200 200
1986-1987 1986-1987
2,600 2,600
2,100 2,100
N/A N/A
2,100 2,100
100 100
1987-1988 1987-1988
2,300 2,300
2,100 2,100
N/A N/A
2,100 2,100
200 200
1988-1989 1988-1989
2,500 2,500
2,200 2,200
N/A N/A
2,200 2,200
200 200
1989-1990 1989-1990
2,700 2,700
2,300 2,300
N/A N/A
2,300 2,300
200 200
1990-1991 1990-1991
2,900 2,900
2,300 2,300
N/A N/A
2,300 2,300
100 100
1991-1992 1991-1992
3,100 3,100
2,400 2,400
N/A N/A
2,400 2,400
200 200
1992-1993 1992-1993
3,100 3,100
2,400 2,400
N/A N/A
2,400 2,400
200 200
1993-1994 1993-1994
3,700 3,700
2,300 2,300
N/A N/A
2,300 2,300
400 400
1994-1995 1994-1995
3,900 3,900
2,300 2,300
N/A N/A
2,300 2,300
400 400
1995-1996 1995-1996
4,100 4,100
2,340 2,340
N/A N/A
2,340 2,340
400 400
1996-1997 1996-1997
4,300 4,300
2,470 2,470
N/A N/A
2,470 2,470
400 400
1997-1998 1997-1998
4,500 4,500
2,700 2,700
N/A N/A
2,700 2,700
400 400
1998-1999 1998-1999
4,500 4,500
3,000 3,000
N/A N/A
3,000 3,000
400 400
1999-2000 1999-2000
4,500 4,500
3,125 3,125
N/A N/A
3,125 3,125
400 400
2000-2001 2000-2001
4,800 4,800
3,300 3,300
N/A N/A
3,300 3,300
400 400
2001-2002 2001-2002
5,100 5,100
3,750 3,750
N/A N/A
3,750 3,750
400 400
2002-2003 2002-2003
5,400 5,400
4,000 4,000
N/A N/A
4,000 4,000
400 400
2003-2004 2003-2004
5,800 5,800
4,050 4,050
N/A N/A
4,050 4,050
400 400
2004-2005 2004-2005
5,800 5,800
4,050 4,050
N/A N/A
4,050 4,050
400 400
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Discretionary
Authorized
Base
Mandatory
Total
Effective
Award Year
Maximum
Maximum
Add-On
Maximum
Minimum
(AY)
Awarda
Award
Award
Award
Awardb
2005-2006 2005-2006
5,80 5,800c
4,050 4,050
N/A N/A
4,050 4,050
400 400
2006-2007 2006-2007
5,80 5,800c
4,050 4,050
N/A N/A
4,050 4,050
400 400
2007-2008 2007-2008
5,80 5,800c
4,310 4,310
N/A N/A
4,310 4,310
400 400
2008-2009 2008-2009
5,80 5,800c
4,241 4,241
$490 $490
4,731 4,731
523d
2009-2010 2009-2010
6,000 6,000
4,860 4,860
490 490
5,350 5,350
609d
2010-2011 2010-2011
None Specified None Specified
4,860 4,860
690 690
5,550 5,550
555 555
2011-2012 2011-2012
None Specified None Specified
4,860 4,860
690 690
5,550 5,550
555 555
2012-2013 2012-2013
None Specified None Specified
4,860 4,860
690 690
5,550 5,550
577e
2013-2014 2013-2014
None Specified None Specified
4,860 4,860
758 758
5,645 5,645
582e
2014-2015 2014-2015
None Specified None Specified
4,860 4,860
870 870
5,730 5,730
587e
2015-2016 2015-2016
None Specified None Specified
4,860 4,860
915 915
5,775 5,775
581e
2016-2017 2016-2017
None Specified None Specified
4,860 4,860
955 955
5,815 5,815
591e
2017-2018 2017-2018
None Specified None Specified
4,860 4,860
1,060 1,060
5,920 5,920
593e
2018-2019 2018-2019
None Specified None Specified
5,035 5,035
1,06 1,060f
6,095 6,095
650e
2019-2020 2019-2020
None Specified None Specified
5,135 5,135
1,06 1,060f
6,195 6,195
650e
2020-2021 2020-2021
None Specified None Specified
5,285 5,285
1,06 1,060f
6,345 6,345
639e
2021-2022 2021-2022
None Specified None Specified
5,435 5,435
1,06 1,060f
6,495 6,495
650e
2022-2023 None Specified 5,835 1,060f 6,895 692e Source: HEA; appropriations acts, FY2010-FY2021; U.S. Department of Education, Department of Education Budget HEA; appropriations acts, FY2010-FY2021; U.S. Department of Education, Department of Education Budget
Tables, CongressionalTables, Congressional Action FY2013-FY2021; and U.S. Department of Education, Action FY2013-FY2021; and U.S. Department of Education, ~~Federal Pel Grant Payment and~~
~~Disbursement Schedules, 2009-2010 to 2021-2022.~~
Federal Pell Grant Payment and Disbursement Schedules, 2009-2010 to 2022-2023. Notes: TBD = to be determined TBD = to be determined;. N/A = not applicable. N/A = not applicable.
a. The authorized maximum award was the annual maximum a. The authorized maximum award was the annual maximum ~~Pel~~ Pell Grant specified for each award year in the Grant specified for each award year in the
HEA. The authorization is intended to provide guidance regarding the appropriate amount of funds to carry HEA. The authorization is intended to provide guidance regarding the appropriate amount of funds to carry
out the policy objectivesout the policy objectives of a program.of a program. The SAFRA Act eliminatedThe SAFRA Act eliminated the authorized maximumthe authorized maximum award levels award levels
from the HEA. from the HEA.
b. The effective minimum b. The effective minimum award is the minimumaward is the minimum amount of amount of ~~Pel~~ Pell Grant aid available to a student in any given Grant aid available to a student in any given
year as determined year as determined by law. The effective minimumby law. The effective minimum award for AY2010-2011 and award for AY2010-2011 and al all future years is equal to future years is equal to
10% of the total maximum10% of the total maximum award amount. Since the FY2012 Consolidated Appropriations Act eliminated award amount. Since the FY2012 Consolidated Appropriations Act eliminated
the bump award beginning on July 1, 2012, the qualifying minimumthe bump award beginning on July 1, 2012, the qualifying minimum award and effective minimumaward and effective minimum award are award are
now the same.now the same.
c. Prior to the reauthorization of the HEA by the HEOA in 2008, Congress passed measures c. Prior to the reauthorization of the HEA by the HEOA in 2008, Congress passed measures to extend the to extend the
HEA HEA ~~al owing~~ allowing for the continuation of the for the continuation of the ~~Pel~~ Pell Grant program.Grant program. The last authorized maximumThe last authorized maximum award specified award specified
in law prior to the HEOA was $5,800 for AY2003-2004; therefore, the authorized maximumin law prior to the HEOA was $5,800 for AY2003-2004; therefore, the authorized maximum award is listed award is listed
as $5,800 fromas $5,800 from AY2004-2005 through AY2008-2009 in this table. AY2004-2005 through AY2008-2009 in this table.
d. This amount is the minimum d. This amount is the minimum amount of aid awarded to a student attending on a less-than-half-time basis. amount of aid awarded to a student attending on a less-than-half-time basis.
e. Although the statutory effective minimume. Although the statutory effective minimum is 10% of the total maximum,is 10% of the total maximum, the actual minimumthe actual minimum award differs award differs
because ED uses midpoints for both the EFC and COA. because ED uses midpoints for both the EFC and COA. ED’s Federal ED’s Federal ~~Pel~~ Pell Grant Payment and Disbursement Grant Payment and Disbursement
Schedules group COA and EFC in approximately $100 incrementsSchedules group COA and EFC in approximately $100 increments and calculate the award levelsand calculate the award levels for each for each
increment based on the incrementincrement based on the increment midpoints. For example,midpoints. For example, the ful -time,the ful -time, ful -academic-year minimum ful -academic-year minimum
scheduled award is based on an EFC increment of $5,401-$5,486 with a midpoint of $5,443 such that the scheduled award is based on an EFC increment of $5,401-$5,486 with a midpoint of $5,443 such that the
minimumminimum award is maximumaward is maximum ~~COA~~ COA – minimum– minimum EFC or $652 ($6,095 - $5,443). EFC or $652 ($6,095 - $5,443).
f. f.
Under current statutory provisions, Under current statutory provisions, the mandatory add-on award wilthe mandatory add-on award wil ~~remain~~ remain at $1,060 permanently.at $1,060 permanently.
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Appendix B. Federal Pell Grant Recipients, AY1973-
1974 and Subsequent Years
Table B-1. Federal Pell Grant Recipients, AY1973-1974 and Subsequent Years
Award Year
(AY) Pell Grant Recipients
Annual Change
% Change
1973-1974 1973-1974
176,000 176,000
N/A N/A
N/A N/A
1974-1975 1974-1975
567,000 567,000
391,000 391,000
222.2% 222.2%
1975-1976 1975-1976
1,217,000 1,217,000
650,000 650,000
114.6% 114.6%
1976-1977 1976-1977
1,944,000 1,944,000
727,000 727,000
59.7% 59.7%
1977-1978 1977-1978
2,011,000 2,011,000
67,000 67,000
3.4% 3.4%
1978-1979 1978-1979
1,893,000 1,893,000
(118,000) (118,000)
(5.9%) (5.9%)
1979-1980 1979-1980
2,538,000 2,538,000
645,000 645,000
34.1% 34.1%
1980-1981 1980-1981
2,708,000 2,708,000
170,000 170,000
6.7% 6.7%
1981-1982 1981-1982
2,709,000 2,709,000
1,000 1,000
0.0% 0.0%
1982-1983 1982-1983
2,523,000 2,523,000
(186,000) (186,000)
(6.9%) (6.9%)
1983-1984 1983-1984
2,759,000 2,759,000
236,000 236,000
9.4% 9.4%
1984-1985 1984-1985
2,747,000 2,747,000
(12,000) (12,000)
(0.4%) (0.4%)
1985-1986 1985-1986
2,813,000 2,813,000
66,000 66,000
2.4% 2.4%
1986-1987 1986-1987
2,660,000 2,660,000
(153,000) (153,000)
(5.4%) (5.4%)
1987-1988 1987-1988
2,882,000 2,882,000
222,000 222,000
8.3% 8.3%
1988-1989 1988-1989
3,198,000 3,198,000
316,000 316,000
11.0% 11.0%
1989-1990 1989-1990
3,322,000 3,322,000
124,000 124,000
3.9% 3.9%
1990-1991 1990-1991
3,405,000 3,405,000
83,000 83,000
2.5% 2.5%
1991-1992 1991-1992
3,786,000 3,786,000
381,000 381,000
11.2% 11.2%
1992-1993 1992-1993
4,002,000 4,002,000
216,000 216,000
5.7% 5.7%
1993-1994 1993-1994
3,756,000 3,756,000
(246,000) (246,000)
(6.1%) (6.1%)
1994-1995 1994-1995
3,675,000 3,675,000
(81,000) (81,000)
(2.2%) (2.2%)
1995-1996 1995-1996
3,612,000 3,612,000
(63,000) (63,000)
(1.7%) (1.7%)
1996-1997 1996-1997
3,666,000 3,666,000
54,000 54,000
1.5% 1.5%
1997-1998 1997-1998
3,733,000 3,733,000
67,000 67,000
1.8% 1.8%
1998-1999 1998-1999
3,855,000 3,855,000
122,000 122,000
3.27% 3.27%
1999-2000 1999-2000
3,764,000 3,764,000
(91,000) (91,000)
(2.36%) (2.36%)
2000-2001 2000-2001
3,899,000 3,899,000
135,000 135,000
3.59% 3.59%
2001-2002 2001-2002
4,341,000 4,341,000
442,000 442,000
11.34% 11.34%
2002-2003 2002-2003
4,779,000 4,779,000
438,000 438,000
10.09% 10.09%
2003-2004 2003-2004
5,140,000 5,140,000
361,000 361,000
7.55% 7.55%
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Federal Pell Grant Program ~~of the Higher Education Act~~: Primer

Award Year
(AY) Pell Grant Recipients
Annual Change
% Change
2004-2005 2004-2005
5,308,000 5,308,000
~~168~~169,000,000
3. 3.2728% %
2005-2006 2005-2006
5,168,000 5,168,000
(140,000) (140,000)
~~(2.64%)~~-2.65%
2006-2007 2006-2007
5,165,000 5,165,000
(3,000) (3,000)
(-0.06%0.06%)
2007-2008 2007-2008
5,543,000 5,543,000
378,000 378,000
7.32% 7.32%
2008-2009 2008-2009
6,157,000 6,157,000
614,000 614,000
11. 11.0807% %
2009-2010 2009-2010
8,094,000 8,094,000
1,937,000 1,937,000
31. 31.4647% %
2010-2011 2010-2011
9,308,000 9,308,000
1,214,000 1,214,000
15.00% 15.00%
2011-2012 2011-2012
9,444,000 9,444,000
136,000 136,000
1.46% 1.46%
2012-2013 2012-2013
8,959,000 8,959,000
(486,000) (486,000)
(5.14%) (5.14%)
2013-2014 2013-2014
8,663,000 8,663,000
(296,000) (296,000)
(3.30%) (3.30%)
2014-2015 2014-2015
8,316,000 8,316,000
(347,000) (347,000)
(4.01%) (4.01%)
2015-2016 2015-2016
7,660,000 7,660,000
(655,000) (655,000)
(7.88%) (7.88%)
2016-2017 2016-2017
7,195,000 7,195,000
(465,000) (465,000)
(6.07%) (6.07%)
2017-2018 2017-2018
7, 7,~~111~~112,000 ,000
( (8483,000) ,000)
(1. (1.1615%) %)
2018-2019 2018-2019
6, 6,~~863~~865,000 ,000
(248,000) (248,000)
(3. (3.4948%) %)
2019-2020 2019-2020
6,746,000 6,746,000
( (118,000) (1.73%) 2020-2021 6,221,000 (525,000) (7.78%) 2021-2022 6,104,000 (117,000) (1.89~~117,000)~~
~~(1.71~~%) %)
Source: U.S. Department of Education, U.S. Department of Education, ~~AY2017-18 Pel~~ AY2020-2021 Pell Grant End-of-Year Report; and President’s; and President’s budget budget ~~FY2022.~~
~~Note~~FY2023. Notes: Recipient figures rounded to the nearest thousand. Numbers in parentheses are negative numbers. Recipient figures rounded to the nearest thousand. Numbers in parentheses are negative numbers.

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Appendix C. Program Funding: FY2008-~~FY2021~~FY2022
Table C-1. Pell Grant Annual Funding: FY2008-~~FY2021~~
~~(dol ars in mil ions~~FY2022 (dollars in millions) )
Fiscal ~~Yea~~raYeara
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
FY2022 Legislation

Discretionary Appropriations
Annual Appropriations Annual Appropriations
14,215 14,215 17,28817,288 17,49517,495 22,95622,956 22,82422,824 22,778 22,778 22,475 22,475 22,475 22,475 22,475 22,475 22,47522,778 22,778 22,475 22,475 22,475 22,475 22,475 22,475 22,475 22,475
ARRA ARRA
— 15,640 — 15,640 —
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
Total Discretionary
14,215 32,928 17,495 22,956 22,824 22,778 22,778 22,475 22,475 21,165 22,475 22,475 22,475 22,475 22,475
Mandatory Appropriations ~~Provided~~ Provided to Augment Discretionary Appropriations
SAFRA Act SAFRA Act
— —
— —
— 13,500 — 13,500
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
— FY2011 Continuing FY2011 Continuing
Appropriations Act Appropriations Act
— —
— —
— —
— —
3,183 3,183
0
0
0
0 — — — — 1,060 1,125 1,125 1,140 1,145
~~1,060~~
~~1,125~~
~~1,125~~
~~1,140~~
1,141,145b
Budget Control Act of 2011 Budget Control Act of 2011
— —
— —
— —
— — 10,00010,000
7,0007,000
— —
— —
— —
— —
— —
— —
— —
— —
— FY2012 Consolidated FY2012 Consolidated
Appropriations Act Appropriations Act
— —
— —
— —
— —
612 612
587 587
588 588
0—
0—
514 514
257 257
284 284
290 290
0— —
Consolidated Appropriations Consolidated Appropriations
Act, 2017 Act, 2017
— —
— —
— —
— —
— —
— —
— —
— —
— —
(254) (254)
— —
— —
— —
— —
— Consolidated Appropriations Consolidated Appropriations
Act, 2018 Act, 2018
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
(48) (48)
— —
— —
— —
— Department of DefenseDepartment of Defense and and
Labor, Health and Human Labor, Health and Human
Services,Services, and Education and Education
Appropriations Act, 2019 and Appropriations Act, 2019 and
Continuing Appropriations Continuing Appropriations
Act, 2019 Act, 2019
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
(39) (39)
— —
— —
— FUTURE Act — — — — — — — — — — — — 25 25 25c CRS-31~~FUTURE Act~~

25
~~25c~~
~~CRS-32~~

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Fiscal ~~Yea~~raYeara
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 ~~FY2021~~ FY2021 FY2022
Further Consolidated Further Consolidated
Appropriations Act, 2020Appropriations Act, 2020

~~(50)~~

~~Consolidated Appropriations~~
~~Act, 2021~~

~~(28)~~
~~Total Mandatory to~~
~~Augment~~ — — — — — — — — — — — — (50) — — Consolidated Appropriations Act, 2021 — — — — — — — — — — — — — (28) — Consolidated Appropriations Act, 2022 — — — — — — — — — — — — — — (85) Total Mandatory to Augment Discretionary
— —
— —
— — 13,500 13,795 7,587
588
0
0
~~1,320~~
1,320 1,334 1,370
1,405 1,142
1,085 Mandatory Appropriations ~~Provided~~ Provided to Fund Add-On Award Amounts
CCRAA CCRAA
2,04 2,041d
2,090 2,090
3,030 3,030
3,090 3,090
5,050 5,050
105 105
4,305 4,305
4,400 4,400
4,600 4,600
4,900 4,900
— —
— —
— —
— —
— ARRA ARRA
— —
643 643
831 831
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
— —
— FY2009 Technical FY2009 Technical
AmendmentsAmendments to the HEA to the HEA
— —
— —
— —
— —
— —
153 153
— —
152 152
— —
— —
— —
— —
— —
— —
— SAFRA AcSAFRA Acte
— —
— (3,861) (3,090) (5,050) — (3,861) (3,090) (5,050)
(258) (4,305) (4,452) (4,600) (4,900) (258) (4,305) (4,452) (4,600) (4,900)
— —
— —
— —
— —
— SAFRA AcSAFRA Acte
— —
— —
5,30 5,300f
~~5,560g~~
5,560g 4,954,950h
4,85 4,854i 4,834,835j
5,15 5,153k
4,84 4,840l 5,685,680m 5,995,997m 5,385,388m 5,575,571m 5,5,412m16 8m 5,096m
Total Mandatory for Add-
On Awards
2,041
2,733
5,300 5,560
~~4,950~~
4,950 4,854
4,835
5,153
4,840
5,680
5,997
5,388
5,571 5,168
5,~~412~~096
Total Pell Grant ~~Funding Excluding~~ Funding Excluding Surplus or Shortfall (Discretionary and Mandatory)
Total Funding
16,256 35,661 22,795 42,016 41,569 35,219 28,202 27,628 27,315 29,475 29,~~806~~807 29,233 29,~~451 29,029~~
~~Source~~452 28,785 28,656 Sources: CRS analysis of the HEA; respective CRS analysis of the HEA; respective legislation; and President’s budgetlegislation; and President’s budget, Congressional Justifications, FY2015-FY2023~~, FY2015-FY2022~~. .
Notes: “—” means that no appropriations were “—” means that no appropriations were provided beyond the year(s) specified.provided beyond the year(s) specified. Numbers in parentheses are negative numbers. Numbers in parentheses are negative numbers.
a. The fiscal year in this table representsa. The fiscal year in this table represents the first year the funds appropriated in each column are available for use. Most the first year the funds appropriated in each column are available for use. Most ~~fun ds~~funds are available for two fiscal years. are available for two fiscal years.
b. Additional annual mandatory appropriations in the amount of $25,000,000 are also provided for each succeeding year beyond b. Additional annual mandatory appropriations in the amount of $25,000,000 are also provided for each succeeding year beyond ~~FY2021~~FY2022 per the FY2011 Continuing per the FY2011 Continuing
Appropriations Act. Appropriations Act.
c. Additional annual mandatory appropriations in the amount of $1,145,000,000 are also provided for each succeeding year beyond c. Additional annual mandatory appropriations in the amount of $1,145,000,000 are also provided for each succeeding year beyond ~~FY2021~~FY2022 per the FUTURE Act (P.L. per the FUTURE Act (P.L.
116-91). 116-91).
d. Includes $11 mil ion d. Includes $11 mil ion for the eliminationfor the elimination of the tuition sensitivity rule in AY2007-2008. of the tuition sensitivity rule in AY2007-2008.
CRS-32 e. The SAFRA Act rescinded advance appropriation provided in the CCRAA, ARRA,e. The SAFRA Act rescinded advance appropriation provided in the CCRAA, ARRA, and FY2009 and FY2009 ~~T echnical~~Technical Amendments Amendments to the HEA. The SAFRAto the HEA. The SAFRA Act provided Act provided
indefinite and permanent mandatory appropriations for the mandatory add-on award. The positive amounts shown are the actual amounts required for the indefinite and permanent mandatory appropriations for the mandatory add-on award. The positive amounts shown are the actual amounts required for the
mandatory add-on award. mandatory add-on award.
~~CRS-33~~

f. f.
This is the amount of mandatory appropriations required for a $690 mandatory add-on award in AY2010-2011, as reported in the President’s This is the amount of mandatory appropriations required for a $690 mandatory add-on award in AY2010-2011, as reported in the President’s FY2015 budget.FY2015 budget.
g. This is the amount of mandatory appropriations required g. This is the amount of mandatory appropriations required for a $690 mandatory add-on award in AY2011-2012, as reported in the President’sfor a $690 mandatory add-on award in AY2011-2012, as reported in the President’s FY2016 budget. FY2016 budget.
h. This is the amount of mandatory appropriations required for a $690 mandatory add-on award in AY2012-2013, as reported in the President’sh. This is the amount of mandatory appropriations required for a $690 mandatory add-on award in AY2012-2013, as reported in the President’s FY2017 budget.FY2017 budget.
i. i.
This is the amount of mandatory appropriations required for a $785 mandatory add-on award in AY2013-2014, as reported in the President’s This is the amount of mandatory appropriations required for a $785 mandatory add-on award in AY2013-2014, as reported in the President’s FY2018 budget.FY2018 budget.
j. j.
This is the amount of mandatory appropriations required for a $870 mandatory add-on award in AY2014-2015, as reported in the President’s This is the amount of mandatory appropriations required for a $870 mandatory add-on award in AY2014-2015, as reported in the President’s FY2019 budget.FY2019 budget.
k. This is the amount of mandatory appropriations required for a $915 mandatory add-on award in AY2015-2016, as reported in the President’s k. This is the amount of mandatory appropriations required for a $915 mandatory add-on award in AY2015-2016, as reported in the President’s FY2020 budget.FY2020 budget.
l. l.
This is the amount of mandatory appropriations required for a $965 mandatory add-on award in AY2016-2017, as reported in the President’s This is the amount of mandatory appropriations required for a $965 mandatory add-on award in AY2016-2017, as reported in the President’s FY2021 budget. FY2021 budget.
m. This is the amount of mandatory appropriations required for a $1,060 mandatory add-on award, as reported m. This is the amount of mandatory appropriations required for a $1,060 mandatory add-on award, as reported in the President’s FY2022 budget. in the President’s FY2022 budget.

CRS- CRS-3433

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Appendix D. Annual and Cumulative Discretionary
Funding Shortfalls and Surpluses in the Pell Grant
Program, FY1973 and Subsequent Years
Table D-1. Annual and Cumulative Discretionary Funding Shortfalls and Surpluses in
the Pell Grant Program, FY1973 and Subsequent Years
( (~~dol ars in mil ions~~dollars in millions) )
Funds Available for
Cumulative
Fiscal
the Discretionary Estimated Total Annual Surplus
Surplus or
Year
Award Year
Award Level
Expendituresa
or (Shortfall)b
(Shortfall)
1973 1973
1973-1974 1973-1974
$122 $122
$48 $48
$74 $74
N/A N/A
1974 1974
1974-1975 1974-1975
475 475
358 358
117 117
N/A N/A
1975 1975
1975-1976 1975-1976
840 840
926 926
(86) (86)
N/A N/A
1976 1976
1976-1977 1976-1977
1,326 1,326
1,475 1,475
(149) (149)
N/A N/A
1977 1977
1977-1978 1977-1978
1,904 1,904
1,524 1,524
380 380
N/A N/A
1978 1978
1978-1979 1978-1979
2,160 2,160
1,541 1,541
619 619
N/A N/A
1979 1979
1979-1980 1979-1980
2,431 2,431
2,357 2,357
74 74
N/A N/A
1980 1980
1980-1981 1980-1981
2,157 2,157
2,387 2,387
(230) (230)
N/A N/A
1981 1981
1981-1982 1981-1982
2,604 2,604
2,300 2,300
304 304
N/A N/A
1982 1982
1982-1983 1982-1983
2,419 2,419
2,421 2,421
(2) (2)
N/A N/A
1983 1983
1983-1984 1983-1984
2,419 2,419
2,797 2,797
(378) (378)
N/A N/A
1984 1984
1984-1985 1984-1985
2,800 2,800
3,053 3,053
(253) (253)
N/A N/A
1985 1985
1985-1986 1985-1986
3,862 3,862
3,597 3,597
265 265
N/A N/A
1986 1986
1986-1987 1986-1987
3,580 3,580
3,460 3,460
120 120
N/A N/A
1987 1987
1987-1988 1987-1988
4,187 4,187
3,754 3,754
433 433
N/A N/A
1988 1988
1988-1989 1988-1989
4,260 4,260
4,476 4,476
(216) (216)
N/A N/A
1989 1989
1989-1990 1989-1990
4,484 4,484
4,770 4,770
(75) (75)
($75) ($75)
1990 1990
1990-1991 1990-1991
4,804 4,804
4,904 4,904
(231) (231)
(306) (306)
1991 1991
1991-1992 1991-1992
5,376 5,376
5,772 5,772
(396) (396)
(702) (702)
1992 1992
1992-1993 1992-1993
5,503 5,503
6,156 6,156
18 18
(684) (684)
1993 1993
1993-1994 1993-1994
6,462 6,462
5,621 5,621
460 460
(224) (224)
1994 1994
1994-1995 1994-1995
6,637 6,637
5,504 5,504
808 808
584 584
1995 1995
1995-1996 1995-1996
6,147 6,147
5,466 5,466
716 716
1,300 1,300
1996 1996
1996-1997 1996-1997
4,914 4,914
5,784 5,784
(870) (870)
429 429
1997 1997
1997-1998 1997-1998
5,919 5,919
6,315 6,315
(396) (396)
33 33
1998 1998
1998-1999 1998-1999
7,345 7,345
7,236 7,236
109 109
142 142
1999 1999
1999-2000 1999-2000
7,704 7,704
7,233 7,233
471 471
613 613
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Funds Available for
Cumulative
Fiscal
the Discretionary Estimated Total Annual Surplus
Surplus or
Year
Award Year
Award Level
Expendituresa
or (Shortfall)b
(Shortfall)
2000 2000
2000-2001 2000-2001
7,640 7,640
7,996 7,996
(356) (356)
256 256
2001 2001
2001-2002 2001-2002
8,756 8,756
9,985 9,985
(1,229) (1,229)
(908) (908)
2002 2002
2002-2003 2002-2003
10,314 10,314
11,653 11,653
(1,339) (1,339)
(1,247 (1,247)c
2003 2003
2003-2004 2003-2004
11,365 11,365
12,713 12,713
(1,348) (1,348)
(2,595) (2,595)
2004 2004
2004-2005 2004-2005
12,007 12,007
13,152 13,152
(1,145) (1,145)
(3,740) (3,740)
2005 2005
2005-2006 2005-2006
12,365 12,365
12,695 12,695
(330) (330)
(4,070) (4,070)
2006 2006
2006-2007 2006-2007
13,045 13,045
12,825 12,825
220 220
220d
2007 2007
2007-2008 2007-2008
13,661 13,661
14,699 14,699
(1,038) (1,038)
(818) (818)
2008 2008
2008-2009 2008-2009
14,21 14,215e
16,054 16,054
(1,839) (1,839)
(2,657) (2,657)
2009 2009
2009-2010 2009-2010
32,92 32,928e
26,844 26,844
6,084 6,084
3,427 3,427
2010 2010
2010-2011 2010-2011
17,49 17,495e
30,491 30,491
(12,996) (12,996)
(9,569) (9,569)
2011 2011
2011-2012 2011-2012
36,45 36,456e
28,796 28,796
7,660 7,660
(1,909) (1,909)
2012 2012
2012-2013 2012-2013
36,61 36,619e
~~27,512~~
~~9,107~~
~~7,198~~
27,137 9,482 7,701 2013 2013
2013-2014 2013-2014
30,36 30,365e
~~26,481~~
~~3,884~~
~~11,082~~
26,370 3,995 11,696 2014 2014
2014-2015 2014-2015
23,36 23,366e
~~25,320~~
~~(1,954)~~
~~9,128~~
25,580 (2,214) 9,482 2015 2015
2015-2016 2015-2016
22,47 22,475e
~~23,361~~
~~(886)~~
~~8,242~~
23,350 (875) 8,607 2016 2016
2016-2017 2016-2017
22,47 22,475e
~~22,808~~
~~(333)~~
~~7,754~~
21,784 691 9,298 2017 2017
2017-2018 2017-2018
23,79 23,795e
~~22,773~~
~~1,022~~
~~9,00~~7f 22,770 1,025 9,013f
2018 2018
2018-2019 2018-2019
23,80 23,809e
~~22,692~~
~~1,117~~
~~10,124~~ 22,690 1,119 10,132
2019 2019
2019-2020 2019-2020
23,84 23,845e
22,74622,746
1,0991,099
10, 10,623g631g
2020 2020
2020-2021 2020-2021
23,88 23,880e
~~21,483~~
~~2,397~~
~~12,52~~0h 21,864 2,016 12,147h
2021 2021
2021-2022 2021-2022
23,61 23,618e
~~23,654~~
~~(36)~~
~~11,98~~3i7e 21,343 2,274 13,92 1i 2022 2022-2023 23,560 22,643 917 13,788j
Sources: (1) U.S. Department of Education (ED), (1) U.S. Department of Education (ED), AY2010-11 Federal ~~Pel~~ Pell Grant Program End-of-Year Report; (2) (2)
unpublished data provided by ED; (3) data provided by CBO in May 2013, April 2014, and March 2015unpublished data provided by ED; (3) data provided by CBO in May 2013, April 2014, and March 2015 ; March ; March
2016; June 2017, April2016; June 2017, April 2018, May 2019, March 2020, 2018, May 2019, March 2020, ~~and February 2021~~ July 2021, and May 2022; and (4) respective appropriations ; and (4) respective appropriations
measures. measures.
Notes: N/A = not available. Numbers in parentheses are negative numbers.N/A = not available. Numbers in parentheses are negative numbers. Data on the cumulative Data on the cumulative ~~shortfal~~ shortfall or or
surplus prior to AY1989-1990 could not be verifiedsurplus prior to AY1989-1990 could not be verified and thereforeand therefore are not provided. Priorare not provided. Prior to 1980, the program to 1980, the program
was was ~~cal ed~~called the Basic Educational Opportunity Grant (BEOG) Program. the Basic Educational Opportunity Grant (BEOG) Program.
a. The estimated total expenditure totals for AY1973-1974 through AY1988-1989 are taken from the U.S. a. The estimated total expenditure totals for AY1973-1974 through AY1988-1989 are taken from the U.S.
Department of Education, Department of Education, AY2009-10 Federal ~~Pel~~ Pell Grant Program End-of-Year Report and do not include and do not include
administrativeadministrative ~~cost al owance~~ cost allowance payments to institutions. The expenditure totals for AY1989 payments to institutions. The expenditure totals for AY1989 -1990 to -1990 to
AY2005-2006 are taken from unpublished data provided by ED and reflectAY2005-2006 are taken from unpublished data provided by ED and reflect ~~administrative cost al owance~~ administrative cost allowance
payments to institutions. Estimatespayments to institutions. Estimates ~~of al~~ of all data after AY2005-2006 are provided by CBO and also include data after AY2005-2006 are provided by CBO and also include
administrativeadministrative ~~cost al owance~~ cost allowance payments to institutions. payments to institutions. ~~Al estimates~~ All estimates of expenditures are subject to change. of expenditures are subject to change.
In years in which mandatory appropriations wereIn years in which mandatory appropriations were available to fund the discretionary award levels, available to fund the discretionary award levels,
expenditures include discretionaryexpenditures include discretionary and mandatory appropriations. and mandatory appropriations.
b. The annual b. The annual ~~shortfal~~ shortfall or surplus amount reflectsor surplus amount reflects account transfers and other adjustments and may not equal account transfers and other adjustments and may not equal
the difference between the annual appropriation and estimated total expenditures in each year. the difference between the annual appropriation and estimated total expenditures in each year.
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c. The 2002 Supplemental Appropriations c. The 2002 Supplemental Appropriations Act for Further Recovery FromAct for Further Recovery From and Response To Terroristand Response To Terrorist Attacks Attacks
on the United States (P.L. 107-206) provided $1.000 bil ion on the United States (P.L. 107-206) provided $1.000 bil ion in supplemental discretionary funding to pay for in supplemental discretionary funding to pay for
the FY2001 the FY2001 ~~Pel~~ Pell Grant cumulative Grant cumulative ~~shortfal .~~
shortfall. d. The Departments of Labor, d. The Departments of Labor, Health and Human Services,Health and Human Services, and Education, and Related Agencies and Education, and Related Agencies
Appropriations Act, 2006 (P.L. 109-149) appropriated $4.300 bil ion in mandatory funding for a one-time Appropriations Act, 2006 (P.L. 109-149) appropriated $4.300 bil ion in mandatory funding for a one-time
eliminationelimination of the estimated funding of the estimated funding ~~shortfal~~ shortfall through AY2005-2006 in accordance with through AY2005-2006 in accordance with §Section 303 of H.Con.Res. 303 of H.Con.Res.
95, the FY2006 budget resolution.95, the FY2006 budget resolution. The mandatory funds that exceeded the actual cumulative funding The mandatory funds that exceeded the actual cumulative funding
~~shortfal~~ shortfall were returned to the U.S. Department of the Treasury.were returned to the U.S. Department of the Treasury.
e. This number includes annual discretionary appropriations and may include additional mandatory and e. This number includes annual discretionary appropriations and may include additional mandatory and
discretionary discretionary funding. For a list of the applicable legislationfunding. For a list of the applicable legislation and amounts, and amounts, ~~see~~see Table C-1..
f. f.
The Consolidated Appropriations Act, 2017 (P.L. 115-31) rescinded $1.310 bil ion The Consolidated Appropriations Act, 2017 (P.L. 115-31) rescinded $1.310 bil ion of the cumulative surplus.of the cumulative surplus.
g. The Department of Defense g. The Department of Defense and Labor, Health and Human Services,and Labor, Health and Human Services, and Education Appropriations Act, and Education Appropriations Act,
2019 and Continuing Appropriations Act, 2019 (P.L. 115-245) rescinded $600 mil ion 2019 and Continuing Appropriations Act, 2019 (P.L. 115-245) rescinded $600 mil ion of the cumulative of the cumulative
surplus. surplus.
h. The Further Consolidated Appropriations h. The Further Consolidated Appropriations Act, 2020 (P.L. 116-94) rescinded $500 mil ionAct, 2020 (P.L. 116-94) rescinded $500 mil ion ~~from~~ from the the
cumulative surplus. cumulative surplus.
i. i.
The Consolidated Appropriations Act, The Consolidated Appropriations Act, ~~2021 rescinded $500 mil ion~~ 2021 (P.L. 116-260) rescinded $500 mil ion from the cumulative surplus. j. The Consolidated Appropriations Act, 2022 (P.L. 117-103) rescinded $1.050 bil ion from the cumulative surplus.from the cumulative surplus.
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Appendix E. Glossary/Acronyms
ARRA ARRA
American Recovery and Reinvestment Act (P.L. 111-5) American Recovery and Reinvestment Act (P.L. 111-5)
CBO CBO
Congressional Budget Office Congressional Budget Office
CCRAA CCRAA
College Cost Reduction and Access Act of 2007 (P.L. 110-84) College Cost Reduction and Access Act of 2007 (P.L. 110-84)
COA COA
Cost of Attendance Cost of Attendance
Direct Loan Direct Loan
~~Wil iam~~ William D. Ford Direct Loan program D. Ford Direct Loan program
ED ED
U.S. Department of Education U.S. Department of Education
EFC EFC
Expected Family Contribution Expected Family Contribution
FAFSA FAFSA
Free Application for Federal Student Aid Free Application for Federal Student Aid
HEA HEA
Higher Education Act of 1965 (P.L. 89-329), as amended Higher Education Act of 1965 (P.L. 89-329), as amended
HEOA HEOA
Higher Education Opportunity Act of 2008 (P.L. 110-315) Higher Education Opportunity Act of 2008 (P.L. 110-315)
IHE IHE
Institution of Higher Education Institution of Higher Education
ISIR ISIR
Institutional Student Information Record Institutional Student Information Record
NPSAS NPSAS
U.S. Department of Education, National Postsecondary Student Aid U.S. Department of Education, National Postsecondary Student Aid
Study Study
Private for-profit Private for-profit
Sometimes referred to as proprietary Sometimes referred to as proprietary
SAFRA Act SAFRA Act
Title II-A of the Health Care and Education Reconciliation Act of 2010 Title II-A of the Health Care and Education Reconciliation Act of 2010
(P.L. 111-152) (P.L. 111-152)

Author Information

Cassandria Dortch Cassandria Dortch

Specialist in Education Policy Specialist in Education Policy

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