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

Education Opportunity Grants, have been awarded since 1973. The program provided

approximately $27 bil ion in aid to approximately 6.3 mil ion undergraduate students in
FY2020. Pel Grants are need-based aid that is intended to be the foundation for al need-based federal student aid
awarded to undergraduates. Unlike loans, students do not repay Pel Grants.
Effective in award year 2023-2024, 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 Pel
Grant program prior to award year 2023-2024.
To be eligible for a Pel 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
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
threshold that determines who is eligible or ineligible for Pel Grants, an estimated 95% of Pel Grant recipients
had a total family income at or below $60,000 in academic year 2017-2018. Other requirements include, but are
not limited to, the student not having earned a bachelor’s degree and being enrolled in an eligible program at an
HEA 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
Pel Grant award rules. The student’s 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. 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 FY2021 (academic year
2021-2022), the total maximum Pel Grant is $6,495. 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
academic year (e.g., enroll in a summer semester) during an award year receive a year-round or summer Pel
Grant such that they may receive up to 1½ scheduled grants in each award year. Final y, a student may receive the
value of no more than 12 full-time semesters (or the equivalent) of Pel Grant awards over a lifetime.
The program is funded primarily through annual discretionary appropriations, but the HEA provides mandatory
appropriations. The total maximum Pel 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
appropriations enacted in annual appropriations acts, and augmented by permanent and definite mandatory
appropriations. For FY2021, the discretionary appropriation is $22.475 bil ion and the augmenting mandatory
funds total $1.170 bil ion. 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. The mandatory add-on is estimated
to require $5.412 bil ion in FY2021. Funding provided for the Pel Grant program is exempt from sequestration.
The Pel Grant program is often referred to as a quasi-entitlement because for the most part eligible students
receive the Pel Grant award level calculated for them without regard to available appropriations. In a given year,
the discretionary appropriation level may be smal er or larger than the actual cost to fund the discretionary
maximum award, despite the augmenting mandatory appropriation. When the discretionary appropriation is too
smal , the program carries a shortfal 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.
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Federal Pell Grant Program of the Higher Education Act: Primer

Introduction
The Federal Pel 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
undergraduate students. The program provided approximately $27 bil ion in aid to approximately
6.3 mil ion undergraduate students in FY2020.1 Pel Grants are need-based aid that is intended to
be the foundation for al 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.2 Unlike loans,
students are not required to repay Pel Grants.
Prior to July 1, 2023, the discretionary statutory authority for the Pel Grant program was
reauthorized through FY2017 by the Higher Education Opportunity Act of 2008 (HEOA; P.L.
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
Effective July 1, 2023, the FAFSA Simplification Act (FSA; Title VII of Division FF of P.L. 116-
260, Consolidated Appropriations Act, 2021) authorizes discretionary appropriations for FY2023
through FY2033.4 HEA also provides permanent mandatory program appropriations.
This report provides descriptions of key elements of the Pel Grant program and information on
recipient demographics, award levels, award value, program costs, and program funding prior to
the effective date of the FSA.5 For information on key changes authorized by the FSA that go into
effect for award year 2023-2024, see CRS Report R46909, The FAFSA Simplification Act. The
first section of the report addresses how the program works and describes the basic process for
awarding Pel Grants including the application process, student eligibility requirements, award
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
plays in relation to other student aid.6 The report explains the complex Pel Grant funding streams
and their implications. Final y, program costs and estimates are presented. In addition, the
appendices provide historical Pel Grant award amounts (Appendix A), Pel 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, 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.
3 For more information on GEPA’s Contingent Extension of Programs, see CRS Report R41119, General Education
Provisions Act (GEPA): Overview and Issues.
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 report supersedes CRS Report 422446, Federal Pell Grant Program of the Higher Education Act: How the
Program Works and Recent Legislative Changes. T he current report contains updated information.
6 T itle IV of HEA authorizes several student aid programs: Pell Grant program, Iraq and Afghanistan service grants,
William D. Ford Federal Direct Loan (DL) Program, Federal Supplemental Educational Opportunity Grant (FSEOG)
program, and Federal Work-Study (FWS) program. See CRS Report RL31618, Cam pus-Based Student Financial Aid
Program s Under the Higher Education Act, and CRS Report R40122, Federal Student Loans Made Under the Federal
Fam ily Education Loan Program and the William D. Ford Federal Direct Loan Program : Term s and Conditions for
Borrowers.
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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 Pel Grant program and the
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
institutions in the program.
Briefly, the Pel Grant program provides grants (i.e., aid that does not have to be repaid) to
financial y needy undergraduates. To apply for a Pel Grant or any HEA Title IV student aid,
students must complete and submit the Free Application for Federal Student Aid (FAFSA),
providing requested financial and other information.7 When the FAFSA is processed, the
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
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
receives an Institutional Student Information Record (ISIR). The SAR and ISIR contain the
information submitted on the FAFSA and the individual’s EFC.8
Institutions that receive valid SARs or valid ISIRs for eligible Pel Grant applicants are required
to disburse Pel Grant funds to students who successful y enroll in approved coursework. Pel
Grants are portable aid, that is, the grant aid follows students to the eligible postsecondary
education institutions in which they enroll. In addition, the Pel Grant program is often referred to
as a quasi-entitlement because for the most part eligible students receive the Pel Grant award
level calculated for them without regard to available appropriations (for more on program
funding, see the “Program Funding” section).9 The size of each student’s grant is based,
principal y, on EFC, the total maximum Pel Grant for the award year,10 and the student’s
enrollment rate, but may not exceed the student’s cost of attendance.
Student Eligibility
To be eligible for a Pel Grant, a student must meet requirements that apply to HEA Title IV
student aid programs in general as wel as requirements specific to the Pel Grant program.11
Among the requirements general y applicable to the HEA Title IV student aid programs for award
year (AY) 2021-2022 are the following:

7 T here are two ways to complete and submit a FAFSA for consideration of federal student aid. For instance, students
and families may use FAFSA on the Web, which is an interactive online process. Alternatively, they may obtain a paper
FAFSA from their financial aid office or other locations and submit it to the address listed on the form, although most
applications are submitted electronically.
8 For more information on the FAFSA processes and calculation of EFC, see CRS Report R44503, Federal Student
Aid: Need Analysis Form ulas and Expected Fam ily Contribution .
9 Student awards have not been reduced nor recipient caps imposed since AY1990-AY1991.
10 T he Pell Grant award year begins the first day of July in a given year and ends the last day of June the following
year.
11 See Higher Education Act, as amended prior to the effective date of the FSA (hereinaft er 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)
for Pell Grant specific requirements.
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 Students must be accepted for enrollment or enrolled in an eligible program at an
eligible institution of higher education for the purpose of earning a certificate or
degree.12
 Students must not be enrolled in an elementary or secondary school and must
have a high school diploma (or equivalent).13
 Students must meet citizenship requirements.14
 Students must maintain satisfactory academic progress while enrolled.
Satisfactory academic progress requires a minimum grade point average (or its
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
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
have repaid any Title IV funds obtained fraudulently.
 Students may be disqualified for an unusual enrollment history—receiving HEA
Title IV aid at multiple schools in the same semester, or receiving aid and
withdrawing before earning any credit.
Specific eligibility requirements for the Pel Grant program include the following:
 Students must not have already completed the curriculum requirements of a
bachelor’s or higher degree.15
 Students must be enrolled in non-foreign institutions.

12 For purposes of the Pell Grant program, an eligible program requires at least 16 semester hours (or the equivalent)
offered during a minimum of 15 weeks. Alternatively, an eligible program may be at least 8 semester hours (or the
equivalent) offered during a minimum of 10 weeks, if an associate’s degree is required for admissions. One semester
hour is an amount of student work defined by an institution and approved by the institution’s accrediting agency that is
consistent with commonly accepted practice in postsecondary education and that approximates one hour of classroom
or direct faculty instruction and at least two hours of out -of-class work each week for approximately 15 weeks. For
information on HEA T itle IV eligible programs and eligible institutions, see CRS Report R43159, Institutional
Eligibility for Participation in Title IV Student Financial Aid Program s.
13 T he equivalent of a high school diploma may include a general educational development (GED) certificate; the
completion of an eligible homeschool program; or the completion of one of the ability to benefit alternatives and either
being enrolled in an eligible career pathway program or being first enrolled in an eligible postsecondary program prior
to July 1, 2012. T he ability to benefit may be demonstrated by passing an examination approved by ED to be eligible
for federal student aid, or by successfully 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 designed to combine
occupational skills training, counseling, workforce preparation, high school completion, and postsecondary credential
attainment.
14 In general, students must be U.S. citizens or permanent U.S. residents. Individuals with several other entrance
statuses can qualify for aid. Individuals in the United States on a temporary basis, such as those with a student visa or
an exchange visitor visa, are not eligible for federal student aid. Students with Deferred Action for Childhood Arrivals
(DACA) status, conferred by the U.S. Citizenship & Immigration Services (USCIS) office in the Department of
Homeland Security, are not eligible for HEA T itle IV aid.
15 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
program does not lead to a graduate degree; is offered by a school that does not also offer a bachelor’s degree in
education; and leads to certification or licensure necessary for employment as an elementary or secondary school
teacher in the state. T o be eligible for a Pell Grant, the student enrolled in the postbaccalaureate teacher education
program must be pursuing 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 financial y needy students as determined under the program’s
award rules (see below).
 Students must not be incarcerated in a federal or state penal institution.
 Students must not be subject to an involuntary civil commitment following
incarceration for a sexual offense (as determined under the FBI’s Uniform Crime
Reporting Program).
 Students with a significant intel ectual disability must be accepted for enrollment
or enrolled in a comprehensive transition and postsecondary program.16
Underlying Concepts and Award Rules
The amount of an eligible student’s Pel Grant award is determined on the basis of a set of award
rules. In general, these award rules are designed to ensure that the neediest students (as
determined by their EFC) receive the highest Pel Grant awards in each award year.17 As need
decreases or EFC increases, Pel Grant awards decrease until they phase out completely.
Additional y, Pel Grant awards are prorated for students who attend on a less-than-full-time, full-
year basis. An important feature of the Pel Grant award rules is that the grant is determined
without consideration of any other financial assistance a student may be eligible to receive or may
be receiving. This reflects the intention to make the Pel 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
Pel Grant is awarded.
Some of the underlying concepts associated with the Pel Grant program, as wel as the program’s
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-

16 A student with a significant 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,
social, and practical adaptive skills; and is or was eligible for a free appropriate public education under the Individuals
with Disabilities Education Act. For a description of the Individuals wit h Disabilities Education Act, see CRS Report
R41833, The Individuals with Disabilities Education Act (IDEA), Part B: Key Statutory and Regulatory Provisions .
Comprehensive transition and postsecondary (CT P) 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.,
a certain number of credit -bearing clock hours). Instead, CT P programs require students with intellectual disabilities to
receive curriculum advising, participate at least part -time in courses or training with students who do not have
intellectual disabilities, and prepare for gainful employment. A student with a significant intellectual disability in a CTP
program does not require a high school diploma (or equivalent) and does not have to be enrolled for the purpose of
obtaining a certificate or degree. A student with a significant intellectual disability in a CT P program must maintain
satisfactory academic progress as determined by the school for the CT P program.
17 HEA §401.
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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
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 Pel Grant aid is
disbursed. Each academic year must have at least two payment periods. For example, an IHE on a
standard semester calendar may disburse Pel Grant funds two times, once for each of two
semesters: fal and spring.
Cost of Attendance (COA)
For Pel 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
sum of (1) tuition and fees; (2) an al owance for books, supplies, transportation, and
miscel aneous personal expenses; (3) an al owance for room and board; and (4) for a student with
dependents, an al owance for costs expected to be incurred for dependent care.18 Institutions may
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,
institutions may establish separate averages by residency: in-state or out-of-state, or housing: on-
campus or off-campus.
Discretionary Base Maximum Award
The discretionary base maximum award is the amount specified in annual appropriations laws.
For AY2021-2022, the discretionary base maximum award is $5,435. The annual appropriations
laws also establish the amount of discretionary funding available to fund the discretionary base
maximum award for the program for the corresponding award year. Table 1 presents the
discretionary base maximum award for the last five years, and Table A-1 provides a history of
discretionary base maximum award amounts since AY1973-1974.
Table 1. Pell Grant Award Amounts, AY2017-2018 through AY2021-2022
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, the
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
AY2017-2018, statutory provisions established a formula to annual y modify the mandatory add-
on amount to account for inflation. For AY2017-2018 and al subsequent award years, the
mandatory 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, and Table A-1 provides a
history of mandatory add-on award amounts when provided since AY1973-1974.
Total Maximum Award
The total maximum award amount is the maximum Pel Grant amount that a student may receive
in an academic year. The total maximum award is the sum of the discretionary base maximum
award and the mandatory add-on award. For AY2021-2022, the total maximum award is $6,495.
Table 1 presents the total maximum award for the last five years, and Table A-1 provides a
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
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
eligible for Title IV need-based aid (aid based on the student’s and the student’s family’s
financial need).19 General y, a student with an EFC greater than 90% of the maximum Pel Grant
wil not be eligible for a Pel Grant, and a student with an EFC higher than their COA wil not
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
with one or more dependents other than a spouse. General y speaking, an independent student is
an individual 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.

19 For more information on the federal needs analysis methodology and calculation of EFC, see CRS Report R44503,
Federal Student Aid: Need Analysis Form ulas and Expected Fam ily Contribution .
20 For HEA T itle IV aid purposes, an independent student is an individual who is at least 24 years of age by December
31 of the award year; 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,
or a ward of the court (anytime since the age of 13); is an emancipated minor or in legal guardianship as determined by
a court; is an unaccompanied, homeless youth or self-supporting, at risk of being homeless; or is deemed independent
by a financial aid 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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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
meet one of three additional criteria. The AGI threshold is $27,000 for AY2021-2022.22 The
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.
Independent students without dependents other than a spouse are not eligible for an automatic
zero based on their financial situation.
Zero EFC
An otherwise Pel Grant-eligible 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
an IHE at the time of the parent’s or guardian’s death.23 The specified circumstances occur when
the parent or guardian was
 a member of the U.S. Armed Forces and died as a result of performing military
service in Iraq or Afghanistan after September 11, 2001,24 or
 actively serving as a public safety officer and died in the line of duty while
performing as a public safety officer.25
The zero EFC is used to award al HEA Title IV aid. A Pel Grant so awarded to the child of a
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 stil
qualify for a calculated zero 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 completing the FAFSA. HEA §479(c).
22 U.S. Department of Education, 2021-2022 Federal Student Aid Handbook, p. AVG-48.
23 See HEA §473(b).
24 For students who are not eligible for Pell Grants due to their EFC and who had a parent or guardian die as a result of
military service in Iraq or Afghanistan after September 11, 2001, non -need-based grants called Iraq and Afghanistan
Service Grants (IASG) are available. T he amount of the IASG is the same as the Pell Grant the student would be
eligible for if he or she had a zero EFC. IASG payments are adjusted like Pell Grants for students who are enrolled less
than full time, but unlike Pell Grants, these non -need-based grants do not count as estimated financial assistance. In
addition, IASG is subject to sequestration.
25 A public safety officer is as defined in 42 U.S.C. §3796b or an eligible fire police officer. See 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 Pel Grant aid a full-academic-year student can receive at the
student’s enrollment rate.27 The HEA requires ED to annual y publish a schedule of annual award
amounts that are proportional y reduced scheduled awards for students who are not enrolled full-
time for the full academic year.28 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
½-time. Each schedule provides a table of annual award amounts by COA increments and EFC
increments. The annual award for a student enrol ed at least ½-time in a clock-hour or non-term
credit-hour program is taken from the full-time disbursement schedule.
Minimum Award
The minimum Pel Grant award is the smal est annual award amount for which a student must
qualify to receive a Pel Grant award. In other words, a student must qualify for at least this
minimum amount to be eligible for the program. The minimum award is 10% of the total
maximum award. For AY2021-2022, the minimum Pel Grant award is $650, or 10% of $6,495.29
Alternatively, the minimum Pel Grant award may be conceptualized as a maximum EFC. To
qualify for a Pel Grant award, a student’s EFC must be no more than 90% of the total maximum
award. In AY2021-2022, a student with an EFC above $5,846, or 90% of $6,495 rounded to the
nearest whole number, would not be eligible for a Pel Grant.
Pell Grant Award Disbursements
Pel Grant aid awards are disbursed in each payment period for which a student is eligible. Pel
Grants must be paid out in instal ments 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-
payment -and-disbursement -schedules.
29 T he actual minimum award differs because ED uses midpoints for both the expected family contribution (EFC) and
the cost of attendance (COA) in the scheduled award rule. ED’s Federal Pell Grant Payment and Disbursement
Schedules group COA and EFC in approximately $100 increments and calculate the award levels for each increment
based 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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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
Education, Federal Student Aid, Federal Student Aid Handbook 2021-2022.
Notes: 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. The student or
IHE may have to return a portion of the actual awards if the student reduces her enrol ment rate during a
quarter or withdraws before the end of a quarter. Alternatively, the student may receive a larger actual award if
the student increases her enrol ment rate.

Year-Round (Summer ) Pell Grants
Since award year 2017-2018,31 qualified students may receive up to 1½ scheduled Pel Grants, or
up to 150% of the scheduled award, in each award year.32 To qualify for the additional funds, a
Pel Grant-eligible student must be enrolled at least ½-time in a payment period after receiving
most or al 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 2021-2022, a full-time, full-
academic-year student with a zero EFC could receive $3,247.50 in the fal semester, $3,247.50 in
the spring semester, and $3,247.50 in the summer semester. Figure 2 provides an additional
example.

31 T his provision was enacted by the Consolidated Appropriations Act, 2017 (P.L. 115-31).
32 Eligible students enrolled from July 1, 2009, to June 30, 2011, were eligible to receive so-called year-round Pell
Grants, or up to two scheduled awards in a single award 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
Education, 2017 FSA Training Conference for Financial Aid Professionals, Session 19: A Guide to Year-Round Federal
Pel Grants, dated November-December 2017.
Notes: 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. The student or
IHE may have to return a portion of the actual awards if the student reduces her enrol ment rate during a
quarter or withdraws before the end of a quarter. Alternatively, the student may receive a larger actual award if
the student increases her enrol ment rate.

Maximum Pell Grant Lifetime Eligibility
The HEA establishes a maximum cumulative lifetime eligibility cap on Pel Grant aid.33 Over her
lifetime, a student may receive the value of no more than 12 full-time semesters (or the
equivalent) of Pel Grant awards or six scheduled awards.34 Pel Grant lifetime eligibility used
(LEU) at a closed school from which the student did not graduate does not count toward the
lifetime cap—the eligibility used is restored.35

33 T he 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 eligibility was limited to 18 full-
time semesters (or the equivalent). T he Consolidated Appropriations Act, 2012 (P.L. 112-74) reduced the cumulative
lifetime eligibility for Pell Grant aid from 18 semesters to 12 semesters starting in AY2012-2013. Any Pell Grant aid
received prior to AY2012-2013 is included in a student’s lifetime limit.
34 For example, students who consistently enroll half-time in standard terms throughout their progression to a
bachelor’s degree could receive Pell Grant aid for 24 semesters, or 12 years. Students who consistently enroll full-time
in standard terms throughout their degree progression to a bachelor’s degree could receive Pell Grant aid for 12
semesters, or six years. T his change does not affect the measurement of full-time enrollment for the purposes of federal
student aid, which is currently 12 semester hours (or the equivalent for non -standard terms).
35 HEA §437(c)(3).
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Institutional Role
To be eligible for the HEA Title IV programs, including the Pel Grant program, an IHE must
meet several statutory and regulatory eligibility criteria. For a description of institutional
eligibility requirements, see CRS Report R43159, Institutional Eligibility for Participation in
Title IV Student Financial Aid Programs.36 The IHE may be a public or private nonprofit IHE, a
private for-profit (sometimes referred to as proprietary) postsecondary institution, or a
postsecondary vocational institution.
An eligible institution’s role in administering the Pel Grant program primarily involves
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
are eligible for, record keeping, and reporting to ED.
An eligible institution calculates a student’s Pel Grant disbursement using the award rules.
General y, institutions credit a student’s account with the Pel Grant disbursement payment to
meet unpaid tuition, fees, room, and board; any remaining Pel Grant funds are paid directly to
the student to cover other living expenses.
ED makes funds available to schools so that they can disburse Pel Grant awards. In addition, the
Pel Grant program pays participating institutions an administrative cost al owance of $5 per
enrolled recipient.
Description of Pell Grant Recipients and
Participation
This section provides descriptive statistics of Pel Grant recipients (numbers and characteristics)
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
financial y needy individuals.
Number of Recipients
The Pel Grant program reaches a significant portion of undergraduates each year. In AY2015-
2016, the latest year for which data are available, 39% of al undergraduates were estimated to
have received Pel Grants.37 Table 2 shows the number of Pel Grant recipients over the most
recent five years, from AY2015-2016 to AY2019-2020, as wel as the annual change and annual
percentage change during this time. The number of Pel Grant recipients has declined from over
7.6 mil ion in AY2015-2016 to over 6.7 mil ion in AY2019-2020. Table B-1 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 analysis
of AY2003-2004, AY2007-2008, and AY2011-2012 NPSAS data shows that the percentage of all undergraduates
estimated to have received Pell Grants in each of these academic years was 27%, 28%, and 41%, respectively.
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recipients since AY1973-1974. It is important to note that myriad factors,38 including the labor
market, can affect the number of Pel Grant recipients in any given award year.
Table 2. Federal Pell Grant Recipients, AY2015-2016 to AY2019-2020
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%
Source: U.S. Department of Education, AY2017-2018 Pel Grant End-of-Year Report; and President’s budget
FY2022.
Note: Recipient figures rounded to the nearest thousand. Numbers in parentheses are negative numbers. For a
history of Pel Grant award amounts since AY1973-1974, see Table B-1.
Income of Recipients
Since Pel 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
determines who is eligible or ineligible for a Pel Grant award. Nevertheless, Pel Grant recipients
are primarily low-income. In AY2017-2018, an estimated 95% of Pel Grant recipients had a total
family income39 at or below $60,000.40 Independent Pel Grant recipients’ income is general y
lower than their dependent counterparts. As a point of reference, median household income for al
U.S. households with or without students was $62,626 in 2017 and $63,179 in 2018.41
It is important to note, however, that a smal percentage of Pel Grant awards go to mid- and high-
income families. For the most part, these awards are smal er than the average Pel Grant award
for al students and are typical y provided to dependent students from families w ho have multiple
students enrolled in postsecondary education at the same time.42

38 Such factors include, but are not limited to, (1) amendments to the HEA that affect the federal need analysis
calculation and Pell Grant award rules; (2) changes in the maximum grant level specified in annual appropriations bills;
(3) trends in enrollment at postsecondary institutions; (4) demographic factors; and (5) macroeconomic and
microeconomic variables.
39 T otal family income is defined here as the adjusted gross income (if a tax filer), any taxable income (if not a tax
filer), and any non-taxable income.
40 T able 003 of the AY2017-2018 Pell Grant End-of-Year Report.
41 Semega, Jessica, Melissa Kollar, John Creamer, and Abinash Mohanty, 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 Pell Grant End-of-Year Report, 4,701 Pell Grant recipients, or 0.1% of
the total recipient population, had a family income of $100,000 or more. In cases where the family has more t han one
student enrolled in or accepted to college for the award year, the EFC is reduced to account for the number of students
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. For example, a
larger proportion of Pel Grant recipients attend private for-profit institutions than do students not
receiving Pel Grants. Table 3 shows the AY2015-2016 enrollment distribution by institutional
sector of undergraduates who do not receive a Pel Grant and undergraduates who do receive Pel
Grants. Each group is disaggregated for dependent and independent students. For both
independent and dependent students, the share of Pel Grant recipients attending private-for profit
institutions was more than double the share of undergraduate students who do not receive Pel
Grants attending such institutions. One possible explanation for this disparity is that for-profit
institutions may target marketing to low-income students.43 Most undergraduates, whether
receiving Pel Grants or not, attend public four-year or public two-year institutions. For example,
over half of independent Pel Grant recipients attend either public four-year (22.0%) or public
two-year (32.5%) institutions.
Table 3. Estimated Distribution of Pell Grant Recipients and Undergraduates not
Receiving Pell Grants by Sector of Enrolling Institution, AY2015-2016

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
40.5
40.2
22.0
22.9
Private nonprofit four-year
14.1
17.6
11.8
11.0
Public two-year
27.7
29.0
32.5
49.2
Private for-profita
6.4
2.4
21.6
8.3
Other or more than one
institutionb
11.2
10.9
12.1
8.6
Total
100.0
100.0
100.0
100.0
Source: CRS estimates from 2015-2016 NPSAS.
Notes: Due to rounding, sum of column entries may not equal column totals.
a. Private for-profit institutions are sometimes referred to as proprietary institutions.
b. The other or more 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
students who attended more than one eligible institution during the year.
Role of the Pell Grant
The Pel Grant is intended to function as the foundation of federal need-based aid for financial y
needy undergraduates. As described earlier, other financial aid received by a student is not taken

43 “How For-Profit Colleges Sell ‘Risky Education’ T o T he Most Vulnerable,” NPR, March 27, 2017; Elizabeth A.
Harris, “New York City Consumer Agency Investigating Four For-Profit Colleges,” The New York Times, April 2,
2015; and Caroline Simon, “For-Profit Colleges’ T eachable Moment: ‘T errible Outcomes Are Very Profitable’,”
Forbes, March 19, 2018.
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into account in determining a student’s Pel Grant. This section explores the role Pel Grants and
other sources of aid play in helping students meet postsecondary costs.
Purchasing Power
The total maximum Pel 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 Pel Grant program’s level of support in each year.
Figure 3 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
private four-year institutions between AY1973-1974 and AY2019-2020. It is evident that the
maximum was at its peak relative to these average charges during the 1970s. Since the 1990s, the
extent to which the total maximum Pel Grant covers average base educational costs has been
variable; however, despite some increases, the total maximum Pel Grant has lost ground relative
to average base educational costs at public four-year institutions. In AY2019-2020, the total
maximum grant ($6,195) covered approximately 56% of the average base educational costs at
public two-year institutions, 29% at public four-year institutions, 23% 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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Figure 3. Percentage of Tuition, Fees, Room, and Board Covered by the Total
Maximum Pell Grant, by Institutional Sector: AY1973-1974 to AY2019-2020

Source: CRS calculations using data from National Center for Education Statistics (NCES), Digest of Education
Statistics, 2020, Table 330.10.
Notes: The purchasing power of the Pel Grant through AY1992-1993 was constrained by a statutory cap on
the percentage of cost of attendance (COA) that a Pel Grant could cover. From AY1973 -1974 to AY1984-1985,
the cap was 50%; from AY1985-1986 to AY1992-1993, the cap was 60%. After that time there has been no
absolute limit on the percentage of COA that can be covered.

It is also important to note that in al 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
of years. An analysis of the purchasing power of the Pel Grant maximum award, therefore, could
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 Pel 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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Receipt of Pell Grants and Other Aid
The Pel Grant is intended to be the foundation of federal need-based student aid from Title IV of
the HEA.46 In AY2015-2016, an estimated 16% of Pel Grant recipients relied on a Pel Grant as
their only source of aid from al sources, and 34% of Pel Grant recipients did not receive other
HEA Title IV aid funds.47
Most Pel Grant recipients (84%) participate in other student aid programs. For those Pel Grant
recipients with a zero EFC, Table 4 shows estimates of the average percentage of cost of
attendance (COA) covered by their Pel Grant award, their loans from al sources, and their total
aid package in AY2015-2016, by total family income. This table al ows for examination of the
extent to which Pell Grants and other aid helped Pel Grant recipients with a zero EFC meet their
COA.48 Table 4 shows, for example, that among al Pel Grant recipients, Pel Grant aid covered,
on average, 27.1% of the COA and al loan sources covered, on average, an additional 20.3% of
the COA for these recipients. For Pel Grant recipients, total aid from al sources supplies less
than two-thirds (62.9%) 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)
Pell Grant
All Loansa as
Total Aidb
Aid as a
a
as a
Percentage
Percentage
Percentage

of COA
of COA
of COA
Al Zero EFC Pel Grant Recipients
27.1%
20.3%
62.9%
Total Family Income (Dependent)c

Less than $20,000
29.7%
15.0%
63.8%
$20,000 to $29,999
29.6%
15.9%
66.6%
$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 here as Pell Grants, Federal Supplemental Educational
Opportunity Grants (FSEOG), Federal Work -Study earnings, and Direct Subsidized Loans.
47 CRS estimates from 2015-2016 NPSAS.
48 T he cost of attendance is the sum of tuition and fees and non-tuition expenses for students who attended only one
institution. T he cost is adjusted to accommodate private alternative loans that may exceed total aid ( 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).
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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. Includes income of independent student and spouse when applicable.
Program Funding
This section of the report reviews the latest Pel Grant program funding trends and reviews Pel
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
ability to carry over a surplus or shortfal of discretionary funding to subsequent fiscal years. This
section explores these concepts and the effect that they have on appropriations acts.
The Pel 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
amounts. There are two mandatory funding streams. The smal er mandatory funding stream
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
mandatory appropriation funds the mandatory add-on award amounts. Recent and historical
discretionary maximum award levels and mandatory add-on award levels are shown in Table 1
and Appendix A, respectively. Appendix C presents the three distinct funding streams and
enacting legislation since FY2008.
Funding provided for the Pel 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
(BBEDCA, Title II of P.L. 99-177, as amended).
Role of Discretionary Funding
Annual discretionary appropriations bil s provide the largest portion of funding for the Pel Grant
program, and this funding typical y remains available for use for two fiscal years. An annual
appropriation is usual y 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.49 Thus, while FY2021 funds are provided for the purpose of supporting awards made
from July 1, 2021, to June 30, 2022, these funds are available for obligation from October 1,
2020, to September 30, 2022, and may support multiple award years. This multiyear availability
al ows the discretionary appropriation to operate at a surplus or shortfal in any given year. In
addition, this multiyear availability al ows the program to operate as a quasi entitlement, making
grant payments to eligible students who apply for aid and enroll in eligible programs
notwithstanding the appropriation level available in any one year. As mentioned earlier, annual
discretionary appropriation bil s also establish the base discretionary maximum grant for eac h
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;
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
recently the FUTURE Act (P.L. 116-91) amended the HEA to provide specified mandatory
appropriations for the Pel Grant program to augment current and future discretionary
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 typical y
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
been infrequently provided for the Pel Grant program, but usual y to supplement discretionary
funding to pay for accumulated funding shortfal s.50
Permanent, Indefinite Mandatory Appropriations for the Add-On Award
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.51 Although the
mandatory appropriations that fund add-on award amounts are available permanently for such
sums as necessary, the amount provided for each year wil 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
mandatory appropriation levels from FY2008 to FY2017 to fund annual add-on award amounts. T he SAFRA Act
eliminated the specified mandatory appropriation levels for FY2010 and all subsequent years and replaced these levels
with indefinite mandatory appropriations, while revising the add-on award 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
add-on amount is determined and al funds are disbursed to eligible students. ED does, however,
estimate the amount of mandatory appropriations provided required to fund add-on award
amounts for the current and subsequent fiscal years.
Table 5. Pell Grant Funding (FY2017 to FY2026)
(dol ars in mil ions)
Funds Supporting
Funds Supporting Discretionary
Mandatory Add-On

Award Amounts
Award Amounts
Fiscal
Discretionary
Mandatory
Mandatory
Total
Yeara
Appropriationb
Appropriation
Subtotal
Appropriationc
Funding
2017
22,475
1,320
23,795
5,680
29,475
2018
22,475
1,334
23,809
5,997
29,806
2019
22,475
1,370
23,845
5,388
29,233
2020
22,475
1,405
23,880
5,571
29,451
2021
22,475
1,142
23,617
5,412
29,029
2022
TBD
1,170
TBD
SSAN
TBD
2023
TBD
1,170
TBD
SSAN
TBD
2024
TBD
1,170
TBD
SSAN
TBD
2025
TBD
1,170
TBD
SSAN
TBD
2026
TBD
1,170d
TBD
SSAN
TBD
Source: CRS analysis of the HEA, as amended, President’s budget FY2022, and respective appropriations
measures.
Notes: Totals may not add due to rounding;
TBD = to be determined;
SSAN = Such sums as necessary. In effect, this means the amount of mandatory appropriations that wil be
necessary to ful y fund the add-on award amount specified 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,
but the amount required in each year is indefinite and cannot be reported until the add-on amount is determined
and al funds are disbursed to eligible students.
For the specific amounts provided and rescinded by enacting legislation since FY2008, see Table C-1.
a. The fiscal year in this table represents the first year the funds appropriated in each column are available for
use. Most funds are available for two fiscal years.
b. This amount reflects the annual discretionary appropriation level and excludes any rescission of the Pel
Grant program cumulative surplus.
c. This is the estimated amount of mandatory appropriations required to increase the discretionary base
maximum grant by $1,060 in the fiscal year, as estimated in the President’s FY2022 budget.
d. Additional annual mandatory appropriations in the amount of $1,170,000,000 are also provided for each
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 Grant program is often referred to as a quasi-entitlement and has in some respects been
operated as an appropriated entitlement. An appropriated entitlement is a program that receives
mandatory funding in the annual appropriations acts, but the level of spending is not controlled
through the annual appropriations process.54 Instead, the level of mandatory spending for
appropriated entitlements, like other entitlements, is based on the benefit and eligibility criteria
established in law, and the amount provided in appropriations acts is based on meeting this
projected level. The Pel Grant program is not an entitlement because the program is primarily
funded through discretionary appropriations. In addition in the past, statutory benefit and
eligibility criteria were adjusted so that spending would not exceed appropriations. Final y, annual
Pel Grant discretionary appropriations are determined on the basis of estimates of program costs
and other policy considerations.
To the extent that the annual appropriation may be higher or lower than actual program costs, the
program may operate at a surplus or shortfal . The surplus or shortfal may accumulate over more
than one year. The HEA requires that the Secretary of Education, when he has determined that the
appropriated funds are insufficient to satisfy al Pel Grant entitlements,55 notify each chamber of
Congress of the funding shortfal , identifying how much more funding is needed to meet those
entitlements. The Secretary can respond to a shortfal in Pel Grant funding by al ocating funds
from the most recently enacted appropriation to pay for obligations incurred in previous award
years.56 For example, although the FY2019 appropriation is expected to fund award year 2019-
2020 program costs, the appropriation may fund award year 2018-2019 costs since obligations for
these costs occur in FY2019. This permits ED to use funds from multiple fiscal years’
appropriations to meet one award year’s cost.
The misalignment between estimated program costs (appropriations) and actual expenditures is
often related to economic and statutory changes. When the general economy weakens,
postsecondary enrollment often increases and thus Pel Grant participation and cost increases.
Table 6 provides a 5-year history of estimated shortfal or surplus levels, funding for the
discretionary award amounts, and estimated expenditures (Appendix D provides data from
FY1973 to FY2021). Although discretionary award amounts are funded by discretionary and
mandatory appropriations, the surplus or shortfal is accounted for using only discretionary
funding. The annual funding shortfal or surplus differs from the cumulative shortfal or surplus,
which may accumulate over multiple award years.57 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
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 funding. For a list of the applicable legislation and amounts, see Table C-1.
b. Al estimates of expenditures are subject to change.
c. The Consolidated Appropriations Act, 2017 (P.L. 115-31) rescinded $1.310 bil ion of the cumulative surplus.
d. The Department of Defense and Labor, Health and Human Services, and Education Appropriations Act,
2019 and Continuing Appropriations Act, 2019 (P.L. 115-245) rescinded $600 mil ion of the cumulative
surplus.
e. The Further Consolidated Appropriations Act, 2020 (P.L. 116-94) rescinded $500 mil ion from the
cumulative surplus.
f.
The Consolidated Appropriations Act, 2021 rescinded $500 mil ion 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 shortfal . An
increasing or high cumulative surplus may be viewed as presenting a potential opportunity. The
surplus may be viewed as representing a pot of available funding. The surplus may be invested
back into the Pel Grant program or it may be used to pursue other policy priorities. General y
speaking, spending across the federal government and for specific programs is controlled by
legislation 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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Pursuing Other Policy Priorities
The surplus may be used to fund or increase funding for other programs or to reduce a budget
deficit. Al or a portion of the surplus may be rescinded in an appropriations act. For example, the
Consolidated Appropriations Act, 2017 (P.L. 115-31) included a rescission of $1.3 bil ion from
the Pel Grant program surplus. The rescission offsets the cost of appropriations in the act.
Expanding the Pell Grant Program
Alternatively, there are several approaches for investing the surplus into the program or
expanding the program.
 Appropriations levels and statutory provisions may be maintained under the
assumption that Pel Grant program costs would eventual y use the surplus. For
example as the U.S. population grows, postsecondary enrollment and Pel Grant
participation may grow.
 Award levels for Pel Grant recipients may be increased in order to increase the
size of a Pel Grant. For example, the discretionary base maximum award was
increased from $4,860 in FY2009-FY2017 to $5,035 in FY2018.
 Student eligibility for Pel Grants may be expanded. For example, increasing the
discretionary base maximum award from $4,860 in FY2009-FY2017 to $5,035 in
FY2018 also increases the number of students who are eligible.
 Statutory provisions that establish Pel Grant award rules may be modified to
increase the amount of funds that some students may receive. For example, year-
round Pel Grants were reauthorized beginning in AY2017-2018.
 Statutory provisions that establish the calculation of EFC may be modified to
increase the numbers of students eligible for Pel Grants and other HEA Title IV
need-based financial aid.
 Statutory provisions that establish student eligibility for any HEA Title IV aid
programs may be amended to increase eligibility.
Enacted legislation that expands the Pel Grant program results in increased program costs.
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
increase both the discretionary and mandatory (direct) spending requirements. Such expansions
may be enacted through authorizing or appropriations acts.
Program Reauthorization
The Pel 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
2010 (PAYGO; P.L. 111-139) establishes a process that is intended to prevent new direct spending
and revenue laws from increasing the deficit.59 In effect, PAYGO requires that any legislation
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

59 For more information on PAYGO, see CRS Report R41157, The Statutory Pay-As-You-Go Act of 2010: Summary
and Legislative History; CBO, The Statutory Pay-As-You Go Act and the Role of the Congress, August 18, 2020,
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
with exceptions, individual program-level discretionary appropriations within the annual
Departments of Labor, Health and Human Services, and Education, and Related Agencies
appropriations bil must be balanced within its established 302(b) al ocation. In other words,
increased discretionary appropriations for one program may coincide with decreased
discretionary appropriations for one or more other programs.
In accordance with budget enforcement mechanisms, substantive changes to or restrictions on
mandatory spending in appropriations laws are scored against the 302(b) discretionary al ocations
that apply to the budget year in appropriations bil s. Provisions that make substantive changes to
mandatory spending programs are cal ed changes in mandatory program spending (CHIMPS). In
other words, CHIMPS are scored as discretionary spending that along with al of the other
discretionary spending in the appropriations bil must not exceed the 302(b) al ocations. (Those
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.)
In response to these budget enforcement mechanisms for appropriations laws, recent substantive
Pel Grant program changes that increased the estimated mandatory spending for the add-on
award have been offset by a decrease in the Pel Grant mandatory appropriations to augment
discretionary funding in the budget year of the appropriations law.62 For example, the
Consolidated Appropriations Act, 2017 (P.L. 115-31) enacted year-round Pel Grants, increasing
estimated direct spending for the mandatory add-on award in FY2017 and every year thereafter.
As a consequence, P.L. 115-31 rescinded $254 mil ion of the FY2017 specified mandatory
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-
FY2021 appropriations acts increased the discretionary base maximum award level. General y
speaking, an increase in the discretionary base maximum award level increases program
eligibility and results in an increase in direct spending for the mandatory add-on award. As a
result, each of the FY2018-FY2021 appropriations acts rescinded a portion of the specified
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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Policy Implications and Measures to Address Funding Shortfalls
For the most part, funding shortfal s in the Pel Grant program have been recognized as common
occurrences. Persistent or high funding shortfal s, as in FY2010, may be viewed as fiscal y
irresponsible. In essence when there is a shortfal , the program is in debt, and eventual y the debt
must be paid. The higher the debt level, the more difficult it is to resolve. As a result of the 302(b)
al ocations, resolving a Pel Grant program shortfal may lead to a difficult decision about which
program(s) to reduce discretionary funding for.
Over the years, federal policymakers and Congress have taken a variety of measures to address
the vexing issues associated with funding shortfal s in the Pel Grant program. The measures have
included modified budget scoring, reductions in students’ awards, recipient caps, reductions in
program costs, and supplemental appropriations.
Reductions in Students’ Awards and Recipient Caps Before 1992
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
HEA to reduce awards to respond to a shortfal in appropriated funds.63 Reductions were made in
awards in eight years using this authority (the last in AY1990-AY1991). After this HEA authority
was repealed, appropriations legislation for FY1994-FY2001 continued to provide the Secretary
with reduction authority, but that authority was not used.64 FY2002 and subsequent appropriations
legislation have not included such language.
CBO Scoring Rule
Congress took steps in FY2006 to limit the possibility of large accumulated funding shortfal s in
the future. H.Con.Res. 95 (109th Congress) established a permanent rule that applies to the
scoring65 of the Pel Grant program by the Congressional Budget Office (CBO). The rule provides
that if the appropriation of new discretionary budget authority66 enacted for the program is
insufficient to cover the full estimated costs in the upcoming year—including any funding surplus
or shortfal from prior years—the budget authority counted against the bil for the program wil
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 eligibility criteria. For most

63 Some form of authority to reduce awards was 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 reducti on in
awards only within certain limits. No award could be reduced for students whose expected family contribution (EFC)
was $200 or less (i.e., the awards for the neediest students would be protected). A schedule of reductions for other
awards had to use a single linear reduction form ula that applied uniformly. No award could be made to a student whose
initial award was reduced to less than $100 under the reduction formula. T he original language creating the Basic
Educational Opportunity Grants (BEOG), the predecessor to Pell Grants, in the Education Amendments of 1972
allowed for payments on a pro rata reduced basis and specified a minimum grant of $50 whenever the program was less
than fully funded.
64 T he appropriations legislation during this time period required the Secretary to reduce awards using fixed or variable
percentages, or using a fixed dollar reduction, if, prior to issuing the payment schedules, he or she determined that
appropriated funds could not fully fund the appropriated maximum grant. A schedule of reduced grants would then be
published.
65 CBO keeps score for Congress by monitoring the results of congressional action on individual authorization,
appropriation, and revenue bills against budget authority and outlay targets that are specified in the concurrent
resolutions.
66 Budget authority is defined as the broad responsibility conferred by Congress that empowers government agencies to
spend federal funds.
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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
increase in Pel Grant program costs and thus reduce or eliminate a shortfal .
 The discretionary maximum award level has been reduced or not increased.
 Statutory provisions that establish Pel Grant award rules have been modified to
reduce the amount of funds that some students may receive. For example, year-
round Pel Grants were eliminated beginning in AY2011-2012.
 Statutory provisions that establish Pel Grant eligibility have been modified to
reduce the number of recipients. For example, the qualifying minimum award
amount was increased beginning in AY2012-2013.
 Statutory provisions that establish the calculation of EFC have been modified to
reduce the numbers of students eligible for Pel Grants and other HEA Title IV
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
number of students receiving an automatic zero EFC.
 Statutory provision that establish student eligibility for any HEA Title IV aid
programs have been amended to reduce eligibility. For example, the ability of
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,
2014.
Supplementary Appropriations
In addition to reducing program costs or in lieu of reducing program costs to reduce or eliminate
a funding shortfal , legislation has provided supplementary appropriations to address the CBO
scoring rule.
 Supplementary mandatory appropriations have been provided for general use in
the program, often by generating savings in the Direct Loan program that is
funded by mandatory budget authority.
 Supplementary discretionary appropriations have been provided during periods
of expansionary fiscal policy such as through the American Recovery and
Reinvestment Act (ARRA; P.L. 111-5).
In addition to supplementary appropriations, the regular discretionary appropriations amount may
be increased.
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Estimated Program Costs for Recent and
Future Years
Grant payments are made to eligible students who apply for aid and enroll in eligible programs
notwithstanding the prescribed appropriation levels in any one year in such a way that some liken
the program to a quasi entitlement. Costs for the Pel Grant program are award year-specific and
are primarily affected by the number of eligible students who apply for aid and enroll in eligible
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
methodology and award rules. As discussed earlier, the total maximum award amount is
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.
The Congressional Budget Office reports and estimates program costs at least annual y. Table 7
provides a summary of current and future estimated Pel Grant program costs from AY2017-2018
through AY2026-2027, as of February 2021. Costs associated with the discretionary base
maximum award and costs associated with the mandatory add-on award are specified. Table 7
shows a dip in costs in AY2020-2021 that followed fairly level but higher costs during the
AY2017-2018 to AY2019-2020 period and that precedes an estimated period of ever increasing
costs thereafter.
From AY2017-2018 to AY2019-2020, the number of Pel Grant recipients decreased annual y
(Table 2) although the total maximum award amount increased annual y since AY2017-2018
(Table A-1). Declining undergraduate enrollment in degree-granting postsecondary institutions
from 16.8 mil ion in 2017 to 16.6 mil ion in 2019 is reflected in a reduction of Pel Grant
recipients.67
Program costs after AY2020-2021 are estimated to increase (Table 7). The increase would
primarily be a result of an estimated increase in the number of Pel Grant recipients. The CBO
baseline does not account for any potential change in the total maximum Pel Grant award after
the AY2021-2022 discretionary maximum award increase included in the Consolidated
Appropriations Act, 2021 (P.L. 116-260).
Table 7. Estimated Pell Grant Program Costs, AY2017-2018 to AY2026-2027
(dol ars in bil ions)
Cost Associated with
Cost Associated with
Discretionary Award
Mandatory Award
Award Year (AY)
Levels
Levels
Total Program Cost
AY2017-2018
22.8
5.9
28.6
AY2018-2019
22.7
6.1
28.8
AY2019-2020
22.7
5.9
28.7
AY2020-2021
21.5
5.5
27.0
AY2021-2022
23.7
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 dated June 2017, April
2018, May 2019, March 2020, and February 2021.
Notes: Estimates of program costs are not adjusted for inflation and are subject to change. Costs for AY2022-
2023 and subsequent years assume the discretionary base maximum award and mandatory add -on award remain
at the FY2021 levels.

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

Award Year
Pell Grant Recipients
Annual Change
% Change
2004-2005
5,308,000
168,000
3.27%
2005-2006
5,168,000
(140,000)
(2.64%)
2006-2007
5,165,000
(3,000)
(0.06%)
2007-2008
5,543,000
378,000
7.32%
2008-2009
6,157,000
614,000
11.08%
2009-2010
8,094,000
1,937,000
31.46%
2010-2011
9,308,000
1,214,000
15.00%
2011-2012
9,444,000
136,000
1.46%
2012-2013
8,959,000
(486,000)
(5.14%)
2013-2014
8,663,000
(296,000)
(3.30%)
2014-2015
8,316,000
(347,000)
(4.01%)
2015-2016
7,660,000
(655,000)
(7.88%)
2016-2017
7,195,000
(465,000)
(6.07%)
2017-2018
7,111,000
(84,000)
(1.16%)
2018-2019
6,863,000
(248,000)
(3.49%)
2019-2020
6,746,000
(117,000)
(1.71%)
Source: U.S. Department of Education, AY2017-18 Pel Grant End-of-Year Report; and President’s budget FY2022.
Note: Recipient figures rounded to the nearest thousand. Numbers in parentheses are negative numbers.

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

Discretionary Appropriations
Annual Appropriations
14,215 17,288 17,495 22,956 22,824 22,778 22,778 22,475 22,475 22,475 22,475 22,475 22,475 22,475
ARRA
— 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
Mandatory Appropriations Provided to Augment Discretionary Appropriations
SAFRA Act
—
—
— 13,500
—
—
—
—
—
—
—
—
—
—
FY2011 Continuing
Appropriations Act
—
—
—
—
3,183
0
0
0
0
1,060
1,125
1,125
1,140
1,145b
Budget Control Act of 2011
—
—
—
— 10,000
7,000
—
—
—
—
—
—
—
—
FY2012 Consolidated
Appropriations Act
—
—
—
—
612
587
588
0
0
514
257
284
290
0
Consolidated Appropriations
Act, 2017
—
—
—
—
—
—
—
—
—
(254)
—
—
—
—
Consolidated Appropriations
Act, 2018
—
—
—
—
—
—
—
—
—
—
(48)
—
—
—
Department of Defense and
Labor, Health and Human
Services, and Education
Appropriations Act, 2019 and
Continuing Appropriations
Act, 2019
—
—
—
—
—
—
—
—
—
—
—
(39)
—
—
FUTURE Act

25
25c
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Fiscal Yeara
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Further Consolidated
Appropriations Act, 2020

(50)

Consolidated Appropriations
Act, 2021

(28)
Total Mandatory to
Augment Discretionary
—
—
— 13,500 13,795 7,587
588
0
0
1,320
1,334 1,370
1,405 1,142
Mandatory Appropriations Provided to Fund Add-On Award Amounts
CCRAA
2,041d
2,090
3,030
3,090
5,050
105
4,305
4,400
4,600
4,900
—
—
—
—
ARRA
—
643
831
—
—
—
—
—
—
—
—
—
—
—
FY2009 Technical
Amendments to the HEA
—
—
—
—
—
153
—
152
—
—
—
—
—
—
SAFRA Acte
—
— (3,861) (3,090) (5,050)
(258) (4,305) (4,452) (4,600) (4,900)
—
—
—
—
SAFRA Acte
—
—
5,300f
5,560g
4,950h
4,854i 4,835j
5,153k
4,840l 5,680m 5,997m 5,388m 5,571m 5,412m
Total Mandatory for Add-
On Awards
2,041
2,733
5,300 5,560
4,950
4,854
4,835
5,153
4,840
5,680
5,997
5,388
5,571
5,412
Total Pell Grant 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 29,233 29,451 29,029
Source: CRS analysis of the HEA; respective legislation; and President’s budget, FY2015-FY2022.
Notes: “—” means that no appropriations were provided beyond the year(s) specified. Numbers in parentheses are negative numbers.
a. The fiscal year in this table represents the first year the funds appropriated in each column are available for use. Most fun ds 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 FY2021 per the FY2011 Continuing
Appropriations Act.
c. Additional annual mandatory appropriations in the amount of $1,145,000,000 are also provided for each succeeding year beyond FY2021 per the FUTURE Act (P.L.
116-91).
d. Includes $11 mil ion for the elimination of the tuition sensitivity rule in AY2007-2008.
e. The SAFRA Act rescinded advance appropriation provided in the CCRAA, ARRA, and FY2009 T echnical Amendments to the HEA. The SAFRA Act provided
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.
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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 FY2015 budget.
g. This is the amount of mandatory appropriations required for a $690 mandatory add-on award in AY2011-2012, as reported in the President’s 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’s FY2017 budget.
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 FY2018 budget.
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 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 FY2020 budget.
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 FY2021 budget.
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.

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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)
Funds Available for
Cumulative
Fiscal
the Discretionary Estimated Total Annual Surplus
Surplus or
Year
Award Year
Award Level
Expendituresa
or (Shortfall)b
(Shortfall)
1973
1973-1974
$122
$48
$74
N/A
1974
1974-1975
475
358
117
N/A
1975
1975-1976
840
926
(86)
N/A
1976
1976-1977
1,326
1,475
(149)
N/A
1977
1977-1978
1,904
1,524
380
N/A
1978
1978-1979
2,160
1,541
619
N/A
1979
1979-1980
2,431
2,357
74
N/A
1980
1980-1981
2,157
2,387
(230)
N/A
1981
1981-1982
2,604
2,300
304
N/A
1982
1982-1983
2,419
2,421
(2)
N/A
1983
1983-1984
2,419
2,797
(378)
N/A
1984
1984-1985
2,800
3,053
(253)
N/A
1985
1985-1986
3,862
3,597
265
N/A
1986
1986-1987
3,580
3,460
120
N/A
1987
1987-1988
4,187
3,754
433
N/A
1988
1988-1989
4,260
4,476
(216)
N/A
1989
1989-1990
4,484
4,770
(75)
($75)
1990
1990-1991
4,804
4,904
(231)
(306)
1991
1991-1992
5,376
5,772
(396)
(702)
1992
1992-1993
5,503
6,156
18
(684)
1993
1993-1994
6,462
5,621
460
(224)
1994
1994-1995
6,637
5,504
808
584
1995
1995-1996
6,147
5,466
716
1,300
1996
1996-1997
4,914
5,784
(870)
429
1997
1997-1998
5,919
6,315
(396)
33
1998
1998-1999
7,345
7,236
109
142
1999
1999-2000
7,704
7,233
471
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
2000-2001
7,640
7,996
(356)
256
2001
2001-2002
8,756
9,985
(1,229)
(908)
2002
2002-2003
10,314
11,653
(1,339)
(1,247)c
2003
2003-2004
11,365
12,713
(1,348)
(2,595)
2004
2004-2005
12,007
13,152
(1,145)
(3,740)
2005
2005-2006
12,365
12,695
(330)
(4,070)
2006
2006-2007
13,045
12,825
220
220d
2007
2007-2008
13,661
14,699
(1,038)
(818)
2008
2008-2009
14,215e
16,054
(1,839)
(2,657)
2009
2009-2010
32,928e
26,844
6,084
3,427
2010
2010-2011
17,495e
30,491
(12,996)
(9,569)
2011
2011-2012
36,456e
28,796
7,660
(1,909)
2012
2012-2013
36,619e
27,512
9,107
7,198
2013
2013-2014
30,365e
26,481
3,884
11,082
2014
2014-2015
23,366e
25,320
(1,954)
9,128
2015
2015-2016
22,475e
23,361
(886)
8,242
2016
2016-2017
22,475e
22,808
(333)
7,754
2017
2017-2018
23,795e
22,773
1,022
9,007f
2018
2018-2019
23,809e
22,692
1,117
10,124
2019
2019-2020
23,845e
22,746
1,099
10,623g
2020
2020-2021
23,880e
21,483
2,397
12,520h
2021
2021-2022
23,618e
23,654
(36)
11,983i
Sources: (1) U.S. Department of Education (ED), AY2010-11 Federal Pel Grant Program End-of-Year Report; (2)
unpublished data provided by ED; (3) data provided by CBO in May 2013, April 2014, and March 2015 ; March
2016; June 2017, April 2018, May 2019, March 2020, and February 2021 ; and (4) respective appropriations
measures.
Notes: N/A = not available. Numbers in parentheses are negative numbers. Data on the cumulative shortfal or
surplus prior to AY1989-1990 could not be verified and therefore are not provided. Prior to 1980, the program
was cal ed 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.
Department of Education, AY2009-10 Federal Pel Grant Program End-of-Year Report and do not include
administrative cost al owance payments to institutions. The expenditure totals for AY1989 -1990 to
AY2005-2006 are taken from unpublished data provided by ED and reflect administrative cost al owance
payments to institutions. Estimates of al data after AY2005-2006 are provided by CBO and also include
administrative cost al owance payments to institutions. Al estimates of expenditures are subject to change.
In years in which mandatory appropriations were available to fund the discretionary award levels,
expenditures include discretionary and mandatory appropriations.
b. The annual shortfal or surplus amount reflects account transfers and other adjustments and may not equal
the difference between the annual appropriation and estimated total expenditures in each year.
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Federal Pell Grant Program of the Higher Education Act: Primer

c. The 2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks
on the United States (P.L. 107-206) provided $1.000 bil ion in supplemental discretionary funding to pay for
the FY2001 Pel Grant cumulative shortfal .
d. The Departments of Labor, Health and Human Services, and Education, and Related Agencies
Appropriations Act, 2006 (P.L. 109-149) appropriated $4.300 bil ion in mandatory funding for a one-time
elimination of the estimated funding shortfal through AY2005-2006 in accordance with §303 of H.Con.Res.
95, the FY2006 budget resolution. The mandatory funds that exceeded the actual cumulative funding
shortfal were returned to the U.S. Department of the Treasury.
e. This number includes annual discretionary appropriations and may include additional mandatory and
discretionary funding. For a list of the applicable legislation and amounts, see Table C-1.
f.
The Consolidated Appropriations Act, 2017 (P.L. 115-31) rescinded $1.310 bil ion of the cumulative surplus.
g. The Department of Defense and Labor, Health and Human Services, and Education Appropriations Act,
2019 and Continuing Appropriations Act, 2019 (P.L. 115-245) rescinded $600 mil ion of the cumulative
surplus.
h. The Further Consolidated Appropriations Act, 2020 (P.L. 116-94) rescinded $500 mil ion from the
cumulative surplus.
i.
The Consolidated Appropriations Act, 2021 rescinded $500 mil ion from the cumulative surplus.
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Federal Pell Grant Program of the Higher Education Act: Primer

Appendix E. Glossary/Acronyms
ARRA
American Recovery and Reinvestment Act (P.L. 111-5)
CBO
Congressional Budget Office
CCRAA
College Cost Reduction and Access Act of 2007 (P.L. 110-84)
COA
Cost of Attendance
Direct Loan
Wil iam D. Ford Direct Loan program
ED
U.S. Department of Education
EFC
Expected Family Contribution
FAFSA
Free Application for Federal Student Aid
HEA
Higher Education Act of 1965 (P.L. 89-329), as amended
HEOA
Higher Education Opportunity Act of 2008 (P.L. 110-315)
IHE
Institution of Higher Education
ISIR
Institutional Student Information Record
NPSAS
U.S. Department of Education, National Postsecondary Student Aid
Study
Private for-profit
Sometimes referred to as proprietary
SAFRA Act
Title II-A of the Health Care and Education Reconciliation Act of 2010
(P.L. 111-152)

Author Information

Cassandria Dortch

Specialist in Education Policy

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Federal Pell Grant Program of the Higher Education Act: Primer

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
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Congressional Research Service
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