S 4859: Pell Grant Preservation and Expansion Act of 2026

S 4859 in plain English: This bill would significantly increase the maximum Federal Pell Grant award in steps from $10,000 in 2026–2027 up to $15,000 by 2031–2032, with annual inflation adjustments thereafter. It also includes a provision that would make Dreamer students eligible for federal student aid.

Stated purpose

This bill aims to improve the Federal Pell Grant program by doubling the maximum grant amount, making it a permanent mandatory funding source, expanding eligibility to more students, and ensuring the grant grows with inflation over time.

Key points

• Raises the maximum Pell Grant to $10,000 in 2026–2027, increasing annually to $15,000 by 2031–2032
• After 2031–2032, the $15,000 maximum would be adjusted each year for inflation and rounded to the nearest $50
• Sets the student aid index at -$1,500 for certain applicants, potentially increasing their grant amounts
• Extends federal student aid eligibility to Dreamer students

Arguments supporters make

• The Pell Grant has lost purchasing power over time and doubling it would help low-income students actually afford college rather than taking on heavy debt.
• Making Pell a mandatory program with inflation adjustments gives students and families a stable, predictable source of aid they can count on from year to year.
• Expanding eligibility to Dreamers and restoring prior cuts would open college access to millions of students who are currently shut out or penalized.

Arguments opponents make

• Doubling the grant and switching to mandatory funding would add a very large and permanent cost to the federal budget without a clear way to pay for it.
• Greatly increasing grant amounts could allow colleges to raise tuition in response, potentially canceling out students' gains and benefiting institutions more than students.
• Extending eligibility to undocumented students is a significant policy shift that critics argue should go through a broader immigration debate rather than a student aid bill.

Tradeoffs

Expanding and guaranteeing Pell Grant funding would give more students access to affordable higher education, but it commits the federal government to a large, automatically growing mandatory spending obligation. Restoring and broadening eligibility helps previously excluded groups but increases program costs further, creating tension between wider access and long-term fiscal sustainability.

Current status in Congress: In committee.