Lawmakers Spar Over Proposed Pell Grant Eligibility Cuts
Credit: RobertDodge / E+ / Getty Images- Republicans in the U.S. House of Representatives are trying to cut more than $330 billion in education spending by slashing federal student aid programs.
- The House Republican proposal would cut Pell Grant spending by increasing the number of credits a student must earn annually to qualify for a Pell Grant.
- Democrats on the House Committee on Education and the Workforce said eligibility restrictions would hurt low-income college students.
- Republicans said eligibility restrictions would address a projected funding shortfall for the Pell Grant program.
A new Republican proposal to limit federal Pell Grant eligibility is drawing the ire of Democratic lawmakers who say it will disproportionately impact low-income college students.
The House Committee on Education and the Workforce on April 29 unveiled a draft spending plan that would cut more than $330 billion in education spending in part by changing eligibility to the Pell Grant program.
The proposal would increase the number of credits a student must earn annually to qualify for a Pell Grant, and less-than-half-time students would no longer qualify for the grant at all.
Republicans said the move would help sustain the Pell Grant program, while Democrats said it would unfairly harm college students juggling a college education with other responsibilities like work or caretaking.
“Regardless of what they pursue, [students] need the flexibility to be able to still receive these grants and advance their education,” Democratic Rep. John Mannion of New York said during the meeting.
The proposal would require undergraduate students to complete at least 30 credits each year to qualify for Pell. Currently, students only need to enroll in 12 credits per semester to qualify for the full award.
Students enrolled in fewer than 30 hours annually can still qualify for a Pell Grant, but the amount awarded would be reduced proportionally.
Rep. Bobby Scott, the Democratic ranking member from Virginia, proposed an amendment to remove the section from the proposal limiting full-time eligibility. His amendment failed to pass the committee, despite drawing support from Democratic lawmakers.
Rep. Suzanne Bonamici, a Democrat representing Oregon, said increasing the number of credits required would affect approximately 20% of current Pell Grant recipients.
She added that many students enrolled 12 credits per semester may have work responsibilities limiting their ability to increase their courseload. This is especially true for many students attending community colleges, Bonamici said, so these two-year colleges will be harmed.
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Rep. Michael Baumgartner, a Republican representing Washington, said limiting Pell Grant eligibility is necessary to maintain the program. He cited the Congressional Budget Office’s (CBO) recent projection anticipating a $2.7 billion funding deficit for the Pell Grant program by 2026.
“The Pell Grant program is in crisis,” Baumgartner said. “If Congress does not act to make Pell Grants sustainable, there will not be another option [other] than drastic cuts.”
He said other aspects of the Republican proposal, modeled after the College Cost Reduction Act, aim to decrease college tuition costs. If successful, this will benefit the Pell Grant’s purchasing power, he said.
This budget proposal would also take Pell Grant eligibility away from students enrolled less than half time.
Currently, students enrolled less than half time (fewer than six credit hours in a term) can qualify for reduced Pell Grant awards, according to Federal Student Aid. Under the Republican proposal, students wouldn’t qualify for any Pell Grant award if they are enrolled for five credits or fewer in a semester.
Rep. Ilhan Omar, a Democrat representing Minnesota, proposed an amendment to take away this eligibility restriction. She said the measure would impact an estimated 912,000 recipients, primarily at community colleges.
“This Republican proposal would force them to make that impossible choice,” Omar said.
Her amendment also failed.
The budget reconciliation process is expected to take multiple months, as both chambers of Congress must agree on a unified spending plan.
While the House of Representatives is looking to cut approximately $330 billion in education spending over the next decade, the Senate Health, Education, Labor and Pensions Committee is tasked with cutting just $1 billion.
The House proposal sets an implementation date of July 1, 2025, for the Pell Grant eligibility changes.
Tightening Pell Grant eligibility is expected to save the federal government $10 billion over the next decade, according to the Committee for a Responsible Federal Budget.