Pell Grant Funding

Given its importance, I wanted to provide an update on recent action in the House of Representatives regarding the Pell Grant program.

As you may know, the Balanced Budget Act of 1997 raised the maximum Pell Grant award to $5,800 annually by 2004. In taking a step toward reaching that goal, last year, Congress raised the maximum grant award to $4,000. A combination of increased program costs, a larger than expected increase in qualifying applicants and challenges to the American economy after September 11 resulted in a significant shortfall for the Pell Grant program. The Fiscal Year 2002 Supplemental Appropriations Act, H.R. 4775, includes $1 billion to avert this shortfall. This funding ensures that all eligible students will receive the necessary assistance without decreasing the current maximum grant award. H.R. 4775 was approved by the House of Representatives on May 24, 2002 with wide bipartisan support, 280-138.

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Please see also:

Financing a College Education