Congress unlikely to enact ‘absolutely devastating’ Trump proposal

Shauneen Miranda, Oregon Capital Chronicle
28 June
U.S. President Donald Trump attends a meeting of the North Atlantic Council (NAC) during a NATO summit in The Hague, Netherlands June 25, 2025. REUTERS/Toby Melville

WASHINGTON — President Donald Trump wants to cut nearly $1,700 from the maximum Pell Grant award as part of his fiscal 2026 budget request — a move that would leave the subsidy for low-income students at its lowest level in more than a decade.

The proposal would have a devastating effect on college affordability and drive up costs for states because they’d have to fill in the missing federal dollars, education advocates and experts say.

The request — part of the president’s wish list for appropriations in fiscal 2026 — faces steep odds in Congress, where key members of both parties responded to the proposal with alarm.

“I don’t want to cut the Pell Grant,” U.S. Sen. Shelley Moore Capito, a West Virginia Republican and chair of the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, told States Newsroom.

“I’m concerned about that — I’m hoping that we’ll get that resolved,” she said.

Opposition from Capito, whose panel writes the annual bill to fund the Education Department, makes Trump’s wish unlikely to make its way into the upcoming legislation.

The Pell Grant is a government subsidy that helps low-income students pay for college and is the foundation of federal student aid in the United States.

Catherine Brown, senior policy and advocacy director at the National College Attainment Network, said the cut would be “absolutely devastating,” noting that “college is already out of reach for millions upon millions of low-income students.”

Funding gap

The Pell Grant program is seeing a projected budget shortfall of $2.7 billion heading into the next fiscal year, according to the nonpartisan Congressional Budget Office. The administration has cited the shortfall as a reason to decrease the maximum award.

The request calls for reducing the maximum Pell Grant for the 2026-2027 award year from $7,395 to $5,710. The last time the maximum award stood below this level was during the 2013-2014 award year, at $5,645.

Trump’s fiscal 2026 budget request includes $12 billion in total cuts to the Education Department as he and his administration seek to dismantle the agency and dramatically reshape the federal role in education.

Democrats: Cut would be ‘crazy’

Democrats have raised strong opposition, while even the Republican chair of the House Appropriations subcommittee that oversees Education Department funding was noncommittal about pursuing Pell Grant cuts.

“We want to make sure that (Pell Grants are) serving the people they need to,” Rep. Robert Aderholt of Alabama said when asked about any concerns he has on the proposed cut.

Aderholt said he’s hearing “a lot” from his constituents about the proposed reduction, and that it’s “certainly something we’re going to look at.”

Meanwhile, the leading Democrats on the House and Senate education spending panels were quick to blast the proposed cut.

Rep. Rosa DeLauro, ranking member of the full House Appropriations Committee and the education spending subcommittee, called the nearly $1,700 reduction “crazy.”

“People are not going to be able to do it, and that’s the tragedy of what they’re doing here is dismantling all of the constructs that are there to provide people particularly with public education and a pathway to success,” the Connecticut Democrat said.

“You take away Federal Work-Study, you lower the Pell Grant, that says to me, you want to destroy public education,” DeLauro said.

The budget request proposes slashing $980 million of Federal Work-Study funding and requiring employers to pay 75% of students’ hourly wages, with the government contributing 25%.

The program gives part-time employment to students with financial need in order to help cover the cost of college.

Sen. Tammy Baldwin, ranking member of the Senate subcommittee, said she “strongly” opposes the proposed reduction.

The Wisconsin Democrat said she also recognizes that “there’s a looming shortfall in Pell funding that we need to address.”

“I am hopeful that we’ll be able to work together to do that,” Baldwin said.

Advocates, experts weigh in

Higher education advocates and experts are also sounding the alarm on the proposed reduction, both over the harm to low-income students’ access to higher education and the impact on states and colleges.

“This would just much further exacerbate that gap and drive millions of students out of pursuing post-secondary education or set them on a different path,” Brown, with the National College Attainment Network, said.

Katharine Meyer, a governance studies fellow at the Brown Center on Education Policy at the nonpartisan Brookings Institution, described the proposed decline as “truly unprecedented.”

She added that when the Pell Grant is smaller, states have to spend more on higher education, creating a challenge for state officials potentially grappling with other cuts in federal support in the budget reconciliation package Republicans are scrambling to pass.

“States don’t necessarily have the flexibility to spend more money when they have budgets that they need to balance, and they’re facing other federal constraints, including potentially having to take on additional health care costs depending on what happens with health care negotiations in budget reconciliation,” she said.

Capito also said she thought a reduction to Pell Grants would ripple out to the state level.

At the institutional level, Meyer pointed out that if a state has a smaller bucket to allocate for higher education but wants to prioritize financial aid, it would “come at the cost of” the money appropriated to universities.

“Then institutions are not going to be able to spend as much on their operating funds,” she said. “They’re not going to be able to do capital improvement campaigns, which are often very necessary.”

Ties to reconciliation bill

House Republicans have also proposed major changes to Pell Grant eligibility as part of GOP lawmakers’ separate “big, beautiful bill.” The legislative package would slash billions of dollars in federal programs to offset the cost of other parts of Trump’s agenda, including extending the 2017 tax cuts and boosting border security funding.

GOP lawmakers are using the complex reconciliation process to move a package through Congress with simple majority votes in each chamber and avoid the Senate’s 60-vote threshold that generally requires bipartisanship.

The House narrowly passed its version of the reconciliation package in late May. That measure included a provision that would raise the minimum number of credit hours to qualify for the maximum Pell Grant award from 12 per semester to 15. The move would save $7.1 billion in federal spending over 10 years, the Congressional Budget Office estimated.

That new eligibility requirement is not included in the draft proposal for the reconciliation package that Republicans on the Senate Committee on Health, Education, Labor and Pensions released in June.

New Hampshire Bulletin is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. New Hampshire Bulletin maintains editorial independence. Contact Editor Dana Wormald for questions: info@newhampshirebulletin.com.

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