Reported by The Education Magazine | 4 February 2026
The U.S. Congress has passed the 2026 Education Budget, ending a partial government shutdown and delivering a major financial boost for students and families. President Trump signed the budget into law on February 3, 2026, officially securing the expansion of federal student aid.
The approved budget includes a significant expansion of the Pell Grant program, making 1.7 million additional students eligible for the maximum federal grant beginning in the 2026 academic year.
According to the official 2026-27 Federal Pell Grant Award Schedule, the maximum award remains at $7,395, though the eligibility pool has widened.
Education officials say the move is designed to improve college affordability at a time when millions of families are completing FAFSA applications.
2026 Pell Grant Quick Reference Table
The following data reflects the final 2026-27 award year figures confirmed by the Department of Education.
| Category | 2025-26 Award Year | 2026-27 Award Year (Current) |
| Maximum Award Amount | $7,395 | $7,395 |
| Minimum Award Amount | $740 | $740 |
| SAI Eligibility Cutoff | Max Pell SAI Limit | 2x Max Pell ($14,790) |
| New Eligible Students | — | 1.7 Million |
What Changed in The 2026 Education Budget
The Pell Grant is the largest federal grant program for low-income undergraduate students in the United States.
Under the newly approved budget, eligibility rules have been adjusted to allow more students to qualify for the full Pell Grant amount, rather than partial aid. These changes align with the One Big Beautiful Bill Act, which modifies the Student Aid Index (SAI) to exclude specific assets like small family farms.
According to the U.S. Department of Education, the changes are expected to expand access for students from low- and middle-income households who were previously just above eligibility thresholds.
Who Benefits From The Pell Grant Expansion?
The expansion primarily affects:
- Students from families with lower adjusted gross incomes
- First-generation college students
- Community college and public university students
- Adults returning to education
Officials confirmed that students who already qualify for Pell Grants may also see higher award amounts, depending on household income and enrollment status.
Why This Matters During FAFSA Season
The timing of the budget approval is especially important, as millions of students and parents are currently submitting or updating FAFSA applications.
Financial aid experts say the expanded eligibility could:
- Reduce out-of-pocket tuition costs
- Lower reliance on student loans, following the latest U.S. student loan update for 2026
- Improve college enrollment and persistence rates
This focus on student success aligns with other major academic initiatives, such as CMU’s $55M Learnvia AI project, which aims to support students in the very gateway courses these grants help them afford. The Pell Grant does not need to be repaid, making it one of the most impactful forms of federal student aid.
A Broader Push to Improve College Affordability
The Pell Grant expansion is part of a wider federal effort to address rising higher education costs and student debt.
Education leaders argue that increasing grant access is more effective than relying solely on loans, particularly for students from disadvantaged backgrounds.
While the policy applies only to the United States, global education analysts note that similar affordability measures are being explored in other countries facing enrollment and access challenges.
What Happens Next
The Department of Education is expected to release updated Pell Grant eligibility tables and FAFSA guidance reflecting the new budget rules.
Students are encouraged to complete or revise their FAFSA forms to ensure they receive the maximum aid available for the 2026 academic year.
FAQs
- Do students need to reapply to receive the expanded Pell Grant?
Students must complete the FAFSA, but no separate application is required for the expanded eligibility.
- When will the higher Pell Grant amounts take effect?
The changes apply to the 2026 academic year, following implementation of the approved budget.
