Pell Grant awards increase by $500 after Biden signs omnibus spending bill
Jeremiah Poff
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Federal Pell Grants will increase by $500 in 2023 following the passage of the federal omnibus spending bill signed by President Joe Biden last week.
The spending bill increased the maximum individual award for Pell Grants to nearly $7,400 for 2023, a $500 increase from the 2022 award of $6,895. The grants are only available to low-income students pursuing an undergraduate, graduate, or professional degree.
BIDEN SIGNS $1.7 TRILLION OMNIBUS FUNDING BILL INTO LAW
The increase in funding was celebrated by Education Secretary Miguel Cardona, who noted the increase to the grant was the largest in 10 years. The latest funding jump follows a $400 increase in 2022, a year in which more than 6 million students received Pell Grants, in line with recent trends.
“This lays the groundwork for doubling the grant by 2029,” Cardona said in a statement. “The Department will continue assessing funding approved for Federal Student Aid operations and remains committed to providing reliable access to federal aid, including Pell Grants. We are also committed to delivering a better-functioning and more equitable student loan system that makes higher education more affordable and attainable for all borrowers.”
The increase comes as the Biden administration is seeking to cancel $20,000 in student loans for borrowers who received Pell Grants and have a yearly income below $125,000. Borrowers who did not receive Pell Grants but fall below the income threshold are eligible for $10,000 in loan forgiveness.
Legal challenges have stalled the plan, but the Supreme Court is slated to hear arguments over the legality of the program next month. A decision is expected sometime before the end of June.
The $1.7 trillion spending bill also contained several other new education-related expenditures, including a 5% increase in Title I funding, which funds schools with a high percentage of low-income students. The program now has a 2023 budget of $18.4 billion, which Cardona said was “important progress toward this Administration’s commitment to triple Title I funding.”
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Other education-related funding included in the spending bill was a $900 million increase in funding for grants for students with disabilities. The Summer Electronic Benefit Transfer Program, which provided additional grocery benefits for families with children eligible for subsidized school meals during summer months, was also made permanent after initially being launched during the pandemic.