R42446 (CRS Report for Congress)
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| Release Date |
Revised Jan. 28, 2016 |
| Report Number |
R42446 |
| Report Type |
Report |
| Authors |
Cassandria Dortch, Analyst in Education Policy |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The federal Pell Grant program, authorized by Title IV of the Higher Education Act of 1965, as amended (HEA; P.L. 89-329), is the single largest source of federal grant aid supporting postsecondary education students. The program provided approximately $31 billion to approximately 8.2 million undergraduate students in FY2015. For FY2015, the total maximum Pell Grant was funded at $5,775. The program is funded primarily through annual discretionary appropriations, although in recent years mandatory appropriations have played a smaller yet increasing role in the program. The statutory authority for the Pell Grant program was most recently reauthorized by the Higher Education Opportunity Act of 2008 (HEOA; P.L. 110-315).
Pell Grants are need-based aid that is intended to be the foundation for all federal student aid awarded to undergraduates. There is no absolute income threshold that determines who is eligible or ineligible for Pell Grants. Eligibility may be based on a combination of familial circumstance, income, and assets. Nevertheless, Pell Grant recipients are primarily low-income. In FY2011, an estimated 74% of all Pell Grant recipients had a total family income at or below $30,000. In the same year, over half of Pell Grant recipients attended public schools, and approximately two-thirds of Pell Grant assistance was received by public schools.
The Pell Grant program has garnered considerable attention over the past several years as Congress has tried to balance program funding with changes in eligibility and award rules. Legislative changes to eligibility and award rules in combination with changes in the number of students enrolling in college and applying for Pell Grant aid have led to anticipated and unanticipated changes in Pell Grant receipt and program costs. These changes have in different years resulted in funding shortfalls or surpluses. Congress has responded to recent funding needs through numerous legislative efforts in FY2010 through FY2012 by providing additional mandatory funding to augment discretionary funding for current and future years.
Most recently, the Consolidated Appropriations Act, 2016 (P.L. 114-113) provided $22.5 billion in discretionary funding for the program in FY2016. This funding is augmented by mandatory appropriations provided by the SAFRA Act (enacted as part of the Health Care and Education Reconciliation Act of 2010; P.L. 111-152). Funding provided for the Pell Grant program is exempt from sequestration, pursuant to provisions included in Section 255(h) of the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA, Title II of P.L. 99-177), as amended.
