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Pell Grant Preservation and Expansion Act of 2026

Introduced Jun 23, 2026 · Last action Jun 23, 2026 Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

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Summary

This legislation is called the Pell Grant Preservation and Expansion Act of 2026. It is being reviewed by a committee.

Full bill text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4859 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
  2d Session
                                S. 4859

  To improve the structure of the Federal Pell Grant program, and for
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 23, 2026

  Ms. Hirono (for herself, Mrs. Murray, Mr. Reed, Mr. Whitehouse, Mr.
   Kaine, Mr. Padilla, Mrs. Shaheen, Mr. Bennet, Mr. Blumenthal, Mr.
  Markey, Ms. Duckworth, Mr. Heinrich, Mr. Warnock, Ms. Warren, Mrs.
  Gillibrand, Ms. Smith, Mr. Van Hollen, Mr. Murphy, Mr. Booker, Mr.
Wyden, Ms. Klobuchar, Mr. Durbin, Mr. King, Mr. Merkley, Mr. Fetterman,
and Mr. Ossoff) introduced the following bill; which was read twice and
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

  To improve the structure of the Federal Pell Grant program, and for
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pell Grant Preservation and
Expansion Act of 2026''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States needs individuals with the knowledge,
        skills, and abilities that enable them to thrive as educated
        citizens in society and successfully participate in an
        interconnected economy.
            (2) Investments in higher education through student aid
        such as the Federal Pell Grant program under section 401 of the
        Higher Education Act of 1965 (20 U.S.C. 1070a) help students
        and families reach, afford, and complete education and training
        opportunities beyond high school.
            (3) The Federal Pell Grant program is the largest source of
        federally funded grant aid for postsecondary education.
            (4) The Federal Pell Grant program allows millions of
        people of the United States to attend college and is especially
        vital for students of color. Three in 5 African American
        undergraduate students, and one-half of all Latino
        undergraduate students, rely on the Federal Pell Grant program.
            (5) The Federal Pell Grant program should continue to be a
        reliable source of funding for aspiring students, their
        families, and future generations that they can count on to be
        there for them when they seek higher education.
            (6) In Public Law 119-21, Congress expanded Federal Pell
        Grant eligibility to short-term training programs, but did not
        make additional investments nor take efforts to stabilize the
        program for longer than one fiscal year. Congress also made
        students whose total non-Federal grants and scholarships alone
        equal or exceed their cost of attendance ineligible for the
        Federal Pell Grant.
            (7) To stabilize Federal Pell Grant funding and ensure the
        grant will continue to serve millions of students now and in
        the future, the program should become a fully mandatory program
        that grows with inflation.
            (8) Restoring prior eligibility cuts and expanding access
        to underserved students will give millions of students and
        families the critical student aid support they need and
        deserve.

SEC. 3. TABLE OF CONTENTS; REFERENCES.

    (a) Table of Contents.--The table of contents of this Act is as
follows:

Sec. 1. Short title.
Sec. 2. Findings.
Sec. 3. Table of contents; references.
Sec. 4. Doubling Federal Pell Grants and providing all Federal Pell
                            Grants through mandatory funding.
Sec. 5. Providing increased Federal Pell Grants and other assistance
                            for recipients of means-tested benefits.
Sec. 6. Federal aid eligibility for dreamer students.
Sec. 7. Restoring the total semesters of Federal Pell Grant
                            eligibility.
Sec. 8. Reducing financial aid penalties from satisfactory academic
                            progress determinations.
Sec. 9. Restoring Federal Pell Grant eligibility for certain students
                            with scholarships.
Sec. 10. Conforming amendments.
Sec. 11. Effective date.
    (b) References.--Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

SEC. 4. DOUBLING FEDERAL PELL GRANTS AND PROVIDING ALL FEDERAL PELL
              GRANTS THROUGH MANDATORY FUNDING.

    (a) Amount of Minimum Federal Pell Grants.--Section 401 (20 U.S.C.
1070a) is amended--
            (1) in subsection (a)(2)(F), by striking ``10 percent'' and
        inserting ``5 percent'';
            (2) in subsection (b)--
                    (A) in paragraph (1)(B)(i), by striking ``paragraph
                (5)(A)'' and inserting ``paragraph (5)'';
                    (B) by striking paragraph (5) and inserting the
                following:
            ``(5) Total maximum federal pell grant.--
                    ``(A) Award year 2026-2027.--For award year 2026-
                2027, the total maximum Federal Pell Grant award shall
                be $10,000.
                    ``(B) Award year 2027-2028.--For award year 2027-
                2028, the total maximum Federal Pell Grant award shall
                be $11,000.
                    ``(C) Award year 2028-2029.--For award year 2028-
                2029, the total maximum Federal Pell Grant award shall
                be $12,000.
                    ``(D) Award year 2029-2030.--For award year 2029-
                2030, the total maximum Federal Pell Grant award shall
                be $13,000.
                    ``(E) Award year 2030-2031.--For award year 2030-
                2031, the total maximum Federal Pell Grant award shall
                be $14,000.
                    ``(F) Award year 2031-2032 and subsequent years.--
                For award year 2031-2032, and each subsequent award
                year, the total maximum Federal Pell Grant award shall
                be $15,000--
                            ``(i) increased by the adjustment
                        percentage for the award year for which the
                        amount under this subparagraph is being
                        determined; and
                            ``(ii) rounded to the nearest $50.
                    ``(G) Definition of adjustment percentage.--In this
                paragraph, the term `adjustment percentage,' as applied
                to an award year, is equal to the percentage increase
                in the Consumer Price Index, as defined in section
                478(f), for the most recent calendar year ending prior
                to the beginning of the award year.'';
                    (C) by striking paragraphs (6) and (7) and
                inserting the following:
            ``(6) Appropriation of funds.--There are authorized to be
        appropriated, and there are appropriated, out of any money in
        the Treasury not otherwise appropriated, such sums as may be
        necessary for fiscal year 2026 and each subsequent fiscal year
        to provide the Federal Pell Grant for which a student shall be
        eligible under this section during an award year.''; and
                    (D) by redesignating paragraphs (8) and (9) as
                paragraphs (7) and (8), respectively;
            (3) in subsection (d)(5)(B)--
                    (A) in clause (i), by striking ``subclause (I) or
                (II)'' and inserting ``subclause (I), (II), or (III)'';
                and
                    (B) in clause (ii)--
                            (i) in subclause (I)(bb), by striking
                        ``or'' after the semicolon;
                            (ii) in subclause (II)(bb)(CC), by striking
                        the period and inserting ``; or''; and
                            (iii) by adding at the end the following:
                                    ``(III) during a period for which
                                the student did not receive a loan
                                under this title but for which, if the
                                student had received such a loan, such
                                loan would have been discharged under
                                the circumstances described in
                                subclause (II)(bb)(CC).'';
            (4) by striking subsections (g) and (h); and
            (5) by redesignating subsections (i), (j), and (k) as
        subsections (g), (h), and (i), respectively.
    (b) Repeal of Scoring Requirement.--Section 406 of H. Con. Res. 95
(109th Congress) is amended--
            (1) by striking subsection (b); and
            (2) by striking ``(a) In General.--Upon'' and inserting the
        following: ``Upon''.
    (c) Student Support Services.--Section 402D(d)(1) (20 U.S.C. 1070a-
14(d)(1)) is amended by striking ``the minimum'' and inserting ``10
percent of the total maximum''.
    (d) Scholarship Component.--Section 404E(d) (20 U.S.C. 1070a-25(d))
is amended by striking ``less than the minimum'' and inserting ``less
than 10 percent of the total maximum''.

SEC. 5. PROVIDING INCREASED FEDERAL PELL GRANTS AND OTHER ASSISTANCE
              FOR RECIPIENTS OF MEANS-TESTED BENEFITS.

    (a) Increased Amount of Maximum Federal Pell Grants for Students
With Negative Student Aid Indexes.--Section 401(b)(1) (20 U.S.C.
1070a(b)(1)), as amended by section 4 of this Act, is further amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by striking
                ``A student'' and inserting ``Except in the case of a
                student with a student aid index of less than zero, a
                student'';
                    (B) by striking clause (i); and
                    (C) by redesignating clauses (ii) and (iii) as
                clauses (i) and (ii), respectively;
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by striking
                ``subparagraph (A) for an academic year,'' and
                inserting ``subparagraph (A), or an increased Federal
                Pell Grant under subparagraph (B), for an academic
                year,''; and
                    (B) in clause (ii), by striking ``, except that a
                student aid index of less than zero shall be considered
                to be zero for the purposes of this clause'';
            (3) in subparagraph (C), by striking ``subparagraph (A) or
        (B)'' and inserting ``subparagraph (A), (B), or (C)'';
            (4) in subparagraph (D), by inserting ``or an increased
        Federal Pell Grant under subparagraph (B)'' after
        ``subparagraph (A)'';
            (5) in subparagraph (E), by striking ``or a minimum Federal
        Pell Grant under subparagraph (C)'' and inserting ``an
        increased Federal Pell Grant under subparagraph (B), or a
        minimum Federal Pell Grant under subparagraph (D)'';
            (6) by redesignating subparagraphs (B) through (F) as
        subparagraphs (C) through (G), respectively; and
            (7) by inserting after subparagraph (A) the following:
                    ``(B) A student with a student aid index of less
                than zero shall be eligible for a Federal Pell Grant
                award that exceeds the total maximum Federal Pell Grant
                by an amount equal to the amount by which the student's
                student aid index is less than zero.''.
    (b) Special Student Aid Index Rule for Recipients of Means-Tested
Benefits.--Section 473 (20 U.S.C. 1087mm) is amended by adding at the
end the following:
    ``(d) Special Rule for Means-Tested Benefit Recipients.--
Notwithstanding subsection (b), for an applicant (or, as applicable, an
applicant and spouse, or an applicant's parents) who, at any time
during the previous 2-year period, received a benefit under a means-
tested Federal benefit program, as defined in section 479(b)(4)(H), (or
whose parent or spouse received such a benefit, as applicable), the
Secretary shall for the purposes of this title consider the student aid
index as equal to -$1,500 for the applicant.''.

SEC. 6. FEDERAL AID ELIGIBILITY FOR DREAMER STUDENTS.

    Section 484 (20 U.S.C. 1091) is amended--
            (1) in subsection (a)(5), by inserting ``, or be a Dreamer
        student, as defined in subsection (u)'' after ``becoming a
        citizen or permanent resident''; and
            (2) by adding at the end the following:
    ``(u) Dreamer Students.--
            ``(1) In general.--In this section, the term `Dreamer
        student' means an individual who--
                    ``(A)(i) is not a citizen or national of the United
                States; and
                    ``(ii) is inadmissible or deportable under the
                Immigration and Nationality Act (8 U.S.C. 1101 et
                seq.); and
                    ``(B)(i) in the case of such an individual who was
                younger than 18 years of age on the date on which the
                individual initially entered the United States--
                            ``(I) has earned a high school diploma, the
                        recognized equivalent of such diploma from a
                        secondary school, or a high school equivalency
                        diploma recognized by State law, or is
                        scheduled to complete the requirements for such
                        a diploma or equivalent before the next
                        academic year begins;
                            ``(II) is enrolled at an institution of
                        higher education pursuant to subsection (d);
                            ``(III) has served in the uniformed
                        services (as such term is defined in section
                        101 of title 10, United States Code) for not
                        less than 2 years and, if discharged, received
                        an honorable discharge;
                            ``(IV) has acquired a degree, certificate,
                        or recognized postsecondary credential from an
                        institution of higher education or area career
                        and technical education school (as such term is
                        defined in section 3 of the Carl D. Perkins
                        Career and Technical Education Act of 2006 (20
                        U.S.C. 2302)); or
                            ``(V) has completed not less than 2 years
                        in a postsecondary program at an institution of
                        higher education, or area career and technical
                        education school, in the United States during
                        such time period; or
                            ``(ii)(I) is, or at any time was, eligible
                        for a grant of deferred action pursuant to--
                                    ``(aa) the memorandum of the
                                Department of Homeland Security
                                entitled `Exercising Prosecutorial
                                Discretion with Respect to Individuals
                                Who Came to the United States as
                                Children' issued on June 15, 2012; or
                                    ``(bb) the memorandum of the
                                Department of Homeland Security
                                entitled `Exercising Prosecutorial
                                Discretion with Respect to Individuals
                                Who Came to the United States as
                                Children and with Respect to Certain
                                Individuals Who Are the Parents of U.S.
                                Citizens or Permanent Residents' issued
                                on November 20, 2014; or
                                    ``(II) would have been eligible for
                                such a grant of deferred action if the
                                applicable memorandum described in
                                subclause (I) had been fully in effect
                                since the date on which it was issued.
            ``(2) Hardship exception.--The Secretary shall issue
        regulations that direct when the Department shall waive the age
        requirement of paragraph (1)(B)(i) for an individual to qualify
        as a Dreamer student under such paragraph, if the individual
        demonstrates compelling circumstances, such as economic
        hardship (as defined in section 435(o)).''.

SEC. 7. RESTORING THE TOTAL SEMESTERS OF FEDERAL PELL GRANT
              ELIGIBILITY.

    Section 401(d)(5)(A) (20 U.S.C. 1070a(d)(5)(A)), is amended by
striking ``12'' each place the term appears and inserting ``18''.

SEC. 8. REDUCING FINANCIAL AID PENALTIES FROM SATISFACTORY ACADEMIC
              PROGRESS DETERMINATIONS.

    Section 484(c) (20 U.S.C. 1091(c)) is amended to read as follows:
    ``(c) Satisfactory Progress.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Appeal.--The term `appeal' means a process by
                which a student who is not meeting the institution's
                satisfactory academic progress standards petitions the
                institution for reconsideration of the student's
                eligibility for assistance under this title.
                    ``(B) Financial aid probation.--The term `financial
                aid probation' means a status assigned by an
                institution to a student who fails to make satisfactory
                academic progress and who has appealed and has had
                eligibility for aid reinstated.
                    ``(C) Financial aid warning.--The term `financial
                aid warning' means a status assigned to a student who
                fails to make satisfactory academic progress at the end
                of the semester or equivalent period in which the
                student first fails to make such progress.
                    ``(D) Payment period.--The term `payment period'
                means the applicable payment period described in
                section 668.4 of title 34, Code of Federal Regulations,
                or any successor regulation.
            ``(2) Satisfactory academic progress policy.--An
        institution shall establish a reasonable satisfactory academic
        progress policy for determining whether an otherwise eligible
        student is making satisfactory academic progress in the
        student's educational program and may receive assistance under
        this title. The Secretary shall consider the institution's
        policy to be reasonable if--
                    ``(A) the policy is not more burdensome than the
                policy the institution applies to a student who is not
                receiving assistance under this title;
                    ``(B) the policy provides for consistent
                application of standards to all students, including
                full-time, part-time, undergraduate, and graduate
                students, and all educational programs established by
                the institution;
                    ``(C)(i) the policy specifies the grade point
                average that a student must achieve at each evaluation,
                or if a grade point average is not an appropriate
                qualitative measure, a comparable assessment measured
                against a norm; and
                    ``(ii) if a student is enrolled in an educational
                program of more than 2 academic years, the policy
                specifies that at the end of the second academic year,
                the student must have a grade point average of at least
                a `C' or its equivalent, or have academic standing
                consistent with the institution's requirements for
                graduation;
                    ``(D) the policy provides for measurement of the
                student's progress at each evaluation;
                    ``(E) the policy describes--
                            ``(i) how a student's grade point average
                        and the pace at which the student progresses
                        toward completion are affected by course
                        incompletes, withdrawals, or repetitions, or
                        transfers of credit from other institutions,
                        including that credit hours from another
                        institution that are accepted toward the
                        student's educational program are counted as
                        both attempted and completed hours; and
                            ``(ii) how after a student reenrolls after
                        the student's satisfactory academic progress
                        was reset pursuant to paragraph (3)(B), the
                        student may have any credits that were earned
                        before the student was determined not to be
                        making satisfactory academic progress counted
                        for purposes of determining progress when the
                        student reenrolls, but any attempted hours that
                        were not earned by the student (including
                        incompletes, withdrawn courses, and failed
                        courses) before the student was determined not
                        to be making satisfactory academic progress
                        will not negatively impact the determination of
                        whether the student made satisfactory academic
                        progress after such reset;
                    ``(F) the policy provides that, except as provided
                in subparagraph (G) with respect to a student placed on
                financial aid warning or financial aid probation and
                paragraph (3), a student is no longer eligible to
                receive assistance under this title if the student has
                not achieved the required grade point average or who is
                not making progress toward completion in the student's
                educational program--
                            ``(i) at the time of each evaluation with
                        respect to a student who is in an educational
                        program of 2 academic years or less in length;
                        or
                            ``(ii) at the end of the second academic
                        year with respect to a student who is in an
                        educational program of more than 2 academic
                        years in length;
                    ``(G) the policy describes when students will be
                placed on financial aid warning or financial aid
                probation, in accordance with paragraph (4), and
                provides that--
                            ``(i) a student on financial aid warning--
                                    ``(I) shall continue to be eligible
                                for assistance under this title for one
                                payment period despite a determination
                                that the student is not making
                                satisfactory academic progress; and
                                    ``(II) may be assigned such status
                                without an appeal or other action by
                                the student; and
                            ``(ii)(I) a student on financial aid
                        probation may receive assistance under this
                        title for one payment period and the
                        institution may require the student to fulfill
                        specific terms and conditions, such as taking a
                        reduced course load or enrolling in specific
                        courses; and
                            ``(II) at the end of such one payment
                        period, the student is required to meet the
                        institution's satisfactory academic progress
                        standards, or meet the requirements of the
                        academic plan developed by the institution and
                        the student, in order to qualify for continued
                        assistance under this title;
                    ``(H) if the institution permits a student to
                appeal a determination by the institution that the
                student is not making satisfactory academic progress,
                the policy describes--
                            ``(i) how the student may reestablish the
                        student's eligibility to receive assistance
                        under this title;
                            ``(ii) the basis on which the student may
                        file an appeal, including because of the death
                        of a relative, an injury or illness of the
                        student, or another special circumstance; and
                            ``(iii) information the student is required
                        to submit regarding why the student failed to
                        make satisfactory academic progress, and what
                        has changed in the student's situation that
                        will allow the student to demonstrate
                        satisfactory academic progress at the next
                        evaluation;
                    ``(I) if the institution does not permit a student
                to appeal a determination by the institution that the
                student is not making satisfactory academic progress,
                the policy describes how the student may reestablish
                the student's eligibility to receive assistance under
                this title;
                    ``(J) the policy provides for notification to
                students of the results of an evaluation that impacts
                the student's eligibility for assistance under this
                title; and
                    ``(K) the policy does not impose satisfactory
                progress limitations on need-based institutional aid
                that are more stringent than the standard applied under
                this subsection, unless the institution demonstrates to
                the satisfaction of the Secretary that the policy
                improves student persistence in, and completion of,
                postsecondary education for all students.
            ``(3) Regaining eligibility.--
                    ``(A) Students who remain in school.--Whenever a
                student fails to meet the eligibility requirements of
                subsection (a)(2) as a result of the application of
                this subsection and, subsequent to that failure, the
                student has academic standing for any grading period
                consistent with the requirements for staying on track
                to graduate within 150 percent of the published length
                of the educational program, as determined by the
                institution, the student shall again be eligible under
                subsection (a)(2) for a grant, loan, or work assistance
                under this title, as long as the student maintains
                satisfactory academic progress under paragraph (2)
                beginning on and after the date that the student
                regains eligibility.
                    ``(B) Students who leave school.--
                            ``(i) In general.--If a student has not
                        been enrolled in any institution of higher
                        education for the immediately preceding 2
                        years, any previous failure to meet the
                        eligibility requirements of subsection (a)(2)
                        shall not be used in any determination of
                        eligibility of such student under such
                        subsection. Such student shall, on the date of
                        enrollment subsequent to such 2-year period,
                        have the student's eligibility for a grant,
                        loan, or work assistance under this title reset
                        and be deemed as meeting the requirements
                        described in paragraph (2). Beginning on and
                        after such date, the student's satisfactory
                        academic progress shall be determined in
                        accordance with paragraph (2)(E)(ii).
                            ``(ii) Maximum number of resets.--A student
                        shall be eligible for a reset of eligibility
                        pursuant to this subparagraph not more than 2
                        times.
                    ``(C) Duties of the secretary.--The Secretary
                shall--
                            ``(i) send, to each student who failed to
                        meet the eligibility requirements of subsection
                        (a)(2) and who has not regained eligibility for
                        a grant, loan, or work assistance under
                        subparagraph (A), a notice, two years after
                        such failure, that includes--
                                    ``(I) a notification that, if the
                                student has not been enrolled in any
                                institution of higher education for the
                                preceding two years and has not
                                received two resets of eligibility
                                under subparagraph (B), the student may
                                use grant, loan, or work assistance
                                under this title for enrollment at any
                                eligible institution, including an
                                institution other than the institution
                                in which the student was previously
                                enrolled;
                                    ``(II) a notification that, if the
                                student has remained enrolled, or
                                resumed enrollment, at an institution
                                of higher education, the student may be
                                eligible for a grant, loan, or work
                                assistance under this title subject to
                                the requirements of subparagraph (A);
                                    ``(III) information on how many
                                semesters of eligibility for a grant,
                                loan, or work assistance under this
                                title to which the student still has
                                access; and
                                    ``(IV) a notification that the
                                student should ask any prospective
                                eligible institution how many of the
                                student's previously completed credits
                                the student would be able to transfer;
                                and
                            ``(ii) submit an annual report to Congress
                        on the outcomes of students who have received a
                        reset of eligibility pursuant to this
                        paragraph, including--
                                    ``(I) the number of students who
                                reenroll in an eligible institution
                                after such reset, disaggregated by
                                race, ethnicity, sex, age,
                                socioeconomic status, and disability
                                status;
                                    ``(II) the 250 eligible
                                institutions with the highest numbers
                                of enrolled students receiving grant,
                                loan, or work assistance under this
                                title after such a reset;
                                    ``(III) the 250 eligible
                                institutions with the highest share of
                                enrolled students receiving grant,
                                loan, or work assistance under this
                                title after such a reset; and
                                    ``(IV) the average completion rate
                                and time to completion for students who
                                reenroll in an eligible institution
                                after such reset, disaggregated by
                                institution.
            ``(4) Evaluation of academic progress.--
                    ``(A) In general.--An institution that determines
                that a student is not making satisfactory academic
                progress under its policy may disburse funds provided
                through student financial assistance programs under
                this title (including work-study programs under
                subtitle C) to the student in accordance with
                subparagraphs (B), (C), and (D).
                    ``(B) Payment period following not making
                satisfactory academic progress.--For the payment period
                following the payment period in which a student did not
                make satisfactory academic progress, the institution
                shall place the student on financial aid warning and
                disburse funds under this title to the student.
                    ``(C) Payment period following financial aid
                warning.--For the payment period following a payment
                period during which a student was on financial aid
                warning, the institution may place the student on
                financial aid probation, and disburse funds under this
                title to the student if--
                            ``(i) the institution evaluates the
                        student's progress and determines that student
                        did not make satisfactory academic progress
                        during the payment period the student was on
                        financial aid warning;
                            ``(ii) the student appeals the
                        determination; and
                            ``(iii)(I) the institution determines that
                        the student should be able to meet the
                        institution's satisfactory academic progress
                        standards by the end of the subsequent payment
                        period; or
                            ``(II) the institution develops an academic
                        plan for the student that, if followed, will
                        ensure that the student is able to meet the
                        institution's satisfactory academic progress
                        standards by a specific point in time.
                    ``(D) Payment period following financial aid
                probation.--A student on financial aid probation for a
                payment period may not receive funds under this title
                for the subsequent payment period unless the student
                makes satisfactory academic progress or the institution
                determines that the student met the requirements
                specified by the institution in the academic plan for
                the student developed under subparagraph (C)(iii)(II).
                    ``(E) Frequency of academic progress evaluation and
                communication.--
                            ``(i) In general.--Subject to clause (ii),
                        for the purpose of determining whether
                        presently enrolled students are maintaining
                        satisfactory progress, each institution of
                        higher education that enrolls students who
                        receive any grant, loan, or work assistance
                        under this title shall review the progress of
                        such students at the end of each payment
                        period.
                            ``(ii) Shorter payment periods.--For each
                        institution described in clause (i) that has
                        payment periods that are shorter than on the
                        semester system basis (such as on a quarterly
                        or trimester system basis or by clock hour
                        program or non-term program), such institution
                        shall review the progress of presently enrolled
                        students at the end of each semester or
                        equivalent period of 12 to 18 weeks.
                            ``(iii) Financial aid warning.--At the end
                        of each payment period (or, in the case of an
                        institution described in clause (ii), at the
                        end of each semester or equivalent period),
                        each institution shall send a financial aid
                        warning to presently enrolled students that do
                        not meet the grade point average requirement
                        described in paragraph (2), or its equivalent
                        or academic standing consistent with the
                        requirements for graduation, as determined by
                        the institution, that informs the students of
                        their risk of being determined to not be
                        maintaining satisfactory progress and therefore
                        losing eligibility for grant, loan, or work
                        assistance under this title and provides
                        information on--
                                    ``(I) the specific criteria of the
                                institution's academic requirements
                                that the student is not meeting and the
                                specific improvements needed to meet
                                the requirements; and
                                    ``(II) how to meet with the
                                student's academic advisor to get the
                                academic support the student needs.
            ``(5) Detailing requirements to students.--Each institution
        of higher education that enrolls students who receive any
        grant, loan, or work assistance under this title shall detail
        the institution's requirements regarding students maintaining
        satisfactory academic progress--
                    ``(A) to such students before the students begin
                classes at the institution through a detailed
                communication that may be separate from a financial aid
                offer; and
                    ``(B) on the financial aid web page of the website
                of the institution.
            ``(6) Consumer testing.--The Secretary shall conduct
        consumer testing to develop exemplary practices and templates--
                    ``(A) to support institutions of higher education
                in carrying out paragraph (5); and
                    ``(B) which shall be available as resources for
                institutions of higher education.''.

SEC. 9. RESTORING FEDERAL PELL GRANT ELIGIBILITY FOR CERTAIN STUDENTS
              WITH SCHOLARSHIPS.

    Section 401(d) (20 U.S.C. 1070a(d)) is amended by striking
paragraph (6).

SEC. 10. CONFORMING AMENDMENTS.

    The Act (20 U.S.C. 1001 et seq.) is amended--
            (1) in section 401A(d)(1)(B)(i) (20 U.S.C. 1070a-
        1(d)(1)(B)(i)), by striking ``section 401(b)(2)(B)'' and
        inserting ``section 401(b)(2)'';
            (2) in section 402D(d)(1) (20 U.S.C. 1070a-14(d)(1))--
                    (A) by striking ``section 401(b)(2)(A)'' and
                inserting ``section 401(b)(1)''; and
                    (B) by striking ``described in section 401(b)(4)''
                and inserting ``as described in section 401(b)(5)'';
            (3) in section 435(a)(5)(A)(i)(I) (20 U.S.C.
        1085(a)(5)(A)(i)(I)), by striking ``under section
        401(b)(2)(A)'' and inserting ``under section 401(b)(1)'';
            (4) in section 481(b)(3)(A) (20 U.S.C. 1088(b)(3)(A)) by
        striking ``401(k)'' and inserting ``401(i)'';
            (5) in section 894(f)(2)(C)(ii)(I) (20 U.S.C.
        1161y(f)(2)(C)(ii)(I)), by striking ``section 401(b)(2)(A)''
        and inserting ``section 401(b)(1)''; and
            (6) in section 419N(b)(7)(B)(i) (20 U.S.C.
        1070e(b)(7)(B)(i)), by striking ``401(c)(1)'' and inserting
        ``401(d)''.

SEC. 11. EFFECTIVE DATE.

    Except as otherwise provided, this Act, and the amendments made by
this Act to the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)
shall take effect on July 1, 2026, and apply with respect to award year
2026-2027 and each subsequent award year, as determined under the
Higher Education Act of 1965. The Secretary of Education shall have the
authority to take such steps as are necessary before July 1, 2026, to
provide for the orderly implementation on such date of the amendments
to the Higher Education Act of 1965 made by this Act.
                                 <all>

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Status

In Committee

  1. 1Introduced
  2. 2Committee
  3. 3Floor
  4. 4Passed
  5. 5Signed

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