Pell Grant Sustainability Act

The Pell Grant Sustainability Act (HR 1666) requires the federal government to automatically adjust the maximum Pell Grant amount each year based on inflation, starting with $1,060 for the 2024-2025 academic year. This adjustment uses the Consumer Price Index (CPI) to ensure grants keep pace with rising college costs, directly affecting low-income students who rely on Pell Grants to afford higher education. The bill amends the Higher Education Act to mandate this annual inflation-based increase, rounding the final amount to the nearest $5. It aims to reverse the decades-long decline in grant purchasing power, which covered 80% of college costs in 1974-75 but only 31% by 2022-23.