Pell Grant Preservation and Expansion Act of 2026

The Pell Grant Preservation and Expansion Act of 2026 aims to increase financial aid for college students by raising the maximum Pell Grant amount to $15,000 by the 2031-2032 award year and ensuring the program is fully funded through mandatory spending rather than annual appropriations. The bill also expands eligibility for students who receive means-tested government benefits by automatically assigning them a lower financial need score, while simultaneously allowing Dreamer students - undocumented immigrants who meet specific criteria such as graduating high school or serving in the military - to qualify for federal aid. Additional provisions restore the total number of semesters a student can receive Pell Grants from 12 to 18 and adjust the rules for satisfactory academic progress to reduce penalties for students who struggle to meet grade requirements. Finally, the legislation restores Pell Grant eligibility for some students who previously received outside scholarships and sets the law's effective date for July 1, 2026.