PELL Act

The PELL Act (S 3433) would eliminate federal funding for institutions that receive grants based on the racial or ethnic composition of their student bodies, including Hispanic-Serving Institutions and Historically Black Colleges and Universities. The bill amends the Higher Education Act to require institutions receiving federal funds to serve a substantial number of students receiving Federal Pell Grants and to prohibit racial discrimination in admissions or hiring, including through racial quotas. It redirects funds from Minority-Serving Institution programs toward increasing the Federal Pell Grant program, which provides need-based financial aid for college students regardless of race. The legislation would require federal agencies to identify and eliminate all provisions that allocate funds based on racial or ethnic criteria for institutions. This bill directly affects federal grant programs and institutions currently receiving funding based on racial or ethnic composition of their student bodies.