February 01, 2022

Representatives Casten, Lee Introduce Pell Grant Sustainability Act to Ensure Federal Aid Keeps Up with Inflation

Washington DC – Today, U.S. Representatives Sean Casten (IL-06), Susie Lee (NV-03), and eight of their Democratic colleagues introduced the Pell Grant Sustainability Act. The bill would make sure that Federal resources for college students keep up with current costs by indexing Pell Grants to inflation.

Pell Grants make it possible for more than 6 million Americans annually to attend college. Yet from 2009 to 2021, the value of discretionary Pell Grants remained flat while inflation rose 26% and college tuition increased even higher. The maximum Pell Grant now covers the smallest share of college cost ever, just 25.9% of the cost of a public 4-year college in the 2020-2021 school year, compared to 79% in 1975. With Pell Grants becoming less valuable each year, the students who depend on them are left less able to afford tuition, requiring them to either take on more debt or not continue their education altogether. Particularly as our nation faces record inflation with the consumer price index having climbed 7% in 2021– the largest 12-month gain since June 1982– it is important that our government aid programs keep up with rising costs.

"With college tuition skyrocketing and working families' wages stagnating– all amidst record inflation– it's becoming nearly impossible for many students to pursue higher education," said Rep. Casten. "Our Pell Grant system has made major inroads to help Americans of all backgrounds earn their degrees, but this success will not be sustained if the value of these grants continues to diminish as costs rise. I'm proud to introduce the Pell Grant Sustainability Act with Congresswoman Lee to ensure these grants continue to open doors to education for generations to come."

"Having spent my career working to improve education outcomes for our most at risk students, I have witnessed how a quality education can be the key to opening a world of opportunity for our next generation. When it comes to opening access to college, Pell Grants are transformative for so many students," said Rep. Lee. "However, as the cost of college surges, the maximum Pell Grant now covers the smallest share of tuition ever—forcing students to take on crippling debt or abandoning their education altogether. We must increase the value of Pell Grants to keep up with rising costs so that all students have the opportunity to pursue higher education. I'm proud to re-introduce the Pell Grant Sustainability Act with Rep. Casten so that higher education is not just a dream, but a reality for every American."

"It is essential that we support individuals who are trying to plan for their future with a college education," said Rep. Sylvia Garcia. "We must strive to provide equal opportunity for every American, and the Pell Grant program has been a vital part of that effort. However, Pell Grants now cover the smallest percentage of tuition cost ever. That is why I am happy to give my support to the Pell Grant Sustainability Act, which makes a common-sense fix to the Pell Grant Program so that millions of Americans can attend college each year."

"The University of Illinois System appreciates Rep. Casten's efforts to strengthen the impact of the Pell Grant program, which provides vital financial support for nearly 21,000 Pell Grant recipients across our three universities, "said Avijit Ghosh, Executive Vice President for the University of Illinois System. "Indexing Pell Grants to inflation is an important step in ensuring that these grants continue to provide strong support for our students.

The bill will now go to the House Education and Labor Committee for consideration. It has been endorsed by American Federation of Teachers, National Education Association, The Institute for College Access & Success, National Association of Student Financial Aid Administrators, American Association of Colleges and Universities, National Association for College Admissions Counseling, National College Attainment Network, and the Institute for Higher Education Policy.

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