Summary

Creates a package of higher-education changes that raise Pell Grant maximums (with automatic annual CPI indexing), expand Pell eligibility to certain Dreamer and other noncitizen categories, allow Pell funds to be used for living expenses, and increase authorized funding for several student programs and minority-serving institution grants. The text also inserts multiple placeholders and headings to create a federal–state partnership and grant programs intended to eliminate tuition and fees at certain institutions, but many of those new provisions are unpopulated in the provided text. The Act preserves federal obligations under the Snyder Act for Native American tribes and makes Pell grant amounts excludable from taxable income after enactment.

Key Points

• Raises Pell Grant maximums for award year 2026–2027 and requires annual CPI-based automatic increases thereafter.
• Expands Pell eligibility to certain Dreamer students and noncitizen categories (DACA as of June 15, 2012; TPS; deferred enforced departure).
• Allows Pell funds to be used for living and other non-tuition expenses and sets a 7 years, 6 months lifetime eligibility limit.
• Makes Pell grant disbursements excludable from taxable income (amends the tax code).
• Increases authorized funding for major student-support programs and creates a permanent $510M annual authorization for Title III, Part B HBCU/TCU/MSI grants beginning FY2026.
• Adds statutory placeholders for a federal–state partnership and grant programs to eliminate tuition/fees at targeted institutions, but those provisions lack operative text in the provided draft.
• Preserves federal obligations under the Snyder Act to Native American tribes despite other changes.
• Uses broad "such sums as may be necessary" language for many authorizations, leaving actual annual appropriations subject to future budget decisions.
• Imposes statutory drafting and redesignation changes to the HEA (removing/renumbering some subsections).

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