Sponsor
Danny K. Davis
Representative · D-IL
The bill protects and raises stipend levels (with inflation indexing) to preserve participant purchasing power and provide limited veteran support, at the cost of higher near- and long-term program spending that could require more federal funds or reduce program capacity.
Students in federally funded projects will keep stipend maximums from losing purchasing power because the bill preserves stipend caps and provides inflation adjustments beginning in FY2028.
Veterans participating in FY2027 projects designed for them may receive up to $300/month, increasing direct monthly support for some veteran participants.
Taxpayers and educational institutions face growing long-term budget commitments because stipends are automatically indexed to the CPI, which will incrementally raise program spending each year.
Taxpayers and students could be affected by higher FY2027 stipend caps (for example, a $900/month cap in one category), which may increase near-term program costs and could reduce available participant slots or require additional congressional funding.
Based on analysis of 2 sections of legislative text.
Official title: To amend the Higher Education Act of 1965 to increase the maximum stipend amounts provided under Upward Bound projects.
Introduced February 25, 2026 by Danny K. Davis · Last progress February 25, 2026
Fixes FY2027 maximum Upward Bound stipend amounts and requires annual CPI-based increases starting in FY2028, rounded to the nearest $10.
Representative · D-IL
Amends the Upward Bound stipend rules to set specific maximum monthly stipend amounts through fiscal year 2027 and then require automatic annual increases tied to the Consumer Price Index beginning in FY2028. The bill replaces fixed-language about maximum stipends with a schedule that fixes FY2027 caps and directs the Secretary to adjust those dollar amounts each year thereafter by the estimated annual CPI change, rounding to the nearest $10. The change affects how project budgets can pay participant stipends (including a specific allowance for veterans in veteran-focused projects in FY2027) by indexing future stipend maximums to inflation rather than leaving them fixed.