Summary

Indexes the maximum Federal Pell Grant to inflation so it keeps pace with rising college costs. Beginning in award year 2024–2025, the maximum award is the sum of a $1,060 base amount and the amount provided in the most recent appropriations law, rounded to the nearest $5. In each following year, the base amount is automatically increased by a percentage tied to the Consumer Price Index, calculated by the Secretary of Education. The bill is based on findings that Pell Grants cover a much smaller share of public college costs today than in the 1970s.

Key Points

• Indexes the Pell Grant maximum to inflation so it automatically rises each year.
• Sets a $1,060 base amount for 2024–2025, added to the latest appropriated Pell amount.
• Requires rounding the maximum award to the nearest $5.
• Directs the Secretary of Education to calculate the annual CPI-based adjustment.
• Responds to findings that Pell covers far less of college costs than it did in the 1970s.
• Focuses on maintaining Pell’s purchasing power; does not change eligibility rules in the text provided.

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