The House education committee on Wednesday approved a higher education bill that would increase Pell Grants, cut lender subsidies and make wide-ranging changes to help low-income students and minority-serving colleges.
The College Cost Reduction Act would reduce lender subsidies and channel much of the money toward need-based financial aid. The maximum Pell Grant would increase to $5,200 within five years, and colleges could receive more Pell funds if they keep their tuition increases in line with an annual college price index.
Sponsors said the bill also would support federal programs for historically Black colleges and Hispanic-serving institutions and create a new funding stream for predominantly Black colleges, or higher education institutions that are not HBCUs but have sizable enrollment of African American students.
“This is the single largest federal investment in education since the GI Bill,” said Rep. Ruben Hinojosa, D-Tex., a senior Democrat on the Education and Labor Committee and co-sponsor of the measure.
With a strong bloc of Democratic support, the bill won approval by a 30-16 vote. Most Republicans voted against the measure, citing its cost, burden and other factors. The committee also rejected several amendments to change provisions of the bill.
For HBCUs, HSIs and other minority-serving institutions, the measure would double the current federal investment, Hinojosa said. “These institutions of higher learning are only going to grow in importance” to train tomorrow’s workforce, he added.
“We know that poor minority students struggle when they enter college and they have a difficult time staying there,” said Rep. George Miller, D-Calif., chair of the Education and Labor Committee.
