A Senate panel has approved the first increase in the maximum Pell Grant in three years while providing level funding for minority-serving institutions in a tough budget environment.
The bill, endorsed by a party-line vote in the Senate Appropriations Committee, would increase the maximum Pell by $85 to $5,635. If approved by the full Congress and President Obama, the increase would be the first enacted by lawmakers since fiscal year 2010.
“At a time when budgets are tight and students and families across the nation are struggling, taxpayer dollars intended for higher education should be focused on helping low- and middle-income students pursue an academic degree,” said Sen. Tom Harkin, D-Iowa, who chairs the appropriations subcommittee on education.
But the panel acknowledged that the move would have long-term implications, given heavy use of the program in the current economy combined with fiscal uncertainty in Washington. To help pay for the increase, senators would impose new rules on Pell Grant use in distance education programs and limit in-school loan interest subsidies to those who take a long time to complete degrees.
Members said such moves could sustain the increase next year, when lawmakers need an additional $6 billion to extend the initiative. “Ignoring this looming crisis would be irresponsible,” the panel said in a report accompanying the bill.
The measure also would provide level funding for programs aimed at historically Black colleges and universities and other minority-serving institutions. The move drew praise from the United Negro College Fund.
“In this climate, our goal is to hold on to level funding,” said Edith Bartley, UNCF government affairs director.
