I 119THCONGRESS 1 STSESSION H. R. 1666 To index the maximum value of Federal Pell Grants to inflation. IN THE HOUSE OF REPRESENTATIVES FEBRUARY27, 2025 Mr. C ASTEN(for himself, Ms. LEEof Nevada, Mr. MOULTON, Mr. GRIJALVA, Mr. L YNCH, Mr. MCGARVEY, Ms. BONAMICI, Mr. KRISHNAMOORTHI, Ms. T ITUS, Mr. GARCI´Aof Illinois, Ms. SCHRIER, Mrs. BEATTY, Ms. B ARRAGA´N, Ms. TOKUDA, Mr. BERA, Ms. ADAMS, Mr. JACKSONof Illi- nois, Mr. D ESAULNIER, Mr. KEATING, Mr. TRAN, Mrs. HAYES, Mr. P ETERS, Ms. PINGREE, Mr. WHITESIDES, Mr. THANEDAR, and Mr. J OHNSONof Georgia) introduced the following bill; which was referred to the Committee on Education and Workforce A BILL To index the maximum value of Federal Pell Grants to inflation. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Pell Grant Sustain-4 ability Act’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 VerDate Sep 11 2014 00:14 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1666.IH H1666 ssavage on LAPJG3WLY3PROD with BILLS 2 •HR 1666 IH (1) The purchasing power of the Federal Pell 1 Grant has declined rapidly since the 1970s. In aca-2 demic year 1974–1975, the total maximum Federal 3 Pell Grant covered 80 percent of base educational 4 costs at public 4-year institutions of higher edu-5 cation. By academic year 2022–2023, the maximum 6 Federal Pell Grant covered just 31 percent of those 7 base costs. 8 (2) The value of Federal Pell Grants must keep 9 pace with students’ costs in order to fulfill their mis-10 sion of enabling lower-income students to attend col-11 lege. 12 SEC. 3. INDEXING FEDERAL PELL GRANTS TO INFLATION. 13 Section 401(b) of the Higher Education Act of 1965 14 (20 U.S.C. 1070a(b)) is amended— 15 (1) by amending paragraph (5) to read as fol-16 lows: 17 ‘‘(5) T OTAL MAXIMUM FEDERAL PELL 18 GRANT.— 19 ‘‘(A) I N GENERAL.—For award year 2024– 20 2025 and each subsequent award year, the total 21 maximum Federal Pell Grant award per stu-22 dent shall be equal to the sum of— 23 ‘‘(i)(I) for award year 2024–2025, 24 $1,060; or 25 VerDate Sep 11 2014 00:14 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1666.IH H1666 ssavage on LAPJG3WLY3PROD with BILLS 3 •HR 1666 IH ‘‘(II) for award year 2025–2026 and 1 each subsequent award year, the amount 2 determined under this clause for the pre-3 ceding award year, increased by a percent-4 age equal to the annual adjustment per-5 centage for the award year for which the 6 amount under this clause is being deter-7 mined; and 8 ‘‘(ii) the amount specified as the max-9 imum Federal Pell Grant in the last en-10 acted appropriation Act applicable to that 11 award year. 12 ‘‘(B) R OUNDING.—The total maximum 13 Federal Pell Grant for any award year shall be 14 rounded to the nearest $5. 15 ‘‘(C) A NNUAL ADJUSTMENT PERCENTAGE 16 DEFINED.—In this paragraph, the term ‘annual 17 adjustment percentage’, as applied to an award 18 year, is equal to the estimated percentage 19 change in the Consumer Price Index (as deter-20 mined by the Secretary, using the definition in 21 section 478(f)) for the most recent calendar 22 year ending prior to the beginning of that 23 award year.’’; 24 (2) in paragraph (6)(A)(ii)— 25 VerDate Sep 11 2014 00:14 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1666.IH H1666 ssavage on LAPJG3WLY3PROD with BILLS 4 •HR 1666 IH (A) by striking ‘‘each of the fiscal years’’ 1 and inserting ‘‘fiscal year’’; and 2 (B) by striking ‘‘through 2034’’ and in-3 serting ‘‘and each subsequent fiscal year’’; and 4 (3) in paragraph (8)(A), by striking ‘‘through 5 fiscal year 2034’’. 6 Æ VerDate Sep 11 2014 00:14 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H1666.IH H1666 ssavage on LAPJG3WLY3PROD with BILLS