CBO Predicts No Pell Shortfall in 2024 Because of FAFSA Issues

The Pell Grant program is expected to run a $11.4 billion surplus for the fiscal year, the Congressional Budget Office (CBO) said this week, averting fears of a potential shortfall that could have led to cuts in the program. The Biden administration had requested an additional $2.1 billion for fiscal year 2025 to increase the maximum Pell Grant from $7,395 to $8,145 and cover a funding gap it projected in the roughly $29 billion program, which provides federal financial aid program to low-income students.