NAICU Washington Update

Biden Calls for $2,000+ Increase in the Pell Grant Maximum

March 04, 2022

In his first State of the Union address, President Biden put several higher education issues front and center on his domestic policy agenda.  Importantly, he called for increasing the maximum Pell Grant award and expanding existing institutional aid grants to Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and Minority-Serving Institutions (MSIs).

While the speech didn’t go in-depth on the President’s proposals, the White House did release a fact sheet providing more details.  

Pell Grant Increase

While the speech President Biden delivered only called for a Pell Grant “increase,” the underlying policy document specified that the increase he would propose would be more than $2,000.

The difference between the president’s actual words and the way the underlying documents prepared by the White House were written caused some confusion in higher education corners as to whether the proposed increase was going to be “up to” or “more than” $2,000.  But NAICU has confirmed with the White House that the commitment is to add more than $2,000 to the maximum.  However, because of the complexities of the underlying formula, the increase could prove to be a bit less for certain Pell recipients who do not currently receive the maximum grant. 

With the FY 2023 budget still under wraps, the final proposal is likely to be dependent on the overall cost of the President’s full set of budget proposals for the upcoming fiscal year.

HBCUs, TCUs, and MSIs

The President’s written proposal is to expand existing institutional aid grants to HBCUs, TCUs, and MSIs, which can be used by these institutions to strengthen their academic, administrative, and fiscal capabilities, including by creating or expanding educational programs in high-demand fields (e.g., STEM, computer sciences, nursing, and allied health).

NAICU President Barbara Mistick released a statement the night of the State of the Union applauding President Biden for highlighting these issues and making the Pell Grant and HBCUs a key focus of his verbal remarks.  

MORE News from NAICU

Top