Pell Grants Face Potential Depletion Due to Looming Shortfall
The Pell Grant program, which assists approximately 7 million low- and middle-income students annually in paying for college, is facing a significant funding shortfall. According to the Congressional Budget Office (CBO), the program is projected to fall short by $2.7 billion in the fiscal year 2025, with the deficit potentially growing to nearly $10 billion by the end of fiscal year 2026. This shortfall is attributed to increased enrollments and expanded eligibility, including the introduction of the Workforce Pell initiative, which adds to the program's costs. Despite a one-time $10.5 billion infusion from President Trump's 'One Big Beautiful Bill,' the program's financial challenges persist, with costs expected to exceed funding by $6 billion to $11 billion annually.