On Tuesday, June 9, the House Appropriations Committee advanced a Fiscal Year 2027 (FY27) Labor, HHS, Education and Related Agencies (LHHS) spending bill on a party-line vote. The bill increases the maximum Pell Grant by $50 and addresses the program's funding shortfall—paid for by eliminating the federal subsidized student loan program. It also provides a $6 million increase for TRIO and nearly level-funds AmeriCorps. On the negative side, the bill cuts the Supplemental Educational Opportunity Grant (SEOG) by nearly 40% and Federal Work Study (FWS) by more than a quarter. Notably, the committee rejected some of the Trump Administration's most severe proposals, including ending TRIO, GEAR UP, and SEOG entirely, and made a substantial investment in Pell, reflecting the program's enduring bipartisan support. Here is a summary:
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FY26 ACTUAL
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Trump FY27 Budget
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House FY27 Appropriations Bill
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Pell
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$7,395 max award
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$7,395 max award + $10.5 billion to address the funding shortfall
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$7,445 max award ($50 increase) + ~ $16 billion to address the funding shortfall
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TRIO
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$1.191 billion
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$0
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$1.197 billion
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GEAR UP
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$388 million
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$0
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$394 million
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AmeriCorps
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$1.253 billion
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$108 million
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$1.22 billion
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Student Aid Administration
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$2.059 billion
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$2.059 billion
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$2.059 billion
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FWS
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$1.23 million
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$120 million (with cost shift to IHEs)
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$546 million (with no policy changes)
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SEOG
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$910 million
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$0
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$546 million
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According to an NCAN analysis, eliminating the subsidized federal student loan program would cost a dependent undergraduate student who takes out the maximum amount allowed in federal student loans, graduates in four years and enters a standard 10-year repayment plan, almost $5,000 more than under current law, an amount that would impact the ability of lower income students to enroll in and complete college.
Prospects for this bill are uncertain, given the slim margin that House leadership has to pass legislation, limited time that Congress is in session through the remainder of the 119th Congress. NCAN and its members will continue to educate Members of Congress about the cost to students of this proposal and will work to see that it is not included in the Senate version of the FY27 funding bill when it is released.