S. 4859 — Pell Grant Preservation and Expansion Act of 2026

This section states congressional findings on the Federal Pell Grant program's role as the largest source of federal grant aid for postsecondary education. It notes that three in five African American undergraduates and one-half of Latino undergraduates rely on the grants, highlights recent expansions to short-term programs without added funding or long-term stabilization, and calls for converting the program to fully mandatory status that grows with inflation while restoring prior eligibility.

This section establishes the table of contents for the Act and specifies that references to amendments are to the Higher Education Act of 1965.

This section increases the total maximum Federal Pell Grant to $10,000 for award year 2026–2027, rising by $1,000 each year to $15,000 for 2031–2032 and subsequent years (adjusted annually for the Consumer Price Index). It reduces the minimum grant to 5 percent of the total maximum (from 10 percent). It shifts all Pell Grants to mandatory appropriations. It expands loan discharge eligibility for certain periods without loans and repeals subsections (g) and (h) of section 401, a prior scoring requirement, and related provisions in the TRIO and GEAR UP programs.

This section increases Federal Pell Grants above the total maximum award for students whose student aid index is less than zero, by the amount the index falls below zero. It also sets the student aid index at -$1,500 for any applicant (or applicant’s parents or spouse) who received benefits under a means-tested Federal program in the prior two years.

This section expands eligibility for federal grants, loans, and work assistance under title IV of the Higher Education Act to Dreamer students. A Dreamer student is an individual who is inadmissible or deportable, entered the United States before age 18 (or qualifies under a hardship exception), and meets one of several criteria, including earning a high school diploma or equivalent, completing at least two years of postsecondary education, earning a recognized credential, or serving two years in the uniformed services with an honorable discharge; or who is or was eligible for DACA under the 2012 or 2014 Department of Homeland Security memoranda.

This section revises the satisfactory academic progress requirements for federal student aid eligibility. It requires institutions to adopt policies that include a financial aid warning status (one payment period of continued eligibility without appeal) and a financial aid probation status (one payment period after a successful appeal, with possible conditions such as a reduced course load). The policies must apply consistent standards to all students, specify GPA or equivalent measures (including a “C” average after two years), detail how incompletes, withdrawals, repetitions, and transfers affect progress, and allow certain earned credits to count toward progress after a reset upon reenrollment.

This section updates cross-references to subsections of section 401 of the Higher Education Act of 1965 in provisions governing Pell Grant eligibility determinations, TRIO program administration, institutional participation requirements, and child care access grants.

This section sets the effective date of the Act and its amendments to the Higher Education Act of 1965 as July 1, 2026, applying to award year 2026–2027 and each subsequent award year. It authorizes the Secretary of Education to take necessary preparatory steps before that date for orderly implementation.