Two GOP budget proposals currently under discussion could dramatically affect the accessibility of federal grants for millions of college students and place restrictions on the total amount other students can receive. If passed, both pieces of legislation would significantly change the financial aid landscape for college students.
The first budget bill, currently with the Senate, proposes a reduction in financial aid spending and tightens criteria for the five million undergraduate students who currently receive Pell Grants, as estimated by the National Center for Education Statistics. President Donald Trump's proposed "skinny budget," meanwhile, suggests reducing certain federal grant programs and lowering the amount in Pell Grants students can receive.
Pell Grants, the largest higher-education grant program, benefit one in three students with financial need who take at least one class each semester. The bill seeks to increase the full-time enrollment requirement to 30 credits from 24 credits annually. According to Congressional Budget Office estimates, over half of all current Pell Grant recipients may no longer be classified as full-time under this rule and would therefore receive lower grants.
The budget proposals could lead to fewer grants and a much-reduced federal aid provision, transferring more of the funding responsibility to state and local governments. However, these governments may be unable to shoulder this increased pressure.
The proposed changes could also result in students taking out more loans, but the Senate's budget also limits the total amount of federal loans students can borrow, possibly driving more students to private loan companies, or deterring them from higher education entirely.
Moreover, President Trump's proposed 2026 "skinny budget" suggests further decreasing the maximum federal grants a student can receive. It outlines cutting the maximum Pell Grant entitlement by $1,685, reducing the students' potential amount to $5,710 for the 2026-27 academic year.
In addition, Trump wants to abolish the Federal Supplemental Educational Opportunity Grant (FSEOG) program, which benefits students with exceptional financial need. Termination of the program could reduce the average student aid by approximately $950 annually.
Finally, the budget also proposes reducing the Federal Work-Study program, which currently sees the federal government paying up to 75% of students' wages from part-time jobs related to their field of study. The suggested change requests the federal government only cover 25% of these wages, potentially causing further financial strain on students.