Federal Student Aid Programs Face Uncertainty Post-Midterms, Pell Grant Shortfall Projected

The upcoming November midterm elections are expected to significantly impact federal student aid funding and policy. A continuing resolution currently funds federal programs, including student aid, at FY 2026 levels through December 11, FY 2027. If Congress fails to finalize spending levels, the incoming members will address the delayed budget process. A major concern is a projected nearly $17 billion funding shortfall in the Pell Grant program by the end of FY 2027, as estimated by the Congressional Budget Office (CBO). The National Association of Student Financial Aid Administrators (NASFAA) is advocating for robust increases to all student aid programs and for addressing the Pell Grant shortfall without cutting the maximum award or other need-based aid programs.