The Pell Grant program is the federal government’s most effective investment in college affordability, but the share of college costs covered by the grant is at an all-time low. In addition, because of its unique and complex funding structure, the Pell program is at ongoing risk of a funding shortfall. The program functions like an entitlement, where every qualified student receives a grant but largely relies on discretionary funding, which leads to an inevitable annual mismatch between how much the program costs and how much funding is available. When the program faces a shortfall, students are at risk of losing aid.
This fact sheet from the Institute for College Access & Success outlines how policymakers can strengthen and expand the Pell program.