Short-Term Budget Bill Protects Maximum Pell Grant

December 22, 2010

Congress on Tuesday passed legislation that, in funding the federal government's operations through March 4, ensures that the maximum Pell Grant will remain at $5,550 at least through then. Democratic leaders had hoped to pass legislation that would have set federal spending for the entire 2011 fiscal year, so that Republicans -- who've promised significant cutbacks in federal outlays -- could not initiate that approach until 2012. But with Republicans in the Senate blocking a vote on the Democrats' omnibus spending bill, a compromise was reached that sets spending only through March, at which time the newly configured Congress could begin slashing. The top priority for higher education leaders -- which they got -- was an amendment calling for fully funding the Pell Grant Program, which faces a $5.7 billion shortfall for 2011, and a gap that is expected to reach $8 billion in 2012.

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