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Pell Grant Changes

The One Big Beautiful Bill Act (H.R.1), signed into law by President Trump on July 4, 2025, changes some rules related to Federal Aid (Title IV) programs. For students, families and institutions like 51¶¯Âþ (HCU), these changes are significant. As of the development of this webpage, these changes are scheduled to go into effect July 1, 2026, and/or with the 2026–27 Free Application for Federal Student Aid (FAFSA).

Pell Grant Changes Under the One Big Beautiful Bill Act: Before and After Comparison
Feature Before the Bill After the Bill (OBBBA)
Maximum Grant $7,395 $7,395 (no change)
Minimum Grant 10% of max award (currently $740) No change
SAI Cap No hard limit on wealth Students with a Student Aid Index (SAI) ≥ $14,790 are ineligible
Cost of Attendance (COA) Students could receive Pell even if institutional aid covered COA Students receiving non-federal/institutional aid that covers full COA are ineligible
Short-Term Programs Only available for degree/certificate programs of a certain length Expanded to cover eligible, accredited short-term vocational programs
Asset Exclusions Value of family farms and small businesses required on FAFSA Expanded exclusions: Net worth of certain small businesses and family farms is no longer reported
Foreign Income Often excluded or reported differently Foreign-earned income is strictly counted toward the Adjusted Gross Income (AGI)

Planning Ahead

For families that may still need additional funds beyond the new OB3 limits, consider investigating the following options:

Information included in this publication is subject to change. Contact the Office of Financial Aid with any questions you may have about this information.