A key federal student-aid issue is entering board-level discussions as Pell Grant funding faces a projected structural shortfall. In a federal policy update conversation, AGB and Penn Hill Group describe a projected $17 billion gap across fiscal years 2026 and 2027, with the Congressional Budget Office projecting additional shortfalls in later years. The summary emphasizes the operational implications for colleges and universities that rely on stable Pell disbursements to manage enrollment and institutional revenue. Under stretched budgets, campuses may need contingency planning for packaging strategies, cash flow, and retention priorities. The episode also situates Pell uncertainty within concurrent federal regulatory shifts—putting timing and compliance capacity at the center of planning for 2026.