A new analysis says the Pell Grant program could face a structural shortfall of $6 billion to $11 billion annually over the next decade after Congress expanded eligibility to short-term workforce programs. The nonprofit Committee for a Responsible Federal Budget found the legislative infusion of $10.5 billion in one-time funds delayed an earlier reserve depletion but did not address a persistent funding gap. CRFB analysts flagged the Workforce Pell expansion — which will cover programs as short as eight weeks starting in July 2026 — as a driver of higher-than-expected costs and warned that actual enrollment could exceed Congressional Budget Office estimates. The group called for permanent appropriations changes to avoid repeated crises. Colleges and financial officers face immediate budget uncertainty; institutions that scale short-term offerings could see revenue swings while policymakers debate accountability rules and funding offsets.
Get the Daily Brief