AGB’s federal policy update highlighted a projected $17 billion Pell Grant funding shortfall spanning fiscal 2026 and 2027, with the Congressional Budget Office projecting additional gaps for later years. The projected shortfalls are framed as structural to the program rather than a single-year anomaly. AGB and Penn Hill Group flagged how board leaders may need to plan for reductions that can affect institutional enrollment strategy, student aid packaging, and cash-flow timing—especially for schools heavily reliant on Pell-eligible populations. The podcast also pointed to regulatory and enforcement developments expected in 2026, including accreditation and judicial decisions affecting tuition-related access policies. Together, the messages underscored a near-term pressure window for governing boards managing student affordability and compliance risks.