Two proposed GOP budget proposals would impact millions of college students’ access to federal grants and limit the total amount that other students can receive.

Congress’s budget bill, which is now with the Senate, would reduce financial aid spending and tighten the requirements for the five million undergraduate students who currently receive Pell Grants, according to estimates by the National Center for Education Statistics.

Separately, President Donald Trump’s proposed “skinny budget” would have Congress cut certain federal grant programs and lower the amount in Pell Grants students can receive. Congress typically considers the president’s budget request, but does not have to adopt all parts of it.

What’s At Stake

Both pieces of legislation would have far-reaching impacts on the financial aid available to college students.

Currently, state and local governments supplement federal aid for some students, so limiting the amount of federal grants would put more funding responsibilities on the states, which they likely can’t handle, wrote Katharine Meyer, a fellow of governance studies at The Brookings Institution.

This could mean students receive fewer grants and have to take out more student loans. However, the Senate’s budget would also restrict the total amount of federal loans students can take out. This could force more students to turn to private loan companies or forgo college completely, according to advocates.

Congress’s “Big, Beautiful Bill” Could Impact Millions of Students’ Access to Pell Grants

The proposed GOP budget would tighten Pell Grant restrictions by requiring millions of students to take more classes to qualify for the program.

Pell Grants are the largest higher-education grant program, providing aid to about one in three students with financial need, as long as they take one class each semester. The amount of aid students get depends on how many credits they take.

The proposed budget bill increases the full-time enrollment requirement to 30 credits from 24 credits a year. The Congressional Budget Office, a nonpartisan analysis agency for Congress, estimates that the new rule would mean more than half of all currently enrolled Pell Grant recipients would no longer be considered full-time and would receive smaller grants. The CBO also said it expects about 20% of these recipients to enroll in additional credits to increase their award amount.

The proposed budget would also increase half-time enrollment to 15 credits a year, up from 12 credits, and eliminate Pell Grant eligibility for students enrolled for less than half-time—unless they are in a workforce program, which typically refers to vocational or trade schools. The CBO estimates 10% of currently enrolled Pell Grant recipients are enrolled less than half-time, and it expects one-third of these recipients to enroll in additional credits to avoid losing their grant.

However, many students cannot increase the credits they are taking because they have familial responsibilities or because they have to work, Brookings’ Meyer wrote.

The President’s “Skinny Budget” Would Lower Grant Totals

President Donald Trump’s proposed 2026 “skinny budget” shows the current administration’s priorities for federal programs and requests that Congress further reduce the maximum federal grants a student can receive.

Trump proposed reducing the maximum amount of Pell Grant students can get, which has been the same since the 2023-24 school year, by $1,685. That lowers the maximum that students can qualify for to $5,710 for the 2026-27 academic year, which should cover the average tuition and fees for in-state community college students.

Trump also wants to completely eliminate the Federal Supplemental Educational Opportunity Grant (FSEOG) program, which provides additional aid to students with exceptional financial need. The budget argues the grant program is a duplicate of the Pell Grant and “contributes to rising college costs that [Institutions of Higher Education] have used to fund radical leftist ideology.” Eliminating this program could mean the average student would lose about $950 in aid a year.

“Cutting Pell while simultaneously cutting FSEOG adds up to a dramatic loss in aid available to the lowest-income college students and the institutions that serve them,” Meyer wrote.

Trump also wants to cut Federal Work Study (FWS), a need-based program where the federal government pays up to 75% of the wages students receive from a part-time job. Trump’s budget requests that the federal government only pay 25% of a student’s wage, a reversal of the current program, where institutions or employers typically pay the smaller percentage.

FWS provides students with jobs that are more likely to be on campus and related to their major. Students who participate in FWS are also more likely to graduate on time and be employed after graduating.