BIRMINGHAM, Ala. – Congress is considering changes to the federal Pell Grant program that could impact how much aid low-income students receive for college – including thousands of students in Alabama.
The proposal, known as the One Big, Beautiful Bill Act, would reduce the maximum Pell Grant from $7,395 to $5,710 for the 2026-27 academic year.
Additional provisions would tie the full award to enrollment in at least 15 credit hours per semester, and limit eligibility to students enrolled at least half-time – defined as 7.5 credit hours per semester.
The Congressional Budget Office published an analysis showing that most students will receive less Pell Grant funding if the House version stands.
These changes could influence whether low-income students are able to afford to attend a two- or four-year college in Alabama, particularly those who cannot increase their course load.
“It certainly is good for young people to take 15 hours,” Birmingham Promise Executive Director Samantha Williams told ADN, pointing out that her organization pushes scholarship recipients to take a full 15 hours each semester.
“But it’s not always possible, and when it’s not possible, it’s usually because of things happening to you that are out of your control. And we know that that happens more to kids who are coming from lower income backgrounds.”
“So the kids who most need that money…are the ones who will suffer most,” she added.
Birmingham Promise supports students from Birmingham City Schools as they pursue higher education. More than 450 students are heading to college this fall supported by Pell Grants and Birmingham Promise funding.
According to federal data, more than 85,000 Alabama students – about 31% of all undergraduates attending public colleges and universities – received Pell Grants in the 2024-25 academic year, totaling $423 million:
- Community colleges: $172.4 million, 39,500 recipients
- Four-year colleges: $250.1 million, 45,870 recipients
The proportion of Pell Grant recipients varies widely by institution, from 12% of students at Auburn University to 72% at Alabama State University.
Alabama’s community colleges could be especially affected by proposed changes to credit-hour requirements. Pell recipients make up a higher share of enrollment at two-year institutions (35%) than at four-year colleges (28%), and a larger percentage of their students attend part-time – 65% versus 18%, according to federal data for the 2022-23 academic year.
A spokesperson for the Alabama Community College System told ADN that it is “premature to speculate” about the financial impact of Pell changes until the final budget is approved by Congress.
In response to ADN’s request for how many community college students could be impacted, ACCS spokesperson Clinton Bourgeois said, “Looking back to the Fall 2024 semester, 31,810 students seeking to further their education through an Alabama community college received funding through Pell Grants; 4,258 (13.4%) of those students were under the proposed 7.5 per semester credit hour minimum.”
“Under the proposed budget, it is estimated that $7,120,856 Pell funding would have been lost for that semester,” he added.
The state does offer financial aid programs for college students, but those funds may not cover the full shortfall.
“If enacted, the proposed 22.8% reduction in the maximum Pell Grant award could lead to a greater financial gap for students pursuing higher education,” said Alabama Commission on Higher Education Executive Director Jim Purcell. “ACHE will continue to advocate for increased state financial aid, as several existing state-level grants and scholarships may help mitigate the impact of potential reductions in federal assistance.”
One provision in the House version of the bill would expand Pell eligibility to include students pursuing short-term credential programs – known as workforce Pell – a policy that Sen. Tommy Tuberville has recently supported.
The proposed changes have prompted concern among higher education advocates. NASFAA President and CEO Melanie Storey said the bill would mark a significant shift in federal support for low-income students.
“Even during politically polarizing times, the federal Pell Grant program has historically seen broad bipartisan support,” she said. “Significantly reducing the maximum Pell Grant – an award targeted to low-income students – while cutting or eliminating complementary programs reverses decades of commitment to the promise of the Higher Education Act and would result in considerable harm for students pursuing postsecondary education.”
The Senate is expected to consider the bill in the coming weeks. Congress aims to finalize the budget before the July 4 recess.
The table below shows the number and percentage of undergraduates enrolled in Alabama’s two- and four-year colleges and receiving Pell Grant funding – in whole or in part – during the 2022-23 academic year, the most recent year that data is available.
Click here if you’re unable to see the table below.
Update 2:30 p.m.: This article was corrected to show the Congressional Budget Office published the analysis showing that most students will receive less Pell Grant funding if the House version stands.