Degrees Not Debt Act of 2025
Sponsored By: Representative Rep. Carbajal, Salud O. [D-CA-24]
Introduced
Summary
Rewrites how the Federal Pell Grant maximum is calculated by fixing a $14,800 base and then indexing future increases to inflation. It changes the award formula in law so award years starting July 1, 2026 use that base, an annual Consumer Price Index adjustment, and a subtraction tied to the last enacted appropriation's Pell maximum.
Show full summary
- Students and families: Creates an inflation-linked formula that can raise the statutory Pell Grant ceiling over time. For 2026-27 and 2027-28 the bill sets the total maximum equal to $14,800 minus the maximum Pell amount in the most recent appropriation.
- Colleges and financial aid offices: Directs the Secretary of Education to apply a CPI-based annual adjustment and to use existing Higher Education Act definitions for award years. That will change how institutions calculate maximum award amounts starting with award years on or after July 1, 2026.
- Congress and appropriators: Preserves Congress's funding control by subtracting the ‘‘maximum Federal Pell Grant’’ specified in the last enacted appropriation from the new formula. Actual award payments remain limited by what Congress funds each year.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Bigger, inflation-indexed Pell Grants for students
If enacted, this bill would change how the Pell Grant maximum is set starting July 1, 2026. For award years 2026–27 and 2027–28, it would use $14,800 as the target top award. For 2028–29 and later, that target would rise each year with the Education Secretary’s CPI estimate. The Department would subtract the maximum set in the latest appropriations law to calculate the add-on. Your actual award would still depend on Pell eligibility rules and what Congress sets each year.
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Sponsors & CoSponsors
Sponsor
Rep. Carbajal, Salud O. [D-CA-24]
CA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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