Ed Dept Sets Rules for Needy Colleges' Grant Grab
Published Date: 3/24/2026
Notice
Summary
The Department of Education is setting the rules for which colleges can apply for special grants in 2026. Schools must spend less per student than similar schools to qualify, and the application window opens March 24 and closes April 23, 2026. This update helps make sure funding goes to schools that need it most, so get those applications in on time!
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
Use of IPEDS 2023-2024 Core Expenses Metric
The Department will calculate educational and general (E&G) expenditures per FTE using the NCES Core Expenses per FTE methodology and requires institutions to use Core Expenses per FTE data reported to IPEDS for academic year 2023-2024 when seeking FY 2026 eligibility. The Department will use the 2023-2024 IPEDS data to evaluate eligibility so institutions must rely on that base year.
Needy-Student Eligibility Thresholds
To be considered to have an enrollment of needy students, an institution must meet either: (1) at least 50 percent of its degree-seeking students received Pell, FSEOG, or FWS; or (2) its share of undergraduate degree-seeking students receiving Pell Grants for 2023-2024 exceeds the median for its category of comparable institutions. The notice provides the 2023-2024 median Pell percentages by category (2-year public 44%, 2-year nonprofit 48%, 4-year public 37%, 4-year nonprofit 36%).
Grant Application Window and Login
If your college wants to apply for FY 2026 grants under section 312 of the HEA, the application is available starting March 24, 2026 and must be submitted by April 23, 2026. You must use the Department's eligibility system at https://HEPIS.ed.gov and log in with a Login.gov account; new account setup can take up to five business days.
Low-Income (150% Poverty) Levels for Eligibility
The notice uses 2024 annual low-income levels at 150 percent of poverty to assess low-income status for eligibility; for example, 150% of poverty is $22,590 for a family of 1 and $46,800 for a family of 4 in the 48 contiguous states and DC. For families larger than eight, add $8,070 per additional member in the contiguous states.
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