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119-s-5403119th CongressWALLET

Debt-Free College Act of 2026

Sponsored By: Senator Schatz, Brian [D-HI]

Introduced

Summary

Debt-free in-state public college for eligible students. This creates State–Federal partnerships that fund unmet financial need at in‑state public institutions, sets rules for state investment and tuition caps, creates a separate five‑year grant program for HBCUs and other minority‑serving institutions, and adds a defined Title IV eligibility path for Dreamer students.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

State grants for debt-free college

If enacted, the government would give states large grants to help make in‑state public colleges debt‑free. The bill authorizes $84 billion for FY2027 and funding through FY2027–FY2036 as needed. States would apply with a Secretary‑approved five‑year plan, must maintain recent state funding levels per student, and must first use funds to cover unmet need for Pell recipients. Up to 1% of a state grant could pay administration, up to 5% for capacity building, and 4% must fund student success programs.

Dreamer students and federal aid

If enacted, the bill would add a "Dreamer student" category for Title IV federal student aid. To qualify you would generally need to have entered the U.S. before age 16 and provide a list of U.S. secondary schools attended, unless the Secretary waives that rule for hardship. You would also need one of four tests: a U.S. high school diploma or scheduled completion; two years of college with good progress; prior DACA‑era deferred action eligibility; or four years of U.S. uniformed service with honorable discharge.

Grants for HBCUs and minority colleges

If enacted, the bill would create five‑year grant awards to eligible HBCUs, Tribal Colleges, and certain nonprofit minority‑serving institutions. The program authorizes $3 billion for FY2027 and funding through FY2027–FY2036 as needed. Ninety‑five percent of each grant would pay undergraduate unmet need and 5% could fund capacity improvements. Participating schools would cap tuition at enactment levels (with small CPI increases allowed) and face penalties or revocation if they break rules.

How states count college funding

If enacted, the bill would define how to calculate a State's "net State operating support" (NSOS) for public higher education. NSOS would count state and local money for operating costs and student aid, but subtract listed items like federal funds, out‑of‑state aid, capital outlays, and other exclusions. The Education Secretary could also add further exclusions when calculating NSOS. This calculation would determine a state's annual grant size under the partnership.

Sponsors & CoSponsors

Sponsor

Schatz, Brian [D-HI]

HI • D

Cosponsors

  • Sen. Schiff, Adam B. [D-CA]

    CA • D

    Sponsored 9/28/2026

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 9/15/2026

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 9/15/2026

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 9/15/2026

  • Sen. Durbin, Richard J. [D-IL]

    IL • D

    Sponsored 9/15/2026

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 9/15/2026

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 9/15/2026

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 9/15/2026

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 9/15/2026

Roll Call Votes

No roll call votes available for this bill.

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