The Trump administration released its proposed fiscal year 2027 budget, increasing funding for the Pell Grant program to address a shortfall while proposing deep cuts to student aid, institutional support, and research funding.
The proposal requests about $76.5 billion in discretionary funding for the Department of Education, a reduction of roughly $2.3 billion from the prior year. Budget documents indicate the proposal is part of a broader effort to reduce the federal role in education.
The plan includes a $10.5 billion increase in funding for the Pell Grant program, bringing total discretionary funding to more than $33 billion while maintaining the maximum award at $7,395 for the 2027–28 academic year. However, the proposal would eliminate the Federal Supplemental Educational Opportunity Grant program and sharply reduce Federal Work-Study.
The proposed budget cuts to student aid and research funding will have a significant impact on the education sector.
"The proposal includes substantial cuts to federal research agencies that support colleges and universities. The National Institutes of Health would see a reduction of about $5 billion, and the National Science Foundation would face a much steeper reduction, with a proposed cut of more than 50 percent.
Pell Grant Increase: $10.5 billion increase in funding.
Student Aid Cuts: Elimination of Federal Supplemental Educational Opportunity Grant program and reduction of Federal Work-Study.
Research Funding: Substantial cuts to National Institutes of Health and National Science Foundation.
The outcome of the proposed budget will determine whether key student aid and research programs are preserved or significantly reduced. As with any presidential budget request, the proposal marks the start of the appropriations process, and Congress will now develop its own spending legislation ahead of the Sept. 30 deadline.
As the appropriations process begins, it is crucial for stakeholders to advocate for the preservation of essential student aid and research programs. The Learning Success All Access Program offers a free trial that includes a personalized Action Plan, empowering parents to take control of their child’s education.
