NACAC Advocacy and Policy Update

By: Sean Robins

The House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies has released its fiscal year (FY) 2027 spending bill, proposing significant changes to federal education funding and student aid programs. The legislation would provide approximately $70.7 billion for the U.S. Department of Education, representing a 10 percent reduction from FY26 levels and contributing to an overall $8.1 billion decrease in discretionary funding across the Labor-HHS-Education bill.

While the proposal includes several positive investments for college access and student aid, it also contains substantial reductions and policy changes that would affect students and educators at multiple points along the pathway to postsecondary success.

“College access is not supported by a single program. While the House FY27 proposal protects Pell Grants and strengthens some college access initiatives, the elimination of subsidized student loans and reductions to other student supports could make it more difficult for many students to afford and complete a college education.”

— Sean Robins, Director of Advocacy, NACAC

Key Funding Changes at a Glance

  • Pell Grant maximum award: $7,445 ($50 increase over the 2026 award)
  • Federal Direct Subsidized Loans: Eliminated beginning July 1, 2027
  • Federal Work-Study: $908 million (-$322 million; 26.2 percent reduction)
  • Federal Supplemental Educational Opportunity Grant (FSEOG): $546 million (-$364 million; 40 percent reduction)
  • TRIO: $1.197 billion (+$6 million)
  • GEAR UP: $394 million (+$6 million)
  • Title IV-A Student Support and Academic Enrichment Grants: $1.385 billion (level funded)
  • CCAMPIS: Eliminated (-$75 million)
  • Title I Grants to LEAs: $16.532 billion (-$1.895 billion; 10.3 percent reduction)
  • Title II-A Supporting Effective Instruction State Grants: Eliminated (-$2.2 billion)
  • English Language Acquisition: Eliminated (-$721 million)
  • Multiple Minority-Serving Institution programs, including HSIs, PBIs, AANAPISIs, and NASNTIs: Eliminated

Pell Grants Stabilized, but at a Cost

One of the bill’s most notable provisions is its effort to address the projected Pell Grant funding shortfall. The proposal would increase the maximum Pell Grant award by $50, bringing the maximum award to $7,445, while providing $16.27 billion in mandatory funding to stabilize the program and address the funding gap. Protecting the long-term sustainability of Pell Grants remains critical to supporting college affordability for millions of students, and the House proposal recognizes the importance of addressing the program’s financial challenges.

However, the mechanism used to achieve that goal raises significant concerns. The bill would eliminate Federal Direct Subsidized Loans for undergraduate students beginning July 1, 2027. For decades, subsidized loans have provided a critical option for students with financial need by preventing interest from accruing while they are enrolled in school. Under the House proposal, students would still have access to unsubsidized loans, but they would be responsible for all accrued interest during enrollment, increasing the overall cost of borrowing and potentially leaving students with higher debt burdens after graduation.

The legislation also makes deep reductions to campus-based student aid programs that have long supported affordability and persistence. Funding for Federal Work-Study would be reduced by $322 million, a 26.2 percent cut, lowering total funding to $908 million. The Federal Supplemental Educational Opportunity Grant (FSEOG) program would be reduced by $364 million, a 40 percent cut, leaving the program funded at $546 million. Together, these reductions would limit resources available to students with significant financial need at institutions across the country.

Mixed Outcomes for College Access Programs

The bill presents a more positive outlook for several longstanding college access programs. Federal TRIO Programs would receive $1.197 billion, an increase of $6 million, while GEAR UP would receive $394 million, also a $6 million increase. These investments reflect continued bipartisan recognition of the important role these programs play in helping low-income, first-generation, rural, and historically underserved students prepare for and succeed in postsecondary education.

The legislation also maintains funding for Title IV-A Student Support and Academic Enrichment Grants at $1.385 billion. Title IV-A remains one of the largest federal investments supporting student success, school counseling, college and career readiness, mental health services, and safe and healthy learning environments. For many school districts, these funds help expand access to college advising and postsecondary planning resources. Maintaining support for Title IV-A is particularly important as schools continue to face growing student needs and persistent counselor-to-student ratio challenges.

At the same time, several programs supporting vulnerable student populations would be eliminated. The proposal would eliminate funding for the High School Equivalency Program (HEP) and College Assistance Migrant Program (CAMP), which support educational pathways for migrant and seasonal farmworker students, as well as the Graduate Assistance in Areas of National Need (GAANN) program.

The bill would also eliminate Child Care Access Means Parents in School (CCAMPIS), a $75 million program that helps student parents access child care while pursuing postsecondary education. For many parenting students, access to affordable child care remains a critical factor in college enrollment, persistence, and completion.

Significant Changes for Minority-Serving Institutions

The proposal would also substantially reshape federal support for Minority-Serving Institutions (MSIs). The bill provides $508.3 million for Aid for Institutional Development programs under Title III and Title V, including continued funding for Historically Black Colleges and Universities (HBCUs), Historically Black Graduate Institutions, HBCU Master’s Programs, and Tribally Controlled Colleges and Universities.

Aid for Institutional Development Programs

Maintained Funding

  • HBCUs: $406 million
  • Historically Black Graduate Institutions: $103 million
  • HBCU Master’s Programs: $20 million
  • Tribally Controlled Colleges and Universities: $58 million

Not Funded

  • Strengthening Institutions (Title III-A)
  • Alaska Native and Native Hawaiian-Serving Institutions
  • Asian American and Native American Pacific Islander-Serving Institutions (AANAPISIs)
  • Minority Science and Engineering Improvement Program (MSEIP)
  • Native American-Serving Nontribal Institutions (NASNTIs)
  • Predominantly Black Institutions (PBIs)
  • Hispanic-Serving Institutions (HSIs)

These changes would represent a significant departure from the federal government’s longstanding approach to supporting Minority-Serving Institutions. While funding for HBCUs and Tribal Colleges would continue, the proposal would eliminate support for several other institutional development programs that serve Hispanic, Asian American, Native Hawaiian, Pacific Islander, Native American, and other historically underserved student populations. For many institutions, these programs provide critical resources that support student success, institutional capacity, and educational opportunity.

Deep Cuts to the Educational Pipeline

Beyond higher education, the bill proposes significant reductions to programs that support student preparation and readiness long before students reach the college admission process.

Major K–12 and Pipeline Reductions

  • Title I Grants to Local Educational Agencies: -$1.895 billion
  • Title II-A Supporting Effective Instruction State Grants: Eliminated (-$2.2 billion)
  • English Language Acquisition: Eliminated (-$721 million)
  • Adult Education State Grants and National Programs: Eliminated

Title I funding would fall to $16.532 billion, reducing resources available to schools serving large concentrations of low-income students. The elimination of English Language Acquisition funding would remove dedicated federal support for multilingual learners and their schools.

The bill would also eliminate Title II-A Supporting Effective Instruction State Grants, one of the primary federal funding streams supporting educator recruitment, retention, and professional development.

These reductions would be felt across the educational pipeline, potentially limiting access to academic supports, educator development, and college readiness resources that help prepare students for postsecondary success.

Additional Policy Provisions

In addition to funding changes, the bill includes several policy provisions that could affect educational institutions and professionals. These include restrictions on the use of federal funds for diversity, equity, and inclusion (DEI) initiatives, requirements related to parental notification policies concerning gender identity, and protections for certain student organizations at public institutions.

The proposal would also prohibit federal financial assistance to institutions that allow biological males, as determined at birth, to participate in athletic programs designated for women or girls.

What Comes Next

The House Appropriations Committee is scheduled to consider the legislation during its full committee markup on June 9. As the appropriations process moves forward, lawmakers will have opportunities to offer amendments, restore funding, and revise policy provisions before the bill advances to the House floor and eventual negotiations with the Senate.

Viewed as a whole, the bill reflects a mixed and often contradictory approach to federal education policy. It makes important investments to stabilize Pell Grants while preserving several key college access programs, including TRIO, GEAR UP, and Title IV-A. At the same time, it would eliminate subsidized student loans, significantly reduce campus-based aid, cut Title I funding, and reshape federal support for Minority-Serving Institutions.

College access functions as an interconnected pipeline, with students relying on supports that span from K-12 education through postsecondary enrollment and completion. Investments in one part of that system can be undermined when support is reduced elsewhere. As written, the bill strengthens certain components of the college access ecosystem while weakening others, creating new challenges for students, schools, and institutions seeking to expand educational opportunity.

NACAC will continue to monitor the appropriations process and advocate for policies and investments that expand college access, support student success, and strengthen the professionals and institutions that help students navigate the path to higher education.

Sean Robins is director of advocacy at National Association for College Admission Counseling (NACAC), where he leads federal and state advocacy efforts to advance policies that support college access, affordability, and student success.