Proposed Federal Budget Maintaining Current Pell Funding Is a Start: Increased funding needed to provide college access for Native students
Denver, Colo., April 23, 2026 (GLOBE NEWSWIRE) — The Trump administration’s Fiscal Year (FY) 2027 budget proposal maintains the maximum Pell Grant of $7,395 and provides adequate funding to address the current funding shortfall (read the U.S. Department of Education 2027 budget summary). This is good news in the wake of last year’s budget proposal to cut the maximum Pell grant to $5,710 (nearly a quarter of the current grant). Maintaining Pell Grants is important, as they serve students with great financial need. Still, the value of the grant has not kept pace with today’s dollars due to inflation. There needs to be at least another $713 in funding for each Pell award to keep up with inflation.
Fully funding the Pell Grant program reflects deep bipartisan support for the program. Many in Congress understand that students with financial need would not be able to go to college without financial support. Many of these students are rural students, first-generation collegegoers, and working adults seeking credentials.
They graduate and contribute to their families, communities, and local economies, while serving as role models and serving their communities as teachers, health care professionals, law enforcement officials, engineers, business owners, and more.
Without inflationary adjustments to account for increased living costs, the value of this vital financial support will continue to erode. And because the Pell Grant program covers tuition, books, and fees, along with food and housing, it is uniquely positioned to address the full cost of college.
For Native students, this is particularly important. According to the U.S. Census Bureau, nearly 25% of Native Americans live in poverty in the U.S.— nearly triple that of white communities. Reservation communities, which are served by tribal colleges and universities (TCUs), often have even higher rates of poverty, from 28% to over 40%. TCU students rely heavily on Pell Grants at a much higher rate than non-TCU students, with approximately 75% to 80% of TCU students receiving a life-changing grant.
Yet even with a Pell Grant, many students still cannot afford to attend a TCU even though TCUs offer an affordable, community-based education. At the inception of the Pell program in the 1970s, Pell Grants covered nearly 80% of public college costs. Today, that number is closer to an average of 27%, according to the National Association of Student Financial Administrators. In addition, data shows Native students receive the lowest amount of federal financial aid in the country. For example, only 26% of Native American students received federal student loans, compared to 35% of all students, and most TCUs do not offer loan programs to ensure students graduate debt-free.
The result is a gap between the financial aid Native students receive and the full cost of college, which impacts the number of those students who enroll—or do not— in college.
Native students comprise a very small percentage of the college and university population already. Of the nearly two million bachelor’s degrees conferred in 2023-24, 8,008 (0.4%) went to Native graduates. And the number of college-going Native students is shrinking. NCES data shows Native American enrollment decreased by 15.4% from 145,900 to 123,500 from Fall 2014 to Fall 2024, even though enrollment in postsecondary education is at its highest in the last 10 years, according to the National College Attainment Network (NCAN). This is worrisome, because Indian Country needs educated, skilled workers.
The American Indian College Fund has always worked to fill the need gap with scholarships. Last year we provided 10,100 scholarships to 6,900 Native students totaling $22.2 million. But scholarships cannot do it all. The Pell Grant program must keep pace with inflation and include a small increase in the maximum Pell to address the rising cost of living, making college affordable for all students, including those with the greatest financial need.
Our students, our families, our communities, and our states cannot afford to squander the talents of our young people and lose the skills and economic opportunities an educated citizenry provides.
About the American Indian College Fund — The American Indian College Fund has been the nation’s largest charity supporting Native higher education for 37 years. The College Fund believes “Education is the answer” and provided more than $23 million in scholarships and other student support for higher education in 2024-25. Since its founding in 1989 the College Fund has provided more than $391 million in scholarships, programs, community, and tribal college support. The College Fund also supports a variety of programs at the nation’s 34 accredited tribal colleges and universities, which are located on or near Indian reservations, ensuring students have the tools to graduate and succeed in their careers. The College Fund consistently receives top ratings from independent charity evaluators. It earned a four-star rating from Charity Navigator, a Platinum Seal of Transparency from Candid (Guidestar), and the “Best in America Seal of Excellence” from the Independent Charities of America. The College Fund was also named as one of the nation’s top 100 charities to the Better Business Bureau’s Wise Giving Alliance. For more information about the American Indian College Fund, please visit collegefund.org.
Journalists: The American Indian College Fund does not use the acronym AICF. On second reference please use the College Fund.
CONTACT: Dina Horwedel American Indian College Fund 303-430-5350 [email protected]
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