Democrats Move Pell Grant Increase

Cleaning up leftover work from the 109th Congress, the new Democratic Majority unveiled their Fiscal Year 2007 spending plan today, and higher education was one of the few areas selected for a spending increase. It appears that the two Chairmen of the Appropriations Committees are planning to deliver on one of the Democrats top campaign priorities: expanding access to higher education. Under the plan, the maximum Pell Grant for low-income students would increase by $260, or 6 percent, to $4,310 next July. This would be the first increase in the maximum Pell Grant in four years. While the Associated Press described the increase as "modest," it is actually quite significant. Every $100 increase in the maximum grant is estimated to cost around $300 million; this proposed increase of $260 would cost $615.4 million. According to the House Appropriations Committee, 5.3 million students would have their college costs reduced.

Here at Higher Ed Watch, we think this proposal is a very shrewd move on the Democrats part. President Bushs budget comes out on Monday, and $260 sets a high bar for his budget request to exceed. In addition, $260 is a strategic choice, given that the largest increase in the maximum grant under the Republicans was $250 in 2002. Finally, this spending plan answers a lot of the criticism surrounding the student loan interest cutnamely that expanded access to higher education is more contingent on front-end grant aid than reduced loan costs. Prospects for passage are high.