This week, Congress passed a bipartisan bill to sustain funding for key programs that help students meet their basic needs and afford the rising costs of college through September 30. They did so despite recent actions by the Trump Administration to redirect or cut funding, and despite proposals by House Republicans to slash key programs.
In passing a bipartisan Fiscal Year 2026 (FY26) spending package, which President Trump signed on Tuesday, lawmakers ensured that most education programs remain close to level funding and notably rejected the Administration’s efforts to dismantle the U.S. Department of Education.
After a year of instability, grant cancellations, and funding delays—including the devastation wrought by the now largely defunct "Department of Government Efficiency" (DOGE) last year—this appropriations law is welcome news for students.
It is also the result of collective efforts by The Hope Center for Student Basic Needs and many others to advocate for investments that make college more affordable. The bill’s key wins and highlights include:
Keeping federal funding level for federal financial aid programs like the Pell Grant, Supplemental Educational Opportunity Grant (SEOG), and Federal Work Study (FWS)
Bringing back $10 million in funding for the Basic Needs Grant
Maintaining the current level of $75 million for the Child Care Access Means Parents in School (CCAMPIS) program
Slightly increasing funding for the Garrett Lee Smith (GLS) Campus Grant program, which supports student mental health and suicide prevention
Supporting the Institute of Education Sciences in collecting key data on students’ financial and basic needs
While the results are largely positive, especially given the tough political environment, we must also acknowledge the package's shortcomings in meeting students' needs and the looming cuts to states that could further undermine affordability. For example, level funding for financial aid while the cost of college goes up—including a 2.7% increase in the Consumer Price Index in calendar year 2025—means a cut for students in real (inflation-adjusted) terms. And the One Big Beautiful Bill Act (OBBBA) will soon force most states to make excruciatingly deep budget cuts that will undoubtedly impact higher education.
There is also ongoing uncertainty about ongoing Congressional negotiations over the Department of Homeland Security (DHS), including Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP). As Congress continues to discuss funding and restrictions around immigration enforcement, many students remain at risk—living with uncertainty that undermines their safety, which in turn undermines their ability to learn. Meeting students’ basic needs means safeguarding their dignity, security, and sense of belonging, both on and off-campus.
Federal Financial Aid
For a fourth year in a row, Congress kept the Pell Grant funded at a maximum of $7,395, effective for the 2026-27 award year. This maximum award level has not changed since July 1, 2023. If the award had kept pace with inflation, it would be $7,840 today, meaning max grant recipients have lost $445 in purchasing power over that time due to rising living costs.
The Pell Grant program serves about 6.5 million students each year, and over 75% of recipients have annual family incomes of less than $40,000. While the Pell Grant is not keeping up with inflation, we celebrate that 1.7 million more students have recently become eligible for maximum Pell Grants under the bipartisan FAFSA Simplification Act, a 27% increase. An 665,000 additional students qualify for any Pell Grant under that law.
Other need-based funding similarly received level funding. The Supplemental Educational Opportunity Grant (SEOG) was maintained at $910 million, consistent with FY24 and FY25. Federal Work-Study (FWS) was maintained at $1.23 million. Congress has not increased funding for these campus-based aid programs since FY23, and their purchasing power continues to erode. House Republicans and the Trump Administration had proposed major cuts to both, including eliminating SEOG entirely; such attempts were soundly rejected.
Basic Needs Grant & FIPSE
Funding for the Basic Needs for Postsecondary Students—or "Basic Needs Grant"—was restored at $10 million per year. This vital program is housed within the Fund for Improvement for Postsecondary Education (FIPSE) within the U.S. Department of Education. The Basic Needs Grant enables college, systems of higher education, and states to pursue comprehensive approach that help students meet their basic needs. The Basic Needs Grant has funded 42 colleges in 22 states and Puerto Rico since it was created in FY21.
Basic Needs Grants at the U.S. Department of Education
Total Appropriation | Total new award funding | Number of new awards | Average new award (total for 3-year grant) | |
|---|---|---|---|---|
FY 2021 | $5,000,000 | $4,941,916 | 6 | $823,652 |
FY 2022 | $8,000,000 | $13,501,140 | 14 | $932,224 |
FY 2023 | $10,000,000 | $9,993,637 | 11 | $908,512 |
FY 2025 | $10,000,000 | $0 (temporary) | 0 | 0 |
FY 2026 (new) | $10,000,000 | TBD | TBD | TBD |
In December, ED announced they would not honor Congressional intent for last year’s funding (FY25) for FIPSE—and redirected $171 million toward their own priorities like artificial intelligence and civil discourse. The agency was able to do this in part due to the looser language they were operating under with the FY25 continuing resolution. With this action, they temporarily eliminated the Basic Needs Grant last year, a devastating and short-sighted decision.
However, Congress’s action this week firmly directs ED to spend $136 million by September 30 for the specific programs spelled out by Congress:
Basic Needs Grant ($10m) – no change
Postsecondary Student Success Grants ($45m) – no change
Open Textbook Pilot ($7m) – no change
Rural Postsecondary and Economic Development Grant Program ($45m) – no change
Centers of Excellence for Veteran Student Success ($9m) – no change
HBCU, TCU, and MSI Research & Development Infrastructure Grants ($15m) – reduced by $35 million
Transitioning Gang-Involved Youth to Higher Education ($5m) – no change
This means the Basic Needs Grant is coming back for FY26 (hooray!). Funds awarded under the Postsecondary Student Success Grants (PSSG) program could also be used to fund basic needs-related interventions, such as comprehensive approaches to student success (CASS), which integrates financial support to improve retention and completion. And the Open Textbook Pilot program helps reduce textbook costs for many students by providing free, open-access alternatives to course materials.
We will provide more information about grant competitions for these FIPSE programs as they are announced in the next few months.
Child Care Access Means Parents in School (CCAMPIS) Program
Congress voted to continue funding for CCAMPIS at $75 million, the same as the FY24 enacted, and FY25 CR, levels. The CCAMPIS program is a critical lifeline for many of the nearly 1 in 5undergraduate students who are parenting while going to school.
This funding is also in stark contrast to proposals by House Republicans and the Trump Administration to eliminate CCAMPIS, which they claimed was duplicative of the Child Care and Development Block Grant (CCDBG). The vast majority of parenting students cannot get access to CCDBG funding.
The bill also contains language in the explanatory statement directing ED to conduct a new CCAMPIS grant competition in FY26, which it has not done in more than three years. Congress also agreed to include statement language requested by The Hope Center which urges the ED to prioritize awarding funds to CCAMPIS applicants that:
propose flexible child care arrangements (such as evening, weekend, and drop-in child care);
will conduct direct outreach to parenting students regarding State and Federal public benefits, the Child Tax Credit, and education tax benefits; and
will collect data on the total number of parenting students enrolled at the institution and the number of parenting students served by CCAMPIS grant funds.
Despite the funding for CCAMPIS, we remain very concerned with ED’s attempt to transfer the program to the U.S. Department of Health and Human Services. The transfer only adds confusionand more red tape for grantees. Congress’s appropriation bill strongly questions and objects to the agency’s transfer authority, but it remains unclear if the Administration will heed this clear statement.
Garrett Lee Smith (GLS) Campus Grant
Congress also voted to increase funding for the Garrett Lee Smith (GLS) Campus Suicide Prevention Grant by roughly 24%, from $8.48 million last year, to $10.48 million, an increase of $2 million. GLS is the only federal program dedicated to addressing mental and behavioral health services for college students—a key student basic need. Congress’s bipartisan statement of support for GLS is essential given the momentary cancelation, and subsequentreversal, of $2 billion in mental health programs a few weeks ago. HHS anticipates accepting new applications for GLS Campus grants in mid-March. Check back at that link for more information.
Institute for Education Sciences
Congress also voted to sustain $790 million in funding for the Institute of Education Sciences (IES). This is important to the field of student basic needs because IES conducts research on what works to improve student outcomes. IES also publishes key information on college costs and financing that helps explain national trends, including enrollment, cost of attendance, and net price. And, IES’ National Center for Education runs the National Postsecondary Student Aid Study (NPSAS), which provides essential information on students and financial aid. The NPSAS:2024 data could be released this year.
However, last year DOGE slashed IES staffing from about 100 people to just 11 full-time staff. This is woefully insufficient and completely unworkable to execute NCES surveys. In the appropriations bill, Congress has newly directed ED to hire the staff needed to carry out the programs it has funded, including IES and NCES. The agency must rehire the people it needs to run NCES programs as quickly as possible.
Earmarks
Within the ED and HHS portions of the bill are dozens of earmarks—also known as “Congressionally Directed Spending” (CDS)—for colleges and universities, and student success organizations, across the country. For example, 110 community colleges received $170 million. Members of Congress requested these special projects and can support a wide range of operational and capital costs. But in many cases, the earmarks include funding for financial aid, such as stipends and scholarships, support services, child care, and transportation.
Although the current House Republican Majority has prohibited CDS requests for the Labor, Health and Human Services, and Education (LHHS) bill under their House procedures, the Senate has not. That means Senators can still receive and submit requests for student basic needs in the LHHS bill. The Hope Center encourages colleges and universities, higher education systems, and related nonprofit organizations to submit CDS requests to their U.S. Senators for financial aid and basic needs support for students.
Conclusion
The FY26 funding bill is good news for student basic needs given that it rejected proposed cuts to programs that support student basic needs, like wholesale eliminations of CCAMPIS and SEOG, and cuts to Pell Grants and FWS. Sadly, this occurred while other programs did receive cuts. Congress’s action demonstrates that policymakers heard the value of investing in higher education.
However, it’s bittersweet to celebrate these investments, because we believe meeting students’ full cost of attendance should be the norm. The funding for financial aid and basic needs programs did not grow with inflation, and students need resources that keep pace with rising costs.
Please consider reaching out to your Member of Congress to support student basic needs and college affordability. If we can help you with that, please contact us at [click-for-email]. We plan to provide additional resources for colleges to participate in the Fiscal Year 2027 appropriations process in the coming weeks. And stay tuned for the release of our 2026 Federal Policy Priorities later this month!
Previous statements and publications:
Statement on the U.S. Department of Education’s Decision to End the Basic Needs Grant (November 2025)
Read more:
Congress Passes LHHS Budget, Rejecting White House’s Proposed Higher Ed Cuts, The Institute for College Access and Success (February 3, 2026)
Lawmakers maintain support for Institute of Education Sciences in latest federal funding package, Institute for Higher Education Policy (February 4, 2026)
Congressional FY26 Deal: Key Wins for Homeless Children and Youth, SchoolHouse Connection (February 3, 2026)
House and Senate Release FY26 Appropriations Bill, Pell Max Set at $7,395 for Third Consecutive Year, National College Attainment Network (January 22, 2026)