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Federal Spending for the Pell Grant Expected to Increase

Date: 9/3/2009 10:06 am

On Tuesday, the Office of Management and Budget released its mid-session review, a document showing that federal spending for the Pell Grant Program will be $27 billion more over the next decade than previous estimates. The budget office correlates the increase in spending with the surge of students using federal aid for college this fall. Actual enrollment in the 2008-2009 school-year was 13 percent, 2 percent more than estimated, with enrollment in 2009-2010 projected to be even higher. Some administration officials are concerned, however, that the increased cost of the Pell Grant program would complicate President Barack Obama's plan to further raise spending for Pell Grants with savings earned by ending another government student lending program.

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Issue: Higher Education Affordability

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