S. 4859

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4859 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
2d Session
S. 4859

To improve the structure of the Federal Pell Grant program, and for 
other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 23, 2026

Ms. Hirono (for herself, Mrs. Murray, Mr. Reed, Mr. Whitehouse, Mr. 
Kaine, Mr. Padilla, Mrs. Shaheen, Mr. Bennet, Mr. Blumenthal, Mr. 
Markey, Ms. Duckworth, Mr. Heinrich, Mr. Warnock, Ms. Warren, Mrs. 
Gillibrand, Ms. Smith, Mr. Van Hollen, Mr. Murphy, Mr. Booker, Mr. 
Wyden, Ms. Klobuchar, Mr. Durbin, Mr. King, Mr. Merkley, Mr. Fetterman, 
and Mr. Ossoff) introduced the following bill; which was read twice and 
referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

A BILL

To improve the structure of the Federal Pell Grant program, and for 
other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Pell Grant Preservation and 
Expansion Act of 2026''.

SEC. 2. FINDINGS.

Congress finds the following:
(1) The United States needs individuals with the knowledge, 
skills, and abilities that enable them to thrive as educated 
citizens in society and successfully participate in an 
interconnected economy.
(2) Investments in higher education through student aid 
such as the Federal Pell Grant program under section 401 of the 
Higher Education Act of 1965 (20 U.S.C. 1070a) help students 
and families reach, afford, and complete education and training 
opportunities beyond high school.
(3) The Federal Pell Grant program is the largest source of 
federally funded grant aid for postsecondary education.
(4) The Federal Pell Grant program allows millions of 
people of the United States to attend college and is especially 
vital for students of color. Three in 5 African American 
undergraduate students, and one-half of all Latino 
undergraduate students, rely on the Federal Pell Grant program.
(5) The Federal Pell Grant program should continue to be a 
reliable source of funding for aspiring students, their 
families, and future generations that they can count on to be 
there for them when they seek higher education.
(6) In Public Law 119-21, Congress expanded Federal Pell 
Grant eligibility to short-term training programs, but did not 
make additional investments nor take efforts to stabilize the 
program for longer than one fiscal year. Congress also made 
students whose total non-Federal grants and scholarships alone 
equal or exceed their cost of attendance ineligible for the 
Federal Pell Grant.
(7) To stabilize Federal Pell Grant funding and ensure the 
grant will continue to serve millions of students now and in 
the future, the program should become a fully mandatory program 
that grows with inflation.
(8) Restoring prior eligibility cuts and expanding access 
to underserved students will give millions of students and 
families the critical student aid support they need and 
deserve.

SEC. 3. TABLE OF CONTENTS; REFERENCES.

(a) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Findings.
Sec. 3. Table of contents; references.
Sec. 4. Doubling Federal Pell Grants and providing all Federal Pell 
Grants through mandatory funding.
Sec. 5. Providing increased Federal Pell Grants and other assistance 
for recipients of means-tested benefits.
Sec. 6. Federal aid eligibility for dreamer students.
Sec. 7. Restoring the total semesters of Federal Pell Grant 
eligibility.
Sec. 8. Reducing financial aid penalties from satisfactory academic 
progress determinations.
Sec. 9. Restoring Federal Pell Grant eligibility for certain students 
with scholarships.
Sec. 10. Conforming amendments.
Sec. 11. Effective date.
(b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

SEC. 4. DOUBLING FEDERAL PELL GRANTS AND PROVIDING ALL FEDERAL PELL 
GRANTS THROUGH MANDATORY FUNDING.

(a) Amount of Minimum Federal Pell Grants.--Section 401 (20 U.S.C. 
1070a) is amended--
(1) in subsection (a)(2)(F), by striking ``10 percent'' and 
inserting ``5 percent'';
(2) in subsection (b)--
(A) in paragraph (1)(B)(i), by striking ``paragraph 
(5)(A)'' and inserting ``paragraph (5)'';
(B) by striking paragraph (5) and inserting the 
following:
``(5) Total maximum federal pell grant.--
``(A) Award year 2026-2027.--For award year 2026-
2027, the total maximum Federal Pell Grant award shall 
be $10,000.
``(B) Award year 2027-2028.--For award year 2027-
2028, the total maximum Federal Pell Grant award shall 
be $11,000.
``(C) Award year 2028-2029.--For award year 2028-
2029, the total maximum Federal Pell Grant award shall 
be $12,000.
``(D) Award year 2029-2030.--For award year 2029-
2030, the total maximum Federal Pell Grant award shall 
be $13,000.
``(E) Award year 2030-2031.--For award year 2030-
2031, the total maximum Federal Pell Grant award shall 
be $14,000.
``(F) Award year 2031-2032 and subsequent years.--
For award year 2031-2032, and each subsequent award 
year, the total maximum Federal Pell Grant award shall 
be $15,000--
``(i) increased by the adjustment 
percentage for the award year for which the 
amount under this subparagraph is being 
determined; and
``(ii) rounded to the nearest $50.
``(G) Definition of adjustment percentage.--In this 
paragraph, the term `adjustment percentage,' as applied 
to an award year, is equal to the percentage increase 
in the Consumer Price Index, as defined in section 
478(f), for the most recent calendar year ending prior 
to the beginning of the award year.'';
(C) by striking paragraphs (6) and (7) and 
inserting the following:
``(6) Appropriation of funds.--There are authorized to be 
appropriated, and there are appropriated, out of any money in 
the Treasury not otherwise appropriated, such sums as may be 
necessary for fiscal year 2026 and each subsequent fiscal year 
to provide the Federal Pell Grant for which a student shall be 
eligible under this section during an award year.''; and
(D) by redesignating paragraphs (8) and (9) as 
paragraphs (7) and (8), respectively;
(3) in subsection (d)(5)(B)--
(A) in clause (i), by striking ``subclause (I) or 
(II)'' and inserting ``subclause (I), (II), or (III)''; 
and
(B) in clause (ii)--
(i) in subclause (I)(bb), by striking 
``or'' after the semicolon;
(ii) in subclause (II)(bb)(CC), by striking 
the period and inserting ``; or''; and
(iii) by adding at the end the following:
``(III) during a period for which 
the student did not receive a loan 
under this title but for which, if the 
student had received such a loan, such 
loan would have been discharged under 
the circumstances described in 
subclause (II)(bb)(CC).'';
(4) by striking subsections (g) and (h); and
(5) by redesignating subsections (i), (j), and (k) as 
subsections (g), (h), and (i), respectively.
(b) Repeal of Scoring Requirement.--Section 406 of H. Con. Res. 95 
(109th Congress) is amended--
(1) by striking subsection (b); and
(2) by striking ``(a) In General.--Upon'' and inserting the 
following: ``Upon''.
(c) Student Support Services.--Section 402D(d)(1) (20 U.S.C. 1070a-
14(d)(1)) is amended by striking ``the minimum'' and inserting ``10 
percent of the total maximum''.
(d) Scholarship Component.--Section 404E(d) (20 U.S.C. 1070a-25(d)) 
is amended by striking ``less than the minimum'' and inserting ``less 
than 10 percent of the total maximum''.

SEC. 5. PROVIDING INCREASED FEDERAL PELL GRANTS AND OTHER ASSISTANCE 
FOR RECIPIENTS OF MEANS-TESTED BENEFITS.

(a) Increased Amount of Maximum Federal Pell Grants for Students 
With Negative Student Aid Indexes.--Section 401(b)(1) (20 U.S.C. 
1070a(b)(1)), as amended by section 4 of this Act, is further amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking 
``A student'' and inserting ``Except in the case of a 
student with a student aid index of less than zero, a 
student'';
(B) by striking clause (i); and
(C) by redesignating clauses (ii) and (iii) as 
clauses (i) and (ii), respectively;
(2) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking 
``subparagraph (A) for an academic year,'' and 
inserting ``subparagraph (A), or an increased Federal 
Pell Grant under subparagraph (B), for an academic 
year,''; and
(B) in clause (ii), by striking ``, except that a 
student aid index of less than zero shall be considered 
to be zero for the purposes of this clause'';
(3) in subparagraph (C), by striking ``subparagraph (A) or 
(B)'' and inserting ``subparagraph (A), (B), or (C)'';
(4) in subparagraph (D), by inserting ``or an increased 
Federal Pell Grant under subparagraph (B)'' after 
``subparagraph (A)'';
(5) in subparagraph (E), by striking ``or a minimum Federal 
Pell Grant under subparagraph (C)'' and inserting ``an 
increased Federal Pell Grant under subparagraph (B), or a 
minimum Federal Pell Grant under subparagraph (D)'';
(6) by redesignating subparagraphs (B) through (F) as 
subparagraphs (C) through (G), respectively; and
(7) by inserting after subparagraph (A) the following:
``(B) A student with a student aid index of less 
than zero shall be eligible for a Federal Pell Grant 
award that exceeds the total maximum Federal Pell Grant 
by an amount equal to the amount by which the student's 
student aid index is less than zero.''.
(b) Special Student Aid Index Rule for Recipients of Means-Tested 
Benefits.--Section 473 (20 U.S.C. 1087mm) is amended by adding at the 
end the following:
``(d) Special Rule for Means-Tested Benefit Recipients.--
Notwithstanding subsection (b), for an applicant (or, as applicable, an 
applicant and spouse, or an applicant's parents) who, at any time 
during the previous 2-year period, received a benefit under a means-
tested Federal benefit program, as defined in section 479(b)(4)(H), (or 
whose parent or spouse received such a benefit, as applicable), the 
Secretary shall for the purposes of this title consider the student aid 
index as equal to -$1,500 for the applicant.''.

SEC. 6. FEDERAL AID ELIGIBILITY FOR DREAMER STUDENTS.

Section 484 (20 U.S.C. 1091) is amended--
(1) in subsection (a)(5), by inserting ``, or be a Dreamer 
student, as defined in subsection (u)'' after ``becoming a 
citizen or permanent resident''; and
(2) by adding at the end the following:
``(u) Dreamer Students.--
``(1) In general.--In this section, the term `Dreamer 
student' means an individual who--
``(A)(i) is not a citizen or national of the United 
States; and
``(ii) is inadmissible or deportable under the 
Immigration and Nationality Act (8 U.S.C. 1101 et 
seq.); and
``(B)(i) in the case of such an individual who was 
younger than 18 years of age on the date on which the 
individual initially entered the United States--
``(I) has earned a high school diploma, the 
recognized equivalent of such diploma from a 
secondary school, or a high school equivalency 
diploma recognized by State law, or is 
scheduled to complete the requirements for such 
a diploma or equivalent before the next 
academic year begins;
``(II) is enrolled at an institution of 
higher education pursuant to subsection (d);
``(III) has served in the uniformed 
services (as such term is defined in section 
101 of title 10, United States Code) for not 
less than 2 years and, if discharged, received 
an honorable discharge;
``(IV) has acquired a degree, certificate, 
or recognized postsecondary credential from an 
institution of higher education or area career 
and technical education school (as such term is 
defined in section 3 of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 
U.S.C. 2302)); or
``(V) has completed not less than 2 years 
in a postsecondary program at an institution of 
higher education, or area career and technical 
education school, in the United States during 
such time period; or
``(ii)(I) is, or at any time was, eligible 
for a grant of deferred action pursuant to--
``(aa) the memorandum of the 
Department of Homeland Security 
entitled `Exercising Prosecutorial 
Discretion with Respect to Individuals 
Who Came to the United States as 
Children' issued on June 15, 2012; or
``(bb) the memorandum of the 
Department of Homeland Security 
entitled `Exercising Prosecutorial 
Discretion with Respect to Individuals 
Who Came to the United States as 
Children and with Respect to Certain 
Individuals Who Are the Parents of U.S. 
Citizens or Permanent Residents' issued 
on November 20, 2014; or
``(II) would have been eligible for 
such a grant of deferred action if the 
applicable memorandum described in 
subclause (I) had been fully in effect 
since the date on which it was issued.
``(2) Hardship exception.--The Secretary shall issue 
regulations that direct when the Department shall waive the age 
requirement of paragraph (1)(B)(i) for an individual to qualify 
as a Dreamer student under such paragraph, if the individual 
demonstrates compelling circumstances, such as economic 
hardship (as defined in section 435(o)).''.

SEC. 7. RESTORING THE TOTAL SEMESTERS OF FEDERAL PELL GRANT 
ELIGIBILITY.

Section 401(d)(5)(A) (20 U.S.C. 1070a(d)(5)(A)), is amended by 
striking ``12'' each place the term appears and inserting ``18''.

SEC. 8. REDUCING FINANCIAL AID PENALTIES FROM SATISFACTORY ACADEMIC 
PROGRESS DETERMINATIONS.

Section 484(c) (20 U.S.C. 1091(c)) is amended to read as follows:
``(c) Satisfactory Progress.--
``(1) Definitions.--In this subsection:
``(A) Appeal.--The term `appeal' means a process by 
which a student who is not meeting the institution's 
satisfactory academic progress standards petitions the 
institution for reconsideration of the student's 
eligibility for assistance under this title.
``(B) Financial aid probation.--The term `financial 
aid probation' means a status assigned by an 
institution to a student who fails to make satisfactory 
academic progress and who has appealed and has had 
eligibility for aid reinstated.
``(C) Financial aid warning.--The term `financial 
aid warning' means a status assigned to a student who 
fails to make satisfactory academic progress at the end 
of the semester or equivalent period in which the 
student first fails to make such progress.
``(D) Payment period.--The term `payment period' 
means the applicable payment period described in 
section 668.4 of title 34, Code of Federal Regulations, 
or any successor regulation.
``(2) Satisfactory academic progress policy.--An 
institution shall establish a reasonable satisfactory academic 
progress policy for determining whether an otherwise eligible 
student is making satisfactory academic progress in the 
student's educational program and may receive assistance under 
this title. The Secretary shall consider the institution's 
policy to be reasonable if--
``(A) the policy is not more burdensome than the 
policy the institution applies to a student who is not 
receiving assistance under this title;
``(B) the policy provides for consistent 
application of standards to all students, including 
full-time, part-time, undergraduate, and graduate 
students, and all educational programs established by 
the institution;
``(C)(i) the policy specifies the grade point 
average that a student must achieve at each evaluation, 
or if a grade point average is not an appropriate 
qualitative measure, a comparable assessment measured 
against a norm; and
``(ii) if a student is enrolled in an educational 
program of more than 2 academic years, the policy 
specifies that at the end of the second academic year, 
the student must have a grade point average of at least 
a `C' or its equivalent, or have academic standing 
consistent with the institution's requirements for 
graduation;
``(D) the policy provides for measurement of the 
student's progress at each evaluation;
``(E) the policy describes--
``(i) how a student's grade point average 
and the pace at which the student progresses 
toward completion are affected by course 
incompletes, withdrawals, or repetitions, or 
transfers of credit from other institutions, 
including that credit hours from another 
institution that are accepted toward the 
student's educational program are counted as 
both attempted and completed hours; and
``(ii) how after a student reenrolls after 
the student's satisfactory academic progress 
was reset pursuant to paragraph (3)(B), the 
student may have any credits that were earned 
before the student was determined not to be 
making satisfactory academic progress counted 
for purposes of determining progress when the 
student reenrolls, but any attempted hours that 
were not earned by the student (including 
incompletes, withdrawn courses, and failed 
courses) before the student was determined not 
to be making satisfactory academic progress 
will not negatively impact the determination of 
whether the student made satisfactory academic 
progress after such reset;
``(F) the policy provides that, except as provided 
in subparagraph (G) with respect to a student placed on 
financial aid warning or financial aid probation and 
paragraph (3), a student is no longer eligible to 
receive assistance under this title if the student has 
not achieved the required grade point average or who is 
not making progress toward completion in the student's 
educational program--
``(i) at the time of each evaluation with 
respect to a student who is in an educational 
program of 2 academic years or less in length; 
or
``(ii) at the end of the second academic 
year with respect to a student who is in an 
educational program of more than 2 academic 
years in length;
``(G) the policy describes when students will be 
placed on financial aid warning or financial aid 
probation, in accordance with paragraph (4), and 
provides that--
``(i) a student on financial aid warning--
``(I) shall continue to be eligible 
for assistance under this title for one 
payment period despite a determination 
that the student is not making 
satisfactory academic progress; and
``(II) may be assigned such status 
without an appeal or other action by 
the student; and
``(ii)(I) a student on financial aid 
probation may receive assistance under this 
title for one payment period and the 
institution may require the student to fulfill 
specific terms and conditions, such as taking a 
reduced course load or enrolling in specific 
courses; and
``(II) at the end of such one payment 
period, the student is required to meet the 
institution's satisfactory academic progress 
standards, or meet the requirements of the 
academic plan developed by the institution and 
the student, in order to qualify for continued 
assistance under this title;
``(H) if the institution permits a student to 
appeal a determination by the institution that the 
student is not making satisfactory academic progress, 
the policy describes--
``(i) how the student may reestablish the 
student's eligibility to receive assistance 
under this title;
``(ii) the basis on which the student may 
file an appeal, including because of the death 
of a relative, an injury or illness of the 
student, or another special circumstance; and
``(iii) information the student is required 
to submit regarding why the student failed to 
make satisfactory academic progress, and what 
has changed in the student's situation that 
will allow the student to demonstrate 
satisfactory academic progress at the next 
evaluation;
``(I) if the institution does not permit a student 
to appeal a determination by the institution that the 
student is not making satisfactory academic progress, 
the policy describes how the student may reestablish 
the student's eligibility to receive assistance under 
this title;
``(J) the policy provides for notification to 
students of the results of an evaluation that impacts 
the student's eligibility for assistance under this 
title; and
``(K) the policy does not impose satisfactory 
progress limitations on need-based institutional aid 
that are more stringent than the standard applied under 
this subsection, unless the institution demonstrates to 
the satisfaction of the Secretary that the policy 
improves student persistence in, and completion of, 
postsecondary education for all students.
``(3) Regaining eligibility.--
``(A) Students who remain in school.--Whenever a 
student fails to meet the eligibility requirements of 
subsection (a)(2) as a result of the application of 
this subsection and, subsequent to that failure, the 
student has academic standing for any grading period 
consistent with the requirements for staying on track 
to graduate within 150 percent of the published length 
of the educational program, as determined by the 
institution, the student shall again be eligible under 
subsection (a)(2) for a grant, loan, or work assistance 
under this title, as long as the student maintains 
satisfactory academic progress under paragraph (2) 
beginning on and after the date that the student 
regains eligibility.
``(B) Students who leave school.--
``(i) In general.--If a student has not 
been enrolled in any institution of higher 
education for the immediately preceding 2 
years, any previous failure to meet the 
eligibility requirements of subsection (a)(2) 
shall not be used in any determination of 
eligibility of such student under such 
subsection. Such student shall, on the date of 
enrollment subsequent to such 2-year period, 
have the student's eligibility for a grant, 
loan, or work assistance under this title reset 
and be deemed as meeting the requirements 
described in paragraph (2). Beginning on and 
after such date, the student's satisfactory 
academic progress shall be determined in 
accordance with paragraph (2)(E)(ii).
``(ii) Maximum number of resets.--A student 
shall be eligible for a reset of eligibility 
pursuant to this subparagraph not more than 2 
times.
``(C) Duties of the secretary.--The Secretary 
shall--
``(i) send, to each student who failed to 
meet the eligibility requirements of subsection 
(a)(2) and who has not regained eligibility for 
a grant, loan, or work assistance under 
subparagraph (A), a notice, two years after 
such failure, that includes--
``(I) a notification that, if the 
student has not been enrolled in any 
institution of higher education for the 
preceding two years and has not 
received two resets of eligibility 
under subparagraph (B), the student may 
use grant, loan, or work assistance 
under this title for enrollment at any 
eligible institution, including an 
institution other than the institution 
in which the student was previously 
enrolled;
``(II) a notification that, if the 
student has remained enrolled, or 
resumed enrollment, at an institution 
of higher education, the student may be 
eligible for a grant, loan, or work 
assistance under this title subject to 
the requirements of subparagraph (A);
``(III) information on how many 
semesters of eligibility for a grant, 
loan, or work assistance under this 
title to which the student still has 
access; and
``(IV) a notification that the 
student should ask any prospective 
eligible institution how many of the 
student's previously completed credits 
the student would be able to transfer; 
and
``(ii) submit an annual report to Congress 
on the outcomes of students who have received a 
reset of eligibility pursuant to this 
paragraph, including--
``(I) the number of students who 
reenroll in an eligible institution 
after such reset, disaggregated by 
race, ethnicity, sex, age, 
socioeconomic status, and disability 
status;
``(II) the 250 eligible 
institutions with the highest numbers 
of enrolled students receiving grant, 
loan, or work assistance under this 
title after such a reset;
``(III) the 250 eligible 
institutions with the highest share of 
enrolled students receiving grant, 
loan, or work assistance under this 
title after such a reset; and
``(IV) the average completion rate 
and time to completion for students who 
reenroll in an eligible institution 
after such reset, disaggregated by 
institution.
``(4) Evaluation of academic progress.--
``(A) In general.--An institution that determines 
that a student is not making satisfactory academic 
progress under its policy may disburse funds provided 
through student financial assistance programs under 
this title (including work-study programs under 
subtitle C) to the student in accordance with 
subparagraphs (B), (C), and (D).
``(B) Payment period following not making 
satisfactory academic progress.--For the payment period 
following the payment period in which a student did not 
make satisfactory academic progress, the institution 
shall place the student on financial aid warning and 
disburse funds under this title to the student.
``(C) Payment period following financial aid 
warning.--For the payment period following a payment 
period during which a student was on financial aid 
warning, the institution may place the student on 
financial aid probation, and disburse funds under this 
title to the student if--
``(i) the institution evaluates the 
student's progress and determines that student 
did not make satisfactory academic progress 
during the payment period the student was on 
financial aid warning;
``(ii) the student appeals the 
determination; and
``(iii)(I) the institution determines that 
the student should be able to meet the 
institution's satisfactory academic progress 
standards by the end of the subsequent payment 
period; or
``(II) the institution develops an academic 
plan for the student that, if followed, will 
ensure that the student is able to meet the 
institution's satisfactory academic progress 
standards by a specific point in time.
``(D) Payment period following financial aid 
probation.--A student on financial aid probation for a 
payment period may not receive funds under this title 
for the subsequent payment period unless the student 
makes satisfactory academic progress or the institution 
determines that the student met the requirements 
specified by the institution in the academic plan for 
the student developed under subparagraph (C)(iii)(II).
``(E) Frequency of academic progress evaluation and 
communication.--
``(i) In general.--Subject to clause (ii), 
for the purpose of determining whether 
presently enrolled students are maintaining 
satisfactory progress, each institution of 
higher education that enrolls students who 
receive any grant, loan, or work assistance 
under this title shall review the progress of 
such students at the end of each payment 
period.
``(ii) Shorter payment periods.--For each 
institution described in clause (i) that has 
payment periods that are shorter than on the 
semester system basis (such as on a quarterly 
or trimester system basis or by clock hour 
program or non-term program), such institution 
shall review the progress of presently enrolled 
students at the end of each semester or 
equivalent period of 12 to 18 weeks.
``(iii) Financial aid warning.--At the end 
of each payment period (or, in the case of an 
institution described in clause (ii), at the 
end of each semester or equivalent period), 
each institution shall send a financial aid 
warning to presently enrolled students that do 
not meet the grade point average requirement 
described in paragraph (2), or its equivalent 
or academic standing consistent with the 
requirements for graduation, as determined by 
the institution, that informs the students of 
their risk of being determined to not be 
maintaining satisfactory progress and therefore 
losing eligibility for grant, loan, or work 
assistance under this title and provides 
information on--
``(I) the specific criteria of the 
institution's academic requirements 
that the student is not meeting and the 
specific improvements needed to meet 
the requirements; and
``(II) how to meet with the 
student's academic advisor to get the 
academic support the student needs.
``(5) Detailing requirements to students.--Each institution 
of higher education that enrolls students who receive any 
grant, loan, or work assistance under this title shall detail 
the institution's requirements regarding students maintaining 
satisfactory academic progress--
``(A) to such students before the students begin 
classes at the institution through a detailed 
communication that may be separate from a financial aid 
offer; and
``(B) on the financial aid web page of the website 
of the institution.
``(6) Consumer testing.--The Secretary shall conduct 
consumer testing to develop exemplary practices and templates--
``(A) to support institutions of higher education 
in carrying out paragraph (5); and
``(B) which shall be available as resources for 
institutions of higher education.''.

SEC. 9. RESTORING FEDERAL PELL GRANT ELIGIBILITY FOR CERTAIN STUDENTS 
WITH SCHOLARSHIPS.

Section 401(d) (20 U.S.C. 1070a(d)) is amended by striking 
paragraph (6).

SEC. 10. CONFORMING AMENDMENTS.

The Act (20 U.S.C. 1001 et seq.) is amended--
(1) in section 401A(d)(1)(B)(i) (20 U.S.C. 1070a-
1(d)(1)(B)(i)), by striking ``section 401(b)(2)(B)'' and 
inserting ``section 401(b)(2)'';
(2) in section 402D(d)(1) (20 U.S.C. 1070a-14(d)(1))--
(A) by striking ``section 401(b)(2)(A)'' and 
inserting ``section 401(b)(1)''; and
(B) by striking ``described in section 401(b)(4)'' 
and inserting ``as described in section 401(b)(5)'';
(3) in section 435(a)(5)(A)(i)(I) (20 U.S.C. 
1085(a)(5)(A)(i)(I)), by striking ``under section 
401(b)(2)(A)'' and inserting ``under section 401(b)(1)'';
(4) in section 481(b)(3)(A) (20 U.S.C. 1088(b)(3)(A)) by 
striking ``401(k)'' and inserting ``401(i)'';
(5) in section 894(f)(2)(C)(ii)(I) (20 U.S.C. 
1161y(f)(2)(C)(ii)(I)), by striking ``section 401(b)(2)(A)'' 
and inserting ``section 401(b)(1)''; and
(6) in section 419N(b)(7)(B)(i) (20 U.S.C. 
1070e(b)(7)(B)(i)), by striking ``401(c)(1)'' and inserting 
``401(d)''.

SEC. 11. EFFECTIVE DATE.

Except as otherwise provided, this Act, and the amendments made by 
this Act to the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) 
shall take effect on July 1, 2026, and apply with respect to award year 
2026-2027 and each subsequent award year, as determined under the 
Higher Education Act of 1965. The Secretary of Education shall have the 
authority to take such steps as are necessary before July 1, 2026, to 
provide for the orderly implementation on such date of the amendments 
to the Higher Education Act of 1965 made by this Act.
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