H.R. 5675: Degrees Not Debt Act of 2025

The bill titled the Degrees Not Debt Act of 2025 aims to increase the maximum amount that students can receive through the Federal Pell Grant program to assist with college expenses. Here’s a breakdown of the provisions outlined in the bill:

1. Increase in Federal Pell Grant Amount

The bill seeks to amend current laws regarding the Federal Pell Grant, which is a financial aid program for low- to moderate-income students. The proposed changes will affect the maximum award amounts for certain award years as follows:

• For the award years 2026-2027 and 2027-2028, the maximum Pell Grant award per student will be set at $14,800.
• This amount is set to be adjusted based on the last enacted appropriation Act applicable to the respective award year.
• Starting in the award year 2028-2029 and for each subsequent award year, the maximum award will continue to be pegged at $14,800, but it will increase by an annual adjustment percentage, which will be based on the estimated change in the Consumer Price Index, as determined by the Secretary.

2. Definition Adjustments

The bill also proposes to update the language regarding how the "annual adjustment percentage" is defined. This adjustment will take into account the Consumer Price Index to ensure that the grant amounts can keep pace with inflation over time.

3. Effective Date

The proposed amendments outlined in the bill are set to take effect on July 1, 2026, and will apply to each award year thereafter, as defined in existing law.

Summary

In summary, this legislation aims to provide greater financial support to college students by significantly increasing the financial aid available through the Federal Pell Grant program and ensuring that this amount remains relevant to inflation over future years.

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