S. 5403: Debt-Free College Act of 2026 (119th Congress) Bill Summary

This bill would create several federal grant programs to help states make public college more affordable, especially for in-state students. The main program would give grants to states that agree to participate in a partnership with the federal government. States would use the money to help make public colleges and universities debt-free for in-state students by covering remaining costs that are not paid by other aid, such as tuition, fees, and other unmet financial need. The bill also supports student success programs, which may include services designed to help students stay enrolled and complete their degrees.

State requirements

To receive and keep the grants, states would have to follow several rules. They would need to:

Keep or increase their own funding for higher education rather than replacing it with federal money.
Limit tuition and mandatory fees at participating public colleges.
Submit a 5-year plan showing how they will carry out the program.
Follow federal oversight requirements.

If a state fails to meet the program rules, it could face penalties. If a state decides to leave the partnership, it would have to give 60 days’ notice. It would also need to continue funding any enrolled Pell Grant students until they finish their studies.

Other grant programs and aid changes

The bill would also create a separate debt-free college grant program for Historically Black Colleges and Universities (HBCUs) and other Minority-Serving Institutions (MSIs). This program would provide federal support to help these schools reduce or eliminate remaining college costs for students.

In addition, the bill would expand eligibility for federal Title IV student aid to certain “Dreamer” students, meaning some undocumented immigrants who were brought to the United States as children and meet the bill’s requirements could become eligible for federal student aid.