Degrees Not Debt Act of 2025
Summary
The "Degrees Not Debt Act of 2025" proposes to increase the maximum Federal Pell Grant amount. For the award years 2026-2027 and 2027-2028, the maximum grant would be $14,800, reduced by the amount specified in the applicable appropriation act. Subsequent years would see this amount adjusted for inflation using the Consumer Price Index (CPI).
Expected Effects
This act aims to make higher education more accessible by increasing financial aid for students. It adjusts the Pell Grant to account for inflation, potentially easing the burden of student debt. The increased Pell Grant amounts could enable more students to afford college.
Potential Benefits
- Increased access to higher education for low-income students.
- Reduced student loan debt burden.
- Potential for improved workforce skills and economic mobility.
- Inflation adjustment helps maintain the grant's value over time.
- Stimulates the economy through increased spending on education.
Potential Disadvantages
- Increased government spending and potential budget deficits.
- The actual benefit depends on future appropriation acts.
- May not address the root causes of rising tuition costs.
- Potential for inflation to outpace the grant increases.
- Could incentivize colleges to raise tuition.
Most Disadvantaged Areas:
Constitutional Alignment
The proposed act aligns with the Constitution's general welfare clause (Preamble). Congress has the power to tax and spend for the general welfare, which includes funding education programs. Article I, Section 8, Clause 1 allows Congress to lay and collect taxes to provide for the general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).