5 Key Changes to Pell Grants Coming in 2026 That Students Need to Know

Key Takeaways The "One Big, Beautiful Bill" created a new Workforce Pell Grant program that expands federal aid eligibility to students pursuing short licensing and certificate programs. Other eligibility requirements were modified, primarily affecting how families must report their income on the FAFSA. The " One Big, Beautiful Bill " will introduce significant changes to the Pell Grant program, effective during the 2026-27 award year. The changes to the Pell Grant program will start to take effect on July 1, 2026.miniseries/Getty Image The congressional budget bill, which was passed this summer, expanded the Pell Grant program to include short certificate and licensing programs at trade schools. Some eligibility requirements were also modified for the Pell Grant program, the largest federal grant program offered to undergraduates. These changes will start to take effect on July 1, 2026. The Pell Grant changes are already reflected on the Free Application for Federal Student Aid (FAFSA) for the 2026-27 academic year, which opened on Sept. 24. Why This Matters While some of these changes will increase the amount of Pell Grants available to students, many changes will reduce the amount of aid offered. Families who need to fill this new gap can explore state grants and non-federal scholarships, particularly at the local level. 1. Certain Certificates and Short-Term Programs Are Eligible for Pell Grants The newly created Workforce Pell Grant program is expected to open during the 2026-27 academic school year. It will offer aid to students taking short certificate or licensing programs. Previously, students were ineligible for Pell Grants if their post-secondary program was less than 15 weeks long. Starting on July 1, 2026, Pell Grants will be available for programs that are between eight and 15 weeks long, which can include short certificate or licensing programs for jobs like nursing assistants, IT support, or HVAC technicians. The Department of Education is expected to start hearings to finalize the language and rules for the Workforce Pell Grant program soon. However, student loan experts say they are worried the department is starting the hearings too late, and it may not have time to implement the program by the 2026 fall semester. 2. Full-Ride Students Can No Longer Receive Pell Grants Students who receive non-federal grants and scholarships that cover the total cost of attendance at their school next year are no longer eligible to receive a Pell Grant in addition to these funds. Before this change, full-ride students could use Pell Grant money to cover additional costs, such as transportation and books, not included in the COA. However, depending on how the institution reports its COA to the Department of Education, some full-ride students may still be eligible to receive funding from this grant program. For example, students who receive enough scholarships to cover the total tuition but not other student fees, such as housing, food, and other expenses, may still be eligible for the Pell Grant, according to personal finance author Brynne Conroy . 3. Foreign Income Will Now Be Counted as AGI...

Preview: ~500 words