Pell Grant Expansion Act of 1998

Pell Grant Expansion Act of 1998 - Amends the Higher Education Act of 1965 to set the maximum amount of a Pell grant award at: (1) $4,000 for academic years 1998-1999 and 1999-2000; and (2) $5,000 for academic years 2000-2001, 2001-2002, and 2002-2003. (Current law sets the maximum at $4,500 for academic year 1997-1998.)

Makes available to the Secretary of Education, from funds not otherwise appropriated, specified maximum amounts for certain fiscal years for the payment of Pell grants. Authorizes the Secretary, if such amount made available in a fiscal year is not sufficient to pay all Pell grants, to make such reductions in awards as may be necessary, by either a fixed or variable percentage reduction or by a fixed dollar reduction.