Degrees Not Debt Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5675 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 5675

    To increase the total maximum Federal Pell Grant, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 3, 2025

 Mr. Carbajal introduced the following bill; which was referred to the 
                  Committee on Education and Workforce

_______________________________________________________________________

                                 A BILL


 
    To increase the total maximum Federal Pell Grant, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Degrees Not Debt Act of 2025''.

SEC. 2. INCREASE IN THE MAXIMUM AMOUNT OF A FEDERAL PELL GRANT.

    (a) Award Year 2026-2027 and Subsequent Award Years.--
            (1) Amendment to award amount.--Section 401(b)(5)(A) of the 
        Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)), is 
        amended to read as follows:
                    ``(A)(i) Award years 2026-2027 and 2027-2028.--For 
                award years 2026-2027 and 2027-2028, the total maximum 
                Federal Pell Grant award per student shall be equal to 
                $14,800, reduced by the amount specified as the maximum 
                Federal Pell Grant in the last enacted appropriation 
                Act applicable to that award year.
                    ``(ii) Subsequent award years.--For award year 
                2028-2029, and each subsequent award year, the total 
                maximum Federal Pell Grant award per student shall be 
                equal to the amount that is equal to $14,800, increased 
                by a percentage equal to the annual adjustment 
                percentage for the award year for which the amount 
                under this subparagraph is being determined, then 
                reduced by the amount specified as the maximum Federal 
                Pell Grant in the last enacted appropriation Act 
                applicable to that award year.''.
            (2) Definition.--Section 401(a)(2) of the Higher Education 
        Act of 1965 (20 U.S.C. 1070a(a)(2)) is amended--
                    (A) in subparagraph (E), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (F), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(G) the term `annual adjustment percentage' as 
                applied to an award year, is equal to the estimated 
                percentage change in the Consumer Price Index (as 
                determined by the Secretary, using the definition in 
                section 478(f)), for the most recent calendar year 
                ending prior to the beginning of that award year.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on July 1, 2026, and shall apply with respect to each award 
year (as defined in section 481 of the Higher Education Act of 1965 (20 
U.S.C. 1088)) beginning on or after such date.
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