AASCU Federal Highlights – April 2026

Budget Reconciliation Update

In both the Senate and the House, discussions have continued regarding the possibility of a second budget reconciliation package. If Republicans decide to move forward with a second reconciliation package, it is possible that the House Education and Workforce and the Senate Health, Education, Labor, and Pensions (HELP) Committees will receive instructions on changes to spending, revenues, deficits, and/or the debt limit.

Just yesterday, President Trump called on Congress to send him a reconciliation bill by June 1 that provides funding related to U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP). The Senate today re-passed fiscal year (FY) 2026 funding for the U.S. Department of Homeland Security (DHS) without funding for ICE and CBP. The House may consider this bill as soon as next week. If the House approves the bill, a second reconciliation bill is more likely to address funding for ICE and CBP.

As a reminder, during the reconciliation bill process last year, the House Education and Workforce Committee tried to change the eligibility requirements for part-time Pell Grants and full-time Pell Grants, with the changes to the former being a new minimum of 7.5 credits (as opposed to 6 credits) and changes to the latter being a requirement for 15 credits (as opposed to 12 credits) to qualify for the maximum Pell Grant. If Congress moves to a second reconciliation bill, the Committee may address these issues again if the budget resolution provides the necessary reconciliation instructions to trigger the budget reconciliation process.

Moreover, a projected $17 billion budget shortfall for Pell Grants across fiscal years 2026 and 2027 could put pressure to reduce spending on Pell Grants. AASCU will continue to monitor developments and share upcoming advocacy opportunities. To stay informed of our action alerts, please sign up for our Advocacy Center.