Negotiators Reach Consensus on Pell Regulations

Last week's negotiated rulemaking, which ED must use to implement changes to federal student aid programs, is the latest in a series of convenings to implement OBBBA, which ACE's Jon Fansmith called the most significant higher education law in more than 15 years.

The agreed-upon regulations, containing relatively minor changes to the draft text, would establish a narrowly defined category of short-term workforce programs eligible for Pell Grants and subject them to new federal approval requirements, performance benchmarks, and other forms of oversight. A copy of the final draft text can be found here.

While not discussed nearly as extensively as short-term Pell, the regulations would also change how Pell Grants are packaged. This approach, which ACE expressed concern about in a comment letter, would block Pell eligibility for students whose non-federal grant assistance meets or exceeds their cost of attendance.

Because consensus was reached, ED will now release the agreed-upon text for public comment, as ED moves toward the statutorily required July 1, 2026, implementation date.

Earlier this fall, a separate negotiated rulemaking committee reached agreement with ED on regulations establishing a narrow definition of "professional" student that limits higher graduate borrowing caps to a short list of fields, excluding nursing and other high-cost, high-need degrees.

ED will reconvene this committee in January for the final phase of OBBBA rulemaking, focused on accountability.