• Saturday, May 26, 2012
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House-Passed Bill Would Avert Cut in Pell Grants

The U.S. House of Representatives passed a spending bill on Wednesday that would close a $5.7-billion gap in the Pell Grant program and avert a cut in the maximum award.

The spending measure, known as a continuing resolution, would finance the government through the end of the current fiscal year, September 30. While it would freeze discretionary spending at the 2010 fiscal year's levels, it would move money among programs, freeing up more money for Pell Grants.

The program's fate now rests with the Senate, which could take up the House-passed resolution as a stand-alone measure or deal with spending decisions by wrapping all the annual appropriations bills into an "omnibus" package and send it back to the House for a final vote. Either way, senators could choose to cut the Pell money the House added, increase it, or strip it altogether.

If Congress does not cover the shortfall in the Pell Grant program, the maximum award could be slashed by as much as 15 percent, from $5,550 to $4,705.

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