Pell Grant Sustainability Act
This bill requires the Department of Education to calculate the maximum award amount for Pell Grants for award year 2022-2023 and each subsequent award year by indexing the award amount to the rate of inflation.
To index the maximum value of Federal Pell Grants to inflation.

    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 ``Pell Grant Sustainability Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) From 2009 through 2018, the maximum discretionary 
        Federal Pell Grants under section 401 of the Higher Education 
        Act of 1965 stayed flat while inflation was 17 percent.
            (2) The value of Federal Pell Grants must keep pace with 
        students' costs in order to fulfill their mission of enabling 
        lower-income students to attend college.

SEC. 3. INDEXING FEDERAL PELL GRANTS TO INFLATION.

    (a) Award Year 2022-2023.--Section 401 of the Higher Education Act 
of 1965 (20 U.S.C. 1070a) is amended--
            (1) in subsection (a)(1), by striking ``through fiscal year 
        2017'' and inserting ``through fiscal year 2022''; and
            (2) in subsection (b)(7)(C), by amending clause (iii) to 
        read as follows:
                            ``(iii) Subsequent award years.--
                                    ``(I) Award years 2018-2019 through 
                                2021-2022.--For each of the award years 
                                2018-2019 through 2021-2022, the amount 
                                determined under this subparagraph for 
                                purposes of subparagraph (B)(iii) shall 
                                be equal to the amount determined under 
                                clause (ii) for award year 2017-2018.
                                    ``(II) Award year 2022-2023.--For 
                                award year 2022-2023 and each 
                                subsequent award year, the amount 
                                determined under this subparagraph for 
                                purposes of subparagraph (B)(iii) shall 
                                be equal to--
                                            ``(aa)(AA) $6,495 or the 
                                        total maximum Federal Pell 
                                        Grant for the preceding award 
                                        year (as determined under 
                                        clause (iv)(II)), whichever is 
                                        greater, increased by a 
                                        percentage equal to the annual 
                                        adjustment percentage for the 
                                        award year for which the amount 
                                        under this subparagraph is 
                                        being determined; reduced by
                                            ``(BB) $5,435 or the 
                                        maximum Federal Pell Grant for 
                                        which a student was eligible 
                                        for the preceding award year, 
                                        as specified in the last 
                                        enacted appropriation Act 
                                        applicable to that year, 
                                        whichever is greater; and
                                            ``(bb) rounded to the 
                                        nearest $5.''.
    (b) Award Year 2023-2024, and Each Subsequent Award Year.--Section 
401(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)), as 
amended by section 703 of the FAFSA Simplification Act (division FF of 
Public Law 116-260), is further amended--
            (1) by amending paragraph (5) to read as follows:
            ``(5) Total maximum federal pell grant.--
                    ``(A) In general.--For award year 2023-2024, and 
                each subsequent award year, the total maximum Federal 
                Pell Grant award per student shall be equal to the sum 
                of--
                            ``(i) $1,060, increased by a percentage 
                        equal to the annual adjustment percentage for 
                        the award year for which the amount under this 
                        paragraph is being determined; and
                            ``(ii) the amount specified as the maximum 
                        Federal Pell Grant in the last enacted 
                        appropriation Act applicable to that award 
                        year.
                    ``(B) Rounding.--The total maximum Federal Pell 
                Grant for any award year shall be rounded to the 
                nearest $5.
                    ``(C) Annual adjustment percentage defined.--In 
                this paragraph, 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.'';
            (2) in paragraph (6)(A)(ii), by striking ``each of the 
        fiscal years 2023 through 2033'' and inserting ``fiscal year 
        2023 and each subsequent fiscal year''; and
            (3) in paragraph (8)(A), by striking ``through fiscal year 
        2033''.
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Pell Grant Sustainability Act
To index the maximum value of Federal Pell Grants to inflation.
Pell Grant Sustainability Act
Rep. Casten, Sean