Eligibility

(a) Foreign income and Federal Pell Grant eligibility (1) Adjusted gross income defined Section 401(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is amended to read as follows: (A) the term adjusted gross income means— (i) in the case of a dependent student, for the second tax year preceding the academic year— (I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student’s parents; plus (II) the foreign income (as described in section 480(b)(5)) of the student’s parents; and (ii) in the case of an independent student, for the second tax year preceding the academic year— (I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student’s spouse, if applicable); plus (II) the foreign income (as described in section 480(b)(5)) of the student (and the student’s spouse, if applicable);. (2) Sunset Section 401(b)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended by striking A student and inserting For each academic year beginning before July 1, 2025, a student. (3) Conforming amendment Section 479A(b)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is amended— (A) by striking clause (v); and (B) by redesignating clauses (vi) and (vii) as clauses (v) and (vi), respectively. (b) Definition of full time enrollment for Federal Pell Grant eligibility Section 401(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)) is further amended— (1) in subparagraph (E), by striking and after the semicolon; (2) in subparagraph (F), by striking the period and inserting; and; and (3) by adding at the end the following new subparagraph: (G) notwithstanding section 481(a)(2)(A)(iii), the terms full time and full-time (except with respect to subsection (d)(4) when used as part of the term normal full-time workload) mean, with respect to a student enrolled in an undergraduate course of study, the student is expected to complete at least 30 semester or trimester hours or 45 quarter credit hours (or the clock hour equivalent) in each academic year a student is enrolled in the course of study.. (c) Federal Pell Grant ineligibility due to a high student aid index Section 401(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1070a–1(b)(1)) is amended by adding at the end the following: (F) Ineligibility of students with a high student aid index Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.. (d) No Federal Pell grant eligibility for students enrolled less than half time Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is further amended— (1) in subsection (b)— (A) by striking (2) Less and inserting (2)(A) Less; and (B) by inserting after subparagraph (A) (as so designated by subparagraph (A) of this subsection) the following new subparagraph: (B) Less than half-time enrollment Notwithstanding subparagraph (A), a student who first receives a Federal Pell Grant on or after July 1, 2025, shall not be eligible for an award under this subsection for any academic year beginning after such date in which the student is enrolled in an eligible program of an institution of higher education on less than a half-time basis. The Secretary shall update the schedule of reductions described in subparagraph (A) in accordance with this subparagraph, including for students receiving the minimum Federal Pell Grant.; (2) in subsection (c)(6)(A), by inserting, and the eligibility requirement of enrollment on at least a half-time basis under subsection (b)(2), after (b)(1); and (3) in subsection (d)(5)(A), by inserting (and at least half time, in the case of a student who first receives a Federal Pell Grant under subsection (b) on or after July 1, 2025) after full time. (e) Effective date and application The amendments made by this section shall take effect on July 1, 2025, and shall apply with respect to award year 2025–2026 and each subsequent award year.

(a) Foreign income and Federal Pell Grant eligibility (1) Adjusted gross income defined Section 401(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is amended to read as follows: (A) the term adjusted gross income means— (i) in the case of a dependent student, for the second tax year preceding the academic year— (I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student’s parents; plus (II) the foreign income (as described in section 480(b)(5)) of the student’s parents; and (ii) in the case of an independent student, for the second tax year preceding the academic year— (I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student’s spouse, if applicable); plus (II) the foreign income (as described in section 480(b)(5)) of the student (and the student’s spouse, if applicable);. (2) Sunset Section 401(b)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended by striking A student and inserting For each academic year beginning before July 1, 2026, a student. (3) Conforming amendment Section 479A(b)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is amended— (A) by striking clause (v); and (B) by redesignating clauses (vi) and (vii) as clauses (v) and (vi), respectively. (b) Definition of full time enrollment for Federal Pell Grant eligibility Section 401(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)) is further amended— (1) in subparagraph (E), by striking and after the semicolon; (2) in subparagraph (F), by striking the period and inserting; and; and (3) by adding at the end the following new subparagraph: (G) notwithstanding section 481(a)(2)(A)(iii), the terms full time and full-time (except with respect to subsection (d)(4) when used as part of the term normal full-time workload) mean, with respect to a student enrolled in an undergraduate course of study, the student is expected to complete at least 30 semester or trimester hours or 45 quarter credit hours (or the clock hour equivalent) in each award year a student is enrolled in the course of study.. (c) Federal Pell Grant ineligibility due to a high student aid index Section 401(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1070a–1(b)(1)) is amended by adding at the end the following: (F) Ineligibility of students with a high student aid index Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.. (d) No Federal Pell grant eligibility for students enrolled less than half time Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is further amended— (1) in subsection (b)— (A) by striking (2) Less and inserting (2)(A) Less; and (B) by inserting after subparagraph (A) (as so designated by subparagraph (A) of this subsection) the following new subparagraph: (B) Less than half-time enrollment Notwithstanding subparagraph (A), a student who first receives a Federal Pell Grant on or after July 1, 2026, shall not be eligible for an award under this subsection for any award year beginning after such date in which the student is enrolled in an eligible program of an institution of higher education on less than a half-time basis. The Secretary shall update the schedule of reductions described in subparagraph (A) in accordance with this subparagraph, including for students receiving the minimum Federal Pell Grant.; (2) in subsection (c)(6)(A), by inserting, and the eligibility requirement of enrollment on at least a half-time basis under subsection (b)(2), after (b)(1); and (3) in subsection (d)(5)(A), by inserting (and at least half time, in the case of a student who first receives a Federal Pell Grant under subsection (b) on or after July 1, 2026) after full time. (e) Effective date and application The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year.