To amend section 401(b)(2) of the Higher Education Act of 1965 regarding the Federal Pell Grant maximum amount.

January 16, 2003

Mr. DODD (for himself, Ms. MIKULSKI, Mr. JEFFORDS, Mrs. MURRAY, Ms. LANDRIEU, and Mr. DAYTON) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

To amend section 401(b)(2) of the Higher Education Act of 1965 regarding the Federal Pell Grant maximum amount.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. FEDERAL PELL GRANT MAXIMUM AMOUNT.

Section 401(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(2)) is amended--

(1) by redesignating subparagraph (B) as subparagraph (C);

(2) by amending subparagraph (A) to read as follows:

`(A) Except as provided in subparagraph (B), the amount of the Federal Pell Grant for a student eligible under this part shall be--

`(i) $6,700 for academic year 2004-2005;

`(ii) $7,600 for academic year 2005-2006;

`(iii) $8,600 for academic year 2006-2007;

`(iv) $9,600 for academic year 2007-2008;

`(v) $10,600 for academic year 2008-2009; and

`(vi) $11,600 for academic year 2009-2010,

less an amount equal to the amount determined to be the expected family contribution with respect to that student for that year.'; and

(3) by inserting after subparagraph (A) (as so amended) the following:

`(B) If the Secretary determines that the increase from one academic year to the next in the amount of the maximum Federal Pell Grant authorized under subparagraph (A) does not increase students' purchasing power (relative to the cost of attendance at an institution of higher education) by at least 5 percentage points, then the amount of the maximum Federal Pell Grant authorized under subparagraph (A) for the academic year for which the determination is made shall be increased by an amount sufficient to achieve such a 5 percentage point increase.'.

END