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Higher Education Funding Reform: Race-Based Aid Ends, Pell Grants Boosted

This act changes how the federal government funds higher education, eliminating programs based on students' racial or ethnic backgrounds. Instead, funds will be redirected to increase Federal Pell Grants, which help low-income students regardless of their origin. The goal is to ensure equal educational opportunities for all who need assistance.
Key points
Federal funds for colleges will no longer be awarded based on the racial or ethnic composition of students.
Most programs for minority-serving institutions will be eliminated or converted to support Pell Grant recipients, though programs for Historically Black Colleges and Tribal Colleges are retained.
Funding for Federal Pell Grants will increase using savings from the eliminated programs.
Colleges that discriminate based on race in admissions or hiring will be ineligible for federal funding.
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Status: Introduced
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Additional Information
Print number: 119_S_3433
Sponsor: Sen. Banks, Jim [R-IN]
Process start date: 2025-12-11