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Stand Up for Pell Grants!
Community College Action Campaign

June 21, 2011

David Baime
AACC Senior VP, Government Relations & 
Research

Jee Hang Lee
ACCT Director of Public Policy
Overview of Presentation
• Introductions
• Why Pell Grants Matter
• Community College Students and Pell 
• Pell Grant Program Growth
• Politics and Funding Landscape
• FY 2012 Funding Status
• FY 2012 Appropriations
• Community College Grassroots Advocacy
• AACC‐ACCT Resources
• Questions
Why Pell Grants Matter
• Pell Grants = Access and Success at Community Colleges 
  for Millions of Financially Needy Students

• Pell Grants Represent the Federal Government’s Primary 
  Commitment to Ensuring Equality of Opportunity to 
  Higher Education

• Traditionally All Parties, Branches of Government, Sectors 
  of Higher Education and the American Public Strongly 
  Support the Pell Grant Program
Community College Students 
and Pell Grants
• Pell Grants Have Been the Primary Funding Source for 
  Community College Students

• More Important Now Than Ever as a Result of Tuition 
  Increases, State and Local Cuts

• During Recession, Tuitions Have Risen (7.3% in 2009‐10 
  and 6% in 2010‐11) while Incomes Have Declined

• Pell Grant Maximum is Currently $5,550

• Enrollments at Community Colleges Have Surged 
Community College Students 
and Pell Grants
• Community College Pell Grants Have Increased 
  Dramatically, Paralleling Program Growth
• 38% Increase in Pell Cost in 2009‐10 from Prior Year
• Over 2.8 Million Community College Pell Awards in 2009‐10
• Community College Students Received Over $9.3 Billion in 
  Pell Grants in 2009‐10
• Community College Students Received 31% of Pell Dollars 
  and Represent 35% of All Recipients
Pell Grant Program Growth
• Pell Grant Program Has Witnessed 
  Unprecedented Growth – Program Costs 
  doubled over last 3 years
• Pell Grants = 46% of the ED’s FY 10 Budget
• Growth Result of Congressional Actions, 
  Recession, Greater Demand
• Huge Shortfalls (Pell Funding Does Not Cover 
  Grant Commitments) – Pell as an “Appropriated 
  Entitlement”
Pell Grant Recipients
10,000,000
 9,000,000
                          Recipients 
 8,000,000                up      in 
 7,000,000                three years
 6,000,000
 5,000,000
                          Total
 4,000,000
                          Community College
 3,000,000
 2,000,000
 1,000,000
        0
Pell Grant Program Growth –
Congressional Actions Adding Cost

• CCRAA (September ‘07) Mandatory Increases to 
  Maximum Grant Funded by Cuts to Loan Subsidies; 
  Increased Income Protection Allowances (IPAs)
• Higher Education Act Reauthorization (HEOA, August 
  ‘08) Increased ATB Eligibility
• ARRA (Stimulus Bill – February ‘09) Increased Maximum 
  Grant by $500 for FYs 09 and 10, Provided Additional 
  Funding
• SAFRA (March ‘10) Provided Annual Mandatory 
  Increases, Funded Shortfall, Increased IPAs
Politics and Funding Landscape
• Pell Grant Program’s Extraordinary Growth Has Drawn 
  High‐Pitched, Bipartisan Concern

• Political Support for Pell Grant Program Has Changed
  • Several Members of Congress Have Questioned 
    Program Costs
  • Negative Comments from Some Congressional Leaders
  • Both Parties Seeking to Reduce Program Costs through 
    Eligibility Changes

• FY 2011 Appropriations (April ‘11) Eliminated Year‐Round 
  or ‘Summer Pell’ to Maintain the Pell Max at $5,550
Politics and Funding Landscape

• The Public Still Strongly Supports Education 
  Funding
• Education Funding Is Just 3% of Federal Budget
• Many Families Concerned With How to Afford 
  Higher Education
• Public Interested in Deficit Reduction
FY 2012 Funding Status
• FY 2012 Congressional Budget Will Not Be Enacted –
  Appropriations Remain Focus
• Obama’s FY 12 Budget (Feb. ‘11) Preserved $5,550 Pell Max by 
  Eliminating Summer Pell and Making Other Changes to 
  Student Aid Programs to Achieve Savings
• House‐Passed FY 12 (“Ryan”) Budget Resolution Assumes 
  Major Reductions in Pell Grant Program ‐‐ $3,150 max
• House FY 12 Labor‐HHS‐ED Allocation $18 Billion below FY 11; 
  $7 Billion Below H.R. 1; At FY 2004 Funding Level (Excluding 
  Inflation); Does NOT Address $11.2 Billion Pell Shortfall
• House Subcommittee Action Scheduled for Late July – Pell 
  Grant Program Cuts Likely
FY 2012 Appropriations
• Federal Funding Environment Has Changed; FY 2012 
  Appropriations Process Will Be Complicated, High‐Profile, 
  Drawn Out, and Politically Charged

• July To Be Crucial Month: Debt Ceiling Increase, 
  Appropriations Implications, and Long‐term Cuts

• Large Cost of Pell Puts Downward Pressure on Funding 
  for Other Programs
• Advocacy Can Make a Difference in Congress, Elevating  
  Pell Grants and Student Aid as Priorities
Community College Grassroots Advocacy
• AACC and ACCT Urge Action to Support the $5,550 Pell Grant 
  Maximum and Keeping Pell Grants Whole in FY 2012
• Immediate Contacts to Members of Congress Needed
• Board Resolutions (copies to AACC and ACCT)
• Op‐Eds and Media Coverage
• Engaging Students in the Campaign to Save Pell Grants
• Announcing New AACC‐ACCT Pell Grant Action Center Website
  www.pellgrantactioncenter.org
Questions & Comments
Contact Information 
• David Baime
 dbaime@aacc.nche.edu


• Jee Hang Lee
 jhlee@acct.org

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