The Trump administration is proposing a 2027 budget with Pell Grant increases and education cuts

The Trump administration on Friday released its proposed budget for fiscal year 2027, outlining a plan that increases funding for the Pell Grant program while introducing major cuts to student aid, institutional support, and research funding.

The proposal calls for a $76.5 billion funding cut for the US Department of Education, reduced by about $100,000.2.3 billion from last year. A comprehensive federal budget includes $1.5 trillion in defense spending, and a 10 percent reduction in nondefense spending, bringing it to $660 billion. According to the administration, the proposal reflects an ongoing effort to reduce the federal role in education while maintaining military power.

Despite continued calls to eliminate the Department of Education, the administration’s proposal would still fund the agency with more than $75 billion. However, officials also said the budget “advances the Department of Education’s path toward total elimination,” a move that would require congressional approval — something lawmakers have repeatedly rejected.

At the heart of the proposal is a $10.5 billion increase in the Pell Grant program, increasing total discretionary funding to more than $33 billion. The maximum Pell Grant award will remain at $7,395 for the 2027-28 academic year. The additional funding is intended to address the projected shortfall, which the Congressional Budget Office estimates will be at least $5.5 billion by the end of the fiscal year and could grow to nearly $17 billion by 2027 if not fixed.

Advocates have largely welcomed the effort to stabilize Pell funding. The National College Attainment Network noted that fully funding the program is an immediate concern, although leaders have emphasized that underfunding over the years has already reduced the purchasing power of students.

Major Cuts in Higher Education Programs

Although Pell Grants see increased investment, the proposal offsets those costs by spending about $4.5 billion in cuts to higher education and student aid programs. The administration also proposed ending the Federal Supplemental Educational Opportunity Grant (FSEOG) program and dramatically reducing the Federal Work-Study grant from $1.23 billion to $123 million, shifting more of the financial burden to employers.

Additional programs targeted for completion include TRIO, GEAR UP, the Secondary Education Development Fund, Institutional Strengthening Grants, and support programs for parents of students and international education. The proposal also seeks to end funding for all Minority-Serving Institution (MSI) grant programs, although some funding for Historically Black Colleges and Universities (HBCUs) and ethnic colleges will continue through reallocation.

Emmanual Guillory of the American Council on Education criticized the approach, noting that “we do not support defunding the MSI programs and neither does Congress,” and warned that such cuts could undermine funding programs for low-income students who also rely on Pell Grants.

The budget also cuts funding for the Center for Education Sciences to $261.3 million—down from nearly $800 million—and proposes a 35 percent cut to the Office of Human Rights, which has significantly reduced staff.

K–12 Funding of the Block Exchange Proposal

The administration also renewed its campaign to consolidate K-12 education funding into a $2 billion “Make Education Great Again” block grant. The proposal, first introduced in the 2026 budget, would consolidate most of the primary and secondary education grant programs into a single funding mechanism.

According to budget documents, the program will maintain full Title I support while targeting “almost all of its potential [sic] funding states and school districts for K-12 education and empowering them to make spending decisions based on the needs of the 26 million students they serve.” This plan was created as an effort to increase local control over education spending.

Restructuring Public Education Systems

This proposal continues efforts to transfer the organization’s educational responsibilities to other institutions. Career and technical education (CTE) programs will be permanently moved to the Department of Labor, which is requesting $1.45 billion to oversee these programs. Administration officials say the change will improve workforce development and better align training programs with labor market needs.

Research Funding Cuts Raise Alarm

The budget also renews efforts to drastically reduce federal investment in research, a move Congress has long rejected. The National Institutes of Health (NIH) will see a $5 billion cut, much smaller than the roughly $19 billion cut proposed last year but still significant. The plan also calls for the elimination of several NIH centers, including the National Institute on Minority Health and Health Disparities, the Fogarty International Center, and the National Center for Complementary and Integrative Health.

The National Science Foundation (NSF) is facing major cuts, with proposed cuts of more than 50 percent, or about $4.8 billion. The proposal would also eliminate the institute’s social, behavioral, and economic sciences division, reshaping its research portfolio.

Additional cuts include a $1.1 billion reduction in the Energy Department’s Office of Science, mostly directed toward climate and clean energy research programs. Administration documents reflect shifting priorities in areas such as artificial intelligence, quantum computing, and precious minerals.

Research advocates voiced strong objections. Sudip Parikh, CEO of the American Association for the Advancement of Science, urged Congress to reject the proposal, emphasizing the importance of continued investment in competitive US research and innovation.

Political Reaction and Next Steps

This proposal caused mixed reactions among legislators. House and Labor Education Committee Chairman Tim Walberg praised the budget as a measure to reduce waste and improve efficiency. In contrast, Sen. Patty Murray, vice chair of the Senate Appropriations Committee, strongly criticized the plan, saying it would harm students and reduce investment in medical research.

As with all of the president’s budget requests, this proposal serves as a starting point for negotiations. Congress, which has rejected many similar proposals in recent years, will now write its own budget legislation before a deadline of September 30. The outcome will determine whether important education and research programs are maintained or drastically cut.

To see how this new budget will affect your congressional district, click here.