Community College slammed by Federal cutbacks

by Denise Mackenstadt

Peninsula College (Reproduced with permission from Peninsula College)

Higher education is about to become inaccessible for low-income undergraduate students attending community college with help from the Federal Pell Grant program. The program is currently on the chopping block as part of Federal cutbacks proposed in the upcoming budget negotiations in the Senate and House of Representatives. 

The Department of Education’s Pell Grant program is unique in that, unlike other education loans, the grants are needs based and do not need to be repaid, making it possible for low-income undergraduate students to realize their dreams of pursuing higher education.

The House version of the bill:

• Redefines a full-time course load as 15 quarter-hours rather than the current 12 quarter-hours, thereby eliminating Pell grant eligibility for the 100 Peninsula College students currently attending less than half-time. 
• Establishes “risk sharing” whereby colleges would be held responsible for a portion of the student’s unpaid loss balances.
• Terminates subsidized loans for undergraduate students. 
• Establishes “workforce Pell” to expand Pell grant eligibility to students in programs that are less than 15 weeks but that must be at least eight weeks. 
• Makes private training institutions eligible to administer these funds.

Although the Senate Health, Education, Labor and Pensions Committee proposals to cut funding for post-secondary education are not as draconian as the House version, they are significant, nonetheless. In response to proposed House cuts, the Senate’s proposal:

• Restores the part-time Pell Grant 
• Eliminates loan risk sharing, which means no loans for low-earning outcome programs. Low-earning outcome programs:
  • Prohibit graduates typically earning low wages relative to the cost of the program from participating in federal student loan programs, ostensibly to protect them from taking on significant debt for programs that do not lead to sufficient earnings to repay those loans.
  •  Hold institutions accountable for program quality and ensuring that students are prepared for “gainful employment”; 
  •  Requires ‘transparency” for students by providing them with information about the potential financial return on investment of different programs so they can make informed enrollment decisions.
• Restores subsidized loans

President Trump’s “Skinny Budget” proposal, which is part of the 2026 budget due on Oct. 1, 2025:

• Eliminates Basic Adult Education
• Eliminates TRiO (Upward Bound), a federally funded program that aims to increase college enrollment and graduation rates for high school students from low-income households, from homes where neither parent has earned a bachelor's degree, or for students at a high academic risk of failure. 
• Eliminates Federal Work Study
• Eliminates Federal Supplemental Educational Opportunity Grants

Actual Federal Cut

• NOAA Tribal Stewards Grant eliminated, cutting $1,092,000 for Peninsula College (PC)
  PC is one of six WA Community and Technical Colleges that are part of the NOAA Tribal Stewards Grant. The program’s overall goal is to recruit indigenous students into our Natural Resource programs. The college’s portion is approximately 1.1 million over four years and includes hiring a Tribal Navigator to provide academic and wraparound support to indigenous students, and connecting those students to internships and employment opportunities.

We must take action to protect low-income undergraduate students’ ability to attend community college with help from the Federal Pell Grant program. Contact your congressional representatives to urge them to oppose passage of these Congressional and Senate proposals. [NOTE: The 5 Calls App makes it easy for U.S. citizens to contact their elected officials about important issues. It provides a simple way to make your voice heard by automatically connecting you with your representatives and offering scripts for your calls.]