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AAU joined a letter to Senate Finance leadership urging them to repeal the taxability of Pell grants as part of the FY22 reconciliation process.
The FY22 budget resolution passed by the House and Senate included instructions for congressional committees to craft sections of a $3.5 trillion budget reconciliation measure based on President Biden’s Build Back Better agenda and the American Families Plan and American Jobs Plan he released earlier this year to effectuate that agenda. The following is an analysis of the budget reconciliation provisions affecting research and higher education. This document will continue to be updated as the legislation moves forward.
Analysis for the House Education & Labor Committee FY22 Reconciliation Bill focusing on student aid and higher education provisions.
AAU joined ACE and more than 20 other higher education organizations in a letter to House Education and Labor Committee leaders expressing appreciation for the committee’s draft reconciliation bill including substantial investments in students, educators, and institutions. These investments include a proposed $500 increase to the Pell Grant maximum award.
On September 3, AAU joined nine other higher-education associations in sending a letter to House and Senate appropriators to urge them to repeal the taxability of Pell grants by incorporating the “Tax-Free Pell Grant Act” as part of their final FY2022 reconciliation agreement.

AAU President Barbara R. Snyder sent a letter urging Senate and House budget committee leaders to make bold investments in the health, security, prosperity, and future of our nation as they craft the FY22 budget.

Status of FY22 appropriations including the President’s FY22 Budget Request for AAU’s funding priorities at the Department of Education including Title IV and Title VI funding.
AAU, ACE, and 30 other higher education associations and organizations sent a letter to House Appropriations Committee Chair Rosa DeLauro (D-CT) and Ranking Member Kay Granger (R-TX) supporting the Labor-HHS-Education appropriations bill and urging committee members to also support the bill during markup.
Robust support for federal student aid is key to strengthening the nation’s skilled workforce, innovative capacity, and economic competitiveness. The federal government has long played a pivotal role in ensuring individuals from all backgrounds are able to pursue their postsecondary education goals. That commitment has helped previous generations afford college and attain their educational and career goals. Strengthening this commitment is now even more critical since nearly all new jobs created in our economy require some postsecondary education
Sens. Mazie Hirono (D-HI), Jack Reed (D-RI), and Sheldon Whitehouse (D-RI) are circulating a “dear colleague” letter asking senators to join a letter to President Joe Biden requesting he work with Congress on a plan to double the maximum Pell Grant award.