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AGB Policy Alert: Urgent Action Needed on FY 2027 Budget Proposals Impacting Higher Education

By AGB April 8, 2026 April 9th, 2026 AGB Alerts

This AGB Policy Alert is based on policy developments current as of the date posted. Given the evolving nature of legislative and judicial activity, content may become outdated. For the most recent updates and guidance, please refer to the latest AGB Policy Alerts available at AGB.org/Advocacy/Policy-News.

The Administration has released its FY 2027 Presidential Budget Request, proposing significant changes to federal higher education funding that could have far-reaching consequences for institutions and students nationwide.

While this proposal is not final, it marks the beginning of the congressional appropriations process—and now is the critical time for advocacy.

Key Proposals of Concern

The budget includes several provisions that would substantially impact higher education access and institutional support:

  • Elimination of funding for:
    • TRIO programs
    •  Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)
    • Supplemental Educational Opportunity Grants (SEOG)
    • Strengthening Institutions Program
    • Child Care Access Means Parents in School (CCAMPIS)
    • Teacher Quality Partnerships
  • Severe reduction to Federal Work-Study, cut by over $1.1 billion
  • Targeted MSI funding, limited to HBCUs and Tribal institutions, excluding other Minority-Serving Institutions
  • Pell Grant funding pressures, with level maximum awards but reliance on additional discretionary funding to address a projected shortfall

Why This Matters

These programs are essential to:

  • Expanding college access for low-income and first-generation students
  • Supporting student persistence and completion
  • Strengthening institutional capacity across diverse campuses

If enacted, these proposals could significantly limit opportunity and undermine student success nationwide.

Take Action Now

Congress will ultimately determine final funding levels, and your voice is critical in shaping the outcome.

We urge AGB members to:

  • Contact your Senators and Representatives to express strong support for continued funding of federal student aid and institutional support programs
  • Highlight the impact of these programs on your campus and students
  • Advocate for restoration or protection of funding for TRIO, GEAR UP, Work-Study, SEOG, and other critical programs

What’s Next

AGB will continue to monitor developments and provide updates.

This is a pivotal moment. Early and sustained advocacy can make a meaningful difference in preserving the programs that support student access and success.

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