Stimulus Bill Includes Boost in Pell Grants

The economic stimulus bill now taking shape in Congress could include a $15 billion expansion of Pell grants and a new block grant for states, which would expire after two years and could be used to build campus infrastructure. Overall, the bill could provide as much as $140 billion for education over two years.

The bill would increase the maximum grant by $500, bringing it to $5,321. According to the Chronicle of Higher Education, the amount is still up for debate. The Chronicle reports the bill could also consolidate a pair of existing tuition tax benefits into a single, partially refundable $3,000 tax credit used for college expenses.