Pell Grant Changes Threaten Native Student Access and Local Economies 

Tribal Colleges and Universities (TCUs) are sounding the alarm about proposed changes to the federal Pell grant program, emphasizing the dire consequences these threats pose for American Indian and Alaska Native students, rural communities, and the state’s workforce.

Pell grants are the foundation of college affordability for TCUs, which serve predominantly low-income, first-generation, and American Indian and Alaska Native students. In the 2022-2023 academic year, nearly 69% of first-time, full-time TCU students nationwide received Pell support, far above the national average for two-year public institutions.

However, the Pell grant program now faces a $3 billion funding shortfall, with even larger gaps projected next year. Instead of increasing investment, a recent House budget bill proposes raising the full-time enrollment threshold from 24 to 30 credits per year and eliminating grants for students enrolled less than half-time.

“These proposed changes are extremely concerning because raising the full-time credit requirements and excluding less than part time students would disproportionately harm [TCUs],” stated Dawn Frank, president of Oglala Lakota College. “Part-time TCU Pell recipients see substantial increases in certificate and degree completion rates. That’s something we’re looking at that’s across the board for TCUs.”

Tribal college leaders, the American Indian Higher Education Consortium (AIHEC), and the American Indian College Fund are calling on Congress to reject the proposed changes, which would disproportionately harm working students and parents, many of whom can only attend part-time due to family and job responsibilities.

“Our tribal colleges are vital to preserving culture, providing quality education, and driving economic growth in Montana communities,” said Eva Flying, president of Chief Dull Knife College. “Threats to Pell grants jeopardize not only our students’ futures but also the well-being of entire communities. We call on Congress to protect these critical investments that empower our people and strengthen our state.”

TCUs provide affordable, high-quality education with tuition as low as $70 per credit and student-to-faculty ratios as low as 7:1, ensuring personalized support and strong community ties. These institutions are not only academic anchors but also powerful economic drivers. They help sustain rural economies by creating jobs for faculty, staff, and graduates, and by purchasing goods and services from local businesses. In Montana, for example, Aaniiih Nakoda College, Blackfeet Community College, Fort Peck Community College, Salish Kootenai College, and Stone Child College together generate $161.7 million in economic impact for Montana and support 2,750 jobs statewide. Moreover, their graduates contribute over $100 million in additional annual income to the state, while the colleges themselves stimulate further economic activity through construction, tourism, and alumni success.

“Losing [Pell] would mean everyone would have to take a step back,” Frank said. “If we’re not producing graduates to continue to work in those positions, I could see a lot of hardships. Look at coupling it with financial necessity amid rising inflation, affordable childcare, transportation especially in our rural area. The strain, we said, would almost cripple or close us.”

With most students graduating with little to no debt, TCUs offer a pathway to prosperity. The presence of these colleges is essential for workforce development, community stability, and the long-term economic health of rural and tribal regions.

“TCUs are engines of workforce development and economic revitalization, generating thousands of jobs across local and regional economies—most directly supported by federal funding,” said Ahniwake Rose, president and CEO of AIHEC. “Any reduction in Pell grant access would not only force us to cut critical student services and academic programs, but could also threaten the continued operation of our colleges and the stability of our communities.”

TCUs, AIHEC, and the American Indian College Fund are encouraging everyone to contact their senators and representatives immediately. Congress must reject these eligibility changes that would exclude part-time and working students from Pell grants, and provide additional resources to close the Pell funding gap through budget reconciliation, not by cutting access.


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