1. Short title This Act may be cited as the Pell Grant Sustainability Act . 2. Findings Congress finds the following: (1) From 2009 through 2018, the maximum discretionary Federal Pell Grants under section 401 of the Higher Education Act of 1965 stayed flat while inflation was 17 percent. (2) The value of Federal Pell Grants must keep pace with students’ costs in order to fulfill their mission of enabling lower-income students to attend college. 3. Indexing Federal Pell Grants to inflation Section 401 of the Higher Education Act of 1965 ( 20 U.S.C. 1070a ) is amended— (1) in subsection (a)(1), by striking through fiscal year 2017 ; and (2) in subsection (b)(7)(C), by amending clause (iii) to read as follows: (iii) Subsequent award years (I) Award years 2018–2019 and 2019–2020 For each of the award years 2018–2019 and 2019–2020, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to the amount determined under clause (ii) for award year 2017–2018. (II) Award year 2020–2021 and each subsequent award year For award year 2020–2021 and each subsequent award year, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to— (aa) (AA) $6,195 or the total maximum Federal Pell Grant for the preceding award year (as determined under clause (iv)(II)), whichever is greater, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined; reduced by (BB) $5,135 or the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year, whichever is greater; and (bb) rounded to the nearest $5. .