1. Short title This Act may be cited as the Pell Grant Sustainability Act . 2. Findings Congress finds the following: (1) The purchasing power of the Federal Pell Grant has declined rapidly since the 1970s. In academic year 1974–1975, the total maximum Federal Pell Grant covered 80 percent of base educational costs at public 4-year institutions of higher education. By academic year 2020–2021, the maximum Federal Pell Grant covered just 30 percent of those base costs. (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 (a) Award year 2023–2024 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 inserting through fiscal year 2023 ; and (2) in subsection (b)(7)(C), by amending clause (iii) to read as follows: (iii) Subsequent award years (I) Award years 2018–2019 through 2022–2023 For each of the award years 2018–2019 through 2022–2023, 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 2023–2024 For award year 2023–2024 and each subsequent award year, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to— (aa) (AA) $6,895 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) $6,495 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