S. 5403 Introduced Education

Debt-Free College Act of 2026

A bill to establish State-Federal partnerships to provide students the opportunity to attain higher education at in-State public institutions of higher education without debt, to provide Federal Pell Grant eligibility to DREAMer students, and for other purposes.

  1. Introduced
  2. Committee
  3. Passed Senate
  4. Passed House
  5. To President
  6. Became law
Sponsor Sen. Schatz, Brian [D-HI] Introduced September 15, 2026 Cosponsors 9 (9 D) Latest action September 15, 2026

Summary

Debt-Free College Act of 2026
This bill establishes measures to cover the unmet financial need of students who are enrolled at certain institutions of higher education (IHEs). Unmet financial need refers to the difference between a student's cost of attendance and the student's student aid index, plus any federal, state, and local sources of grant aid. In addition, the bill makes certain Dreamer students (i.e., students who have been granted Deferred Action for Childhood Arrivals status and who entered the United States before the age of 16) eligible for federal financial aid.
First, the bill requires the Department of Education (ED) to award grants for state-federal partnerships with a goal of providing debt-free college for all eligible students at in-state public IHEs. Eligible student refers to an individual who (1) is enrolled or is eligible to enroll in an in-state public IHE, and (2) completes a Free Application for Federal Student Aid (FAFSA) or demonstrates eligibility for a Federal Pell Grant through state or institutional financial aid eligibility forms.
Next, the bill requires ED to award grants to historically Black colleges and universities and minority-serving institutions to cover the unmet financial need of enrolled students.
ED must establish an office to administer grants and provide oversight.
In addition, the bill makes Dreamer students who entered the United States before the age of 16 who meet certain educational criteria eligible for federal student aid.

Summary by the Congressional Research Service, Library of Congress.

Congress.gov

Actions

  1. Sep 15, 2026 Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
  2. Sep 15, 2026 Introduced in Senate

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