PolicyBrief
H.R. 7341
119th CongressFeb 4th 2026
GRAD Act
IN COMMITTEE

The GRAD Act expands existing grant programs for HBCUs and PBIs to include institutions offering specific master's degree programs and adjusts the distribution of leftover funds.

Jennifer McClellan
D

Jennifer McClellan

Representative

VA-4

LEGISLATION

GRAD Act Expands Federal Grant Access for HBCU and PBI Master's Programs

The Growing Reputable Academic Departments (GRAD) Act aims to widen the net for federal funding by amending the Higher Education Act to include more Historically Black Colleges and Universities (HBCUs) and Predominantly Black Institutions (PBIs) in existing grant programs. Specifically, Sections 1 and 2 of the bill update the eligibility criteria for these grants to include institutions that offer qualified master’s degree programs but weren't previously listed in the federal statutes. Think of it as a software update for federal education funding: the bill recognizes that more schools have leveled up their academic offerings and ensures the law reflects that reality.

Opening the Door for Graduate Degrees

Under the current rules, some institutions were left on the sidelines because they didn't meet specific historical list requirements. The GRAD Act changes this by adding a new category of eligible schools under Section 723 for HBCUs and Section 724 for PBIs. For a student pursuing a master’s degree in a specialized field at a smaller HBCU, this could mean their department finally gets the resources for better lab equipment or research stipends. By expanding the list of 'part B institutions' to include those with qualified master's programs, the bill ensures that federal support follows the students to the graduate level, regardless of whether their school was on the original 1960s-era list.

Rebalancing the Ledger

Beyond just adding names to a list, the bill tweaks how the money is actually handed out. In the past, the law had specific dollar caps—like $9 million for HBCUs and $2.5 million for PBIs—before any 'excess' funds could be redistributed. The GRAD Act simplifies this by removing those rigid numbers and allowing any remaining funds to be distributed more flexibly after the initial mandatory grants are satisfied. For university administrators, this means less bureaucratic red tape and a more streamlined process for accessing leftover federal dollars. It’s a move toward a more 'needs-based' flow of cash rather than sticking to arbitrary historical limits, ensuring that every dollar allocated for graduate education actually makes it to a classroom or a research project.