College for All Act Proposes Free Public Tuition and Boosts Pell Grants to $14,790 Starting 2026

The College for All Act of 2025 is aiming to fundamentally reshape how people pay for higher education. Starting in the 2026–2027 award year, this bill sets up a huge Federal-State partnership designed to completely eliminate tuition and required fees for eligible students at public colleges, universities, and Tribal Colleges. For most people, this means if you haven't finished a bachelor's degree, you could go to community college or a state university for free, though four-year schools initially limit free tuition to students with an Adjusted Gross Income (AGI) under $150,000 (single) or $300,000 (married).

The Free College Blueprint: Who Pays?

This isn't a handout; it’s a cost-sharing agreement. States that participate must agree to wipe out tuition and fees for qualifying students. Initially, the federal government picks up 100% of the cost, but that ramps up quickly. By the 2030–2031 award year, the state must cover 20% of the calculated cost, with the federal government covering the remaining 80% (SEC. 101). For states, this is a significant new line item in their budgets, although the bill includes an “Automatic Stabilizer” that can reduce or waive the state’s required contribution if unemployment spikes high enough, offering a safety net during economic downturns.

For the student trying to get ahead, this change is massive. Imagine a single parent working full-time who wants to get a degree to move up the ladder: the elimination of tuition removes the biggest financial barrier instantly. However, the bill is clear that the grant money must be used to cover tuition and fees first; leftover funds can help with books or housing, but it specifically bans using these federal funds for non-academic facilities like stadiums or for administrative salaries (SEC. 101).

Pell Grants Get a Power-Up

Beyond free tuition, the bill supercharges the Federal Pell Grant program, which is crucial for the lowest-income students. For the 2026–2027 award year, the maximum Pell Grant jumps dramatically to $14,790 for students at public or Tribal Colleges (SEC. 301). This is a huge increase that could cover living expenses and books even if tuition is already free. Furthermore, the bill expands eligibility to include certain “Dreamer students” who meet specific criteria, giving thousands of currently ineligible students access to federal aid for the first time.

In a win for taxpayers, the bill also clarifies that Pell Grants will now be treated as a qualified scholarship for tax purposes regardless of how the student uses the money (SEC. 301). This means the money you use for rent or food while attending school won't be counted as taxable income, which is a practical benefit that keeps more money in students' pockets.

New Rules for Schools and Support

If states and institutions want this federal money, they have to play by some new rules designed to improve the quality of education and student support. Public four-year schools must commit to ensuring that within five years, at least 75% of instruction is taught by tenured or tenure-track faculty (SEC. 101). This is a direct shot at the growing reliance on adjuncts and contingent faculty, aiming to stabilize the teaching workforce and improve educational quality.

Institutions also have to commit to significant student support improvements. This includes maintaining a ratio of one full-time disability services employee for every 150 registered students with disabilities and ensuring robust credit transfer agreements between community colleges and four-year schools (SEC. 101). This is important for the student who transfers from a community college only to find half their credits don't count—this bill aims to eliminate that frustrating and costly hurdle.

Targeting Support for HBCUs and MSIs

The bill doesn't leave out private institutions that serve specific populations. Title II creates a brand new grant program to eliminate tuition and fees for income-eligible students attending private, nonprofit Historically Black Colleges and Universities (HBCUs) and Minority-Serving Institutions (MSIs) (SEC. 201). This is calculated based on the number of eligible students, with the grant amount being up to $11,610 per student at four-year schools in the first year. This provides a parallel path to tuition-free education at institutions that often provide critical support to first-generation and minority students.

However, there's a specific restriction here: any institution that converted from for-profit to nonprofit status is banned from this grant program for 25 years (SEC. 201). This is a clear attempt to prevent certain schools from accessing federal funds, which could potentially impact students at those recently converted schools who would otherwise qualify for free tuition. Overall, this bill is a sweeping attempt to redefine college access, targeting the financial burden of tuition while simultaneously demanding that institutions improve the quality and support services they offer.