Federal Supplemental Educational Opportunity Grants

(FSEOG)

Department of Education

Proposed Cut

$910M

% Reduction

100.0%

Action Type

elimination

Who Is Served

1.6 million low-income undergraduates receiving need-based grants

Summary

The Federal Supplemental Educational Opportunity Grant (FSEOG) program gives colleges federal money to hand out as need-based grants to the lowest-income undergraduates, on top of their Pell Grants. The FY2027 budget proposes eliminating the program entirely, cutting its full $910 million in funding (a 100% cut), on the argument that a boosted Pell Grant already covers need-based aid.

Who Is Affected

FSEOG currently reaches about 1.6 million low-income undergraduates, distributed through roughly 3,800 to 4,000 participating colleges and universities that receive a fixed FSEOG allocation each year to award to students with the greatest financial need. Grants typically range from $100 to $4,000 a year, and schools give first priority to Pell Grant recipients with the lowest expected family contributions, meaning the very poorest students who already qualify for maximum Pell aid would lose this extra layer of support first.

What this cut would actually mean

If FSEOG is eliminated, financial aid offices would lose a flexible pool of grant money they currently use to close remaining gaps for students who still can't afford tuition, books, or living costs after Pell Grants and loans. Advocacy groups like NASFAA and TICAS warn this would force some of the lowest-income students to take on more debt, work more hours, or drop out, since campus-based aid has historically supplemented rather than duplicated Pell funding. The Department's own justification assumes the Pell increase alone offsets the loss, but the FY2027 Pell request keeps the maximum award flat at $7,395, so students who relied on FSEOG would see a net reduction in total available grant aid.

Why this hits Alabama harder

FSEOG mostly goes to students who already qualify for Pell Grants, the neediest undergraduates in the country. Alabama has a poverty rate of about 15.2%, well above the national rate of roughly 11%, so a larger share of Alabama college students come from low-income families that rely on this kind of aid. Because Alabama has more poor families than most states, cutting FSEOG would take away help from a bigger slice of its students than it would in an average state.

What is the poverty rate in Alabama? | USAFacts — Reports Alabama's 2024 poverty rate at about 15.2%, higher than the national average.
Overcoming Poverty: Fast facts about Alabama's poverty rates - WSFA — Notes Alabama's poverty rate has been several percentage points higher than the U.S. national poverty rate in recent years.
Poverty rate Alabama U.S. 2023 | Statista — Shows about 15.6% of Alabama's population lived below the poverty line in 2023, above typical U.S. figures.

Sources

Trump's FY 2027 Budget Request Would Eliminate FSEOG, Slash FWS Funding, Increase Pell Grant — NASFAA reporting on the administration's FY2027 budget request, confirming elimination of FSEOG and flat Pell Grant maximum of $7,395.
U.S. Department of Education Fiscal Year 2027 Budget Summary — The Department's own budget justification document confirming the request eliminates funding for FSEOG as part of returning aid decisions to states and Pell Grant expansion.
President's Budget Would Put College Further Out of Reach for Many — The Institute for College Access & Success statement analyzing the FY2027 budget's elimination of FSEOG, TRIO, GEAR UP, and other need-based aid programs.
Federal Supplemental Educational Opportunity Grant (FSEOG) — Overview of how the FSEOG campus-based aid program works, including participating institution counts and award ranges of $100 to $4,000.
Statement on Trump Administration's Fiscal Year 2027 Budget Proposal — NASFAA's statement opposing the FSEOG elimination, describing it as a program that helps students from the lowest-income backgrounds.