Debt-Free College Act of 2026
The source supplies the latest action, but no lifecycle stage.
Latest action (15 Sep 2026): Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
What this bill does
This bill, titled the "Debt-Free College Act of 2026," aims to create partnerships between states and the federal government to help students attend in-state public colleges without accumulating debt. It would also make students who are beneficiaries of the Deferred Action for Childhood Arrivals (DACA) program, often referred to as "DREAMers," eligible for Federal Pell Grants.
The bill proposes that participating states would commit to covering the unmet financial need for eligible students attending their public higher education institutions. An eligible student is defined as someone enrolled or eligible to enroll in a public college in their home state and who has completed a Free Application for Federal Student Aid or demonstrated Pell Grant eligibility. States would need to maintain or increase their own investment in public higher education and cap tuition increases.
The bill has been introduced in the Senate and referred to the Committee on Health, Education, Labor, and Pensions. Its next step would be for the committee to consider the bill, potentially hold hearings, and decide whether to advance it to the full Senate for a vote. If passed by the Senate, it would then proceed to the House of Representatives for a similar process.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official 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.
Timeline
15 Sep 2026
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Common questions
- What does S. 5403 do?
- This bill, titled the "Debt-Free College Act of 2026," aims to create partnerships between states and the federal government to help students attend in-state public colleges without accumulating debt. It would also make students who are beneficiaries of the Deferred Action for Childhood Arrivals (DACA) program, often referred to as "DREAMers," eligible for Federal Pell Grants. The bill proposes that participating states would commit to covering the unmet financial need for eligible students attending their public higher education institutions. An eligible student is defined as someone enrolled or eligible to enroll in a public college in their home state and who has completed a Free Application for Federal Student Aid or demonstrated Pell Grant eligibility. States would need to maintain or increase their own investment in public higher education and cap tuition increases. The bill has been introduced in the Senate and referred to the Committee on Health, Education, Labor, and Pensions. Its next step would be for the committee to consider the bill, potentially hold hearings, and decide whether to advance it to the full Senate for a vote. If passed by the Senate, it would then proceed to the House of Representatives for a similar process.
- Has S. 5403 become law?
- The source does not supply a confirmed lifecycle stage for S. 5403. Check the latest action and official source below.
- Who sponsored S. 5403?
- S. 5403 was sponsored by Sen. Schatz, Brian [D-HI] (D-HI), with 9 cosponsors.
- What's the latest action on S. 5403?
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (15 Sep 2026).
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