Congress passed a continuing resolution on September 1, 2026, averting a government shutdown before the fiscal year ended on September 30. Federal education programs — including Pell Grants, Federal Work-Study, and FSEOG — continue at current funding levels through December 11. Your Pell Grant is not in immediate danger. But the House has also passed a separate budget bill for the coming year that proposes deep cuts to Work-Study and FSEOG. Those negotiations begin in December.

The U.S. House of Representatives voted 370 to 48 on September 1, 2026 to pass a continuing resolution (CR) that keeps the federal government funded through December 11. The Senate had already approved the same measure. The bill now heads to the president to be signed into law.

For college students and families, the immediate takeaway is simple: there is no shutdown. Federal student aid programs are not interrupted.

What Was at Stake

A government shutdown would have created real problems for the Department of Education's financial aid office. Student Aid Administration staff — the people who process FAFSA applications and manage loan disbursements — could have been furloughed. Aid payments already in motion would generally have continued, but new FAFSA verifications, loan certifications, and school-side processing could have slowed significantly.

For the more than 6 million students who receive Pell Grants each year, a prolonged shutdown during the September-to-October window — when students are just starting fall term and submitting FAFSAs for the 2027-28 cycle — would have been badly timed.

That scenario is now off the table until at least December 11.

What the CR Actually Does

A continuing resolution is not a new budget. It is a stopgap measure that maintains current spending levels while Congress works toward a full-year appropriations agreement. In this case, the CR carries over the fiscal year 2026 funding levels into the first two months of fiscal year 2027.

For financial aid, that means:

  • Pell Grant maximum stays at $7,395 for students receiving aid this fall
  • Federal Work-Study continues at current funding levels
  • FSEOG (Federal Supplemental Educational Opportunity Grant) continues at current levels
  • TRIO programs (TRiO Student Support Services, Upward Bound, GEAR UP) continue without interruption
  • Student Aid Administration — the people processing your FAFSA — remains fully staffed

370–48

The Fight That Starts in December

The CR buys time — it does not settle anything. And what's coming in December matters.

Alongside the continuing resolution, the House has separately passed its version of the fiscal year 2027 appropriations bill for Labor, Health, Human Services, and Education (the LHHS bill). That bill, if enacted in its current form, would cut federal financial aid programs significantly:

  • Federal Work-Study: cut 26%
  • FSEOG: cut 40%
  • TRIO and GEAR UP: small increases

The Senate has not yet released its version of the FY27 education spending bill. Whatever each chamber passes will have to be negotiated in conference before anything becomes law. That process will play out in December — right when the CR expires.

The 26% Work-Study and 40% FSEOG cuts are in the House's FY27 budget proposal, not in the law that passed this week. They are not in effect yet. But they represent the opening bid from the House majority, and students who rely on campus jobs funded by Work-Study should watch what happens in December.

What This Means If You Rely on Work-Study

Federal Work-Study does not go directly to students as a grant. It funds on-campus (and some off-campus) jobs that let students earn money without it counting against their next FAFSA. If Work-Study is cut in the FY27 bill, colleges would have fewer funded positions available starting in the 2027-28 school year.

If you are a current freshman or sophomore who plans to use Work-Study as part of your aid package in future years, the December budget fight is worth following. Schools with higher endowments often supplement Work-Study with their own institutional funds — another reason why colleges with strong financial aid policies can buffer federal changes better than others.

What Students Should Do Right Now

The shutdown scare is over for now. Here is what remains genuinely time-sensitive:

File the 2027-28 FAFSA starting October 1. The FAFSA opens October 1, 2026 for the 2027-28 school year. The beta is already open to anyone who requests access at studentaid.gov. Filing early gives your school the longest runway to process your aid. Use the FAFSA preparation checklist to get ready now.

Understand your current award letter. If you're already enrolled and have a financial aid award, know exactly which parts of it come from Pell (safe right now), Work-Study (watch December), and FSEOG (also watch December). The guide to decoding your financial aid award letter breaks down each piece.

Explore scholarships that don't depend on federal funding. Federal aid fluctuates with political cycles. Private scholarships and institutional grants don't. If you haven't already, the college scholarship strategy guide is worth reading now rather than waiting until spring.

Check your school's Work-Study status. Ask your financial aid office whether your campus Work-Study positions are funded by federal dollars, institutional funds, or a mix. Schools with their own supplemental Work-Study programs are less exposed to federal cuts.

Watch for the Senate's FY27 LHHS bill when Congress returns in mid-November. If the Senate proposes smaller cuts than the House — or no cuts at all — that signals a better negotiating outcome. If both chambers are aligned on large reductions, the December talks will be harder for student aid advocates.

The Bottom Line

No government shutdown means no immediate disruption to your financial aid. The continuing resolution holds current funding levels steady through December 11. Your Pell Grant is safe for this semester, and your school's financial aid office is operating normally.

But the budget fight for fiscal year 2027 is just getting started. Students who rely on Work-Study income or FSEOG grants — programs that primarily support lower-income students — have a reason to pay attention to what happens in Congress this fall.

The Trump FY2027 budget proposal published earlier this year outlined the administration's priorities. The House appropriations bill reflects much of that. Whether it survives the Senate and conference negotiations is the open question.

The December deadline is real. Mark your calendar.

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Footnotes

  1. National College Access Network. (2026, September 1). House Passes Continuing Resolution to Avoid Shutdown, Level Fund Education Programs Until December. ncan.org ↩

  2. NASFAA. (2026, September). House Passes Continuing Resolution, Funding Government Through December 11. nasfaa.org ↩

  3. NPR. (2026, September 1). Congress averts a government shutdown ahead of midterms. npr.org ↩

  4. Education Week. (2026, September). Averting a Shutdown, Congress Punts Federal Spending Decisions to December. edweek.org ↩