What the document says“for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student's parents; and”
The section rewrites section 401(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) so that adjusted gross income means, for a dependent student, the parents' adjusted gross income for the second tax year before the academic year plus, for academic years beginning on or after July 1, 2026, their foreign income, and for an independent student the same figures for the student and any spouse.
What the document actually says“for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student's parents; and”
Income earned abroad now counts. That is for grants from July 1, 2026.
For a dependent student it is the parents' foreign income. For an independent student it is their own. It is added to their other income.
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