Under the 2005 fiscal year omnibus appropriation that was passed last week, more than one million college students will have their financial aid cut or eliminated.

Appropriators did not renew a provision from the 2004 fiscal year appropriations bill that prevented the U.S. Department of Education from changing they way they calculated student eligibility for Pell Grants. Pell Grants provide up to $4,050 in annual aid to low-income students and are based on family incomes.

The department has been wanting to change the formula used to determine eligibility for federal student aid. The formula is based on how much of a family's income is discretionary and available to pay for college tuition. This is determined by using variables such as state and local taxes. One opponent of the measure, Senator Jon Corzine (D-New Jersey) said the change will result in thousands of students losing their eligibility for the Pell Grants, particularly as many states have lowered taxes on personal income since the last update of tax tables.

Proponents of the change, including Rep. John Boehner (R-Ohio) believe the change will help reduce a budget deficit for the Pell Grant program. The change, he believes, could free up more money to increase the maximum amount for Pell Grants in future years.

Pell Grants are federal aid but are funded as a discretionary program. The program is run as as entitlement because students who are eligible for aid automatically qualify for assistance. Congress has struggled to fund the program recently due to the rise in college students and more adults returning to higher education due to a tight job market.