Federal Student Aid has announced the processing of Federal Pell Grant Administrative Cost Allowance (ACA) payments for both the 2024–25 and 2025–26 award years. FSA began processing both sets of payments on August 18, 2026.
Pell Grant Administrative Cost Allowance
Under federal regulations, schools participating in the Federal Pell Grant Program receive an ACA payment of $5 for each unduplicated Pell Grant recipient during an award year. These funds are intended to help institutions offset the costs of administering the Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Work Study, and Federal Perkins Loan programs.
ACA payments are made directly to schools based on Pell Grant recipient information reported and accepted in the Common Origination and Disbursement (COD) System.
2024–25 Award Year: Third and Final Payment
- For the 2024–25 award year, this is the third and final ACA payment.
- The payment is based on eligible records processed by COD since the second ACA payment was processed on August 20, 2025, through the processing of this final payment.
- The funds will be posted in G5 under the school’s ACA award number P063Q24####.
2025–26 Award Year: Second Payment
- For the 2025–26 award year, this is the second ACA payment.
- This payment is based on eligible records processed by COD since the first ACA payment was processed on February 18, 2026, through the processing of the second payment.
- The funds will be posted in G5 under the school’s ACA award number P063Q25####.
Schools Must Draw Down the Funds
Once an ACA payment is posted, schools must log in to G5 and complete a drawdown transaction to receive the funds.
Schools will also receive an electronic statement of account through their Student Aid Internet Gateway (SAIG) mailbox. ACA payment information, including total unduplicated recipients, recipients paid, total ACA paid, the most recent payment date, and payment history, is also available on the School Funding Information page in COD.
Institutions should review their COD and G5 information to confirm the applicable ACA payments and complete the necessary drawdown.
For additional details, review FSA’s announcements:
(GRANTS-26-07) Second Pell Grant Administrative Cost Allowance Payments for 2025-26 Award Year