From the Summary: "Under Department of Education (ED) regulations, any student who is 'serving a criminal sentence in a federal or state penitentiary, prison, jail, reformatory, work farm, or other similar correctional institution' is not eligible to receive a Pell Grant. However, in 2015 ED used its authority under the Higher Education Act (HEA) to create the Second Chance Pell Experiment to determine if access to Pell Grants would increase the enrollment of incarcerated individuals in high-quality postsecondary correctional education programs. Under the experiment, participating institutions of higher education, in partnership with federal and/or state correctional institutions, award Pell Grants to students who are otherwise Pell-eligible except for being incarcerated in a federal or state institution. The experiment is expected to conclude in 2020."
CRS Report for Congress, R45737
Congressional Research Service: https://crsreports.congress.gov/