The purpose of the GRFP, from the government's (i.e. NSF's) perspective is to get more science done cheaper. Therefore, this doesn't make sense. More scientists can do more science. More money in the pockets of grad students simply means more beer in the fridges of said grad students (and therefore LESS science being done. Not a tested hypothesis BTW. I'll start experiments this weekend). As far as I'm concerned $28K would be generous (and allow the NSF to increase the number of awards by nearly 300). I mean, who here is doing this science stuff for the money??? Anyone??? We, as grad students, apply for this award because, we want to do good science, we want to be recognized for said science (prestige), and we want to take the financial burden off of our PIs so that they can buy us pretty science toys (Mmmmm new pipette smell...). We don't apply for it because we make a few thousand more dollars a year (of course that is a HUGE bonus). Heck, I'd apply for it if all they did was match your schools stipend!!
Can anyone here suggest a reason as to why the NSF would increase the award amount by $2k as opposed to increasing the number of awards by 93.33? The only thing I can come up with is that they have some algorithm which suggests that they will get more total units of work by increasing award amounts vs awardee numbers. Seems odd though to me.....