H.R. 7878 (119th)Bill Overview

Segal AmeriCorps Educational Award Tax Relief Act of 2026

Taxation|Taxation
Cosponsors
Support
Bipartisan
Introduced
Mar 9, 2026
Discussions
Bill Text
Current stageCommittee

Referred to the House Committee on Ways and Means.

Introduced
Committee
Floor
President
Law
Congressional Activities
01 · The brief

This bill amends the Internal Revenue Code to exclude national service 'Segal AmeriCorps' educational awards from a recipient's gross income.

It also excludes amounts received under those awards that discharge student loan debt from gross income.

The changes apply to taxable years ending after enactment and to discharges of indebtedness in such years.

Passage40/100

Content is narrow and noncontroversial, aiding passage prospects, but revenue impact and Senate procedure reduce standalone odds.

CredibilityPartially aligned

Relative to its intended legislative type, this bill is a narrowly scoped, well‑specified statutory amendment that clearly modifies the Internal Revenue Code to exclude AmeriCorps educational awards from gross income and to exclude discharges under those awards from gross income.

Contention55/100

Tax/revenue concerns versus expanding benefits for service participants

02 · What it does

Who stands to gain, and who may push back.

Who this appears to help vs burden50% / 50%
Targeted stakeholdersFederal agencies · States
Likely helped
  • Targeted stakeholdersIncreases after-tax value of AmeriCorps Segal awards, raising recipients' disposable income.
  • Targeted stakeholdersMay boost AmeriCorps recruitment by making service awards more financially attractive.
  • Targeted stakeholdersSimplifies tax filing for recipients by removing requirement to report awards as income.
Likely burdened
  • Federal agenciesReduces federal revenues, increasing budgetary cost absent offsets.
  • StatesStates may not conform, creating uneven state tax treatment and compliance complexity.
  • Targeted stakeholdersBenefits may accrue to higher-income individuals equally, reducing progressivity.
03 · Why people split

Why the argument around this bill splits.

Tax/revenue concerns versus expanding benefits for service participants
Progressive90%

Likely strongly supportive.

Removing federal income tax on AmeriCorps educational awards increases the net benefit to participants, especially low-income service members.

Seen as advancing civic service, economic fairness, and access to education.

Leans supportive
Centrist75%

Moderately supportive but pragmatic.

Views the change as a targeted, modest tax relief that rewards service, but wants clarity on fiscal impact and administrative implementation.

Would seek cost estimates and bipartisan vetting.

Leans supportive
Conservative35%

Cautiously critical.

Supports national service goals but worries about expanding tax expenditures and reducing the tax base without offsets.

Some conservatives might accept it if revenue-neutral or paired with offsets.

Likely resistant
04 · Can it pass?

The path through Congress.

Introduced

Reached or meaningfully advanced

Committee

Reached or meaningfully advanced

Floor

Still ahead

President

Still ahead

Law

Still ahead

Passage likelihood40/100

Content is narrow and noncontroversial, aiding passage prospects, but revenue impact and Senate procedure reduce standalone odds.

Scope and complexity
24%
Scopenarrow
24%
Complexitylow
Why this could stall
  • No CBO or revenue estimate included
  • Whether offsets or PAYGO objections will be raised
05 · Recent votes

Recent votes on the bill.

No vote history yet

The bill has not accumulated any surfaced votes yet.

06 · Go deeper

Go deeper than the headline read.

Included on this page

Tax/revenue concerns versus expanding benefits for service participants

Content is narrow and noncontroversial, aiding passage prospects, but revenue impact and Senate procedure reduce standalone odds.

Unlocked analysis

Relative to its intended legislative type, this bill is a narrowly scoped, well‑specified statutory amendment that clearly modifies the Internal Revenue Code to exclude AmeriCorps educational awards from gross income an…

Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.

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