Read twice and referred to the Committee on Finance.
The bill amends the Internal Revenue Code to explicitly exclude Federal Pell Grants from gross income by adding Pell Grants to the Section 117 exclusion for scholarships/fellowships. It also amends Section 25A(g)(2)(A) to clarify treatment of Pell Grants for purposes of the American Opportunity and Lifetime Learning tax credits.
Liberals emphasize equity and tax relief for low-income students
Relative to its intended legislative type, this bill is a narrowly scoped substantive tax amendment with precise statutory language and a clear effective date, but it omits fiscal impact acknowledgement, comprehensive edge-case handling, and mechanisms for measurement or oversight.
The bill amends the Internal Revenue Code to explicitly exclude Federal Pell Grants from gross income by adding Pell Grants to the Section 117 exclusion for scholarships/fellowships.
It also amends Section 25A(g)(2)(A) to clarify treatment of Pell Grants for purposes of the American Opportunity and Lifetime Learning tax credits.
The changes apply to taxable years beginning after December 31, 2025.
Technically simple and low-salience, increasing chances; revenue impact and need for procedural clearance lower likelihood absent packaging.
Relative to its intended legislative type, this bill is a narrowly scoped substantive tax amendment with precise statutory language and a clear effective date, but it omits fiscal impact acknowledgement, comprehensive edge-case handling, and mechanisms for measurement or oversight.
Liberals emphasize equity and tax relief for low-income students
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals emphasize equity and tax relief for low-income students
Likely supportive.
The bill makes need-based Pell Grants tax-free and clarifies credit interactions, benefiting low-income students.
Seen as increasing educational equity and reducing tax burdens on the economically vulnerable.
Generally favorable but cautious.
The policy is narrowly targeted and straightforward, though questions about fiscal impact and statutory clarity should be addressed before enactment.
Cautiously open but reserved.
Some conservatives will accept targeted relief for low-income students, while others worry about expanding tax exclusions and revenue effects.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically simple and low-salience, increasing chances; revenue impact and need for procedural clearance lower likelihood absent packaging.
The bill has not accumulated any surfaced votes yet.
Liberals emphasize equity and tax relief for low-income students
Technically simple and low-salience, increasing chances; revenue impact and need for procedural clearance lower likelihood absent packaging.
Relative to its intended legislative type, this bill is a narrowly scoped substantive tax amendment with precise statutory language and a clear effective date, but it omits fiscal impact acknowledgement, comprehensive e…
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