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Emergency Financial Aid Grants for College Students Facing Hardship.

This Act establishes a new federal program providing emergency financial aid grants to college students facing sudden financial challenges that threaten their ability to stay enrolled. Crucially, these grants are tax-free and do not count against eligibility for other federal benefits or standard student financial aid. Institutions must ensure quick disbursement and inform students about other available assistance programs.
Key points
Students can receive non-taxable emergency grants to cover unexpected financial hardships related to their cost of attendance or ability to continue their studies.
The emergency aid does not affect eligibility for other federal means-tested benefits (like SNAP or Medicaid) or reduce the amount of standard student financial aid received.
Colleges must process and disburse approved funds quickly (within 10 business days) and offer students an opportunity to appeal grant denials.
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Additional Information
Print number: 118_S_1344
Sponsor: Sen. Smith, Tina [D-MN]
Process start date: 2023-04-27