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Tax-Free Pell Grants: More Money for Education

This bill makes federal Pell Grants exempt from taxable income. This means students receiving these grants will not have to pay taxes on them, increasing the actual amount available for their education. The changes will take effect starting from the 2026 tax year.
Key points
Pell Grants will be excluded from taxable income, meaning more money for students.
Pell Grant amounts will not reduce education tax credits like American Opportunity and Lifetime Learning Credits.
The changes will apply to tax years beginning after December 31, 2025.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1610
Sponsor: Sen. Whitehouse, Sheldon [D-RI]
Process start date: 2025-05-06
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tax-Free Pell Grant Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1610.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-06.

What are the main provisions?

Key points include:

  • Pell Grants will be excluded from taxable income, meaning more money for students.
  • Pell Grant amounts will not reduce education tax credits like American Opportunity and Lifetime Learning Credits.
  • The changes will apply to tax years beginning after December 31, 2025.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Whitehouse, Sheldon [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Education