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Tax-Free Pell Grant Act

In committee: it can still change before the session ends.

US HR 2543 · House Bill · 119th Congress

Stage
In committee
Started in
House
Sponsors
4
Latest action
Apr 1, 2025

What it does

The Tax-Free Pell Grant Act would amend the Internal Revenue Code to exclude Federal Pell Grants from gross income for tax purposes, ensuring they are not treated as taxable income when used for qualified education expenses. It would also expand the American Opportunity and Lifetime Learning Credits to include computer or peripheral equipment (up to $1,000 annually), child and dependent care expenses, and course materials as eligible costs for the credit. These changes would apply to taxable years beginning after December 31, 2024, affecting students receiving Pell Grants and taxpayers claiming education-related tax credits.

AI summary · The lawmakers haven’t published an official summary of this bill yet, so 52 wrote this one from the bill’s text.

Read the full textRead it on the official site

Where it stands

  1. Introduced (Done)

    Apr 1, 2025

  2. Committee (Current step)

    In committee · Apr 1, 2025

  3. Floor (Not started)

  4. Law (Not started)

What moved

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Who is involved

Sponsors

The lawmakers who put their names on it, lead sponsors first.

In the news

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Where it goes next

While a bill can still move, the questions are about people and money.

Work with this bill

Tax-Free Pell Grant Act | 52