Tax-Free Pell Grant Act
In committee: it can still change before the session ends.
- Stage
- In committee
- Started in
- Senate
- Sponsors
- 4
- Latest action
- May 6, 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 regardless of how the funds are used. This change would affect recipients of Pell Grants by eliminating any potential tax liability on these federal education awards. The bill also clarifies that Pell Grants should not be factored into calculations for the American Opportunity and Lifetime Learning Credits, preventing double benefits. The amendments would take effect for taxable years beginning after December 31, 2025.
AI summary · The lawmakers haven’t published an official summary of this bill yet, so 52 wrote this one from the bill’s text.
Where it stands
Introduced (Done)
Committee (Current step)
Floor (Not started)
Law (Not started)
What moved
Who is involved
Sponsors
The lawmakers who put their names on it, lead sponsors first.
In the news
Reporting that may mention this subject. Possible matches are labeled.
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Where it goes next
While a bill can still move, the questions are about people and money.