Bill · H.R. 2543· House(119-HR-2543)
Tax-Free Pell Grant Act
- Introduced
- 4/1/2025
- Last activity
- 4/1/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Lloyd Doggett
- Cosponsors
- - 1 - 2
- Introduced
- In Committee
What this bill would do
The Tax-Free Pell Grant Act aims to amend the Internal Revenue Code of 1986. It expands how Pell Grants and certain scholarships are excluded from gross income. Additionally, the bill expands the American Opportunity and Lifetime Learning Credits. This expansion includes new eligible expenses such as computer equipment and child care. These changes are set to take effect for taxable years beginning after December 31, 2024.
Yes· 3 of 13
Would students be better off under this?+8
The bill directly benefits students by expanding scholarship exclusions and educational tax credits.
Does this make college cost less?+7
The bill increases college affordability by expanding tax credit eligibility to include technology and childcare.
Would people in their twenties and thirties be better off under this?+6
The bill provides direct tax and scholarship benefits to students.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Expanded Tax Exclusions for Scholarships: Under Section 2, scholarships or fellowship grants can be excluded from gross income if the individual proves the funds were used for qualified tuition and related expenses. This could benefit students by reducing their taxable income.
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Pell Grant Protection: Section 2 specifies that Federal Pell Grants are excluded from gross income. This provides a clear tax benefit for recipients of these specific federal grants.
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Broader Educational Tax Credits: Section 3 expands the American Opportunity and Lifetime Learning Credits to include costs for computer or peripheral equipment, software, and internet access. This helps students cover the costs of necessary technology.
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Support for Families: Section 3 includes "child and dependent care expenses" as a qualified expense for the tax credit. This can assist taxpayers who incur costs for household services or care to enable their enrollment in an educational institution.
Potential Negative Impacts for People
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Limits on Technology Credits: Under Section 3, the amount a taxpayer can claim for computer or peripheral equipment is subject to a $1,000 aggregate dollar limit.
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Restrictions on Child Care Credits: Section 3 specifies that child and dependent care expenses do not include amounts paid for services at a camp where the qualifying individual stays overnight.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Students+8Good For Low Income Households+6Good For Young Adults+6Good For Middle Class Households+5Good For Children+4Good For Middle Aged+3Good For Women+3Good For High Income Households+1
- Education And Technology
- Improves College Affordability+7Improves Internet Access+4
- Social Issues And Justice
- Improves Childcare Affordability+6Improves Poverty Reduction+3
- Economy And Finance
- Reduces Middle Class Taxes+5
- 4/1/2025
- Referred to the House Committee on Ways and Means.
- 3 Cosponsors added.
- Introduced in House
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Danny DavisDemocrat · Illinois
Randy FeenstraRepublican · Iowa
Mike KellyRepublican · Pennsylvania