Workforce Development Through Post-Graduation Scholarships Act of 2026

Tax Exclusion for Scholarship Recipients: Under Section 2(a), certain post-graduation scholarship grants would be excluded from gross income, which provides a financial benefit to individuals receiving these grants.

Debt Relief for Graduates: According to Section 2(b)(2)(A)(ii), these grant programs function by having an organization repay a portion of an individual's applicable education loan, which helps reduce personal debt.

Targeted Community Support: Section 2(b)(2)(A)(iii) specifies that these grants are tied to requirements for the grantee to live and work in an "applicable community," which the bill defines in Section 2(b)(2)(C) as areas with a bachelor's degree attainment rate below the state or national average.

Restrictions on Grant Eligibility: Section 2(b)(2)(A)(v) states that a grant cannot be provided to an employee of the granting organization or a related entity, which limits who can receive these specific benefits.

Limitations on Organization Types: Section 2(b)(2)(A)(i)(II) excludes organizations established by certain types of entities, specifically those whose principal purpose is the provision of medical education, from being part of these grant programs.

Loss of Interest Deductions: Section 2(d) dictates a "Denial of double benefit," stating that interest paid as part of a post-sgraduation scholarship grant that is excluded from gross income cannot be taken into account under section 221(e).