Bill · S. 1610· Senate(119-S-1610)
Tax-Free Pell Grant Act
- Introduced
- 5/6/2025
- Last activity
- 5/6/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Sheldon Whitehouse
- Cosponsors
- - 1 - 2
- Introduced
- In Committee
What this bill would do
The Tax-Free Pell Grant Act aims to change the Internal Revenue Code of 1986. It expands the exclusion of Federal Pell Grants from an individual's gross income. These changes will apply to taxable years starting after December 31, 2025.
Yes· 3 of 14
Would households on low incomes be better off under this?+9
Pell Grants are exclusively for low-income students, making this a direct financial benefit.
Would students be better off under this?+9
Directly increases the after-tax value of Pell Grant funding for students.
Would people in their twenties and thirties be better off under this?+8
Primarily benefits college-aged students receiving Pell Grants.
The opposite
Does this reduce what the federal government owes?-1
Reducing taxable income slightly decreases federal tax revenue.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Exclusion for Pell Grants: Under Section 2(a), individuals receiving a Federal Pell Grant under section 401 of the Higher Education Act of 1965 can exclude these funds from their gross income. This provides a financial benefit by reducing the amount of income subject to tax.
-
Credit Availability: Section 2(b) ensures that Federal Pell Grants are not used to adjust the American Opportunity and Lifetime Learning Credits. This allows individuals to potentially maintain those tax credits while also receiving Pell Grant funds.
Potential Negative Impacts for People
- No negative impacts for people are explicitly mentioned in the provided text.
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 Low Income Households+9Good For Students+9Good For Young Adults+8Good For African Americans+5Good For Hispanic Americans+5Good For Native Americans+5Good For Asian Americans+3Good For White Americans+3Good For Middle Class Households+2
- Social Issues And Justice
- Improves Poverty Reduction+4Improves Racial Equity+3
- Education And Technology
- Improves College Affordability+6
- Economy And Finance
- Reduces Middle Class Taxes+2Improves Economic Growth+1Reduces National Debt-1
- 5/6/2025
- Read twice and referred to the Committee on Finance.
- 3 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Chuck GrassleyRepublican · Iowa
Thomas TillisRepublican · North Carolina
Ron WydenDemocrat · Oregon