[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1610 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1610

 To amend the Internal Revenue Code of 1986 to expand the exclusion of 
                     Pell Grants from gross income.


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                   IN THE SENATE OF THE UNITED STATES

                              May 6, 2025

 Mr. Whitehouse (for himself, Mr. Grassley, Mr. Tillis, and Mr. Wyden) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

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                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to expand the exclusion of 
                     Pell Grants from gross income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax-Free Pell Grant Act''.

SEC. 2. EXPANSION OF PELL GRANT EXCLUSION FROM GROSS INCOME.

    (a) In General.--Section 117(b)(1) of the Internal Revenue Code of 
1986 is amended by striking ``received by an individual'' and all that 
follows and inserting ``received by an individual--
                    ``(A) as a scholarship or fellowship grant to the 
                extent the individual establishes that, in accordance 
                with the conditions of the grant, such amount was used 
                for qualified tuition and related expenses, or
                    ``(B) as a Federal Pell Grant under section 401 of 
                the Higher Education Act of 1965 (as in effect on the 
                date of the enactment of the Tax-Free Pell Grant 
                Act).''.
    (b) No Adjustment Under American Opportunity and Lifetime Learning 
Credits.--Section 25A(g)(2)(A) of such Code is amended by inserting 
``(other than a Federal Pell Grant under section 401 of the Higher 
Education Act of 1965 (as in effect on the date of the enactment of the 
Tax-Free Pell Grant Act))'' after ``section 117''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.
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