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Tax-Free Pell Grant Act

S. 1610 Sen. Sheldon Whitehouse (D-RI) In committee
Bill text PDF
  1. Introduced May 6
  2. Committee May 6
  3. Passed Senate Next
  4. Passed House Not yet
  5. To President Not yet
  6. Law Not yet
Where it stands
In committee, May 6, 2025Next: Senate vote
540d ago May 6, 2025: Read twice and referred to the Committee on Finance.
Final votes
No roll callsNo recorded vote on this bill yet
Lobbying
1company, 2 filings
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Summary

This bill amends the Internal Revenue Code to make Federal Pell Grants tax-free by excluding them from gross income. Sec. 2, Expansion of Pell Grant exclusion from gross income: This section changes the tax treatment of Pell Grants. It amends the rules for scholarships and fellowships so that Pell Grants are fully excluded from taxable income, regardless of how the money is spent. It also ensures that Pell Grants are not counted as a tax-free scholarship when calculating the American Opportunity and Lifetime Learning tax credits, meaning they won't reduce the amount of those credits a student can claim. These changes apply to tax years starting after December 31, 2025.

Summary of the bill text as introduced in Senate (May 6, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.

Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 28, 2026.