House Bill Would Make Pell Grants Tax-Free and Expand College Tax Credits
A house committee must act next: committee consideration.
No action since April 2025
This bill’s path across every version that has carried it.
Reintroduced
Reintroduced from H.R. 3000 (118th), which died when its Congress ended.
H.R. 3000 (118th) →How this policy affects specific groups of people
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
The Tax-Free Pell Grant Act would mean students don't have to pay taxes on Pell Grants received if they use that money on expenses like housing and childcare. It would also allow Pell Grant recipients to make full use of the American Opportunity Tax Credit.
The measure would shield community college students from paying taxes on portions of their Pell Grant that go toward books and living expenses and enable hundreds of thousands of them to qualify for the $2,500 American Opportunity Tax Credit (AOTC).
The Tax-Free Pell Grant Act would remove financial barriers to higher education by better coordinating Pell Grants with the AOTC and fully excluding Pell Grants from taxable income, streamlining federal student aid programs.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Tax-Free Pell Grant Act
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