A Democratic bill with 2 Republican cosponsors · See all 3 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Tax-Free Pell Grant Act aims to amend the Internal Revenue Code of 1986. It expands how Pell Grants and certain scholarships are excluded from gross income. Additionally, the bill expands the American Opportunity and Lifetime Learning Credits. This expansion includes new eligible expenses such as computer equipment and child care. These changes are set to take effect for taxable years beginning after December 31, 2024.
Yes· 3 of 13
- Scored +8
Would students be better off under this?
The bill directly benefits students by expanding scholarship exclusions and educational tax credits.
- Scored +7
Does this make college cost less?
The bill increases college affordability by expanding tax credit eligibility to include technology and childcare.
- Scored +6
Would people in their twenties and thirties be better off under this?
The bill provides direct tax and scholarship benefits to students.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Expanded Tax Exclusions for Scholarships: Under Section 2, scholarships or fellowship grants can be excluded from gross income if the individual proves the funds were used for qualified tuition and related expenses. This could benefit students by reducing their taxable income.
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Pell Grant Protection: Section 2 specifies that Federal Pell Grants are excluded from gross income. This provides a clear tax benefit for recipients of these specific federal grants.
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Broader Educational Tax Credits: Section 3 expands the American Opportunity and Lifetime Learning Credits to include costs for computer or peripheral equipment, software, and internet access. This helps students cover the costs of necessary technology.
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Support for Families: Section 3 includes "child and dependent care expenses" as a qualified expense for the tax credit. This can assist taxpayers who incur costs for household services or care to enable their enrollment in an educational institution.
Potential Negative Impacts for People
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Limits on Technology Credits: Under Section 3, the amount a taxpayer can claim for computer or peripheral equipment is subject to a $1,000 aggregate dollar limit.
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Restrictions on Child Care Credits: Section 3 specifies that child and dependent care expenses do not include amounts paid for services at a camp where the qualifying individual stays overnight.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would students be better off under this? — The bill directly benefits students by expanding scholarship exclusions and educational tax credits. Would households on low incomes be better off under this? — The expansion of Pell Grant tax exclusions and educational credits provides significant relief to low-income students. Would people in their twenties and thirties be better off under this? — The bill provides direct tax and scholarship benefits to students. Would middle-income households be better off under this? — The bill expands tax credits for technology and childcare expenses. Would children be better off under this? — The inclusion of child care expenses in educational credits indirectly supports families with children. Would people in middle age be better off under this? — Middle-aged taxpayers can utilize expanded credits for their own or their dependents' education. Would women be better off under this? — Expanded childcare credits can support women pursuing education. Would high-income households be better off under this? — High income households may benefit from tax credit expansions, though the impact is proportionally smaller.
- Education And Technology
- Does this make college cost less? — The bill increases college affordability by expanding tax credit eligibility to include technology and childcare. Does this get reliable internet to more people? — The bill allows internet access expenses to be included in educational tax credits.
- Social Issues And Justice
- Does this make child care cost less? — The bill allows childcare expenses to be included as a qualified expense for educational tax credits. Is this likely to lift people out of poverty? — By expanding Pell Grant exclusions and tax credits, the bill provides financial relief to low-income students.
- Economy And Finance
- Does this cut taxes for middle-income families? — The expansion of educational tax credits for equipment and childcare provides tax relief for many middle-class families.
- 4/1/2025
- Referred to the House Committee on Ways and Means.
- 3 Cosponsors added.
- Introduced in House
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Danny DavisDemocrat · Illinois
Randy FeenstraRepublican · Iowa
Mike KellyRepublican · Pennsylvania