Workforce Development Through Post-Graduation Scholarships Act of 2026

This bill would change federal tax law so that certain student loan repayment grants are not counted as taxable income. The grants must come from a tax-exempt private foundation or community trust, be paid directly to the loan holder, and require the recipient to live and work in an area where the share of adults with a bachelor's degree is below the state or national average. Grants to employees of the granting organization would not qualify, and private foundations making these grants would not face the tax on certain spending. Interest paid through these grants could not also be claimed under the student loan interest deduction. The Treasury and the Comptroller General would have to report to Congress on how the grants are used.

Full text and official record on Congress.gov

Sponsors

• Darin LaHood Republican sponsor
• 3 cosponsors