Student Loan Bond Expansion Act of 2026

This bill changes federal tax law for qualified student loan bonds, which are tax-exempt bonds that states and their agencies issue to fund student loans. It would remove these bonds from the yearly state limit (volume cap) on how many private activity bonds can be issued. It would also stop the interest on these bonds from counting toward the alternative minimum tax for bonds issued after the law takes effect. For pooled financing rules, individual student borrowers would not be treated as 'ultimate borrowers.' The changes would apply to bonds issued after the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Chuck Grassley Republican sponsor
• 4 cosponsors