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S. 5533Federal · SenateIn committee

Segal AmeriCorps Education Award Tax Relief Act of 2026

Latest action: Read twice and referred to the Committee on Finance. (2026-09-24)

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In plain English

What this bill does

This bill would change the federal tax code so that AmeriCorps educational awards are not counted as taxable income. It would also exclude from taxable income any amount received under the national service educational award program that is used to pay down student loan debt. The changes would apply to tax years ending after the bill becomes law.

Who it affects

It would most affect people who complete AmeriCorps national service and receive a Segal Education Award, who currently must report those awards as taxable income.

Key points

  • Adds AmeriCorps national service educational awards to the list of amounts excluded from gross income under the tax code.
  • Specifies that amounts received under the national service educational award program are not included in gross income, including when used for student loans.
  • Amends Sections 117(c) and 108(f) of the Internal Revenue Code of 1986.
  • Applies to taxable years ending after the date the bill is enacted.
  • The bill is currently in committee and has not become law.

Plain-English summary generated by AI from the official record. Neutral by design; verify against the official text linked above.

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Supporting this bill means you want AmeriCorps education awards to stop being taxed as income for the people who earn them.

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Opposing this bill means you want AmeriCorps education awards to continue being treated as taxable income under current law.

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