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HR7878-119

In Committee

Segal AmeriCorps Educational Award Tax Relief Act of 2026

119th Congress Introduced Mar 9, 2026

Summary

What This Bill Does

The Segal AmeriCorps Educational Award Tax Relief Act of 2026 removes national service educational awards under the National and Community Service Act from federal gross income. It also excludes amounts received under those awards when they are used for covered student-loan payments or result in discharge of indebtedness.

The educational-award exclusion applies to amounts received in taxable years ending after enactment. The loan-discharge amendment likewise applies to discharges in taxable years ending after enactment.

Who Benefits and How

AmeriCorps members and alumni receiving Segal educational awards benefit from lower taxable income. Award recipients using funds for tuition or student-loan payments keep more of the award's value. Student-loan borrowers whose debt is paid or discharged through an award avoid federal tax on that amount. Tax preparers gain a clear statutory exclusion.

Who Bears the Burden and How

Federal individual income-tax accounts lose revenue previously collected on covered awards and loan payments. IRS guidance and return-processing staff must implement the exclusion. AmeriCorps award administrators and loan servicers must update tax reporting and recipient notices. Recipients must distinguish qualifying national service awards from other taxable benefits.

Key Provisions

  • Excludes national service educational awards from gross income.
  • Covers Segal AmeriCorps awards under subtitle D.
  • Excludes award-funded student-loan payments from income.
  • Protects qualifying debt discharge from federal taxation.
  • Applies to taxable years ending after enactment.
  • Requires IRS and award administrators to update reporting.
  • Does not create a new award or increase its face amount.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Excludes Segal AmeriCorps national service educational awards and award-funded student-loan payments or discharges from federal gross income for applicable taxable years ending after enactment.

Key Policy Areas

AmeriCorps, Individual Income Tax, Educational Awards, Student Loans, National Service

Primary Purpose

Excludes Segal AmeriCorps national service educational awards and award-funded student-loan payments or discharges from federal gross income for applicable taxable years ending after enactment.

Policy Domains

AmeriCorps Individual Income Tax Educational Awards Student Loans National Service

Section 2 AmeriCorps educational award tax relief

Identified Gains
  • AmeriCorps members receiving educational awards
  • AmeriCorps alumni using educational awards
  • Student-loan borrowers using national service awards
  • Tax preparers serving AmeriCorps recipients
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
AmeriCorps alumni using educational awards:
Tax preparers serving AmeriCorps recipients:
AmeriCorps members receiving educational awards:
Student-loan borrowers using national service awards:
Identified Costs
  • Federal individual income-tax accounts
  • IRS educational-benefit guidance staff
  • AmeriCorps tax-reporting administrators
  • Education-loan servicer reporting staff
  • Award recipients documenting eligibility
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Federal individual income-tax accounts:
IRS educational-benefit guidance staff:
AmeriCorps tax-reporting administrators:
Education-loan servicer reporting staff:
Award recipients documenting eligibility:

Sponsors

John B. Larson

John B. Larson

D-CT | Primary Sponsor

1 cosponsor

Legislative Progress

In Committee
Introduced Committee Passed
Mar 9, 2026

Referred to the House Committee on Ways and Means.

Mar 9, 2026

Introduced in House

Mar 9, 2026

Mr. Larson of Connecticut (for himself and Mr. Bacon) introduced …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Government
3 mentions across 1 clause
-3 negative

AmeriCorps tax-reporting administrators, Federal individual income-tax accounts, IRS educational-benefit guidance staff

Social Services
2 mentions across 1 clause
+2 positive

AmeriCorps alumni using educational awards, AmeriCorps members receiving educational awards

Education
1 mention across 1 clause
+1 positive

Student-loan borrowers using national service awards

Finance/Credit Companies
1 mention across 1 clause
-1 negative

Education-loan servicer reporting staff

2/2
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
AmeriCorps Individual Income Tax Educational Awards Student Loans National Service
Actor Mappings
"irs"
→ Internal Revenue Service
"recipient"
→ Individual receiving a national service educational award
"administrator"
→ AmeriCorps educational-award administrator

Key Definitions

Terms defined in this bill

2 terms
"award-funded loan payment" §108(f)(6)

An amount received under a national service educational award for student-loan payment or discharge.

"national service educational award" §117(c)(2)(D)

An educational award under subtitle D of title I of the National and Community Service Act.

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology