To amend the Internal Revenue Code of 1986 to exclude certain post-graduation scholarship grants from gross income in the same manner as qualified scholarships to promote economic growth.
Summary
H.R. 7594 would amend the Internal Revenue Code to change how certain post-graduation scholarship grants are taxed. Currently, some scholarship funds received after graduation may be subject to income tax. This bill proposes to exclude these post-graduation scholarship grants from gross income in the same manner as qualified scholarships, meaning recipients would not have to pay federal income tax on these funds.
The practical effect would be to reduce the tax burden on individuals who receive scholarship grants after completing their degree programs. By treating post-graduation scholarships like traditional qualified scholarships, the bill aims to make further education and professional development more affordable. The stated goal is to promote economic growth by making it easier for individuals to pursue additional education or training without the tax penalty.
This is standard legislation that would require presidential signature to become law. The bill was introduced in February 2026 and remains in early stages of the legislative process. Most introduced bills do not advance further, so passage is uncertain.