Source: United States House of Representatives – Congressman Don Bacon (2nd District of Nebraska)
Bacon, Larson Introduce Bipartisan Bill to Provide Tax Relief and Lower College Costs for AmeriCorps Volunteers
Washington – Kicking off AmeriCorps Week, Reps. Don Bacon (NE-02) and John B. Larson (CT-01) introduced the bipartisan Segal AmeriCorps Education Award Tax Relief Act. Their legislation would provide tax relief for AmeriCorps members who earn Segal Education Awards through their service to help pay for higher education costs and reduce barriers for young people to access the financial assistance they’ve earned.
“I’m pleased to join Rep. Larson in reintroducing the bipartisan Segal AmeriCorps Education Award Tax Relief Act to ensure AmeriCorps volunteers receive the full value of the education benefit they earn through service,” said Rep. Bacon. “These dedicated Americans shouldn’t have to pay taxes on a benefit they receive while in turn providing valuable services for our country. We don’t make Pell Grant recipients pay taxes on their grants, and neither should these individuals.”
“AmeriCorps members serve our country on behalf of communities in need, and our nation has a responsibility to reward them with an education benefit that both shows our appreciation for their work and significantly reduces college costs,” said Rep. Larson. “Unfortunately, the current federal tax on the Segal award diminishes its value and undermines the original intent of the program to help AmeriCorps alumni overcome financial barriers and afford a college education. I am proud to introduce this legislation, originally championed by my late friend and colleague, Rep. John Lewis, and work with my Republican colleague Rep. Don Bacon to correct this injustice, encourage more young people to pursue national service, and advance real solutions to lower higher education costs.”
AmeriCorps members who complete a full term of national service can earn a Segal Education Award to help pay for current education expenses or repay student loans. The award is generally valued at the maximum Pell Grant amount ($7,395 for 2026–27) for that year and expires seven years after the AmeriCorps service term ends. However, unlike Pell Grants, Segal Education Awards are currently considered taxable income, creating a barrier that may discourage young people from taking advantage of the financial assistance they’ve earned.
This legislation would exclude Segal Education Awards from federal taxable income, honoring the intent of federal education awards, helping recipients pay for higher education, and removing this financial barrier.
The bipartisan Segal AmeriCorps Education Award Tax Relief Act is endorsed by 64 organizations, including Voices for National Service, Habitat for Humanity International, the National Youth Leadership Council, Serve Connecticut, and Teach for America.
“The tax on the AmeriCorps education award creates an unexpected and unfair tax burden on the dedicated Americans who commit to serving their country through AmeriCorps. It’s essentially a tax on service. We don’t tax Pell Grants or GI Bill Benefits, and we shouldn’t tax the Segal AmeriCorps Education Award. We’re grateful to Representatives Don Bacon and John Larson for leading the effort to make the award tax free so AmeriCorps members can receive the full value of the benefit they’ve earned, and we urge their colleagues to support the bill,” said AnnMaura Connolly, President of Voices for National Service.
Full text of the bill is available HERE.
A full list of endorsing organizations is available HERE.
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