FOR IMMEDIATE RELEASE: Dec 14, 2023

Bill proposed to provide tax relief for education awards received by AmeriCorps members

Washington, DC – This week, a group of bipartisan Congressional leaders reintroduced the Segal AmeriCorps Education Award Tax Relief Act. This legislation would provide tax relief for AmeriCorps members who earn Segal Education Awards to help pay for higher education costs that they earn through their service. This bill comes after President Biden’s Fiscal Year 2024 Budget request to eliminate the taxation of Education Awards to allow members to realize the full benefit of their award without current out-of-pocket tax liability. 

“At a time when many students are struggling to afford the cost of college, I applaud Senators Bennet and Cassidy, Representatives Larson and Bacon, and their colleagues for introducing the Segal AmeriCorps Education Award Tax Relief Act that will further expand pathways to education, employment and greater economic opportunity for those who serve,” said Michael D. Smith, CEO, AmeriCorps. “Eliminating the tax on the Eli Segal Educational Award will allow AmeriCorps members, who have diligently served their communities, to realize the full benefit of their award after service.”

AmeriCorps members who complete a full term of service earn a Segal Education Award. AmeriCorps members can use the award to pay college costs or to pay down student loan debt. Since 1994, AmeriCorps members nationwide, in return for their service, have earned more than $4.5 billion in education scholarships.

AmeriCorps, the federal agency for national service and volunteerism, provides opportunities for Americans to serve their country domestically, address the nation’s most pressing challenges, improve lives and communities, and strengthen civic engagement. Each year, the agency places more than 200,000 AmeriCorps members and AmeriCorps Seniors volunteers in intensive service roles; and empowers millions more to serve as long-term, short-term, or one-time volunteers. Learn more at AmeriCorps.gov.

AmeriCorps offers opportunities for individuals of all backgrounds to be a part of the national service community, grow personally and professionally, and receive benefits for their service. Learn how to get involved at AmeriCorps.gov/serve.