AmeriCorps Lauds Tax Relief Bill for Segal Education Awards
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.