Stronger Enforcement of Civil Penalties Act of 2025

Senate Bill

S. 2920

119th Congress

Stronger Enforcement of Civil Penalties Act of 2025

In Committee

Introduced:Sep 19, 2025

Primary Sponsor

Sheldon Whitehouse

D - RI

Cosponsors

2

Quick Stats

Policy Area

Taxation

Summary

The Stronger Enforcement of Civil Penalties Act of 2025 would make Pell Grants, a type of federal financial aid for college students from low-income families, tax-free. This means students who receive Pell Grants would not have to pay income taxes on that money, making it easier for them to afford college.

Latest Action

Read twice and referred to the Committee on Finance.

AI Summary

Plain-English explanation of this bill

The Stronger Enforcement of Civil Penalties Act of 2025 would make Pell Grants, a type of federal financial aid for college students from low-income families, tax-free. This means students who receive Pell Grants would not have to pay income taxes on that money, making it easier for them to afford college.

Last updated: 12/29/2025

Official Summary

Congressional Research Service summary

Tax-Free Pell Grant Act This bill expands the tax exclusion for qualified scholarships to include an exclusion from gross income for amounts received by an individual taxpayer as a Federal Pell Grant.

Key Points

Main provisions of the bill

Expands the tax exclusion for qualified scholarships to include Federal Pell Grants
Allows students who receive Pell Grants to not pay income taxes on that money
Aims to make college more affordable for students from low-income families

How This Impacts Americans

Potential effects on citizens and communities

If this bill becomes law, it would directly benefit millions of college students from low-income backgrounds who rely on Pell Grants to afford higher education. By making Pell Grants tax-free, these students would have more of the grant money available to cover tuition, housing, and other education expenses, potentially increasing college access and completion rates for underserved populations.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

2920, 119th Congress (2025). "Stronger Enforcement of Civil Penalties Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-s-2920