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Groups Ask Senate to Repeal Pell Grant Taxability

September 24, 2021
 
 

Nineteen higher education organizations and associations are urging senators to preserve a provision in the Build Back Better Act that would repeal the taxability of Pell Grants once the upper chamber begins its work on the budget reconciliation bill.

Currently, the portion of Pell Grants spent on nontuition expenses is taxable, adding to the cost of attendance for low-income students, the groups wrote in a letter to Senate Finance Committee chair Ron Wyden, a Democrat from Oregon, and ranking member Mike Crapo, a Republican from Idaho.

The tax-writing House Ways and Means Committee included the repeal in its portion of the budget reconciliation bill last week.

“We strongly urge you to repeal the taxability of Pell Grants in reconciliation by retaining the provision included in the Ways and Means portion of the Build Back Better Act,” the letter says.

Among the organizations signing the letter are the American Council on Education, the American Association of Community Colleges, the American Association of State Colleges and Universities, the Association of American Universities, the Association of Public and Land-grant Universities, and the National Association of Independent Colleges and Universities.

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