Employer Participation in Repayment Act
Sponsored By: Representative Malliotakis
Introduced
Summary
This bill would permanently extend the exclusion from taxable income for employer payments of employee student loans under Section 127 of the Internal Revenue Code, making those repayments tax-free for employees.
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- Workers and households: Employees who receive employer-paid student loan assistance would no longer count those payments as taxable income, increasing their take-home pay by the amount of tax avoided.
- Employers: Companies could keep offering student loan repayment help as a tax-advantaged benefit without a looming sunset, which could make such benefits more durable for recruiting and retention.
- Program rules: The bill leaves the size of the exclusion and the definition of an educational assistance program unchanged. It applies to payments made after the date of enactment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Make employer student loan aid tax-free permanently
If enacted, workers could keep employer student loan payments tax-free. This only applies when payments are made under an educational assistance program. The bill would remove the current end date for this tax break. It would apply to payments made after the bill is signed. It would not change the dollar limit or program rules.
Sponsors & CoSponsors
Sponsor
Malliotakis
NY • R
Cosponsors
Peters
CA • D
Sponsored 3/3/2025
LaHood
IL • R
Sponsored 5/1/2025
Costa
CA • D
Sponsored 8/19/2025
Harder (CA)
CA • D
Sponsored 10/28/2025
Vindman
VA • D
Sponsored 10/28/2025
Roll Call Votes
No roll call votes available for this bill.
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