# 119-hr-2543: Tax-Free Pell Grant Act

119-hr-2543, Tax-Free Pell Grant Act, is a 119th Congress bill sponsored by Rep. Doggett, Lloyd [D-TX-37] (D-TX); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-hr-2543
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2543
- Congress: 119
- Title: Tax-Free Pell Grant Act
- Status: introduced
- Introduced: 2025-04-01
- Sponsor: Rep. Doggett, Lloyd [D-TX-37] (D-TX)
- Cosponsors: 3
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

This bill would **expand education tax credits** to cover a wider set of college costs and clarify that Federal Pell Grants used for qualified tuition and related expenses are excluded from gross income. - Students and families: Would broaden the American Opportunity Credit and Lifetime Learning Credit to cover tuition, fees, course materials, certain child and dependent care costs needed for enrollment or attendance, and computer or peripheral equipment. Computer and peripheral equipment would be eligible up to a $1,000 cap per tax year and must be used primarily while the student is enrolled. - Pell Grant recipients and scholarship holders: Would clarify that Federal Pell Grants and qualifying scholarships used for eligible tuition and related expenses are excluded from gross income and align scholarship treatment with the credits so tax treatment is consistent. - Taxpayers claiming education benefits: Would change the tax code language so expanded items can be taken as credits rather than only as deductions. These changes would apply to taxable years beginning after December 31, 2024.

## Cosponsors (3)

- Rep. Kelly, Mike [R-PA-16] (R-PA), 2025-04-01T00:00:00.000Z
- Rep. Davis, Danny K. [D-IL-7] (D-IL), 2025-04-01T00:00:00.000Z
- Rep. Feenstra, Randy [R-IA-4] (R-IA), 2025-04-01T00:00:00.000Z

## Provisions PRIA read

- More costs count for college credits: benefit, high. If enacted, for tax years starting after December 31, 2024, you could count more costs when claiming the American Opportunity or Lifetime Learning credits. Tuition, fees, course materials, and child or dependent care needed to attend an eligible school would qualify. Overnight camps would not count…
- Pell Grants tax-free when used for tuition: benefit, high. If enacted, for tax years starting after December 31, 2024, you could exclude Federal Pell Grants from income when used for qualified tuition and related expenses. Scholarships and fellowships you use for qualified tuition could also be excluded, if used under the grant’s rules. You would need to s…

## Related bills

- 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act
- 119-hr-9237: Take Care of America’s Veterans Act
- 119-hr-2891: IRA Charitable Rollover Facilitation and Enhancement Act of 2025
- 119-hr-2102: Major Richard Star Act
- 119-hr-2048: Metastatic Breast Cancer Access to Care Act
- 119-hr-1329: Smithsonian American Women’s History Museum Act

## Sources
- [119-hr-2543 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2543)

## Related
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [119-hr-9237: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-hr-9237)
- [119-hr-2891: IRA Charitable Rollover Facilitation and Enhancement Act of 2025](https://policyrisk.com/legislation/119-hr-2891)
- [119-hr-2102: Major Richard Star Act](https://policyrisk.com/legislation/119-hr-2102)
- [119-hr-2048: Metastatic Breast Cancer Access to Care Act](https://policyrisk.com/legislation/119-hr-2048)
- [119-hr-1329: Smithsonian American Women’s History Museum Act](https://policyrisk.com/legislation/119-hr-1329)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2543 (as of 2026-04-21).