Degrees Not Debt Act of 2022

To increase the total maximum Federal Pell Grant, and for other purposes. 1. Short title This Act may be cited as the Degrees Not Debt Act of 2022 2. Increase in the maximum amount of a Federal Pell Grant (a) Award year 2022–2023 Section 401(b)(7)(C) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(b)(7)(C) (1) in clause (i)(I), by striking clause (iv)(II) clause (v)(II) (2) in clause (ii)(I), by striking clause (iv)(II) clause (v)(II) (3) by amending clause (iii) to read as follows: (iii) Award years 2018–2019 through 2021–2022 For award years 2018–2019 through 2021–2022, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to the amount determined under clause (ii) for award year 2017–2018. ; (4) by redesignating clause (iv) as clause (v); and (5) by inserting after clause (iii) (as amended by this subsection) the following: (iv) Award year 2022–2023 For award year 2022–2023, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to— (I) $13,800; reduced by (II) the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year; and (III) rounded to the nearest $5. . (b) Award year 2023–2024 and subsequent award years (1) Amendment to award amount Section 401(b)(5)(A)(i) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(b)(5)(A)(i) Public Law 116–260 (i) $13,800 reduced by the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year, except that for each award year subsequent to award year 2023–2024, this clause shall be applied by substituting the amount that is equal to $13,800, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined, then $13,800 . (2) Definition Section 401(a)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(a)(2) Public Law 116–260 (A) in subparagraph (E), by striking and (B) in subparagraph (F), by striking the period and inserting ; and (C) by adding at the end the following: (G) the term annual adjustment percentage . (3) Effective date The amendments made by this subsection shall take effect as if included in section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260 3. Repeal of increased alternative minimum tax exemption amount for individuals (a) In general Section 55(d) (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021. 4. Repeal of increased estate and gift tax exemption (a) In general Section 2010(c)(3)(C) January 1, 2026 the date of the enactment of the Degrees Not Debt Act of 2022 (b) Effective date The amendment made by this section shall apply to estates of decedents dying and gifts made after the date of the enactment of this Act.

Summary: Degrees Not Debt Act of 2022 This bill increases the maximum federal Pell Grant award. The bill also repeals the increased alternative minimum tax exemption for individuals and the increased estate and gift tax exemption.