I 
118TH CONGRESS 
1ST SESSION H. R. 3582 
To amend the Internal Revenue Code of 1986 to exclude certain post-gradua-
tion scholarship grants from gross income in the same manner as quali-
fied scholarships to promote economic growth. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2023 
Mr. LAHOOD (for himself and Ms. SEWELL) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
certain post-graduation scholarship grants from gross in-
come in the same manner as qualified scholarships to 
promote economic growth. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Workforce Develop-
ment Through Post-Graduation Scholarships Act of 
2023’’. 
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SEC. 2. POST-GRADUATION SCHOLARSHIP GRANTS EX-
CLUDED FROM GROSS INCOME IN SAME MAN-
NER AS QUALIFIED SCHOLARSHIPS. 
(a) IN GENERAL.—Section 117(a) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking the period at the end and insert-
ing ‘‘, or’’, 
(2) by striking ‘‘any amount received’’ and in-
serting the following: ‘‘any amount which— 
‘‘(1) is received’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) is received as a post-graduation scholar-
ship grant paid on behalf of an individual.’’. 
(b) POST-GRADUATION SCHOLARSHIP GRANT.—Sec-
tion 117(b) of such Code is amended by redesignating 
paragraph (2) as paragraph (3) and by inserting after 
paragraph (1) the following new paragraph: 
‘‘(2) 
POST-GRADUATION
SCHOLARSHIP 
GRANT.— 
‘‘(A) IN GENERAL.—The term ‘post-grad-
uation scholarship grant’ means any grant pro-
gram— 
‘‘(i) which is established by an organi-
zation which— 
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‘‘(I) 
is 
described 
in 
section 
501(c)(3) and exempt from tax under 
section 501(a), and 
‘‘(II) is either a private founda-
tion or community trust described in 
section 170(b)(1)(A)(vi), (other than 
an organization established by an or-
ganization 
described 
in 
section 
170(b)(1)(A)(ii) or an organization 
described in section 170(b)(1)(A)(iii) 
the principal purpose or function of 
which is the provision of medical edu-
cation), 
‘‘(ii) under which, in accordance with 
the conditions of a grant, such organiza-
tion repays any portion of an applicable 
education loan incurred by an individual, 
‘‘(iii) which requires a grantee to live 
and work in an applicable community, 
‘‘(iv) under which payments are made 
directly to the holder of the loan, and 
‘‘(v) which is not provided to an em-
ployee of the granting organization or a re-
lated entity of the granting organization. 
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‘‘(B) APPLICABLE EDUCATION LOAN.—For 
purposes of subparagraph (A), the term ‘appli-
cable education loan’ means, with respect to 
any individual, a qualified education loan (as 
defined in section 221(d)(1)) incurred to pay 
qualified higher education expenses (as defined 
in section 221(d)(2)) of such individual. 
‘‘(C) APPLICABLE COMMUNITY.—For pur-
poses of subparagraph (A), the term ‘applicable 
community’ means any area that has a bach-
elor’s degree attainment rate for the population 
that is below the state or national average for 
such population (as determined based on data 
collected by the Census Bureau).’’. 
(c) AMOUNT NOT TREATED AS TAXABLE EXPENDI-
TURE
BY PRIVATE FOUNDATION.—Section 4945(g) of 
such Code is amended by striking ‘‘or’’ at the end of para-
graph (2), by striking the period at the end of paragraph 
(3) and inserting ‘‘, or’’, and by adding at the end the 
following new paragraph: 
‘‘(4) the grant is a post-graduation scholarship 
grant (as defined in section 117(b)(2)).’’. 
(d) DENIAL OF DOUBLE BENEFIT.—Section 221(e) 
of such Code is amended by redesignating paragraphs (2) 
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and (3) as paragraphs (3) and (4), respectively, and by 
inserting after paragraph (1) the following new paragraph: 
‘‘(2) DENIAL OF DOUBLE BENEFIT IN CASE OF 
POST-GRADUATION SCHOLARSHIP GRANTS.—Any in-
terest which is paid as part of a post-graduation 
scholarship grant and excluded from gross income 
under section 117 shall not be taken into account 
under this section.’’. 
(e) REGULATORY AUTHORITY.—Section 117 of such 
Code is amended by adding at the end the following new 
subsection: 
‘‘(e) REGULATIONS.—The Secretary shall prescribe 
such reporting requirements and regulations as may be 
necessary or appropriate to carry out subsection (a)(2).’’. 
(f) REPORTS.— 
(1) SECRETARY OF TREASURY.—Not later than 
3 years after the date of the enactment of this Act, 
and periodically thereafter, the Secretary of the 
Treasury, or the Secretary’s delegate, shall submit 
to Congress a report on the implementation and ef-
fectiveness of the amendments made by this section. 
(2) COMPTROLLER GENERAL.— 
(A) IN GENERAL.—Not later than 5 years 
after the date of enactment of this Act, the 
Comptroller General of the United States shall 
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publish the result of a study on post-graduation 
scholarship grants to which section 117 of the 
Internal Revenue Code of 1986 (as amended by 
this section) applies. 
(B) CONTENTS OF REPORT.—The informa-
tion published under subparagraph (A) shall in-
clude the following: 
(i) The length of time involved in such 
grants. 
(ii) The amount paid out under such 
grants. 
(iii) The disposition of any funds paid 
under such grants, including the identity 
of any loan holders who benefit from such 
funds. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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