II 119th CONGRESS 1st Session S. 2785 IN THE SENATE OF THE UNITED STATES September 11, 2025 Mr. Kim introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To expand the financial, health care, and educational benefits received by Peace Corps and AmeriCorps volunteers, and for other purposes.

1. Short title This Act may be cited as the A Chance To Serve Act . 2. Expanded benefits for current and former Peace Corps volunteers (a) Extended non-Competitive eligibility During the 3-year period immediately following the termination of an individual's service as a Peace Corps volunteer, such individual shall be granted non-competitive eligibility with respect to positions in the civilian career services. (b) Non-Discrimination based on certain immigration statuses Section 5(a) of the Peace Corps Act ( 22 U.S.C. 2504(a) ) is amended— (1) in the first sentence, by striking citizens and nationals of the United States and inserting citizens, nationals, and lawful permanent residents of the United States ; and (2) in the fourth sentence, by striking or color. and inserting color, or status as a refugee, asylee, or other lawfully admitted alien. . (c) Regularity of payments of monthly stipends The Director of the Peace Corps shall take such steps as may be necessary to ensure that Peace Corps volunteers receive stipends on a regular and predictable basis (and, to the maximum extent practicable, on the same numerical day of each month), including in the event of a temporary partial or complete government shutdown. (d) Extended health care (1) 1-year eligibility for health benefits Subchapter VIII of title 38, United States Code, is amended by adding at the end the following new section: 1789A. Former Peace Corps volunteers During the one-year period beginning on the day after the final day of the service of a Peace Corps volunteer, the Secretary shall make available to such former volunteer such hospital care or medical services as the former volunteer may elect to receive at a medical facility of the Department of Veterans Affairs. The cost of any care or services furnished under this section to such former volunteer shall be reimbursed at such rates as may be agreed upon by the Secretary and the Director of the Peace Corps, based on the cost of the care or service furnished and in accordance with health care otherwise provided to volunteers under section 5(e) of the Peace Corps Act. Such former volunteers may decline to receive any of the health benefits authorized under this section. . (2) Conforming amendments Section 5(e) of the Peace Corps Act ( 22 U.S.C. 2504(e) ) is amended— (A) by inserting after the first sentence the following new sentence: Former volunteers shall also be entitled to such hospital care and medical services as may be provided in accordance with section 1789A of title 38, United States Code. ; and (B) in the second sentence, by inserting (other than health care provided in accordance with such section 1789A) after such health care . (3) Clerical amendment The table of sections for chapter 17 of title 38, United States Code, is amended by adding after the item relating to section 1789 the following new item: 1789A. Former Peace Corps volunteers. . (e) Readjustment allowances for volunteers and volunteer leaders Section 5 of the Peace Corps Act ( 22 U.S.C. 2504 ) is amended— (1) in subsection (b), by striking insure their health and inserting ensure their safety, their health, and ; (2) in subsection (c)— (A) by striking $125 and inserting $425 ; (B) by striking his each place such term appears and inserting the volunteer’s ; (C) by striking he and inserting the volunteer ; and (D) by adding at the end the following: The amount of the readjustment allowance authorized under this subsection may be periodically adjusted by the Director of the Peace Corps to reflect the percentage increase (if any) in the Consumer Price Index. ; (3) by redesignating subsection (e), as amended by subsection (b)(2) of this Act as subsection (d); (4) by inserting after subsection (d), as so amended and redesignated, the following: (e) The Director shall consult with health experts outside of the Peace Corps, including experts licensed in the field of mental health, and follow guidance by the Centers for Disease Control and Prevention regarding the prescription of medications to volunteers. ; (5) in subsection (h), by striking he and inserting the President ; (6) in subsection (n)(2)— (A) by striking subsection (e) each place such term appears and inserting subsection (d) ; and (B) by striking he and inserting the President ; (7) in subsection (o), by striking his each place such term appears and inserting the volunteer’s ; and (8) by adding at the end the following new subsection: (q) Suspension of payments and accrual of interest on federal loans during service (1) In general If a volunteer receives a loan made under part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq. ) before commencing service in the Peace Corps— (A) all payments due for such loans shall be suspended; and (B) interest shall not accrue on such loan for the duration of such service. (2) Deferment or forbearance Notwithstanding any other provision of the Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq. ), the Secretary of Education shall deem each month for which a loan payment was— (A) suspended under this subsection; or (B) subject to a deferment or forbearance under the Higher Education Act of 1965, as if the borrower of the loan had made a payment for the purpose of any loan forgiveness program or loan rehabilitation program authorized under part B or D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq. and 1087a et seq.) for which the borrower would have otherwise qualified. . (f) Nontaxable status for readjustment allowances Notwithstanding any other provision of the Internal Revenue Code of 1986, a readjustment allowance received pursuant to section 5(c) of the Peace Corps Act ( 22 U.S.C. 2504(c) ), as amended by subsection (e)(2) of this section, shall not be subject to taxation under chapter 1 of such Code. 3. Expanded benefits for AmeriCorps volunteers (a) Increase in national service positions Notwithstanding any provision of the national service laws, on or after the date of enactment of this Act, not fewer than 500,000 national service positions shall be available under the national service programs authorized under such laws. (b) Increase in living allowance Notwithstanding section 140 of the National and Community Service Act of 1990 ( 42 U.S.C. 12594 ) or any other provision of the national service laws, any individual serving in a national service program authorized under a national service law shall receive a living allowance that is not less than 200 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) )) and adjusted by the Corporation for National and Community Service in the manner described in such section. (c) Extended non-Competitive eligibility Notwithstanding any other law, rule, or regulation, the head of any agency in the Executive branch may noncompetitively appoint, to a competitive service position at such agency, any individual who is certified by the Corporation for National and Community Service as having satisfactorily completed service in a national service program authorized under a national service law. Such an individual may not be appointed under the authority provided under this section after the date that is 3 years after the date such individual so completes such service. (d) 1-Year eligibility for health benefits Notwithstanding section 140 of the National and Community Service Act of 1990 ( 42 U.S.C. 12594 ) or any other provision of the national service laws, during the one-year period beginning on the day after the final day of a participant in a national service program authorized under a national service law, the Corporation for National and Community Service shall provide such former participant, at no cost to such participant, with the health care policy such participant received during the term of service in such program. (e) Doubling of the Segal AmeriCorps Education Award Section 147(a) of the National and Community Service Act of 1990 ( 42 U.S.C. 12603(a) ) is amended by inserting twice before the maximum . (f) Use of the Segal Americorps Education Award Section 148(a)(4) of the National and Community Service Act of 1990 ( 42 U.S.C. 12604(a)(4) ) is amended by inserting before the semicolon at the end the following: , or for the purpose of obtaining a recognized post-secondary credential (as defined in section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 ) . (g) Suspension of payments and accrual of interest on Federal loans during service (1) In general Notwithstanding any provision of a national service law, if an individual receives a loan made under part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq. ) before commencing service in a national service program under a national service law— (A) all payments due for such loans shall be suspended; and (B) interest shall not accrue on such loan for the duration of such service. (2) Deferment or forbearance Notwithstanding any other provision of the Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq. ), the Secretary of Education shall deem each month for which a loan payment was— (A) suspended under this subsection; or (B) subject to a deferment or forbearance under the Higher Education Act of 1965, as if the borrower of the loan had made a payment for the purpose of any loan forgiveness program or loan rehabilitation program authorized under part B or D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq. and 1087a et seq.) for which the borrower would have otherwise qualified. (h) Non-Discrimination based on certain immigration statuses Notwithstanding any provision of a national service law, a refugee, asylee, or other lawfully admitted alien may not be prohibited from serving in a national service program authorized under such a law, or receiving an education benefit for such service, on the basis of such status. (i) Planning grants for underserved communities Notwithstanding any provision of a national service law, the Corporation for National and Community Service may award planning grants to underserved communities to enable such communities to develop the capacity to carry out national service programs under national service laws. Any matching fund requirements under the national service laws shall be waived for the first 2 years during which any such community carries out such a national service program. (j) Availability of shorter term of service Notwithstanding sections 139(b), 146, and 147 of the National and Community Service Act of 1990 ( 42 U.S.C. 12593(b) , 12602, and 12603), the Corporation for National and Community Service may determine the number of hours required to successfully complete any term of service in AmeriCorps that is less than 1,700 hours. Any reduction of the required term of service below 1,700 hours shall include a corresponding reduction in the amount of any national service educational award that may be available under subtitle D of title I of such Act ( 42 U.S.C. 12601 et seq. ) with regard to such service. (k) National service laws defined In this section, the term national service laws has the meaning given such term in section 101 of the National and Community Service Act of 1990 ( 42 U.S.C. 12511 ). 4. Public service loan forgiveness Section 455(m)(3)(B) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m)(3)(B) ) is amended— (1) by striking or at the end of clause (i); (2) in clause (ii), by striking the period at the end and inserting ; or ; and (3) by adding at the end the following: (iii) serving, on a full-time basis, in a national service program authorized under a national service law (as defined in section 101 of the National and Community Service Act of 1990 ( 42 U.S.C. 12511 )) or as a Peace Corps volunteer. . 5. Exclusion from gross income of certain payments for national service (a) In general Part II of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Certain payments for national service In the case of an individual, gross income shall not include any amount received under a national service educational award under subtitle D of title I of the National and Community Service Act of 1990 ( 42 U.S.C. 12601 et seq. ) or any living allowance provided to such individual during participation in a national service program authorized under a national service law (as defined in section 101 of the National and Community Service Act of 1990 ( 42 U.S.C. 12511 )). . (b) Clerical amendment The table of sections for part II of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item: Sec. 139J. Certain payments for national service. . (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.