Segal AmeriCorps Educational Award Tax Relief Act of 2026

This bill makes AmeriCorps educational awards tax-free for recipients. It amends the Internal Revenue Code to exclude these awards - provided under the National and Community Service Act of 1990 - from taxable income, meaning AmeriCorps members won’t pay federal income tax on the education benefits they earn. The key change adds these awards to the list of tax-exempt educational benefits under IRS Code sections 117(c)(2) and 108(f). The policy directly affects AmeriCorps members who receive educational awards for their service, removing a tax burden on their earned benefits. The tax exclusion applies to awards received after the bill’s enactment date.