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AAU Joins Letter Advocating for Repeal of Pell Grant Taxability in Reconciliation Package

On September 3, AAU joined nine other higher-education associations in sending a letter to leaders of the House and Senate tax committees to urge them to repeal the taxability of Pell grants by incorporating the “Tax-Free Pell Grant Act” as part of their final FY2022 reconciliation bill. Since 1986, scholarships and grant aid used on non-tuition expenses (such as student housing and meal plans) have been taxed as a form of unearned income. Repealing this taxability for Pell grants would permit low-income students to retain more of this critical financial aid.

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