NASFAA Joins Community Letters to Congressional Leaders Urging Repeal of Taxability of Pell Grant in Reconciliation

NASFAA joined a group of higher education associations in submitting two community letters, one to the chair and ranking member of the Senate Committee on Finance and another to House Speaker Nancy Pelosi and the House of Representatives minority leader, urging them to repeal the taxability of Pell Grants in the fiscal year 2022 reconciliation process. The letters come after the House Ways and Means Committee included such a provision in its portion of the Build Back Better Act currently making its way through Congress. “Repealing the taxability of Pell Grant aid would permit low-income students to retain more of this critical financial aid to cover the cost of college,” the letters read. Further, pointing to support from the community for increasing the maximum Pell Grant award, the letter notes repealing the taxability of the aid will “magnify the positive impact for low-income students.”

These letters follow up on a prior letter NASFAA signed onto that was sent, in partnership with other higher education associations, to both the House Committee on Ways and Means and the Senate Committee of Finance. The letter, sent on September 3, 2021, voiced support for increasing the maximum Pell Grant in the forthcoming Reconciliation bill, which would make repealing the taxability of Pell Grants even more necessary.


Publication Date: 9/24/2021

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