The Workforce Development Through Post-Graduation Scholarships Act of 2026 amends the tax code to allow certain post-graduation scholarship grants to be excluded from an individual's taxable income, similar to how traditional scholarships are treated. These grants must be provided by tax-exempt nonprofit organizations or community trusts and must require recipients to work and live in economically disadvantaged areas (those with below-average college degree attainment rates) while the organization repays a portion of their student loan debt. The bill prevents double tax benefits by prohibiting individuals from claiming the same interest payments under both this program and existing education deductions, and it exempts these grants from counting as taxable expenditures for private foundations. The Treasury Department must report on the program's implementation within three years, and the Government Accountability Office must conduct a comprehensive study within five years examining grant duration, amounts distributed, and loan holder benefits, with the tax changes effective for years beginning after the bill's enactment.
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