Reps. Don Bacon and John B. Larson introduced the bipartisan Segal AmeriCorps Education Award Tax Relief Act on Mar. 9, aiming to provide tax relief for AmeriCorps members who earn Segal Education Awards through their service.
The legislation seeks to remove federal taxes from the Segal Education Award, which is used by AmeriCorps members to pay for higher education or repay student loans. Supporters say this change would help reduce financial barriers for young people considering national service.
“I’m pleased to join Rep. Larson in reintroducing the bipartisan Segal AmeriCorps Education Award Tax Relief Act to ensure AmeriCorps volunteers receive the full value of the education benefit they earn through service,” said Rep. Bacon. “These dedicated Americans shouldn’t have to pay taxes on a benefit they receive while in turn providing valuable services for our country. We don’t make Pell Grant recipients pay taxes on their grants, and neither should these individuals.”
Larson said, “AmeriCorps members serve our country on behalf of communities in need, and our nation has a responsibility to reward them with an education benefit that both shows our appreciation for their work and significantly reduces college costs.” He added, “Unfortunately, the current federal tax on the Segal award diminishes its value and undermines the original intent of the program to help AmeriCorps alumni overcome financial barriers and afford a college education. I am proud to introduce this legislation, originally championed by my late friend and colleague, Rep. John Lewis, and work with my Republican colleague Rep. Don Bacon to correct this injustice, encourage more young people to pursue national service, and advance real solutions to lower higher education costs.”
Currently, AmeriCorps members who complete a full term of national service can earn a Segal Education Award valued at up to $7,395 for 2026–27—the maximum Pell Grant amount—but it is considered taxable income under federal law. The proposed bill would exclude these awards from taxable income.
The bill has received endorsements from 64 organizations including Voices for National Service, Habitat for Humanity International, National Youth Leadership Council, Serve Connecticut, and Teach For America.
AnnMaura Connolly, President of Voices for National Service said: “The tax on the AmeriCorps education award creates an unexpected and unfair tax burden on the dedicated Americans who commit to serving their country through AmeriCorps. It’s essentially a tax on service. We don’t tax Pell Grants or GI Bill Benefits, and we shouldn’t tax the Segal AmeriCorps Education Award. We’re grateful to Representatives Don Bacon and John Larson for leading the effort to make the award tax free so AmeriCorps members can receive the full value of the benefit they’ve earned, and we urge their colleagues to support the bill.”
Don Bacon is currently serving in Congress representing Nebraska’s 2nd district after replacing Brad Ashford in 2017 according to official records. He has served since 2017 according to his congressional biography. Born in Momence, Illinois in 1963, Bacon now lives in Papillion as reported by local news. He graduated from Northern Illinois University in 1984 with a BA degree before attending University of Phoenix according to his congressional biography.
