Source: United States Senator for West Virginia Shelley Moore Capito
WASHINGTON, D.C. — U.S. Senators Shelley Moore Capito (R-W.Va.) and Gary Peters (D-Mich.) reintroduced bipartisan legislation to help communities attract workers who possess career skills that are most needed in their regions. The legislation, known as the Workforce Development through Post-Graduation Scholarships Act, would mandate that scholarship recipients of post-graduation grant programs are not required to pay income taxes on awarded funding, similar to traditional scholarships.
“A strong workforce is an essential component to the success of our state. I’m proud to put forward a bipartisan solution that incentivizes recent graduates to stay in West Virginia and fill vital workforce needs by cutting burdensome taxes,” Senator Capito said.
“By passing post-graduation scholarship legislation, Congress will make it possible for young people to return to their hometowns after college and ensure that communities across the country can attract a workforce that fits their needs,” Kathleen Enright, President and CEO, Council on Foundations, said.
“Offering post-graduate scholarships is a wonderful opportunity to attract West Virginians back home, as we work to grow our shrinking population and stimulate economic development,” Michelle Foster, President and CEO, The Greater Kanawha Valley Foundation, said.
BACKGROUND:
Post-graduation scholarships are grants that help recent graduates pay down their student debt if they live and work in areas experiencing a shortage of their particular skills. The legislation would help alleviate the financial burden individuals face from student loan debt, while incentivizing graduates to start their careers in fields that are experiencing worker shortages. Companion legislation was introduced in the U.S. House of Representatives by Representatives Terri Sewell (D-Ala.) and Darin LaHood (R-Ill.).
Currently, unlike traditional scholarships, recipients of post-graduation scholarships are required to pay income tax on the grant.
The Workforce Development through Post-Graduation Scholarships Act would:
- Exclude Post-Graduation Scholarships from Gross Income: The bill would exclude post-graduation scholarships from gross income in the same manner as traditional qualified scholarships.
- Ensure Recipients are Living and Working in a Community in Need: The bill includes language that mandates that any grant distributed must be directly administered to someone living and working in a community that lacks working-age college graduates.
- Provide Guidelines for Proper Oversight: The bill would give the U.S. Department of Treasury rulemaking authority to create anti-fraud rules and includes reporting requirements to Congress, to further ensure these post-graduation scholarships, the recipients, and the community foundations are not subject to abuse. It would also direct the Government Accountability Office (GAO) to conduct a study on the implementation of these grants that focuses on who is receiving them, how long they receive them for, and how much is paid out, among other areas.
# # #