,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bhbg  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #af1
 #bjad ,mr4 ,blumenthal 7for himself and
 ,mr4 ,murphy7 introduced the following 
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend section #aag of the         
,internal ,revenue ,code of #aihf to    
exclude ,federal student aid from       
taxable gross income4  #a4 ,short title 
,this ,act may be cited as the ,make    
,student ,grants ,truly ,tax-,free ,act4
  #b4 ,expansion of qualified           
scholarship exclusion from gross income 
7a7 ,in general ,paragraph 7#a7 of      
section #aag7;b7 of the ,internal       
,revenue ,code of #aihf is amended--    
7#a7 by striking received by an         
individual as a scholarship and         
inserting received by an individual--   
7,a7 as a scholarship  1  7#b7 by       
striking the period at the end and      
inserting a comma1 and  7#c7 by adding  
at the end the following new            

subparagraphs3  7,b7 through a          
scholarship or fellowship grant program 
administered by the ,secretary of       
,education that is based on financial   
need1 including a ,federal ,pell ,grant 
under section #dja of the ,higher       
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajgj;a71 or  7,c7 as an ,iraq and      
,afghanistan ,service ,grant under      
section #dbj,r of the ,higher ,education
 ,act of #aife 7#bj ,u4,s4,c4 #ajgj;h74 
4  7b7 ,effective date ,the amendments  
made by this ,act shall apply to taxable
 years beginning after ,december #ca1   
#bjad4