[Congressional Record Volume 140, Number 33 (Tuesday, March 22, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                          NATIONAL SERVICE ACT

                                 ______


                        HON. BARBARA B. KENNELLY

                             of connecticut

                    in the house of representatives

                        Tuesday, March 22, 1994

  Mrs. KENNELLY. Mr. Speaker, last year, Congress passed the National 
Service Act, a program conceived by President Clinton to give young 
people throughout the country an opportunity to provide community 
service while earning money toward their college tuition. Students who 
choose to participate in this program have a wonderful opportunity to 
expand their practical education, and participate in improving the 
state of our Nation.
  In addition to an hourly stipend, participants in this community 
service program will earn up to $4,725 a year in educational awards for 
a maximum of 2 years. The IRS recently ruled that these educational 
awards will be counted as taxable income. This ruling places an unfair 
burden on students involved in community service, but more important, 
this additional taxable income could jeopardize opportunities to 
receive income-based financial aid such as Pell grants.
  The National Service Trust Fund was set up with the goal of providing 
educational opportunities for individuals who make a substantial 
commitment to community service. Taxing educational awards could 
severely hinder this goal. For this reason, I am introducing 
legislation today to exclude national service educational awards from 
gross income. I would urge my colleagues to join me and cosponsor this 
legislation.

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