Join our sign-on letter in support of the Workforce Development through Post-Graduation Scholarships Act

In May 2023, a bipartisan coalition led by Sen. Gary Peters (D-MI), Sen. Shelley Moore Capito (R-WV), Rep. Darin LaHood (R-IL), and Rep. Terri Sewell (D-AL) introduced the Workforce Development through Post-Graduation Scholarships Act (S.1757/H.R.3582). This legislation amends the tax code to ensure post-graduation scholarships awarded to individuals who have completed a degree or technical program to help pay off a portion of their student loans are not treated as taxable income. It would formally define post-graduation scholarships as a charitable activity provided by certain tax-exempt organizations, including community foundations. 

As policymakers consider how to attract or retain workers in rural communities where their skills and talents are needed, post-graduation scholarships can play an important role. Treating post-graduation scholarships like traditional scholarships will provide foundations and communities with an additional tool to cultivate a skilled workforce while helping to address the student loan crisis. As with traditional scholarships, foundations would establish eligibility and other grant program requirements.

This sign-on letter will be updated regularly as additional organizations join. 

 

Field Research

Sign On

Voice your support for the Workforce Development through Post-Graduation Scholarships Act by adding your organization to our sign-on letter.

Re: Workforce Development through Post-Graduation Scholarships Act (S.1757 / H.R.3582) 

Dear Senator Peters, Senator Capito, Representative LaHood, and Representative Sewell: 

On behalf of the undersigned organizations, we write to express our appreciation for your leadership on the Workforce Development through Post-Graduation Scholarships Act. This timely legislation would help bring graduates with needed skills back to the regions that need them most while giving foundations an essential tool to support their communities and address the growing student debt crisis. 

Communities across the country, particularly in rural regions, are suffering from aging populations, outmigration, and declining dynamism, increasing their demand for individuals equipped with specific and vital skills even as available incentives for those individuals diminish. Simultaneously, total student debt in the United States continues to climb, keeping millions of Americans from realizing their full economic potential while also damaging communities across the country. Excessive student debt prevents individuals from purchasing homes, saving up for retirement, or starting small businesses and reinvesting in local economies.  

Post-graduation scholarships offer a solution, helping to address both localized workforce needs and student debt challenges. These scholarships are awarded to graduates with skillsets that are lacking in certain geographies to help pay back some of their student loans. In exchange, the graduates commit to living and working in these communities. This important charitable tool would give graduates with debt a lifeline while attracting them to the communities that need their skillsets—skillsets such as dentistry, nursing, or teaching. However, current law does not treat post-graduation scholarships the same as traditional scholarships, creating unnecessary barriers for foundations looking to support their communities.  

Traditional scholarships are recognized as a charitable activity and are excluded from the taxable income of the recipient. This is not the case for post-graduation scholarships, limiting their ability to stimulate regional economic growth and help address the growing student debt crisis. S.1757/H.R.3582 ensures that the worker is not taxed on the post-graduation scholarship they receive, just as they would not be taxed on scholarship money that they received prior to graduation. This vital legislation—which also ensures foundations set residential requirements and other safeguards—would enable philanthropy to be part of the solution.  

Foundations that prioritize place-based grantmaking have a profound understanding of their communities’ needs. Your legislation will empower these foundations to be able to make a vital investment in their communities’ workforce needs that will have a lasting impact. We appreciate your leadership, and we are committed to working with you to advance this essential legislation. 

Council on Foundations 
Washington, D.C. 

Independent Sector 
Washington, D.C.  

United Philanthropy Forum 
Washington, D.C.  

Community Foundation of East Alabama 
Opelika, Alabama 

Community Foundation of Greater Birmingham 
Birmingham, Alabama 

Community Foundation of Northeast Alabama 
Anniston, Alabama 

United Way of West Alabama 
Tuscaloosa, Alabama 

Walker Area Community Foundation 
Jasper, Alabama 

Catalyst of San Diego & Imperial Counties 
San Diego, California 

The Denver Foundation 
Denver, Colorado 

Longmont Community Foundation 
Longmont, Colorado 

Fairfield County's Community Foundation 
Norwalk, Connecticut 

Hartford Foundation for Public Giving 
Hartford, Connecticut 

Northwest Connecticut Community Foundation 
Torrington, Connecticut 

Delaware Community Foundation 
Wilmington, Delaware 

DeKalb County Community Foundation (IL) 
Sycamore, Illinois 

Forefront 
Chicago, Illinois 

The Chicago Community Trust 
Chicago, Illinois 

Community Foundation of Central Illinois 
Peoria, Illinois 

Community Foundation of East Central Illinois 
Champaign, Illinois 

Community Foundation of the Fox River Valley 
Aurora, Illinois 

Community Foundation of Kankakee River Valley 
Kankakee, Illinois 

Community Foundation for the Land of Lincoln 
Springfield, Illinois 

Edwardsville Community Foundation 
Edwardsville, Illinois 

The Foundation for Northwest Illinois 
Freeport, Illinois 

Galesburg Community Foundation 
Galesburg, Illinois 

Southern Illinois Community Foundation 
Marion, Illinois 

Starved Rock Community Foundation 
LaSalle, Illinois 

Iowa Council of Foundations 
West Des Moines, Iowa 

Community Foundation of Greater Des Moines 
Des Moines, Iowa 

Greater Northwest Kansas Community Foundation 
Bird City, Kansas 

McPherson County Community Foundation 
McPherson, Kansas 

Foundation for Appalachian Kentucky 
Hazard, Kentucky 

Council of Michigan Foundations 
Detroit, Michigan 

Community Foundation of St. Clair County 
Port Huron, Michigan 

Kalamazoo Community Foundation 
Kalamazoo, Michigan 

Midland Area Community Foundation 
Midland, Michigan 

Winona Community Foundation 
Wiona, Minnesota 

Community Foundation of the Ozarks 
Springfield, Missouri 

Albuquerque Community Foundation 
Albuquerque, New Mexico 

New Mexico Community Trust 
Albuquerque, New Mexico 

NY Funders Alliance 
Syracuse, New York 

Community Foundation of Greater Greensboro 
Greensboro, North Carolina 

The Community Foundation of Western North Carolina 
Asheville, North Carolina 

Cherokee Strip Community Foundation 
Enid, Oklahoma 
 
The Community Foundation for Crawford County 
Bucyrus, Ohio 

Muskingum County Community Foundation 
Zanesville, Ohio 

Philanthropy Ohio 
Columbus, Ohio 

Adams County Community Foundation 
Gettysburg, Pennsylvania 

Crawford Heritage Community Foundation 
Meadville, Pennsylvania 

Grantmakers Council of Rhode Island 
Providence, Rhode Island 

The Rhode Island Foundation 
Providence, Rhode Island 

Community Foundation of the Lowcountry 
Hilton Head Island, South Carolina 

Black Hills Area Community Foundation 
Rapid City, South Dakota 

East Texas Communities Foundation 
Tyler, Texas 

Philanthropy Southwest 
Dallas, Texas 

Williamsburg Community Foundation 
Williamsburg, Virginia 

Innovia Foundation 
Spokane, Washington 

Your Community Foundation of North Central West Virginia 
Morgantown, West Virginia 

Greater Kanawha Valley Foundation 
Charleston, West Virginia 

Parkersburg Area Community Foundation, Inc. 
Parkersburg, West Virginia 

Philanthropy West Virginia  
Morgantown, West Virginia 

St. Croix Valley Foundation 
Hudson, Wisconsin 

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