Student Loan Bond Expansion Act of 2026

119 S3761 IS: Student Loan Bond Expansion Act of 2026 U.S. Senate 2026-02-03 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II 119th CONGRESS 2d Session S. 3761 IN THE SENATE OF THE UNITED STATES February 3, 2026 Mr. Grassley (for himself, Mr. Welch , and Mr. Cassidy ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to exempt qualified student loan bonds from the volume cap and the alternative minimum tax. 1. Short title This Act may be cited as the Student Loan Bond Expansion Act of 2026 . 2. Qualified student loan bonds exempt from volume cap and alternative minimum tax (a) Exemption from volume cap (1) In general Section 146(g) of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (2) through (6) as paragraphs (3) through (7), respectively, and by inserting after paragraph (1) the following new paragraph: (2) any qualified student loan bond, . (2) Special rule for application of pooled financing bond rules Section 149(f)(6) of such Code is amended by adding at the end the following new subparagraph: (C) Special rule for qualified student loan bonds For purposes of subparagraph (A), in the case of any qualified student loan bond, the term ultimate borrower shall not include any student borrower. . (3) Conforming amendment Section 146(g) of such Code is amended by striking Paragraphs (4) and (5) in the last sentence and inserting Paragraphs (5) and (6) . (b) Exemption from alternative minimum tax Section 57(a)(5)(C) of the Internal Revenue Code of 1986 is amended by redesignating clauses (iv), (v), and (vi) as clauses (v), (vi), and (vii), respectively, and by inserting after clause (iii) the following new clause: (iv) Exception for qualified student loan bonds For purposes of clause (i), the term private activity bond shall not include any bond issued after the date of the enactment of this clause if such bond is a qualified student loan bond (as defined in section 144(b)). The preceding sentence shall not apply to any refunding bond unless such preceding sentence applied to the refunded bond (or in the case of a series of refundings, the original bond). . (c) Effective dates The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.