Sponsors (5)
The bill makes it easier for colleges to identify and serve eligible students and reduces paperwork by expanding authorized use of FAFSA/tax data for certain programs, but it increases handling and sharing of sensitive student tax information—raising privacy, compliance, and potential access‑delay risks.
Students (especially low-income and TRIO-eligible students) can be identified and enrolled more quickly because institutions may use FAFSA/tax-return data to streamline eligibility and outreach for Student Support Services, McNair, and the new programs under sections 402D/402E.
Colleges, universities, and administering agencies face clearer data‑sharing rules and reduced duplication (fewer separate income verifications and paperwork) because the bill clarifies when FAFSA/return information can be used for program eligibility and notifies Education/Treasury processes.
Students gain a legal limit on the permitted institutional uses of FAFSA data — the bill ties authorized disclosures to financial aid administration and the specified new programs, which can reduce some unauthorized uses.
Students face increased privacy and data‑security risks because broader use and redisclosure of tax/FAFSA information expands who handles sensitive data, raising the chance of unauthorized disclosures or secondary uses.
Schools and taxpayers may see higher compliance, breach‑response, and liability costs because institutions will handle more sensitive taxpayer data and must implement safeguards, training, and new policies to meet requirements.
Students' access to aid or program benefits could be delayed or blocked if IRS approval processes are withheld or slow, because eligibility determinations are tied to IRS/FAFSA disclosures and new approval rules.
Based on analysis of 3 sections of legislative text.
Permits institutions that receive FAFSA/tax-return data for financial aid to also use that data to administer and determine eligibility for two TRIO programs and updates HEA/IRS disclosure rules.
Official title: To amend the Internal Revenue Code of 1986 to allow certain return information disclosed to institutions of higher education for financial aid purposes to also be used for certain Federal TRIO programs.
Introduced February 21, 2025 by Gwendolynne S. Moore · Last progress February 21, 2025
Allows colleges and universities that receive taxpayer return information or FAFSA data to use that data to operate and determine eligibility for two Federal TRIO programs: Student Support Services and the Ronald E. McNair Post‑Baccalaureate Achievement Program. It changes the tax-information disclosure rules and updates Higher Education Act notification and use authorities so FAFSA/return data may be shared and used specifically for those TRIO programs, effective on enactment.