Bill would lift tax and issuance caps on state student loan bonds
In committeeH.R. 2660Latest action
Sponsor: Randy Feenstra · Representative · IA
AIDecoded by AI · checked against the recordRead the official text
Official title: To amend the Internal Revenue Code of 1986 to exempt qualified student loan bonds from the volume cap and the alternative minimum tax.
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
The plain-language version comes first. The official text is always the reference.
HR 2660 removes the Alternative Minimum Tax and annual issuance caps on qualified student loan bonds issued by state and local governments.
55-second read · 4 questions answered below
What does this do?
HR 2660 eliminates two restrictions on qualified student loan bonds, which are securities issued by state and local governments to fund student lending programs. The bill removes the Alternative Minimum Tax on investor interest income from these bonds and lifts the annual cap limiting how many such bonds a state may issue. Both changes apply only to bonds issued after the law takes effect.
Who does it affect?
State and local housing finance and student loan agencies that issue these bonds are most directly affected, as are the investors who purchase them. College students who borrow through state-run loan programs may be indirectly affected, though the bill does not require any savings to be passed on to borrowers.
Why does it matter?
When investors owe no additional tax on bond interest, they typically accept lower interest rates, which could reduce what state agencies pay to borrow money. Removing the annual issuance cap means states would face less competition with other project types for permission to issue these bonds. The bill does not affect federal student loans administered by the Department of Education.
AI-drafted summary. Check it against the official text before you act on it.
Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedApr 7, 2025
- House committeeYou are here · Apr 7, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Ways and Means.