U.S. Rep. Darin LaHood (R-IL) and U.S. Sen. Shelley Moore Capito (R-WV) introduced bipartisan, bicameral legislation on Wednesday to help attract talent into communities and boost the local economy through the support of post-graduation scholarships.
Used by foundations as a type of charitable grant to attract workers with in-demand skills to specific regions, post-graduation scholarships allow individuals who have completed a degree or technical program to pay off a portion of their student loan debt.
The newly introduced legislation would amend the Internal Revenue Code to exclude certain post-graduation scholarship grants from gross income in the same manner as scholarships to promote economic growth, according to the text of the bills.
“In our modern economy, it’s essential we recruit talent into our workforce in underserved and rural communities and provide workers with the resources they need,” said Rep. LaHood. “Our legislation will alleviate the growing student debt, foster economic growth, and help organizations attract better talent and reward professionals who commit to their local communities.”
Rep. LaHood introduced the Workforce Development Through Post-Graduation Scholarships Act, H.R. 4095, with original cosponsor U.S. Rep. Terri Sewell (D-AL), while Sen. Capito introduced the Senate version of the measure, S. 2191, with bill sponsor U.S. Sen. Gary Peters (D-MI).
“Incentivizing West Virginians to stay in West Virginia and encouraging people outside our state to move here is critical to reversing the population loss we’ve seen in recent years,” Sen. Capito said. “Our bipartisan legislation would address the pattern the 2020 Census revealed by investing in recent college graduates with the ultimate goal of bringing in more people to live, work, and raise a family in the Mountain State.”
The legislation is supported by several foundations, who note how difficult it can be for rural communities to retain people with the skills required to fill jobs.
“The Workforce Development Through Post-Graduation Scholarships Act provides foundations with tools to help attract talent to meet the needs in their communities,” said Kathleen Enright, president and CEO of the Council on Foundations.