What This Bill Does
This bill would amend the Internal Revenue Code so that small grants awarded for food security would not count as taxable income. That means people or organizations receiving these micro-grants would not have to pay federal income tax on the grant amount. The main beneficiaries would be low-income households, community groups, and local food-security projects that rely on modest federal, state, or charitable grants. The practical effect is to make those small awards go farther by preventing a tax bill from reducing their value.
- Excludes micro-grants for food security from gross income under the Internal Revenue Code.
- Applies to small grants tied to food-access assistance or anti-hunger projects.
- Would prevent recipients from paying federal income tax on the grant amount.
- Could simplify tax reporting for people and groups receiving these grants.
Who This Bill Affects
If you receive a qualifying micro-grant for food security, this bill would make that money exempt from federal income tax, so you would keep the full grant value instead of possibly owing tax on it. That could matter if you are using a small grant to buy groceries, fund a community pantry, support a school feeding effort, or cover related food-access expenses. The effect is limited to recipients of these specific grants, but for them it can mean a modest, direct financial benefit and less tax paperwork.
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- Low-income households receiving food aid They would keep the full value of a small grant intended to help buy food, instead of losing part of it to taxes. Supporters say relief dollars should go directly toward groceries and basic necessities.
- Community food pantries and mutual-aid groups Small local programs often operate on tight budgets and limited staffing. Excluding these grants from income makes the money easier to use and reduces administrative burdens tied to tax reporting.
- Tribal, rural, and underserved-area food-security programs In communities with limited access to affordable food, small grants can make an immediate difference. Supporters argue the tax code should not shrink the impact of targeted anti-hunger funding.
- Tax policy simplification advocates Creating another income exclusion adds another special rule to the tax code. They may argue that broadening exemptions piecemeal makes the system harder to administer and understand.
- Fiscal conservatives Even narrow exclusions reduce taxable income and can encourage more carve-outs for specific kinds of aid. Opponents may prefer keeping grants taxable unless Congress makes a broader change to income rules.
- IRS compliance analysts and tax preparers Any new exclusion requires definitions, recordkeeping rules, and guidance on eligibility. Critics may worry about ambiguity over what qualifies as a micro-grant and who can issue one.
Key Implications
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““exclude micro-grants for food security from gross income””
Recipients would not have to treat qualifying food-security grants as taxable income, so the money would be fully available for its intended purpose.
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““Internal Revenue Code of 1986””
This would change federal tax law, not a separate spending program. The IRS would need to apply the new exclusion when people file returns.
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““micro-grants for food security””
The bill focuses on small-dollar assistance rather than broad subsidy programs, which means the benefit is aimed at targeted, local help.
Latest Status
June 15, 2026
Read twice and referred to the Committee on Finance.
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Ask AI about this billData sourced from api.congress.gov.