This bill requires the Internal Revenue Service (IRS) to disclose certain tax return information to the Department of Education (ED) for the purpose of administering financial aid and loan programs under the Higher Education Act of 1965. (Under current law, students must obtain their own tax return information from the IRS and submit it to ED.)
Upon receiving a request from ED, the IRS must disclose specified tax return information to ED for the purposes of
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establishing, renewing, administering, and conducting analyses and forecasts for estimating costs related to income-contingent or income-based repayment programs;
the discharge of loans based on a total and permanent disability;
determining the eligibility for, and the amount of, federal student financial aid; and
conducting analyses and forecasts for estimating costs related to federal student financial aid programs.
ED may only use the disclosed information for the purposes above and for mitigating risks related to the programs. Mitigating risks includes activities related to analyzing or estimating costs, conducting oversight, developing statistics, and reducing improper payments. It does not include conducting criminal investigations or prosecutions.
With the consent of the taxpayer, ED may disclose the return information to certain institutions of higher education, state higher education agencies, and scholarship organizations solely for the use in financial aid programs.
The bill also specifies notification and reporting requirements related to the disclosures and the implementation of this bill.
Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.
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