This part takes the end date off a break for employer student loan help. It adds a rule to raise the $5,250 cap with prices. The change reaches payments made after December 31, 2025.
“Section 127(c)(1)(B) is amended by striking "in the case of payments made before January 1, 2026,".”
The section strikes the words in the case of payments made before January 1, 2026 from section 127(c)(1)(B) of the Internal Revenue Code of 1986. That provision is not indexed here, so this record states the change and stops.
What the document actually says
“Section 127(c)(1)(B) is amended by striking "in the case of payments made before January 1, 2026,".”
That sentence, in plain words
Words setting an end date are taken out. They named payments made before January 1, 2026.
What this is about
So the break carries on with no end year. What the break covers is not recorded here. The tax code is not indexed on this site.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70412 in the PDF
What the document says
“In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall each be increased by an amount equal to--”
The section inserts a new subsection (d) into section 127 of the Internal Revenue Code of 1986 so that from a taxable year beginning after 2026 both $5,250 amounts rise by a cost of living adjustment measured from calendar year 2025, with any increase rounded to the nearest $50.
What the document actually says
“In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall each be increased by an amount equal to--”
That sentence, in plain words
From a tax year that begins after 2026 the two figures grow. Both are set at $5,250 now. The way they grow follows below.
What this is about
The rise follows a price measure in the tax code. Any rise is rounded to the nearest $50. Before 2027 the figures stay put.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70412 in the PDF
What the document says
“The amendment made by this section shall apply to payments made after December 31, 2025.”
The section applies its amendment to payments made after December 31, 2025.
What the document actually says
“The amendment made by this section shall apply to payments made after December 31, 2025.”
That sentence, in plain words
The change reaches payments made after December 31, 2025. Earlier payments are left out.
What this is about
The old rules still hold for them. The date is fixed in the law. It turns on when the payment is made.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: strike the end date, add the inflation adjustment with its rounding rule, and fix the effective date.
The redesignation of subsection (d) as subsection (e), which moves existing text without changing what it requires.
The section works by amending section 127 of the Internal Revenue Code of 1986, which is not indexed here, so what the break covers cannot be checked against anything on this site.
