119-s2785

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2785 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2785

To expand the financial, health care, and educational benefits received 
 by Peace Corps and AmeriCorps volunteers, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 11, 2025

 Mr. Kim introduced the following bill; which was read twice and 
 referred to the Committee on Finance

_______________________________________________________________________

 A BILL

To expand the financial, health care, and educational benefits received 
 by Peace Corps and AmeriCorps volunteers, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``A Chance To Serve Act''.

SEC. 2. EXPANDED BENEFITS FOR CURRENT AND FORMER PEACE CORPS 
 VOLUNTEERS.

    (a) Extended Non-Competitive Eligibility.--During the 3-year period 
immediately following the termination of an individual's service as a 
Peace Corps volunteer, such individual shall be granted non-competitive 
eligibility with respect to positions in the civilian career services.

    (b) Non-Discrimination Based on Certain Immigration Statuses.--

Section 5

    (a) of the Peace Corps Act (22 U.S.C. 2504

    (a) ) is amended--

    (1) in the first sentence, by striking ``citizens and 
 nationals of the United States'' and inserting ``citizens, 
 nationals, and lawful permanent residents of the United 
 States''; and

    (2) in the fourth sentence, by striking ``or color.'' and 
 inserting ``color, or status as a refugee, asylee, or other 
 lawfully admitted alien.''.
            (c) Regularity of Payments of Monthly Stipends.--The Director of 
the Peace Corps shall take such steps as may be necessary to ensure 
that Peace Corps volunteers receive stipends on a regular and 
predictable basis (and, to the maximum extent practicable, on the same 
numerical day of each month), including in the event of a temporary 
partial or complete government shutdown.
            (d) Extended Health Care.--

    (1) 1-year eligibility for health benefits.--Subchapter 
 VIII of title 38, United States Code, is amended by adding at 
 the end the following new section:
``

Sec. 1789A. Former Peace Corps volunteers
 ``During the one-year period beginning on the day after the final 
day of the service of a Peace Corps volunteer, the Secretary shall make 
available to such former volunteer such hospital care or medical 
services as the former volunteer may elect to receive at a medical 
facility of the Department of Veterans Affairs. The cost of any care or 
services furnished under this section to such former volunteer shall be 
reimbursed at such rates as may be agreed upon by the Secretary and the 
Director of the Peace Corps, based on the cost of the care or service 
furnished and in accordance with health care otherwise provided to 
volunteers under 

section 5

    (e) of the Peace Corps Act. Such former 
volunteers may decline to receive any of the health benefits authorized 
under this section.''.

    (2) Conforming amendments.--

Section 5

    (e) of the Peace Corps 
 Act (22 U.S.C. 2504

    (e) ) is amended--
        (A) by inserting after the first sentence the 
 following new sentence: ``Former volunteers shall also 
 be entitled to such hospital care and medical services 
 as may be provided in accordance with 

section 1789A of 
 title 38, United States Code.''; and
        (B) in the second sentence, by inserting ``(other 
 than health care provided in accordance with such 
 

section 1789A)'' after ``such health care''.

    (3) Clerical amendment.--The table of sections for chapter 
 17 of title 38, United States Code, is amended by adding after 
 the item relating to 

section 1789 the following new item:

``1789A. Former Peace Corps volunteers.''.

    (e) Readjustment Allowances for Volunteers and Volunteer Leaders.--

Section 5 of the Peace Corps Act (22 U.S.C. 2504) is amended--

    (1) in subsection

    (b) , by striking ``insure their health'' 
 and inserting ``ensure their safety, their health, and'';

    (2) in subsection
            (c) --
        (A) by striking ``$125'' and inserting ``$425'';
        (B) by striking ``his'' each place such term 
 appears and inserting ``the volunteer's'';
            (C) by striking ``he'' and inserting ``the 
 volunteer''; and
            (D) by adding at the end the following: ``The 
 amount of the readjustment allowance authorized under 
 this subsection may be periodically adjusted by the 
 Director of the Peace Corps to reflect the percentage 
 increase (if any) in the Consumer Price Index.'';

    (3) by redesignating subsection

    (e) , as amended by 
 subsection

    (b)

    (2) of this Act as subsection
            (d) ;

    (4) by inserting after subsection
            (d) , as so amended and 
 redesignated, the following:
 ``

    (e) The Director shall consult with health experts outside of the 
Peace Corps, including experts licensed in the field of mental health, 
and follow guidance by the Centers for Disease Control and Prevention 
regarding the prescription of medications to volunteers.'';

    (5) in subsection

    (h) , by striking ``he'' and inserting 
 ``the President'';

    (6) in subsection

    (n)

    (2) --
        (A) by striking ``subsection

    (e) '' each place such 
 term appears and inserting ``subsection
            (d) ''; and
        (B) by striking ``he'' and inserting ``the 
 President'';

    (7) in subsection

    (o) , by striking ``his'' each place such 
 term appears and inserting ``the volunteer's''; and

    (8) by adding at the end the following new subsection:
 ``

    (q) Suspension of Payments and Accrual of Interest on Federal 
Loans During Service.--
 ``

    (1) In general.--If a volunteer receives a loan made 
 under part D of title IV of the Higher Education Act of 1965 
 (20 U.S.C. 1087a et seq.) before commencing service in the 
 Peace Corps--
 ``
        (A) all payments due for such loans shall be 
 suspended; and
 ``
        (B) interest shall not accrue on such loan for 
 the duration of such service.
 ``

    (2) Deferment or forbearance.--Notwithstanding any other 
 provision of the Higher Education Act of 1965 (20 U.S.C. 1001 
 et seq.), the Secretary of Education shall deem each month for 
 which a loan payment was--
 ``
        (A) suspended under this subsection; or
 ``
        (B) subject to a deferment or forbearance under 
 the Higher Education Act of 1965, as if the borrower of 
 the loan had made a payment for the purpose of any loan 
 forgiveness program or loan rehabilitation program 
 authorized under part B or D of title IV of the Higher 
 Education Act of 1965 (20 U.S.C. 1071 et seq. and 1087a 
 et seq.) for which the borrower would have otherwise 
 qualified.''.

    (f) Nontaxable Status for Readjustment Allowances.--Notwithstanding 
any other provision of the Internal Revenue Code of 1986, a 
readjustment allowance received pursuant to 

section 5
            (c) of the Peace 
Corps Act (22 U.S.C. 2504
            (c) ), as amended by subsection

    (e)

    (2) of this 
section, shall not be subject to taxation under chapter 1 of such Code.

SEC. 3. EXPANDED BENEFITS FOR AMERICORPS VOLUNTEERS.

    (a) Increase in National Service Positions.--Notwithstanding any 
provision of the national service laws, on or after the date of 
enactment of this Act, not fewer than 500,000 national service 
positions shall be available under the national service programs 
authorized under such laws.

    (b) Increase in Living Allowance.--Notwithstanding 

section 140 of 
the National and Community Service Act of 1990 (42 U.S.C. 12594) or any 
other provision of the national service laws, any individual serving in 
a national service program authorized under a national service law 
shall receive a living allowance that is not less than 200 percent of 
the poverty line (as defined in 

section 673

    (2) of the Community 
Services Block Grant Act (42 U.S.C. 9902

    (2) )) and adjusted by the 
Corporation for National and Community Service in the manner described 
in such section.
            (c) Extended Non-Competitive Eligibility.--Notwithstanding any 
other law, rule, or regulation, the head of any agency in the Executive 
branch may noncompetitively appoint, to a competitive service position 
at such agency, any individual who is certified by the Corporation for 
National and Community Service as having satisfactorily completed 
service in a national service program authorized under a national 
service law. Such an individual may not be appointed under the 
authority provided under this section after the date that is 3 years 
after the date such individual so completes such service.
            (d) 1-Year Eligibility for Health Benefits.--Notwithstanding 

section 140 of the National and Community Service Act of 1990 (42 
U.S.C. 12594) or any other provision of the national service laws, 
during the one-year period beginning on the day after the final day of 
a participant in a national service program authorized under a national 
service law, the Corporation for National and Community Service shall 
provide such former participant, at no cost to such participant, with 
the health care policy such participant received during the term of 
service in such program.

    (e) Doubling of the Segal AmeriCorps Education Award.--

Section 147

    (a) of the National and Community Service Act of 1990 (42 U.S.C. 
12603

    (a) ) is amended by inserting ``twice'' before ``the maximum''.

    (f) Use of the Segal Americorps Education Award.--

Section 148

    (a)

    (4) of the National and Community Service Act of 1990 (42 U.S.C. 
12604

    (a)

    (4) ) is amended by inserting before the semicolon at the end 
the following: ``, or for the purpose of obtaining a recognized post-
secondary credential (as defined in 

section 3 of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102)''.

    (g) Suspension of Payments and Accrual of Interest on Federal Loans 
During Service.--

    (1) In general.--Notwithstanding any provision of a 
 national service law, if an individual receives a loan made 
 under part D of title IV of the Higher Education Act of 1965 
 (20 U.S.C. 1087a et seq.) before commencing service in a 
 national service program under a national service law--
        (A) all payments due for such loans shall be 
 suspended; and
        (B) interest shall not accrue on such loan for the 
 duration of such service.

    (2) Deferment or forbearance.--Notwithstanding any other 
 provision of the Higher Education Act of 1965 (20 U.S.C. 1001 
 et seq.), the Secretary of Education shall deem each month for 
 which a loan payment was--
        (A) suspended under this subsection; or
        (B) subject to a deferment or forbearance under the 
 Higher Education Act of 1965, as if the borrower of the 
 loan had made a payment for the purpose of any loan 
 forgiveness program or loan rehabilitation program 
 authorized under part B or D of title IV of the Higher 
 Education Act of 1965 (20 U.S.C. 1071 et seq. and 1087a 
 et seq.) for which the borrower would have otherwise 
 qualified.

    (h) Non-Discrimination Based on Certain Immigration Statuses.--
Notwithstanding any provision of a national service law, a refugee, 
asylee, or other lawfully admitted alien may not be prohibited from 
serving in a national service program authorized under such a law, or 
receiving an education benefit for such service, on the basis of such 
status.
            (i) Planning Grants for Underserved Communities.--Notwithstanding 
any provision of a national service law, the Corporation for National 
and Community Service may award planning grants to underserved 
communities to enable such communities to develop the capacity to carry 
out national service programs under national service laws. Any matching 
fund requirements under the national service laws shall be waived for 
the first 2 years during which any such community carries out such a 
national service program.

    (j) Availability of Shorter Term of Service.--Notwithstanding 
sections 139

    (b) , 146, and 147 of the National and Community Service Act 
of 1990 (42 U.S.C. 12593

    (b) , 12602, and 12603), the Corporation for 
National and Community Service may determine the number of hours 
required to successfully complete any term of service in AmeriCorps 
that is less than 1,700 hours. Any reduction of the required term of 
service below 1,700 hours shall include a corresponding reduction in 
the amount of any national service educational award that may be 
available under subtitle D of title I of such Act (42 U.S.C. 12601 et 
seq.) with regard to such service.

    (k) National Service Laws Defined.--In this section, the term 
``national service laws'' has the meaning given such term in 

section 101 of the National and Community Service Act of 1990 (42 U.S.C. 
12511).

SEC. 4. PUBLIC SERVICE LOAN FORGIVENESS.

 

Section 455
            (m) (3)
        (B) of the Higher Education Act of 1965 (20 U.S.C. 
1087e
            (m) (3)
        (B) ) is amended--

    (1) by striking ``or'' at the end of clause
            (i) ;

    (2) in clause
            (ii) , by striking the period at the end and 
 inserting ``; or''; and

    (3) by adding at the end the following:
 ``
            (iii) serving, on a full-time basis, in a 
 national service program authorized under a 
 national service law (as defined in 

section 101 
 of the National and Community Service Act of 
 1990 (42 U.S.C. 12511)) or as a Peace Corps 
 volunteer.''.

SEC. 5. EXCLUSION FROM GROSS INCOME OF CERTAIN PAYMENTS FOR NATIONAL 
 SERVICE.

    (a) In General.--Part II of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after 

section 139I the following new section:

``

SEC. 139J. CERTAIN PAYMENTS FOR NATIONAL SERVICE.

 ``In the case of an individual, gross income shall not include any 
amount received under a national service educational award under 
subtitle D of title I of the National and Community Service Act of 1990 
(42 U.S.C. 12601 et seq.) or any living allowance provided to such 
individual during participation in a national service program 
authorized under a national service law (as defined in 

section 101 of 
the National and Community Service Act of 1990 (42 U.S.C. 12511)).''.

    (b) Clerical Amendment.--The table of sections for part II of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to 

section 139I the following new item:

``

Sec. 139J. Certain payments for national service.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
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