Hire Student Veterans Act
- Bill Number
- H.R. 6404
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-12-03: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-04T08:08:49Z
AI-Generated Summary
Purpose
The "Hire Student Veterans Act" (H.R. 6404) aims to encourage employers to hire veterans who are pursuing education by expanding eligibility for the Work Opportunity Tax Credit (WOTC). The WOTC is a federal tax incentive that reduces an employer's tax liability for hiring individuals from certain targeted groups, such as veterans, to promote workforce inclusion.
Key Provisions
- Expansion of WOTC Eligibility: Adds a new category under Section 51(d)(3)(A) of the Internal Revenue Code for veterans who are "qualified veterans" attending an educational institution using educational assistance from specific programs. These include:
- Chapters 30, 31, 32, 33, or 34 of Title 38, U.S. Code (various GI Bill benefits administered by the Department of Veterans Affairs, or VA).
- Chapters 1606 or 1607 of Title 10, U.S. Code (Reserve Educational Assistance Program and similar benefits administered by the Department of Defense, or DoD).
- Adjustment to Employment Period Requirement: Modifies Section 51(i)(3)(A) to exempt these student veterans from the standard minimum 120-day employment period needed to claim the full tax credit. This allows employers to qualify for the credit more flexibly when hiring such veterans.
- Effective Date: Applies to individuals who begin work for the employer after the date the Act is enacted into law.
Significant Changes to Existing Law
- The bill amends the Internal Revenue Code of 1986 by broadening the definition of "qualified veterans" under the WOTC to explicitly include those receiving VA or DoD educational assistance while in school. Previously, WOTC for veterans focused on unemployment status or service-connected disabilities but did not specifically target student veterans in educational programs.
- It removes the rigid 120-day work requirement for this new subgroup, making the credit more accessible for part-time or transitional hires common among students.
Potential Impacts
- On Government Agencies: The Internal Revenue Service (IRS) will need to update tax forms and guidance to process claims for this expanded credit, potentially increasing administrative workload but supporting broader veteran employment goals. The VA and DoD may see indirect benefits through higher employment rates among benefit recipients, aligning with their missions to aid veteran transitions.
- On Citizens: Veterans pursuing education (e.g., via the GI Bill) could find it easier to secure jobs, helping them balance studies and income without losing benefits. Employers, particularly in sectors hiring entry-level or skilled workers, gain a financial incentive (up to $9,600 per hire under current WOTC rules, though amounts may vary), potentially boosting hiring in veteran-heavy fields like manufacturing or technology.
- On International Relations: No direct impacts, as the bill focuses on domestic tax policy and U.S. military veterans.
Main Stakeholders Affected
- Veterans: Primary beneficiaries, especially those in educational programs, who gain better job access.
- Employers: Businesses of all sizes that hire from this group, receiving tax savings to offset wage costs.
- Government Entities: IRS (tax administration), VA and DoD (educational support programs), and Congress (fiscal policy oversight).
- Educational Institutions: Indirectly affected, as employed students may have higher retention rates in degree programs.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing WOTC framework without creating new entitlements, ensuring compliance with tax code uniformity. No challenges to enforceability anticipated, as it builds on established veteran support laws like the GI Bill.
- Constitutional: Aligns with Congress's authority under Article I to levy taxes and provide for the general welfare, including veteran benefits; no apparent free speech, due process, or equal protection issues.
- Political: Promotes bipartisan veteran support (introduced by representatives from both parties), potentially influencing future workforce and education policies by incentivizing public-private partnerships for military transitions. It may increase federal tax expenditures (estimated costs not specified in the bill) but is framed as an investment in national service members.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Steube, W. Gregory [R-FL-17], Rep. Craig, Angie [D-MN-2], Rep. Lawler, Michael [R-NY-17]
Recent Actions
- 2025-12-03: Referred to the House Committee on Ways and Means.
- 2025-12-03: Introduced in House
- 2025-12-03: Introduced in House
Bill Versions
- Hire Student Veterans Act — issued 2025-12-03 — PDF (2 pages)