A Chance To Serve Act

Bill Number

S. 2785

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Government Operations and Politics

Status

Introduced

Latest Action

2025-09-11: Read twice and referred to the Committee on Finance.

Last Updated

2026-04-15T14:36:32Z

AI-Generated Summary

Purpose of the Legislation

The "A Chance To Serve Act" (S. 2785) aims to enhance financial, health care, and educational support for current and former Peace Corps and AmeriCorps volunteers. It seeks to make national service more accessible and rewarding by increasing benefits, reducing financial barriers, and promoting inclusivity, ultimately encouraging greater participation in these programs.

Key Provisions

The bill introduces targeted expansions for Peace Corps and AmeriCorps volunteers, with some overlapping benefits.

Provisions for Peace Corps Volunteers

• Job Placement Support: Grants non-competitive eligibility (preferential hiring without standard competition) for civilian government jobs for 3 years after service ends.
• Inclusivity in Participation: Allows lawful permanent residents, refugees, asylees (people granted asylum), and other lawfully admitted non-citizens to serve, without discrimination based on these statuses.
• Stipend Reliability: Ensures monthly stipends are paid regularly and predictably, including during government shutdowns (temporary halts in non-essential federal operations).
• Extended Health Care: Provides 1 year of free access to Department of Veterans Affairs (VA) medical facilities after service ends; volunteers can opt out.
• Increased Readjustment Allowance: Raises the post-service lump-sum payment from $125 to $425, with periodic adjustments based on the Consumer Price Index (a measure of inflation); also emphasizes volunteer safety and health during service.
• Health Guidance: Requires consultation with external mental health experts and Centers for Disease Control and Prevention guidelines for prescribing medications to volunteers.
• Student Loan Relief: Suspends payments and interest on federal student loans (under the Higher Education Act) during service; treats suspended months as payments toward loan forgiveness or rehabilitation programs.
• Tax Exemption: Makes readjustment allowances non-taxable.

Provisions for AmeriCorps Volunteers

• Expanded Program Size: Mandates at least 500,000 national service positions annually under programs like AmeriCorps.
• Higher Living Allowance: Sets minimum pay at 200% of the federal poverty line (a threshold for low-income eligibility), adjusted annually.
• Job Placement Support: Allows non-competitive hiring into federal jobs for 3 years after service, certified by the Corporation for National and Community Service (CNCS).
• Extended Health Care: Provides 1 year of free continuation of service-era health insurance after completion.
• Enhanced Education Award: Doubles the Segal AmeriCorps Education Award (a post-service grant for education or training) and allows its use for recognized post-secondary credentials (certificates or qualifications from workforce training programs).
• Shorter Service Options: Permits terms under 1,700 hours with proportionally reduced awards, offering flexibility.
• Student Loan Relief: Mirrors Peace Corps provisions for suspending federal student loan payments and interest during service, counting toward forgiveness programs.
• Inclusivity and Support: Prohibits discrimination against refugees, asylees, or other lawfully admitted non-citizens; offers planning grants to underserved communities (e.g., low-income or rural areas) to build program capacity, waiving matching fund requirements for the first 2 years.

Broader Provisions

• Public Service Loan Forgiveness Expansion: Adds full-time Peace Corps or AmeriCorps service to qualifying employment for forgiving federal student loans after 10 years of payments.
• Tax Exemptions: Excludes AmeriCorps education awards and living allowances from federal income taxes.

Significant Changes to Existing Law

• Peace Corps Act (22 U.S.C. 2504): Amends eligibility to include non-citizens; increases readjustment allowances; adds loan suspension, health consultations, and tax exemptions; extends health care via new VA section (38 U.S.C. 1789A).
• National and Community Service Act (42 U.S.C. 12511 et seq.): Boosts positions and allowances; doubles education awards; enables shorter terms, immigrant inclusion, and community grants; extends health and job benefits.
• Higher Education Act (20 U.S.C. 1087e): Incorporates national service into loan forgiveness; mandates loan suspensions.
• Internal Revenue Code: Adds new sections (139J) for tax exclusions on national service payments, effective after enactment.
• Title 38 U.S. Code (VA Health Care): Creates dedicated benefits for former Peace Corps volunteers.

These changes override conflicting rules in existing laws, prioritizing expanded access and benefits.

Potential Impacts

• On Government Agencies: Increases operational demands and costs for the Peace Corps, CNCS, VA, and Department of Education (e.g., more positions, health services, loan processing); may streamline hiring by expanding non-competitive eligibility pools. The IRS faces minor administrative adjustments for tax exemptions.
• On Citizens: Makes service more attractive to diverse groups, including immigrants and low-income individuals, by alleviating financial burdens (e.g., higher pay, loan relief, tax savings). Could lead to better post-service transitions into jobs, health care, or education, reducing economic hardship for volunteers.
• On International Relations: Broadens Peace Corps diversity (e.g., including lawful permanent residents), potentially enhancing U.S. soft power abroad through more inclusive volunteer representation; no direct impact on foreign policy but supports global service programs.

Overall, the bill could boost volunteer numbers, fostering community development domestically and abroad, while raising federal spending (e.g., on allowances and health care).

Main Stakeholders Affected

• Volunteers and Alumni: Current and former Peace Corps and AmeriCorps participants benefit most from enhanced financial, health, and career supports.
• Immigrant Communities: Refugees, asylees, and lawful permanent residents gain access to service opportunities and benefits previously limited to citizens.
• Underserved Populations: Low-income, rural, or marginalized communities receive grants to host programs, promoting local engagement.
• Federal Agencies: Peace Corps, CNCS, VA, Department of Education, and IRS must implement changes, affecting budgets and operations.
• Educational Institutions and Lenders: Impacted by expanded use of awards and loan forgiveness, potentially increasing enrollment in training programs.

Notable Legal, Constitutional, or Political Implications

• Legal: Harmonizes benefits across programs by amending multiple statutes, ensuring consistency in loan relief and non-discrimination; introduces enforceable mandates (e.g., minimum positions, stipend regularity) that could lead to litigation if underfunded.
• Constitutional: Aligns with equal protection principles under the 14th Amendment by prohibiting status-based discrimination, promoting broader access without violating citizenship requirements for certain roles.
• Political: Reinforces national service as a public good, potentially appealing across party lines by emphasizing volunteer support and community investment; may spark debates on federal spending amid budget constraints, but avoids controversial overhauls by building on existing frameworks.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Kim, Andy [D-NJ]

Recent Actions

• 2025-09-11: Read twice and referred to the Committee on Finance.
• 2025-09-11: Introduced in Senate

Bill Versions

• A Chance To Serve Act — issued 2025-09-11 — PDF (13 pages)