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@EdWorkforceCmte Highlights Working Families Tax Cuts Wins on Tax Day

WASHINGTON, D.C., April 15, 2026
On Tax Day, Education and Workforce Committee Chairman Tim Walberg (R-MI) is underscoring how the Working Families Tax Cuts (WFTC) are delivering real results for students, workers, and families by lowering costs, strengthening accountability, and expanding access to career opportunities.

“The Working Families Tax Cuts represent one of the most significant higher education reforms in decades,” said Chairman Walberg. “On Tax Day, we’re highlighting how these policies not only provide relief for working families, but also fix a broken system that left too many students with debt and too few opportunities.”

The Committee’s reforms have already saved taxpayers an estimated $284 billion while helping ensure federal education dollars are spent responsibly and effectively. 

BACKGROUND:

Holding Colleges Accountable for Results
For too long, students were pushed into programs that left them with debt but little earning potential. The WFTC ensures programs deliver real value by:
  • Stopping federal loans from backing degree programs that leave graduates worse off than workers without those credentials
  • Removing loan eligibility for consistently underperforming programs
  • Requiring institutions to have a stake in students’ long-term success

Putting Students First with Responsible Loan Limits
The WFTC reins in excessive borrowing and reduces the burden of student debt by:
  • Establishing clear caps on graduate, professional, and Parent PLUS loans
  • Giving financial aid administrators flexibility to limit borrowing
  • Incentivizing completion by aligning loan amounts with enrollment status

Simplifying Repayment and Supporting Borrowers
The legislation streamlines a previously complex loan repayment system into straightforward options that better serve working borrowers by:
  • Creating a simplified structure with fixed and income-driven repayment plans
  • Scaling payments based on income while preventing runaway interest
  • Providing pathways for borrowers in default to get back on track

Expanding Career Pathways Through Pell Grants
The WFTC modernizes federal student aid to better align with today’s workforce by:
  • Expanding Pell Grant eligibility to high-quality, short-term workforce programs
  • Requiring strong outcomes like job placement, completion, and earnings
  • Empowering states to align programs with in-demand industries
  • Strengthening safeguards to ensure aid goes to students who need it most

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