A bill to amend the Internal Revenue Code of 1986 to exclude micro-grants for food security from gross income.

Summary of Bill: S. 4780 (119th Congress) — Exclude Micro-Grants for Food Security from Gross Income

Purpose and intent

• The bill proposes an amendment to the Internal Revenue Code of 1986 to explicitly exclude micro-grants provided for food security from an individual’s gross income.
• In short, small grants aimed at improving access to food would not be treated as taxable income for recipients.

Key provisions and changes

• Amends the Internal Revenue Code to exclude micro-grants for food security from gross income.
  • “Micro-grants for food security” are defined in the bill as small monetary awards intended to support individuals or households in achieving better food security outcomes (the exact statutory definition would be specified in the text of the bill; summary here reflects the intended scope).
• Effective date: The summary does not specify a retroactive date; instruments in the bill typically include an effective date or phased implementation, which would be detailed in the full text. (Readers should refer to the enacted version for precise date.)
• Administrative alignment: By excluding these micro-grants from gross income, the bill aligns tax treatment with the policy goal of reducing barriers to receiving aid for food security without creating tax liability for recipients.

Who would be affected

• Primary beneficiaries: Individuals or households receiving micro-grants designated for food security purposes.
• Secondary effects: Small grantmakers, nonprofits, or government programs that issue micro-grants for food security may experience simplifications in reporting and administration if grants are excluded from recipients’ taxable income. Recipients with low or no tax liability would particularly benefit, as the grants would not inflate gross income or affect credits tied to income thresholds.

Procedural and timeline aspects

• Introduction: The bill was introduced in the Senate.
• Action history:
  • Read twice and referred to the Committee on Finance (June 15, 2026).
  • Sponsor: Co-sponsor Lisa Murkowski.
• Next steps: For passage, it would typically need consideration and approval by the Senate Finance Committee, potential floor debate, and then potential passage and consideration by the House of Representatives, followed by reconciliation if there are chamber-specific differences. The exact timetable would depend on legislative calendars and priority actions.

Additional notes

• The bill’s impact hinges on the precise statutory language, including definitions of “micro-grants,” the scope of eligible recipients, and any administrative rules (e.g., reporting requirements for grant issuers).
• Potential policy rationale centers on reducing hunger and improving food security by ensuring that support provided to individuals does not trigger tax liability, thereby preserving the full value of the assistance.

If you’d like, I can tailor this summary to include the bill’s exact definitions and any fiscal notes or estimated revenue impacts once the full text or fiscal analysis is available.