SHRM-Led Coalition Achieves Big Win with New Law
On July 4, a major workforce victory became law the President signed a bill passed by Congress that makes the expansion of Section 127 to cover student loan repayment permanent. Also, beginning in 2026, the full $5,250 benefit, including both tuition assistance and loan repayment, will be indexed to inflation.
SHRM co-led the national coalition that championed these changes. After years of sustained advocacy, strategic engagement with lawmakers, and coalition-building across sectors, SHRM helped drive this long-sought, bipartisan solution across the finish line.
Originally authorized on a temporary basis in 2020, employer-provided student loan repayment assistance has now become a permanent tool in the benefits portfolio. The new indexing provision ensures that the entire Section 127 benefit — whether used for tuition or loan repayment — retains its value over time, even as education and repayment costs rise.
This win gives employers long-term certainty and greater flexibility to invest in workforce development, improve financial wellness, and retain talent in a competitive labor market. For employees, it means sustained support in tackling two of the biggest barriers to career mobility: rising tuition and student debt.
SHRM’s leadership helped shape this outcome from start to finish. While we continue to advocate for an increase in the annual cap, this milestone represents a transformative shift in how employer-sponsored education benefits can meet the needs of a modern workforce.
Stay tuned for more updates as SHRM advances practical, future-focused policies for talent, business, and the economy.
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