S. 5566 — Public Service Educational Assistance Act

This section establishes the Public Service Educational Assistance Program to provide educational assistance to eligible dependents of public service employees. The assistance covers the full cost of tuition, fees, and course materials for up to 4 academic years at a postsecondary institution in a state where the dependent qualifies for in-state tuition.

This section permits dependents to receive educational assistance under the Act concurrently with other Federal student aid under title IV of the Higher Education Act of 1965 and with other postsecondary education benefits under Federal, State, and local law. It excludes the assistance from consideration as wages or compensation when determining eligibility for or the amount of retirement, employment-related, or means-tested public benefits, and exempts the assistance from federal taxation.

This section defines terms used in the Act, including "public service employee" as a full-time first responder, educator or teacher, or social worker; "eligible dependent" as a dependent of such an employee with at least 20 years of aggregate service who was employed on or after the date of enactment; "dependent" as under section 152 of the Internal Revenue Code with the age threshold raised to 26; and "means-tested public benefit" as federal or state cash, medical, housing, food, or social service assistance determined by income or need.