A bill to amend the Internal Revenue Code of 1986 to make permanent the exclusion from gross income for educational assistance furnished under certain educational assistance programs, to exclude graduate students from the annual limitation on such exclusion, and for other purposes.

Amends the Internal Revenue Code to restore the permitted exclusion from the gross income of an employee of up to $5,250 of educational assistance provided under an employer's educational assistance program. (Under current law the exclusion expired as of January 1, 1988.) Applies no maximum with respect to graduate students who are teaching or doing research for certain educational organizations.