To amend the Internal Revenue Code of 1986 to repeal the provision terminating the exclusion for benefits under educational assistance programs and to repeal the provision limiting such exclusion to benefits for undergraduate education.

Repeals provisions of the Internal Revenue Code that: (1) terminate the income tax exclusion of amounts paid under employee educational assistance programs after tax year 1991; and (2) deny benefits in connection with graduate work. Limits graduate benefits to $1,500 per year.