1. Short title This Act may be cited as the Workforce Development Through Post-Graduation Scholarships Act of 2023 . 2. Post-graduation scholarship grants excluded from gross income in same manner as qualified scholarships (a) In general Section 117(a) of the Internal Revenue Code of 1986 is amended— (1) by striking the period at the end and inserting , or , (2) by striking any amount received and inserting the following: any amount which— (1) is received , and (3) by adding at the end the following new paragraph: (2) is received as a post-graduation scholarship grant paid on behalf of an individual. . (b) Post-Graduation scholarship grant Section 117(b) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: (2) Post-graduation scholarship grant (A) In general The term post-graduation scholarship grant means any grant program— (i) which is established by an organization which— (I) is described in section 501(c)(3) and exempt from tax under section 501(a), and (II) is either a private foundation or community trust described in section 170(b)(1)(A)(vi) (other than an organization established by an organization described in section 170(b)(1)(A)(ii) or an organization described in section 170(b)(1)(A)(iii) the principal purpose or function of which is the provision of medical education), (ii) under which, in accordance with the conditions of a grant, such organization repays any portion of an applicable education loan incurred by an individual, (iii) which requires a grantee to live and work in an applicable community, (iv) under which payments are made directly to the holder of the loan, and (v) which is not provided to an employee of the granting organization or a related entity of the granting organization. (B) Applicable education loan For purposes of subparagraph (A), the term applicable education loan means, with respect to any individual, a qualified education loan (as defined in section 221(d)(1))