US SB2785

Extends non-competitive eligibility for federal civilian jobs to 3 years after Peace Corps or AmeriCorps service completion, and expands Peace Corps eligibility to lawful permanent residents, refugees, and asylees

Increases Peace Corps readjustment allowance from $125 to $425 per month of service (adjustable for inflation) and makes it tax-exempt; provides former Peace Corps volunteers 1 year of VA healthcare access after service

Requires minimum 500,000 AmeriCorps positions and sets living allowance at no less than 200% of the federal poverty line; doubles the Segal AmeriCorps Education Award and expands its use to include post-secondary credentials

Suspends federal student loan payments and interest accrual during Peace Corps or AmeriCorps service, with suspended months counting toward loan forgiveness and rehabilitation programs

Excludes AmeriCorps education awards and living allowances from federal income tax, and adds full-time national service to qualifying employment for Public Service Loan Forgiveness