To amend the Internal Revenue Code of 1986 to clarify the treatment of educational grants by private foundations, and for other purposes.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to exempt a private foundation making an employer-related grant from the excise tax on taxable expenditures when an individual scholarship or fellowship grant made by such a foundation is made on an objective and nondiscriminatory basis and is made pursuant to a qualified employer-related grant program.…