The main purpose of the Tax-Free Pell Grant Act is to make Pell Grants more beneficial for students by ensuring that these grants are not counted as taxable income. This change aims to ease the financial burden on students who rely on these grants to pay for their education. Key provisions of the Act include expanding the exclusion of Pell Grants from gross income under the Internal Revenue Code. This means that students who receive Pell Grants will not have to report these funds as income on their tax returns, provided they use the money for qualified educational expenses.