This bill raises the cap on how much money you can take out of a 529 college savings plan for qualified higher education costs. In plain terms, it would let families withdraw more from their 529 accounts to pay for things like tuition, fees, and other eligible school expenses, without extra taxes or penalties on those withdrawals .

If passed, the change would start for tax years beginning after December 31, 2025. That means most people would see the new, higher limit for the 2026 tax year and beyond .

• Who is affected: Families and students using 529 college savings plans
• What changes: The maximum amount you can take out for qualified higher education expenses goes up
• When it starts: For tax years after December 31, 2025 (generally starting in 2026)