Sponsors (6)
The bill expands tax-advantaged §529 uses to cover K–12 tuition, tutoring, therapies, and dual-enrollment—reducing education and therapy costs for families—while creating potential federal revenue loss and shifting public support toward private schooling and imposing provider eligibility limits.
Parents and families can use §529 funds to pay K–12 tuition and related materials, lowering out-of-pocket education costs for many households.
Families can use §529 accounts to pay for tutoring and qualified educational classes, increasing access to supplemental instruction and helping students improve academic outcomes.
Families of students with disabilities can cover educational therapies (occupational, behavioral, physical, speech) with tax-advantaged §529 funds, reducing therapy costs for those children.
Broadening §529 usage could reduce future federal tax revenue, increasing budgetary pressure that may affect taxpayers or public programs.
Allowing §529 funds for private or religious K–12 tuition may effectively direct tax benefits toward families using private schools instead of supporting public school funding.
Eligibility rules for tutoring (requiring nonrelative providers and certain credentials) may restrict some families from using funds for informal or family-provided instruction.
Based on analysis of 2 sections of legislative text.
Introduced February 4, 2025 by Kevin Hern · Last progress February 4, 2025
Expands 529 plan qualified expenses to cover a set of elementary and secondary school costs for students enrolled in public, private, or religious K–12 schools. Covered items include tuition, curriculum and instructional materials, online materials, certain tutoring, fees for standardized and admissions tests, dual‑enrollment fees, and licensed educational therapies for students with disabilities; the change applies to distributions made after enactment.