Summary

Makes reasonable transportation costs, including parking, an allowed use of 529 college savings plans when the expenses are for attending an eligible college or for qualified apprenticeships. Reimbursements are limited to the transportation allowance that the school lists in its official cost of attendance. The change applies to 529 plan distributions made after the law takes effect.

• Allows reasonable transportation and parking expenses to be paid from 529 plans for attendance at eligible colleges and for qualified apprenticeships.
• Reimbursements are capped at the transportation allowance listed in the institution’s cost of attendance under federal student aid law as of the enactment date.
• Apprenticeship programs that qualify under existing 529 rules are explicitly included.
• Change applies only to distributions made after the law takes effect.
• Requires 529 plan administrators to implement verification and documentation procedures tied to institutional cost‑of‑attendance figures.
• Reduces the risk of tax penalties for families who use 529 funds for commuting and parking within the allowed cap.
• Shifts some practical reliance to schools’ stated cost‑of‑attendance transportation allowances.
• Does not change other qualified expense rules for 529 plans or alter noneducation uses of 529 funds.
• Likely small and targeted tax code modification rather than a broad tax reform measure.