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Saturday, February 22, 2025

Legislation aims to expand use of 529 plans for diverse educational expenses

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Rep. Kevin Hern, U.S. Representative for Oklahoma's 1st District | LinkedIn

Rep. Kevin Hern, U.S. Representative for Oklahoma's 1st District | LinkedIn

Rep. Kevin Hern and Sen. Ted Cruz have introduced the Student Empowerment Act, aiming to broaden the use of 529 College Savings Plans. This legislation seeks to allow families to utilize these accounts for various educational expenses, including public, private, religious, and homeschool settings.

"President Trump’s tax cuts proved the incredible potential of 529 accounts by helping millions of families invest in their children’s education," stated Rep. Hern. "Expanding 529 accounts is a transformative step forward in education, giving students and families the freedom to choose the best path for their learning needs—whether in a classroom or at home."

Sen. Cruz emphasized the significance of school choice as a pivotal issue: "School choice is the civil rights issue of the 21st century, and I’ve been honored to lead the fight for educational freedom in the Senate." He urged Congress to act promptly on this legislation.

The act has garnered support from several organizations including Parents Defending Education Action, The American Federation for Children, The Home School Legal Defense Association, The National Microschooling Center, Agudath Israel of America, Independent Women's Voice, and Heritage Action.

The proposed legislation aims to expand school choice by increasing access to 529 Education Savings Plans beyond just K-12 tuition fees. It would also cover additional educational expenses such as curriculum materials and tutoring services. Additionally, it restores provisions for homeschool families that were part of an earlier amendment.

Furthermore, under this bill students with disabilities could use these savings accounts for educational therapies tailored to their needs.

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