This bill expands 529 education savings plan eligible expenses to include homeschool tuition and various K-12 educational costs. Newly covered expenses include curriculum materials, instructional books, online learning, tutoring, testing fees, dual enrollment, and educational therapies for students with disabilities. This extends tax-advantaged savings beyond the current 10,000 dollar K-12 tuition limit to cover broader educational expenses.
Latest Action
Read twice and referred to the Committee on Finance.
AI Summary
Plain-English explanation of this bill
This bill expands 529 education savings plan eligible expenses to include homeschool tuition and various K-12 educational costs. Newly covered expenses include curriculum materials, instructional books, online learning, tutoring, testing fees, dual enrollment, and educational therapies for students with disabilities. This extends tax-advantaged savings beyond the current 10,000 dollar K-12 tuition limit to cover broader educational expenses.
Last updated: 1/4/2026
Official Summary
Congressional Research Service summary
<p><strong>Student Empowerment Act</strong></p><p>This bill expands the education-related expenses that may be paid for with tax-free distributions from a qualified tuition program (also known as a 529 plan) to include certain expenses related to elementary, secondary, and homeschool education.</p><p>Under current law, distributions from a 529 plan are excluded from gross income if they are used to pay for qualified higher education expenses, which includes up to $10,000 (per year and per beneficiary) for tuition at an elementary or secondary public, private, or religious school.</p><p>The bill expands the education-related expenses that may be paid for with tax-free distributions from a 529 plan to include tuition related to homeschooling and the following expenses related to elementary, secondary, and homeschool education:</p><ul><li>curriculum and curricular materials,</li><li>books or other instructional materials,</li><li>online educational materials,</li><li>tutoring or educational classes outside the home,</li><li>testing fees,</li><li>fees for dual enrollment in an institution of higher education, and</li><li>educational therapies for students with disabilities.</li></ul>
Key Points
Main provisions of the bill
Expands 529 plan eligible expenses for K-12 education
Covers homeschool tuition and curriculum materials
Includes tutoring, testing fees, and online materials
Allows dual enrollment college course payments
Adds educational therapies for students with disabilities
How This Impacts Americans
Potential effects on citizens and communities
This legislation significantly expands school choice by enabling tax-advantaged funds for diverse educational expenses. Homeschool families gain access to 529 benefits previously limited to traditional schools. The expanded categories recognize modern educational costs beyond basic tuition. Critics argue it further subsidizes alternatives to public education while reducing potential tax revenue.
Policy Areas
Primary Policy Area
Taxation
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
152, 119th Congress (2025). "Student Empowerment Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-152
