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119-s-152119th CongressWALLET

Student Empowerment Act

Sponsored By: Senator Cruz, Ted [R-TX]

Introduced

Summary

Would let people use 529 plan money tax-free for a much wider set of K–12 and homeschool education costs. It would add curriculum, books, online materials, tutoring under rules, testing fees, dual-enrollment charges, and licensed educational therapies to the list of qualifying 529 expenses.

Show full summary
  • Families with school-age children would be able to pay for curriculum, textbooks, online class subscriptions, and testing fees with tax-free 529 distributions, not just tuition. Current law already allows up to $10,000 per year for K–12 tuition, and this bill broadens what counts beyond that cap.
  • Homeschooling households would gain the same 529 access for homeschool curriculum, materials, online resources, tutoring, testing, and other listed costs.
  • Students with disabilities would be able to use 529 funds for educational therapies like occupational, behavioral, physical, and speech-language therapy when provided by a licensed or accredited practitioner.
  • Tutors and tutoring centers could be paid with 529 money when the tutor is not related to the student and is a licensed teacher, has taught at an eligible school, or is a subject-matter expert.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Use 529 savings for K-12 costs

If enacted, you could use money from a 529 education savings plan to pay certain K-12 costs. Covered costs would include tuition, curriculum, books, and online materials. Tutoring outside the home is covered only if the tutor is not related. The tutor must be licensed, have taught at an eligible school, or be a subject expert. It would also cover fees for standardized achievement tests, Advanced Placement exams, and college-admission exams. Dual enrollment fees and licensed educational therapies for students with disabilities would be covered. This would apply to public, private, and religious schools and to homeschools. It would apply to distributions made after the date of enactment.

Sponsors & CoSponsors

Sponsor

Cruz, Ted [R-TX]

TX • R

Cosponsors

  • Sen. Lankford, James [R-OK]

    OK • R

    Sponsored 1/20/2025

  • Sen. Scott, Tim [R-SC]

    SC • R

    Sponsored 1/20/2025

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 1/20/2025

  • Sen. Curtis, John R. [R-UT]

    UT • R

    Sponsored 1/20/2025

  • Sen. Johnson, Ron [R-WI]

    WI • R

    Sponsored 1/20/2025

  • Sen. Rounds, Mike [R-SD]

    SD • R

    Sponsored 1/20/2025

  • Sen. Schmitt, Eric [R-MO]

    MO • R

    Sponsored 1/20/2025

  • Sen. Scott, Rick [R-FL]

    FL • R

    Sponsored 1/20/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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