# 119-s-311: ACE Act

119-s-311, ACE Act, is a 119th Congress bill sponsored by Sen. Lee, Mike [R-UT] (R-UT); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-s-311
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-311
- Congress: 119
- Title: ACE Act
- Status: introduced
- Introduced: 2025-01-29
- Sponsor: Sen. Lee, Mike [R-UT] (R-UT)
- Cosponsors: 2
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Expands 529 plans to cover a broad set of K–12 and homeschool expenses and ties municipal bond tax breaks to state school choice rules.** The bill would raise the K–12 529 distribution cap to $20,000 and add a special increase to the annual gift tax exclusion for 529 contributions. - Families with school-age children would be able to use tax-free 529 money for curriculum, books, online instructional materials, tutoring, testing fees, dual enrollment, and homeschool tuition. The annual limit for these K–12 uses would increase from $10,000 to $20,000. - Students with disabilities and their families could use 529 funds for licensed educational therapies such as occupational, behavioral, physical, and speech-language therapy. - Savers and donors would get an added gift tax break for 529 contributions, allowing up to an extra $20,000 of exclusion for gifts made to a 529 account. - States and bond investors would face new rules. Only bonds from states that meet minimum school choice tests would keep full tax-exempt interest. A state would qualify if at least 40% of its children are eligible for choice programs and eligible children receive at least 60% of the per-child spending of non-eligible children. Bonds from nonqualifying states would have only 50% of the usual tax exemption on interest.

## Cosponsors (2)

- Sen. Budd, Ted [R-NC] (R-NC), 2025-01-29T00:00:00.000Z
- Sen. Schmitt, Eric [R-MO] (R-MO), 2025-02-12T00:00:00.000Z

## Provisions PRIA read

- More 529 help for families: benefit, high. This bill would let families use more 529 money for K–12 and higher education. You would be able to withdraw for many elementary and secondary expenses, including tuition, curriculum, books, online materials, dual-enrollment fees, test fees, certain tutoring, and specified therapies. Homeschool exp…
- New limits on tax-free municipal bonds: cost, high. This bill would limit the federal tax exemption for interest on new state and local bonds unless the State meets new school choice tests. A "minimum school choice State" would need school choice programs, at least 40% of children eligible for a program, and eligible children to receive at least 60%…

## Related bills

- 119-s-4952: Protecting American Taxpayers Act
- 119-s-3752: SAVE America Act
- 119-s-2907: Chloe Cole Act
- 119-s-1162: SHORT Act
- 119-s-4429: Connected Vehicle Security Act of 2026
- 119-s-382: Dismantle DEI Act of 2025

## Sources
- [119-s-311 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/311)

## Related
- [119-s-4952: Protecting American Taxpayers Act](https://policyrisk.com/legislation/119-s-4952)
- [119-s-3752: SAVE America Act](https://policyrisk.com/legislation/119-s-3752)
- [119-s-2907: Chloe Cole Act](https://policyrisk.com/legislation/119-s-2907)
- [119-s-1162: SHORT Act](https://policyrisk.com/legislation/119-s-1162)
- [119-s-4429: Connected Vehicle Security Act of 2026](https://policyrisk.com/legislation/119-s-4429)
- [119-s-382: Dismantle DEI Act of 2025](https://policyrisk.com/legislation/119-s-382)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-311 (as of 2025-12-21).