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Education Funds Follow Student: Support for Low-Income Families

This act aims to redirect federal education funds directly to students, especially those from lower-income households. Parents will be able to use these funds for public, private, or home school education, providing greater flexibility in choosing their children's educational path. The changes also expand the use of 529 savings accounts for a broader range of educational expenses.
Key points
Federal education funds will be allocated directly to the student, not just to public schools.
Families with incomes up to 130% of the poverty level can apply for financial support for their child's education.
Funds can be used for tuition, educational materials, tutoring, and therapies for children with disabilities, in public, private, or home schools.
Increased financial support for children in areas with higher poverty rates.
Introduces a higher penalty for using 529 account funds for non-educational purposes if they originate from these federal grants.
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Additional Information
Print number: 117_S_1757
Sponsor: Sen. Lee, Mike [R-UT]
Process start date: 2021-05-20