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New Rules for Using 529 Accounts for K-12 Education

This bill allows parents to use funds from 529 savings accounts, previously mainly for college, to cover educational expenses for children from kindergarten through 12th grade. This includes tuition, educational materials, and even some therapies and extracurricular classes, offering more flexibility in funding education across various school types, including homeschooling.
Key points
Allows using 529 funds for tuition at elementary and secondary schools (public, private, religious).
529 funds can cover educational materials, books, and online resources.
Covers costs for tutoring (under specific conditions) and college admission exam fees.
Funds educational therapies for students with disabilities (e.g., speech, occupational therapy).
New rules also apply to expenses related to homeschooling.
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Additional Information
Student Empowerment Act
Print number: S 44
Sponsor: Sen. Cruz, Ted [R-TX]
Process start date: 2021-01-26