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Increased Financial Support for Education and School Choice

This act expands the use of 529 savings accounts for education, including elementary, secondary, and homeschooling expenses. It increases the withdrawal limit from these accounts and introduces new gift tax exclusions for contributions. Additionally, the act links access to tax-exempt state bonds with the implementation of school choice programs.
Key points
More 529 funds for K-12 and homeschooling: You can now use funds for tuition, materials, tutoring, and therapies for students with disabilities.
Higher withdrawal limit from 529 plans: The annual limit for K-12 expenses from 529 plans increases from $10,000 to $20,000.
New gift tax exclusions for 529 contributions: You can contribute more to education savings accounts without incurring gift tax.
Support for school choice programs: States implementing school choice programs (e.g., vouchers, tax credits) will have easier access to favorable bonds, potentially encouraging more such programs.
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Expired
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Additional Information
Print number: 118_HR_6795
Sponsor: Rep. Burlison, Eric [R-MO-7]
Process start date: 2023-12-14
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

ACE Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_6795.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-12-14.

What are the main provisions?

Key points include:

  • More 529 funds for K-12 and homeschooling: You can now use funds for tuition, materials, tutoring, and therapies for students with disabilities.
  • Higher withdrawal limit from 529 plans: The annual limit for K-12 expenses from 529 plans increases from $10,000 to $20,000.
  • New gift tax exclusions for 529 contributions: You can contribute more to education savings accounts without incurring gift tax.
  • Support for school choice programs: States implementing school choice programs (e.g., vouchers, tax credits) will have easier access to favorable bonds, potentially encouraging more such programs.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Burlison, Eric [R-MO-7].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Education Taxes