Education Funds Follow the Student: Expanding School Choice for Low-Income Families.
This bill redirects federal education grants (like Title I funds) to follow eligible low-income students (up to 130% of the poverty level). Parents can choose to direct these funds to a public school or deposit them into a 529 savings account for private school or home-schooling expenses. The law significantly broadens the use of 529 accounts to cover K-12 tuition, curriculum, tutoring, and educational therapies.
Key points
Federal education funding is allocated directly to the student, allowing low-income families to use the money for public, private, or home-school education.
The definition of qualified 529 expenses is expanded to include K-12 tuition, curriculum, tutoring, standardized test fees, and educational therapies for students with disabilities.
Grants deposited into 529 accounts, if misused for non-educational purposes, will be subject to a severe 100% penalty tax.
Eligibility is limited to children from households with taxable income not exceeding 130% of the federal poverty level.
Expired
Additional Information
Print number: 118_S_105
Sponsor: Sen. Lee, Mike [R-UT]
Process start date: 2023-01-26