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Tax relief: 529 plans can now cover child care expenses for young children.

This law allows families to use funds saved in 529 education savings accounts, traditionally meant for college, to cover child care expenses for children under the age of five. Withdrawals from these plans for qualified early child care will be exempt from federal income tax. This change aims to significantly reduce the financial burden of early education and child care for families.
Key points
Funds from 529 savings plans can now be used tax-free to pay for qualified child care services for children up to 5 years old.
Qualified child care must be provided by licensed, regulated, or registered providers, excluding individuals related to all children receiving care.
The changes apply to expenses paid or incurred after the law is enacted, providing immediate financial relief.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6272
Sponsor: Rep. McDonald Rivet, Kristen [D-MI-8]
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Early Education Savings Program Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6272.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

What are the main provisions?

Key points include:

  • Funds from 529 savings plans can now be used tax-free to pay for qualified child care services for children up to 5 years old.
  • Qualified child care must be provided by licensed, regulated, or registered providers, excluding individuals related to all children receiving care.
  • The changes apply to expenses paid or incurred after the law is enacted, providing immediate financial relief.
What is the specific legal status?

The current status is Introduced.

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. McDonald Rivet, Kristen [D-MI-8].

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 2025-12-23.

CATEGORIES

Taxes Family Education