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Increased Financial Support for Education and School Choice

This act expands the use of 529 savings accounts for a wider range of educational expenses, including homeschooling and private schools. It also increases contribution limits and introduces tax benefits, aiming to help families finance their children's education. Additionally, the act links states' access to preferential bonds with the implementation of school choice programs.
Key points
Expanded 529 Account Usage: Funds from these accounts can be used for tuition, educational materials, tutoring (from licensed teachers), standardized tests, dual enrollment, and therapies for students with disabilities, applicable to public, private, religious, and homeschool settings.
Increased Contribution Limits and Tax Benefits: The annual withdrawal limit from 529 accounts for elementary and secondary school expenses will increase from $10,000 to $20,000. Additionally, contributions to 529 plans can be excluded from gift tax up to $20,000 annually.
Support for School Choice Programs: States that implement school choice programs (e.g., education vouchers, private education tax credits) will have preferential access to tax-exempt bonds. States without such programs or with limited programs may lose part or all of the interest tax exemption on their bonds.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_750
Sponsor: Rep. Burlison, Eric [R-MO-7]
Process start date: 2025-01-28
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
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 119_HR_750.

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 2025-01-28.

What are the main provisions?

Key points include:

  • Expanded 529 Account Usage: Funds from these accounts can be used for tuition, educational materials, tutoring (from licensed teachers), standardized tests, dual enrollment, and therapies for students with disabilities, applicable to public, private, religious, and homeschool settings.
  • Increased Contribution Limits and Tax Benefits: The annual withdrawal limit from 529 accounts for elementary and secondary school expenses will increase from $10,000 to $20,000. Additionally, contributions to 529 plans can be excluded from gift tax up to $20,000 annually.
  • Support for School Choice Programs: States that implement school choice programs (e.g., education vouchers, private education tax credits) will have preferential access to tax-exempt bonds. States without such programs or with limited programs may lose part or all of the interest tax exemption on their bonds.
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. 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 2025-12-23.

CATEGORIES

Education Taxes Family