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Increased Financial Support for Education and School Choice

This act aims to ease the financial burden of education by expanding the uses of 529 savings accounts. It increases the amounts that can be used for elementary and secondary school expenses, including homeschooling. Additionally, it incentivizes states that support school choice programs, potentially broadening educational options for families.
Key points
Expanded 529 account uses: Funds from these accounts can now cover a wider range of elementary and secondary education expenses, including tuition, curriculum materials, tutoring (from licensed teachers or experts), standardized tests, and therapies for students with disabilities. This also applies to homeschooling.
Increased 529 plan distribution limit: The annual limit for elementary and secondary school expenses from 529 plans will increase from $10,000 to $20,000, offering greater flexibility in covering education costs.
Gift tax exclusion changes: Contributions to 529 plans may be excluded from gift tax up to $20,000 annually, making it easier for families and others to support children's education.
Incentives for school choice states: States implementing school choice programs (e.g., vouchers, private education tax credits) will receive preferential tax-exempt bond treatment, encouraging more diverse educational options.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_311
Sponsor: Sen. Lee, Mike [R-UT]
Process start date: 2025-01-29
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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 119_S_311.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-01-29.

What are the main provisions?

Key points include:

  • Expanded 529 account uses: Funds from these accounts can now cover a wider range of elementary and secondary education expenses, including tuition, curriculum materials, tutoring (from licensed teachers or experts), standardized tests, and therapies for students with disabilities. This also applies to homeschooling.
  • Increased 529 plan distribution limit: The annual limit for elementary and secondary school expenses from 529 plans will increase from $10,000 to $20,000, offering greater flexibility in covering education costs.
  • Gift tax exclusion changes: Contributions to 529 plans may be excluded from gift tax up to $20,000 annually, making it easier for families and others to support children's education.
  • Incentives for school choice states: States implementing school choice programs (e.g., vouchers, private education tax credits) will receive preferential tax-exempt bond treatment, encouraging more diverse educational options.
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 Sen. Lee, Mike [R-UT].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

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