Rep. Jason Smith and Sen. Cruz Seek To Help Families Save for Education Expenses
Congressman Jason Smith (MO-08) and Senator Ted Cruz (TX) introduced the Student Empowerment Act, which would expand the use of tax-free 529 College Savings Plans to allow families to save for K-12 education expenses.
Eligible expenses would include tuition, books and instructional materials, tutoring expenses, fees for exams related to college admissions, and educational therapy for students with disabilities.
"Empowering students and working families is vital to the growth and success of our Country. The Student Empowerment Act will help working families afford everyday K-12 education expenses and plan for their children's future," said Congressman Smith. "Parents know better than Washington bureaucrats about what's right for their children, and this legislation will allow families to save for the unexpected expenses that come with raising a family. I thank Senator Cruz for partnering with me on this important issue."
Additionally, the Student Empowerment Act would allow all families to use tax-free 529 savings accounts, regardless of where their children receive their education. It would change current law, which does not permit families to use 529 savings accounts for homeschool expenses.
"This National School Choice Week, I am proud to reintroduce this legislation to champion school choice by expanding access to 529 savings accounts," said Senator Cruz. "Far too many students have had to navigate the enormous challenges of distance learning during the Covid-19 pandemic and sadly, many students are being left behind. By empowering our students and families with educational freedom, we can usher in a new era of opportunity in education and a brighter future for our children."
Similar legislation authored by Congressman Smith and Senator Cruz passed out of the U.S. House last Congress, but unfortunately was not taken up by the United States Senate.