The Student Empowerment Act expands 529 education savings accounts to cover a broader range of K-12 expenses, including curriculum, tutoring, standardized testing, and homeschooling costs.
Ted Cruz
Senator
TX
The Student Empowerment Act expands the use of 529 education savings accounts to cover a broader range of K-12 expenses, including curriculum, tutoring, standardized testing, and educational therapies. These expanded benefits apply to students enrolled in public, private, or religious schools, as well as those receiving a homeschool education.
Student Empowerment Act Expands 529 Savings to Cover Homeschooling and K-12 Tutoring Costs
The Student Empowerment Act aims to turn the traditional 529 education savings account into a much more versatile tool for families. While these accounts have long been the gold standard for saving for college, this bill expands their reach down to the K-12 level and into the home. It officially broadens the definition of 'qualified education expenses' to include costs for public, private, and religious school students, and for the first time, explicitly brings homeschooling under the same tax-advantaged umbrella. If you have been sitting on a 529 account and wondering how to pay for this year’s curriculum or a specialized tutor, this bill is designed to give you that answer.
Beyond the Classroom Walls
Under Section 2, the bill moves past just covering tuition. It lists a wide variety of costs that now qualify for tax-free distributions. For a family with a child in a traditional school, this means you could use 529 funds to pay for curriculum materials, books, and even online educational platforms. It also covers the high costs of standardized testing, including Advanced Placement (AP) exams and college entrance tests like the SAT or ACT. For high schoolers looking to get a head start, the bill allows these funds to cover fees for dual enrollment at colleges. Essentially, it treats the K-12 experience less like a fixed path and more like a customized journey where the funding follows the student’s specific needs.
A New Deal for Homeschoolers and Specialized Care
The most significant shift in this legislation is the explicit inclusion of homeschooling. Every benefit available to traditional students—from books to online tools—is extended to those learning at home. The bill also gets specific about tutoring: you can use your 529 to pay for outside help, provided the tutor isn't a relative and is either a licensed teacher, a former institutional educator, or a subject matter expert. Furthermore, the bill addresses a major pain point for parents of students with disabilities by allowing 529 funds to pay for licensed educational therapies, including speech-language, occupational, behavioral, and physical therapy. For a parent managing a child’s developmental needs, this provision could transform a college savings plan into a vital resource for immediate, necessary care.