Student Empowerment Act

The Student Empowerment Act would expand what families can pay for using tax-free distributions from 529 college savings plans. Currently, these accounts allow up to $10,000 per year in tax-free withdrawals for K-12 tuition. If enacted, this bill would broaden eligible expenses to include homeschool tuition and various educational costs such as curriculum materials, books, online educational resources, tutoring, testing fees, dual enrollment fees, and educational therapies for students with disabilities.

For families using 529 plans, this change could provide greater flexibility in how they use their education savings. Rather than limiting tax-free withdrawals to tuition payments, families could apply funds toward a wider range of educational expenses at elementary, secondary, and homeschool levels. The bill is currently in committee and has not yet been voted on by the full House.