Student Empowerment Act

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

If enacted, this change would give families more flexibility in how they use their 529 savings for K-12 education. Rather than being limited primarily to tuition payments, parents could use these tax-advantaged funds for a wider range of educational expenses. This could reduce the out-of-pocket costs for families paying for educational materials and services. The bill is currently in the Senate committee stage and has not yet been voted on by the full chamber.