H.R.939 - Student Empowerment Act (119th Congress)
Summary
H.R. 939, the Student Empowerment Act, proposes amending the Internal Revenue Code of 1986 to allow 529 savings accounts to cover kindergarten through grade 12 educational expenses. This includes tuition, curriculum, materials, online resources, tutoring, standardized tests, dual enrollment fees, and educational therapies, even for homeschool expenses. The bill aims to expand the use of 529 accounts for a broader range of educational needs at the elementary and secondary levels.
Expected Effects
The bill's enactment would broaden the permitted uses of 529 savings accounts. Families could use these funds for K-12 educational expenses, potentially reducing their out-of-pocket costs. This could incentivize more families to invest in 529 plans and provide greater flexibility in educational choices.
Potential Benefits
- Increased parental choice in education.
- Potential for improved educational outcomes due to increased resources.
- Tax advantages for families saving for education.
- Support for homeschooling families.
- Greater access to educational therapies for students with disabilities.
Potential Disadvantages
- Potential strain on state tax revenues if 529 plans are state-sponsored and offer tax deductions.
- May disproportionately benefit higher-income families who can afford to contribute to 529 plans.
- Could lead to a decrease in funding for public schools if more families opt for private education.
- Complexity in administering and verifying eligible expenses.
- Potential for misuse of funds if oversight is inadequate.
Constitutional Alignment
The bill's alignment with the US Constitution is primarily related to the power of Congress to tax and spend for the general welfare (Article I, Section 8). The expansion of 529 accounts to cover K-12 expenses falls under this power, as it aims to promote education. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).