S.152 - Student Empowerment Act (119th Congress)
Summary
The Student Empowerment Act (S.152) 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, instructional 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 to a broader range of educational costs at the elementary and secondary levels.
Expected Effects
If enacted, this bill would broaden the scope of qualified expenses for 529 accounts, allowing families to use these funds for K-12 education. This could lead to increased parental choice in education and potentially alleviate some financial burden associated with private schooling or homeschooling. The change would apply to distributions made after the enactment date.
Potential Benefits
- Increased Parental Choice: Families gain more flexibility in using 529 savings for various educational options.
- Financial Relief: Eases the financial burden of private schooling, homeschooling, and related educational expenses.
- Support for Diverse Learning Needs: Covers expenses like tutoring and educational therapies, benefiting students with specific learning requirements.
- Expanded Educational Resources: Allows for the purchase of curriculum, materials, and online resources.
- Homeschooling Support: Explicitly includes homeschool expenses, acknowledging the growing popularity of this educational approach.
Potential Disadvantages
- Potential Strain on 529 Funds: Using funds for K-12 could reduce the amount available for higher education.
- Tax Implications: May disproportionately benefit higher-income families who can afford to save in 529 accounts.
- Equity Concerns: Could exacerbate disparities in educational opportunities if lower-income families cannot access or contribute to 529 plans.
- Reduced State Revenue: States may see reduced tax revenue if 529 plans become more widely used for K-12 expenses.
- Oversight Challenges: Ensuring proper use of funds for qualified educational expenses may pose administrative challenges.
Constitutional Alignment
This bill's alignment with the US Constitution is primarily related to the concept of promoting the general welfare, as stated in the Preamble. By expanding educational opportunities through financial means, the bill could be argued to support this constitutional goal. However, there is no direct constitutional provision mandating federal support for education at the K-12 level, leaving it largely to state and local control. The First Amendment's Establishment Clause could be relevant if funds are used at religious schools, but the bill appears neutral by including public, private, and religious schools.
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).