WASHINGTON, D.C. – Parents can now cover additional educational expenses for their kids, including tutoring, standardized test prep, and assistance for children with disabilities, using tax-advantaged 529 savings accounts. Thanks to The One, Big, Beautiful Bill, these accounts are no longer just for the cost of a four-year college degree. The new policies passed by Congressional Republicans and signed into law by President Trump also allow Americans to pay for vocational training, professional licensing, and professional development using a 529 account.
“Expanded 529 accounts and scholarship funds for low-income families from President Trump’s working-class tax cuts will be a game changer for parents trying to give their children a better future. It’s not just K-12 students who get help pursuing their future. Finally, an individual learning a blue-collar trade to get a good paying job will enjoy the same tax treatment for their educational expenses as the four-year college student,” said Ways and Means Committee Chairman Jason Smith (MO-08). “President Trump kept his promise to fight for the future of working people.”
In addition to expanded 529 accounts, The One, Big, Beautiful Bill provides other assistance to help families take control of their children’s education. New provisions in the tax code will generate billions of dollars in private charitable donations to fund scholarships for use in K-12 education and will allow millions of low-income students across America to use the scholarships to attend schools and pay for expenses that best meet their educational needs, as determined by their parents. The law also permanently incentivizes work and extends policies that help employers repay employee’s student loans.
Families will also benefit from a permanent $2,200 Child Tax Credit, permanency of the doubled standard deduction, Trump savings accounts for newborn children, and expanded help with child care and health care costs, included in the law.
Factsheet: The One, Big, Beautiful Bill Puts American Workers First