S. 57 – Student Empowerment Act

AI-Generated Summary

Updated January 20, 2026 at 2:23 AM UTC

The Student Empowerment Act changes the tax code so that money in a 529 college‑savings plan can be used for K‑12 education costs. It expands the definition of “qualified higher education expense” to cover a range of elementary and secondary school expenses, including for public, private, religious, and homeschool settings. The change affects families, students, and educators who use 529 accounts to pay for school‑related costs.

Key Provisions

Amends Section 529(c)(7) of the Internal Revenue Code to treat K‑12 tuition, curriculum, books, online materials, tutoring (by licensed, non‑related teachers or qualified experts), standardized test fees, dual‑enrollment fees, and educational therapies for students with disabilities as qualified expenses.
Specifies that these expenses also apply to homeschool programs, whether treated as homeschool or private schools under state law.
Effective for any 529 plan distributions made after the law’s enactment.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

January 24, 2023

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SenateIntro Referral

Introduced in Senate

January 24, 2023

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

January 24, 2023

Bill Text

Latest available legislative text

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Introduced in SenateIssued January 24, 2023

II

118th CONGRESS

1st Session

S. 57

IN THE SENATE OF THE UNITED STATES

January 24 (legislative day, January 3), 2023

Mr. Cruz (for himself, Mr. Lee, Mr. Scott of Florida, Mr. Johnson, Mr. Lankford, and Mr. Scott of South Carolina) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to permit kindergarten through grade 12 educational expenses to be paid from a 529 account.

1.

Short title

This Act may be cited as the Student Empowerment Act.

2.

529 account funding for homeschool and additional elementary and secondary expenses

(a)

In general

Section 529(c)(7) of the Internal Revenue Code of 1986 is amended to read as follows:

(7)

Treatment of elementary and secondary tuition

Any reference in this section to the term qualified higher education expense shall include a reference to the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school:

(A)

Tuition.

(B)

Curriculum and curricular materials.

(C)

Books or other instructional materials.

(D)

Online educational materials.

(E)

Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and—

(i)

is licensed as a teacher in any State,

(ii)

has taught at an eligible educational institution, or

(iii)

is a subject matter expert in the relevant subject.

(F)

Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission.

(G)

Fees for dual enrollment in an institution of higher education.

(H)

Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.

Such term shall include expenses for the purposes described in subparagraphs (A) through (H) in connection with a homeschool (whether treated as a homeschool or a private school for purposes of applicable State law).

.

(b)

Effective date

The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.