S. 152Senate119th Congress (2025-2027)In Committee

Student Empowerment Act

AI-Generated Summary

Updated November 24, 2025 at 3:27 AM UTC

The Student Empowerment Act amends the Internal Revenue Code to let families use 529 college‑savings plans for K‑12 education costs. It broadens what counts as a qualified expense to include tuition, materials, tutoring, test fees, dual‑enrollment, and certain therapies, and it applies these rules to both traditional schools and homeschooling. The amendment becomes effective for 529 withdrawals made after the law’s enactment.

Key Provisions

Expands the definition of “qualified higher education expense” in the tax code to cover K‑12 costs, so families can use 529 savings for elementary and secondary school spending.
Allows 529 funds to pay for tuition, curriculum and instructional materials, books, online learning resources, and tutoring services provided by qualified, non‑related teachers or experts.
Includes fees for standardized tests (e.g., AP exams), dual‑enrollment courses at colleges, and therapeutic services (occupational, speech, physical, behavioral) for students with disabilities.
Specifies that these expanded expenses also apply to homeschooling, treating homeschool costs like private‑school expenses for tax purposes.
The changes take effect for any 529 distributions made after the law is enacted.

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 20, 2025

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SenateIntro Referral

Introduced in Senate

January 20, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

January 20, 2025

Bill Text

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Introduced in SenateIssued January 20, 2025

119th CONGRESS

1st Session

S. 152

IN THE SENATE OF THE UNITED STATES

January 20, 2025

Mr. Cruz (for himself, Mr. Lankford, Mr. Scott of South Carolina, Mr. Sheehy, Mr. Curtis, Mr. Johnson, Mr. Rounds, Mr. Schmitt, and Mr. Scott of Florida) 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.

Short title

This Act may be cited as the Student Empowerment Act.

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.