Bill > S3520

This bill, the Achieving Choice in Education (ACE) Act, aims to provide incentives and support for education. The key provisions are: 1. Expanding the definition of "qualified higher education expenses" under Section 529 college savings plans to include expenses for elementary and secondary education, such as tuition, curriculum materials, tutoring, standardized tests, and educational therapies. This allows 529 account holders to use those funds for a wider range of K-12 educational expenses. 2. Increasing the annual limit on 529 plan distributions for elementary and secondary school expenses from $10,000 to $20,000. 3. Allowing an additional $20,000 gift tax exclusion for contributions made to 529 plans. 4. Restricting the tax-exempt status of state and local bonds to only those states that have implemented school choice programs, such as tax credit scholarships, vouchers, and education savings accounts, and meet certain eligibility and funding requirements. This is intended to incentivize states to adopt more school choice policies.

Budget and Finance

https://www.congress.gov/bill/118th-congress/senate-bill/3520/all-info