Bill > HR3574

This bill amends the Internal Revenue Code to expand the qualified expenses for which funds from Section 529 education savings plans can be used. Specifically, the bill allows tax-free distributions from 529 plans to cover reasonable transportation and parking expenses related to attending an eligible educational institution. These expenses would be limited to the transportation allowance included in the institution's official cost of attendance calculation, as defined by the Higher Education Act. The bill also extends this provision to transportation and parking expenses for apprenticeship programs, allowing 529 plan funds to be used for costs associated with participating in such programs. The changes would apply to distributions made after the date of the bill's enactment. Section 529 plans are tax-advantaged investment accounts designed to help families save for education expenses, and this modification provides more flexibility in how those saved funds can be used, recognizing that transportation can be a significant cost for students pursuing higher education or vocational training.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3574/all-info