Bill > HR6272

This bill proposes an amendment to the Internal Revenue Code that would allow parents to use 529 college savings accounts to pay for child care expenses for children under 5 years old. Specifically, the bill expands the definition of "qualified higher education expenses" in Section 529 to include payments for qualified child care services. Qualified child care is defined as care provided by a licensed, regulated, or registered child care center or provider who is not a relative of the children receiving care, and who provides services on a regular basis for compensation. The amendment would take effect immediately after the bill's enactment, meaning parents could start using their existing 529 accounts to cover child care costs for young children. This change aims to provide families with more financial flexibility in managing early childhood education expenses by allowing them to use tax-advantaged college savings accounts for pre-school childcare, potentially reducing the financial burden of early childhood care.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6272/all-info