This Week in Congress Update Vote on Education Savings Account Today

Colorado Senator Cory Gardner will be offering an amendment to the tax bill to extend the use of education savings accounts to pay for private school tuition. The vote could be as early as today so Campaign for Liberty members should call their Senators and tell them to vote for the Gardner amendment.

Here is a letter co-signed by Campaign for Liberty providing more background on the issue:

November 21, 2017

The Honorable Paul D. Ryan
Speaker of the U.S. House of Representatives
1233 Longworth House Office Building
Washington, D.C. 20515

The Honorable Mitch McConnell
U.S. Senate Majority Leader
317 Russell Senate Office Building
Washington, DC 20510

The Honorable Kevin Brady
Chairman, House Ways and Means CommiRee
1011 Longworth House Office Building
Washington, DC 20515

The Honorable Orrin G. Hatch
Chairman, Senate Finance CommiRee
104 Hart Senate Office Building
Washington, DC 20510

Dear Speaker Ryan, Majority Leader McConnell, Chairman Brady and Chairman Hatch:

Now that the House has passed its version of the Tax Cuts and Jobs Act, we urge both the Senate and the House to pass a final version that reflects the House proposal to expand 529 savings plans to include K-12 elementary and secondary school tuition.

Under the House proposal, families would be able to set up plans and begin saving upon pregnancy. The House proposal also allows up to $10,000 of savings per year to be used for elementary and secondary school tuition and apprenticeship program expenses.

The Senate Finance Committee recently modified its tax proposal to allow 529 savings to begin at pregnancy instead of birth, but did not include the expansion of expenses to K-12 elementary and secondary school tuition and apprenticeship program expenses.

We urge the Senate to adopt the House approach to expanding 529 savings plans, and for Congress to retain these provisions in the final passage of the Tax Cuts and Jobs Act.

Ensuring children receive an education that meets their individual needs is a central responsibility of parents. The House proposal will help parents save for an education that prepares their child for college or a career.

Presently, more than 75 percent of 529 savings plans are from families making $150,000 or less. A total of 13 million 529 savings plans have been set up, with assets totaling nearly $300 billion. The popularity of 529 savings plans demonstrates the broad interest in this form of tax-advantaged savings, including among working class and middle-income families.

For all of these reasons, we strongly urge the adoption of the House proposal to expand the use of 529 savings plans.