Archive · 25 Aug 2026
Trump Expands 529 Savings Accounts to Cover Homeschooling Costs
Donald Trump announced that families can now use 529 savings accounts to help pay for homeschooling.
These accounts were mainly used for college costs but can now support more kinds of education.
Families can withdraw up to $20,000 each year for elementary and secondary education expenses.
The money can also be used for private and religious schools.
The change came from a law signed on July 4, 2025.
The law also gives taxpayers a credit of up to $1,700 for donations to education scholarship organizations.
Supporters say the changes give parents more control over schooling choices.
The administration also announced $1,000 investment accounts for eligible newborns.
Families can now use 529 education savings accounts for homeschooling expenses.
The annual withdrawal limit for elementary and secondary education costs has doubled to $20,000.
The expansion was enacted through the One Big, Beautiful Bill Act, signed on July 4, 2025.
The law also permits 529 funds for private and religious school education.
The legislation includes a tax credit of up to $1,700 for donations supporting education scholarships.
- Who
- U.S. President Donald Trump, Education Secretary Linda McMahon, and families who use homeschooling or other educational options.
- What
- The administration expanded 529 account uses to include homeschooling and doubled the annual K-12 withdrawal limit to $20,000.
- When
- Announced Monday at a White House back-to-school event; the law authorizing the changes was signed July 4, 2025.
- Where
- The White House Rose Garden in Washington, United States.
- Why
- The administration says the changes give parents greater control over their children’s education and support schools that share their values.
- Homeschooling use
- 529 funds may be used for homeschooling expenses for the first time.
- New K-12 limit
- The annual withdrawal cap for elementary and secondary education expenses is $20,000.
- Law
- The changes were enacted through the One Big, Beautiful Bill Act.
- Law date
- Donald Trump signed the legislation on July 4, 2025.
- Other eligible schools
- The law permits 529 savings to support private and religious school education.
- Education Freedom Tax Credit
- Taxpayers may receive up to $1,700 for contributions to qualifying nonprofit scholarship organizations.
- Newborn investment accounts
- Trump said every eligible newborn would receive $1,000, alongside more than $6 billion in private commitments from Michael and Susan Dell.