Application FEES Act

HR 7205, the Application FEES Act, allows families to use funds from 529 college savings plans to pay college application fees. The bill amends the tax code to add "fees required to apply for admission" as an eligible expense under 529 plans, directly affecting students and families using these accounts for higher education costs. This change takes effect for distributions after the bill's enactment, making application fees tax-free when paid from 529 accounts.