ACE Act

The ACE Act (HR 750) expands 529 education savings plans to cover K-12 expenses, allowing families to use these accounts for tuition, curriculum materials, books, online learning, approved tutoring, standardized tests, and educational therapies for students with disabilities. It doubles the annual distribution limit from $10,000 to $20,000 for elementary and secondary expenses and increases gift tax exclusions for 529 contributions by up to $20,000 per year. The bill also requires states to implement school choice programs (like vouchers or education savings accounts) to qualify for tax-exempt school bonds, with specific eligibility thresholds for states. This directly affects families using 529 plans for K-12 education, homeschoolers, and states seeking tax-exempt bond funding for schools.