This bill would expand what parents and students can use 529 college savings plans for by adding transportation and parking expenses to the list of qualified expenses. Currently, 529 plans allow tax-free withdrawals for tuition, fees, room and board, and certain other education-related costs, but transportation has not been included. Under this legislation, families could use 529 plan funds for reasonable transportation costs, including parking, up to the amount that the student's school includes in its cost of attendance calculations. The bill also extends this benefit to students participating in apprenticeship programs, allowing them to withdraw 529 funds for their transportation expenses as well. The changes would take effect immediately upon the bill's enactment, with no specific funding required since this is a tax code amendment that redirects existing 529 plan balances rather than creating new government spending.
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