H.R. 6272, the Early Education Savings Program Act, expands the types of expenses that can be paid using 529 education savings plans—tax-advantaged accounts traditionally reserved for college costs. The bill allows parents to use funds from these accounts to cover qualified child care expenses for children under age 5, but only from licensed, regulated, or state-registered providers that are not related to the children. This change affects families who save for education and early childhood expenses, as it provides tax benefits for a broader range of education-related costs. The bill takes effect for expenses paid or incurred after it becomes law, with no specific funding amount mentioned since it operates through existing 529 accounts. The legislation aims to help families manage the rising costs of early childhood care while using existing tax-advantaged savings vehicles.
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