Children Have Opportunities in Classrooms Everywhere Act This bill allows tax-exempt distributions from qualified tuition programs (known as 529 plans) to be used for additional educational expenses in connection with elementary or secondary school. The bill also allows certain federal funds for elementary and secondary education to follow a student from a low-income household to the public school that the student attends or for tax-exempt educational expenses. Under current law, tax-exempt distributions in connection with elementary or secondary school are limited to tuition for a public, private, or religious school. The bill allows these distributions to be used additionally for curriculum and curricular materials, books or other instructional materials, online educational materials, tutoring or educational classes outside the home, testing fees, fees for dual enrollment in an institution of higher education, and educational therapies for students with disabilities. Distributions may also be used for tuition and the purposes above in connection with a home school (whether treated as a home school or a private school under state law). In addition, the bill directs state educational agencies to allocate grant funds to ensure the funding follows students to their public school or for other tax-exempt educational expenses outlined by the bill. Each state that carries out these allocations must establish a plan that allows the parent of an eligible child to apply for grant funds.
Should this legislation pass, it would significantly alter the landscape of educational funding by allowing federal education funds to 'follow the student'. This means that disadvantaged students would have greater access to educational resources regardless of whether they attend public or private schools or are educated at home. Additionally, it would aim to alleviate financial burdens on families and support educational opportunities for children from underprivileged backgrounds, particularly those who qualify for aid based on their household income, thus promoting equity in education access.
House Bill 463, titled the Children Have Opportunities in Classrooms Everywhere Act, is designed to enhance educational funding flexibility by permitting tax-exempt distributions from 529 plans to cover a wider range of educational expenses for students in elementary and secondary schools. The bill empowers families to allocate these funds for not only tuition but also for various educational services including tutoring, online resources, educational materials, and even educational therapies for children with disabilities. This expansion aims to make educational funds more accessible and usable for families, particularly those from low-income households.
While the bill addresses vital educational funding needs, it may face opposition regarding the allocation and oversight of public funds towards private education and homeschooling. Critics may argue that the provision allowing funds to follow the student could divert essential resources from public schools, potentially jeopardizing their funding. Furthermore, there are concerns about ensuring that educational standards remain consistent and equitable across different educational modalities, raising questions about accountability for how the funds are utilized.