Sen. Ted Cruz said Wednesday the tax plan includes school choice legislation that he introduced to give parents more control over their children’s education.
“My amendment expands 529 so now you can not only save to go to college, you can also spend from your 529 plan on K-12 education expenses — for public schools, for private schools, for religious schools, for homeschooling — up to $10,000 a year,” Mr. Cruz, Texas Republican, said on Fox News.
The 529 plans allow parents to save for college and are not subject to federal tax when used for higher education expenses by the designated student or other noted beneficiaries, but Mr. Cruz’s amendment allows parents to use that money in early education as well.
“You can save in a tax advantage plan and spend $10,000 per child,” he explained.
Mr. Cruz said the amendment was voted on 50-50 margins with Vice President Mike Pence needing to step in and break the tie in favor of the amendment on Friday. The amendment is currently in the Senate’s version of the tax plan.