Trump expands 529 funds to cover home-schooling costs

August 25, 2026

Washington: US President Donald Trump has expanded the use of tax-advantaged 529 education savings accounts to cover home-schooling expenses, describing the move as part of a broader effort to give American parents greater control over their children’s education.

Trump announced the expansion during a back-to-school event at the White House Rose Garden on Monday. He said families could use 529 education savings accounts for home-schooling expenses for the first time, while the annual withdrawal limit for elementary and secondary education expenses has been doubled to $20,000.

529 accounts expanded for homeschooling

“And now, for the first time ever, families can also have their 529 accounts to support homeschool education,” Trump said.

The expansion was enacted through the One Big, Beautiful Bill Act, which Trump signed into law on July 4, 2025. The legislation also expanded the use of 529 savings for education at private and religious schools.

“As part of the great, big, beautiful bill, we have massively expanded 529 education saving accounts tremendously, doubling the annual withdrawal cap from K-12 expenses to $20,000 a year,” Trump said.

The President invited a home-schooling family from Jacksonville, Florida, to explain how the policy could assist parents educating their children outside traditional schools.

The father, Hubert, said he and his wife, Marina, had home-schooled their three children for about a decade. Their eldest child is entering ninth grade, their daughter sixth grade and their youngest son third grade.

Hubert said he was also home-schooled from kindergarten through Grade 12 after his parents made the decision in 1988.

“Homeschooling is something that is very personal to me,” he said, recalling his own experience.

Policy aimed at supporting parents

Hubert said home-schooling families often depend on a single income because one parent remains responsible for teaching the children.

“Being able to have the extra resources to provide them with their needs, and also the option to support our children in the way that we see fit, means the world,” he said.

Trump also linked the 529 expansion to the Education Freedom Tax Credit, another provision of the legislation. The credit allows taxpayers to receive up to $1,700 for contributions to non-profit organisations that provide scholarships for education-related services.

The scholarships can cover tuition, books and other basic educational expenses at public, private or religious elementary and secondary schools.

“We want every parent to have the power to send their child to a high quality school that shares their values,” Trump said.

Education Secretary Linda McMahon said the administration’s policies were intended to restore parents as the primary decision-makers in their children’s lives.

“Children belong to their parents, not the federal government,” McMahon said.

Trump highlights new child investment accounts

Trump also highlighted newly created investment accounts for children. He said every eligible newborn would receive $1,000 and cited more than $6 billion in private commitments from Michael and Susan Dell.

The 529 plans are state-sponsored savings programmes that provide tax advantages when funds are used for qualified education expenses. Originally associated mainly with college costs, their permitted uses have gradually expanded to include certain elementary and secondary school expenses as well as some forms of training.