By Anya Kamenetz and Cory Turner
The House and Senate are working to reconcile their versions of a tax plan, but one thing is certain: Big changes are ahead for the nation’s schools and colleges.
Let’s start with K-12. There, Republicans from both sides of Congress generally agree on two big changes.
Saving for private school
Taxpayers can currently save money for college through a 529 plan, where earnings grow tax-free. Many states also offer deductions for contributions. In the proposals, Republicans want to let taxpayers use 529s to pay for K-12 tuition at private and religious schools, too. Families can already do that with a different plan — Coverdell Education Savings Accounts — but these have low contribution limits and aren’t open to high-income Americans. The move to expand the 529 would dramatically increase who could use these plans and the money they could save.