Bill Summary
The "Early Education Savings Program Act" is a proposed amendment to the Internal Revenue Code of 1986 that aims to expand the scope of eligible expenses under Section 529, which is primarily focused on education savings accounts. Specifically, the bill allows certain child care expenses to be classified as qualified higher education expenses for children under the age of five.
Under this legislation, expenses for child care provided by licensed or regulated caregivers—such as center-based child care providers or family child care providers—can be paid using 529 plan funds. This provision is designed to help families save for both early childhood education and future higher education costs, recognizing the importance of early learning and child care in a child's development. The changes would apply to expenses incurred after the bill's enactment.
Possible Impacts
Here are three examples of how the "Early Education Savings Program Act" could affect people:
1. **Increased Financial Flexibility for Families**: By allowing certain child care expenses to be treated as qualified expenses under Section 529, families with young children could use their 529 accounts to pay for child care costs. This could ease the financial burden on parents who must balance work and child care responsibilities, making it more affordable for them to access quality child care services while saving for their children's future education.
2. **Encouragement to Save for Education**: The legislation incentivizes families to save for both early childhood education and future higher education expenses. Parents might be more inclined to contribute to 529 plans knowing they can also cover child care costs, fostering a culture of saving early for educational needs. This could lead to increased funding in 529 plans, thereby enhancing educational opportunities for children as they grow.
3. **Support for Licensed Child Care Providers**: By specifying that the qualified child care must be provided by licensed, regulated, or registered providers, this legislation could help to ensure that families choose high-quality child care. This may result in increased demand for licensed child care providers, benefiting those professionals and potentially improving the standards of child care services available in the community.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6272 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 6272
To amend the Internal Revenue Code of 1986 to allow certain child care
expenses as qualified expenses for purpose of section 529 of such Code.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2025
Ms. McDonald Rivet (for herself and Mrs. Hinson) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow certain child care
expenses as qualified expenses for purpose of section 529 of such Code.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Early Education Savings Program
Act''.
SEC. 2. CHILD CARE EXPENSES ALLOWED AS QUALIFIED HIGHER EDUCATION
EXPENSES FOR PURPOSES OF SECTION 529.
(a) In General.--Section 529(c) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(10) Treatment of certain expenses associated with child
care.--
``(A) In general.--Any reference in this subsection
to the term `qualified higher education expense' shall
include a reference to amounts paid for qualified child
care of a designated beneficiary while such beneficiary
is under 5 years of age.
``(B) Qualified child care.--For purposes of
subparagraph (A), the term `qualified child care' means
child care provided by a center-based child care
provider, a family child care provider, or another
provider of child care services for compensation and on
a regular basis that--
``(i) is not an individual who is related
to all children for whom child care services
are provided, and
``(ii) is licensed, regulated, or
registered under State law.''.
(b) Effective Date.--The amendment made by this section shall apply
to expenses paid or incurred after the date of the enactment of this
Act.
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