529 Plans Now Cover Commuting Costs—But Only for Families Who Have Them

What it does

This bill expands what families can use 529 college savings plans for by adding transportation and parking expenses to the list of qualified uses. Currently, 529 plans cover tuition, fees, room, and board; this bill lets families withdraw money tax-free for student commuting costs (up to the amount the school includes in its official cost-of-attendance calculation) and for transportation related to apprenticeship programs.

Why we flagged it

The bill straightforwardly expands the list of qualified education expenses under 529 plans by adding transportation and parking. It is a narrow, technical amendment to the Internal Revenue Code with no hidden mechanism or rider.

What the text implies

• Families with lower incomes or without access to 529 plans do not benefit; the tax relief flows only to families already saving through these accounts, potentially widening education-cost inequality.
• The cap on transportation expenses is tied to each school's cost-of-attendance calculation, which varies widely; students at schools with lower published transportation allowances receive less tax-free benefit.
• Apprenticeship programs are added with no dollar cap, creating potential for broader use than the college provision and possible inconsistency in how the two are administered.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Families with 529 plans gain tax-free access to savings for a legitimate education cost (commuting) that schools already recognize in their cost-of-attendance calculations. The benefit is modest but real: it removes a tax penalty on a reasonable education expense and aligns the tax code with how schools already price education.

Who stands to gain

• families with 529 plans
• 529 plan administrators (modest volume increase)

Named in the bill

Internal Revenue Code of 1986, Section 529 plans, Higher Education Act of 1965, eligible educational institutions, apprenticeship programs

Where it stands

1 cosponsor: 1 Democrats.

• May 23, 2025 — Introduced · Congress.gov: “Introduced in House”
• May 23, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 2 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $20,000 in lobbying spend. A filing names 7 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Jennifer McClellan, the sponsor, reported $699,956 in PAC receipts in the 2026 cycle.

• College Savings Foundation — $20,000 on 2 filings

Lobbying Disclosure Act filings through Jul 17, 2026. A filing shows who paid to lobby on a bill it names, not what changed.