The limit rises from $10,000 to $20,000
What the document says“The last sentence of section 529(e)(3) is amended by striking "$10,000" and inserting "$20,000".”
The section strikes $10,000 and inserts $20,000 in the last sentence of section 529(e)(3) of the Internal Revenue Code of 1986. The change to the list of expenses applies to distributions made after enactment, and this change applies to taxable years beginning after December 31, 2025.
What the document actually says“The last sentence of section 529(e)(3) is amended by striking "$10,000" and inserting "$20,000".”
The figure $10,000 is taken out. The figure $20,000 is put in.
The wider list of costs starts at once. This change starts with tax years after 2025. Both dates are fixed in the law.
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