Senator Schmitt’s Effort to Empower Parents to Invest in Children’s Education Signed into Law

Bill Raises Cap on 529 Plans to $20,000

WASHINGTON – U.S. Senator Eric Schmitt (R-MO) released the following statement after his provision to increase the investment cap for the 529 education savings plan from $10,000 to $20,000 was signed into law as part of the One Big Beautiful Bill. This change will allow parents to invest more in their children’s education and expand school choice.

“Every child, no matter their zip code or background, deserves a quality education that equips them with the tools and knowledge they need to thrive. By doubling the investment cap for 529 savings plans and giving parents more flexibility, we are expanding school choice and making it easier for families to invest in their children’s success. This is about empowering families and promoting educational freedom, and I am proud to see my commonsense effort signed into law,” said Senator Schmitt.

A 529 plan, also known as a “Qualified Tuition Program,” is a tax-advantaged savings plan that helps families save for education expenses by offering tax-free growth and tax-free withdrawals for qualified costs such as tuition and school supplies. Senator Schmitt’s provision allows families to contribute $20,000—instead of $10,000—to school tuition. Separately, Senator Schmitt’s ENABLE Act, which was also signed into law, strengthens the program further by allowing families to roll over 529 savings into an Achieving a Better Life Experience (ABLE) account for those with disabilities permanently.

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