US SB311

Expands 529 education savings account qualified expenses to include homeschool costs, curriculum materials, online educational materials, tutoring by qualified instructors, standardized testing fees, dual enrollment fees, and educational therapies for students with disabilities

Doubles the annual distribution limit for elementary and secondary school expenses from $10,000 to $20,000, effective for taxable years beginning after December 31, 2026

Increases the gift tax exclusion by up to $20,000 for contributions made to 529 plans, effective for gifts made after December 31, 2026

Restricts tax-exempt bond status to states that implement school choice programs, requiring at least 40% of school-age children be eligible for programs such as vouchers, tax credit scholarships, or education savings accounts

States meeting enhanced thresholds (65% eligibility and 75% funding parity) receive full tax-exempt bond interest exclusion; states meeting only minimum thresholds receive 50% exclusion