WASHINGTON – Sen. Mike Lee (R-UT) has introduced the Achieving Choice in Education (ACE) Act to bolster educational choices for American families. This bill addresses growing concerns among parents about the ideological influences in public education and the economic barriers to alternative schooling options. Senator Ted Budd (R-NC) is a co-sponsor. Rep. Eric Burlison (R-MO) has introduced the legislation in the House of Representatives.

"It is the fundamental right of parents to choose the educational path that is most suitable for their children," said Sen. Lee. "The ACE Act ensures that our tax system reflects this principle and provides real support to those seeking alternatives to public schooling."

“As a father of three children who were homeschooled, I know that kids benefit from an education that is uniquely suited to their needs,” said Sen. Budd. “I’m proud to cosponsor the ACE Act, which will give more parents the option to choose the education that is best for their children.”

“Across the country, and especially in Southwest Missouri, school choice is already benefitting many of our nation’s young children.” said Rep. Burlison. "Through 529 education saving accounts, families are freed from the arbitrary link between where they live and which school their child can attend.”

Sen. Lee's legislation builds upon a provision of the 2017 Tax Cuts and Jobs Act and enhances federal tax incentives for the enactment of state-level school choice legislation.

Key provisions of the ACE Act include:

• Doubling the allowable level of tax-exempt 529 account distributions for qualified educational expenses to $20,000 per taxable year.
• Gift tax exclusions up to $20,000 per year for contributions to 529 accounts.
• Adjusted federal tax exemption on municipal bonds based on state school choice laws, incentivizing states to adopt such measures. 

Under the ACE Act, states with no qualifying school choice laws will see the tax-exempt status of municipal bonds for local projects, such as new school construction, revoked. States that adopt school choice laws will benefit from a 50% tax exemption on bond interest income, while states fully embracing school choice will enjoy a complete tax exemption.

ENDORSEMENTS

“American families deserve the best education options available without financial barriers to access them. Expanding school choice provides students with an opportunity to break out of a ‘one-size-fits-all’ education system. The Achieving Choice in Education Act would incentivize states to give more American families the flexibility to educate their children according to their needs and values.” -Heritage Action for America

“Over the past several years, a growing number of parents have realized that the one-size-fits-all model provided by public schools doesn't meet their family's needs - be it because of concerns over quality, safety, or values. American students deserve to find educational options that work for them, and we are grateful that Sen. Lee's ACE Act will make that path easier for families around the country.” -Parents Defending Education Action

“A family's income level shouldn't determine whether or not a child gets a good education. Instead of having their tax dollars go straight to the public schools, families should be allowed to spend their money on the education system that they're actually using. The ACE Act uses Congress's powerful purse strings to encourage states to be more school-choice friendly. It is common sense policy that is good for kids, good for families, and good for the future of America. We are thankful for Sen. Lee’s leadership on this issue.” -Penny Nance, President and CEO of Concerned Women for America Legislative Action Committee

“On behalf of Association of Christian Schools International, our 2,500 member schools, and the thousands of families who can enjoy high quality, Christian education as a result of school choice, we thank Senator Lee for his leadership in introducing the ACE Act. Over 20 years of research has found that students who exercise school choice have dramatically better educational outcomes. By encouraging school choice at the state level, more students will be empowered to access the education that best suits their needs and be set up for a lifetime of success.” -P. George Tryfiates, Vice President for Public Policy and Legal Affairs, Association of Christian Schools International


“HSLDA Action supports the ACE act because it will help homeschool families pay for their children’s education. By increasing the contribution limits, and expanding 529s for homeschool use, parents will be able to save more of their own money for educational purposes in a tax advantaged way. This furthers opportunities for homeschoolers and opens the door to enable more parents to educate their children at home.” -Home School Legal Defense Association Action

"A good education is the foundation of the American Dream. And every child—no matter their background or zip code—deserves the chance to learn and grow in an environment that is steeped in learning and free from radical ideology. Senator Lee's ACE Act would be a monumental win for parents across the country who want the opportunity and financial freedom to give their kids the education that will set them up for success." -Tarren Bragdon, President and CEO of the Foundation for Government Accountability.


For bill text, click HERE.
For a one-pager, click HERE.