ALEC Education and Workforce Development Task Force Director Andrew Handel joined NewsTalkSTL to discuss with Tim Jones the expansion of education freedom, the latest ALEC publication on 529 savings accounts.
The conversation began with an overview of the recent election results and how ballot initiatives reflected continued voter support for education freedom. Handel highlighted school bond measures that were defeated across the country, as well as measures addressing school choice.
“I think look no further than those ballot measures in all 50 states, and you can tell there’s still a lot of support for good ideas in free markets, federalism, and limited government,” he remarked.
Jones and Arps next focused on ALEC’s newest report, Building a Better Path to Education, which examines state 529 savings plans and their expanded uses for education expenses. Handel explained how recent federal legislation expanded the allowable uses of 529 accounts, allowing families to spend up to $20,000 annually on qualifying K-12 expenses, including tuition, books, and school uniforms.
He also noted that while federal rules have expanded these opportunities, 16 states have eligible expense lists that differ from the federal definition, potentially leaving families facing unexpected state tax penalties.
“You might have a totally well-meaning family that says, ‘Oh, hey, great! I can go use my 529 savings to put my kid in a better school,’ and they might go and use the funds for that, but suddenly get hit with a state tax penalty or a state tax bill,” he explained.
Handel highlighted that Missouri is not among those 16 states, meaning families can use their 529 savings for qualifying K-12 expenses up to the full $20,000 limit.
The conversation later turned to the federal education freedom tax credit and the growing number of states opting into the program.
“We just hit 32 states,” he emphasized. “Three of those are Democrat-led: Jared Polis in Colorado, Kathy Hochul in New York, and now New Mexico have all opted into that program as well.”
Handel also discussed how expanded 529 accounts can now be used for trade schools and workforce development programs, providing families with additional education and career training options.
“What it boils down to is just giving families a choice on how to best spend their hard-earned savings for their kids’ education,” he noted.
Jones then asked about the growing bipartisan support for school choice. Handel explained that education freedom programs have broad support across political parties and demographic groups, emphasizing the importance of allowing parents to determine the best educational environment for their children.
“What it comes down to is putting parents in charge. They’re the ones that know their kids best,” he remarked.
Looking ahead to 2027, Handel discussed the work ALEC is focusing on to expand school choice opportunities across the country while defending existing programs.
“There’s going to be some major opportunities for expansion, and obviously we’ll be out there hard at work defending the existing programs as well,” he remarked.