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Trump Backs Education Freedom Tax Credit, Boosting 529 Withdrawals

8/25/2026

Summary

Story summary

U.S. President Donald Trump promoted school choice and pledged to put parents back in charge at a House event.
Education Secretary Linda McMahon announced steps to dissolve the Department of Education, shifting duties to states.
The administration unveiled the Education Freedom Tax Credit, offering taxpayers up to $1,700 for scholarship donations beginning 2027.
529 plans will allow families to withdraw up to $20,000 annually for K-12 expenses, double the previous limit.

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Story summary

U.S. President Donald Trump promoted school choice and pledged to put parents back in charge at a House event.
Education Secretary Linda McMahon announced steps to dissolve the Department of Education, shifting duties to states.
The administration unveiled the Education Freedom Tax Credit, offering taxpayers up to $1,700 for scholarship donations beginning 2027.
529 plans will allow families to withdraw up to $20,000 annually for K-12 expenses, double the previous limit.