The Tax Cuts and Jobs Act (TCJA) expanded the uses for funds in 529 accounts to include amounts paid for K-12 tuition (limited to $10,000 per year). The One Big Beautiful Bill (OB3) Act added even more eligible expenditures for K-12 students, as well as opening up the use of funds to pay for expenses related to acquiring and maintaining a recognized post-secondary credential.
These changes allow K-12 students to use 529 money to pay for not only tuition (which really only helps students at private or religious schools) but also tutoring, classroom supplies, online learning materials, and therapies like speech or occupational therapy for students with unique needs. Funds may also be used for preparation materials and fees for standardized tests such as the SAT and the ACT. This means that students at public schools may now take advantage of 529 accounts for K-12 costs.
OB3 also added a new category of expenditures for recognized post-secondary credentials. Learners who are engaged in one of these credentialing programs may use their 529 funds to pay for the costs of education to acquire the credential, testing to obtain it, and continuing education required to maintain it. You can get more information about recognized credentials at the following links:
Institute for Credentialing Excellence (including NCCA):
https://www.credentialingexcellence.org/Membership/Directories
DoD and Armed Forces Credentialing Opportunities:
DoD: https://www.cool.osd.mil/research-related-credentials.htm
Army: https://www.cool.osd.mil/army/index.html
Navy: https://www.cool.osd.mil/usn/index.html
Marine: https://www.cool.osd.mil/usmc/index.html
Space Force: https://www.spaceforce.com/education/enlisted
Coast Guard: https://www.cool.osd.mil/uscg/index.html
Workforce Innovation and Opportunity Act:
https://edd.ca.gov/en/jobs_and_training/Workforce_Innovation_and_Opportunity_Act/
Also included in the definition of recognized postsecondary credentials are any credentials recognized by a state or the federal government. This means that any tax return preparer with a designation (EA, CPA, CTEC, AFSP) can use their 529 money to buy our Brass Tax seminars.
For more details, you can check out our analysis here.