Legislation Summary

• This bill urges the Department of Education (ED) to establish a program to give cash for educational expenditures to children whose parents are on active duty in the uniformed forces.
• Specifically, ED must create a tax-exempt Military Education Savings Account for dependent children of parents in the uniformed services to pay for their educational expenditures.
• Savings account funds may be utilized for specific objectives, such as the cost of attending a private elementary or secondary school or a higher education institution, private tutoring, or expenditures associated with an apprenticeship or other vocational training program.

Issue Background

• According to research, discontent with their children's education is a major indicator of whether or not servicemembers continue to serve. The reality is that school choice measures are overwhelmingly supported by military families. According to a 2019 survey, 72 percent of military respondents supported ESAs.
• Eligible uses of account funds include cost of attendance at a private institution, online learning programs, private tutoring, tuition and fees for college preparatory programs, and educational services and therapies, among many others.
• Unused funds would roll over from year to year, and funds left over after a student’s high school graduation can be used to finance attendance at an institution of higher education, or costs associated with an alternative professional training.
• The Education Savings Accounts for Military Families Act addresses the issue by amending the Elementary and Secondary Education Act of 1965 and directing the Education Secretary to allow servicemembers to request the establishment of an ESA for their child, into which up to $6,000 can be deposited each year. 

AFSA’s Position: Support

• It tackles a major issue that many American military families face by allowing them to request from the Secretary of Education the creation of an education savings account (ESA) to pay for their children's related education expenses.

Questions?

If you have any questions about this legislation, please reach out to AFSA's Military & Government team at Milgov3@hqafsa.org.