Education: other; definition of qualified higher education expenses under Michigan education savings program; expand to include certain K-12 tuition expenses. Amends sec. 2 of 2000 PA 161 (MCL 390.1472).
SB 368 amends the Michigan education savings program act to broaden the definition of “qualified higher education expenses” for Michigan education savings accounts. Under the bill, account funds could be used not only for traditional postsecondary costs, but also for tuition at elementary and secondary public, private, or religious schools, apprenticeship-related fees, books, supplies, and equipment, and payments on qualified education loans. The bill also retains existing provisions allowing withdrawals for higher education expenses, scholarships, death or disability of the beneficiary, service academy attendance, and certain account transfers.
The measure updates several statutory definitions tied to the state’s 529-style education savings program, including references to the Internal Revenue Code and the roles of the state treasurer, program manager, and board. In practical terms, it would expand the ways families can use education savings accounts while keeping the program structure and tax-related treatment largely intact. The bill is framed as a technical amendment to the education savings program act, but its policy effect is to make the accounts more flexible for K-12 and nontraditional education costs.
The bill would amend section 2 of the Michigan education savings program act, changing state law governing education savings accounts and the definition of qualified higher education expenses. It would allow account holders to use program funds for K-12 tuition, apprenticeship expenses, and student loan repayment in addition to existing higher education uses, which could affect how families, schools, and program administrators use and market these accounts. The bill also interacts with Michigan tax law by preserving the qualified withdrawal treatment tied to the income tax act and federal section 529 rules.
Based on the bill caption and the absence of recorded committee testimony or votes in the provided materials, the bill appears to be presented in a generally supportive, policy-expansion posture rather than a controversial one. The language suggests an effort to align Michigan’s education savings program with broader federal 529 options and to give account owners more flexibility. No formal opposition or recorded split in sentiment is shown in the available context.
The main policy issue is the expansion of education savings account use beyond college costs to include K-12 private, public, or religious school tuition, apprenticeship expenses, and qualified education loan payments. Supporters would likely view this as increased flexibility for families and better alignment with federal tax rules, while critics could object to the use of tax-advantaged savings for private or religious school tuition or to the diversion of funds away from traditional postsecondary education. No specific legislators, groups, or committee members are identified in the provided record as taking either side.