A Brighter Future for the Next Generation
By Sen. John Thune
It’s back-to-school time in South Dakota. Hallways and classrooms across our state are abuzz with students, from high school seniors thinking about what comes next to kindergartners just getting started. I’m wishing all of South Dakota’s students and their teachers the best as they start another school year.
The importance of a good education and its power to open new worlds and opportunities is something my parents – both public school educators – instilled in us Thune kids when we were growing up. And I’m proud that Republicans in Congress passed the Working Families Tax Cuts last year, which included a number of provisions designed to set the next generation up for success. Whether your son or daughter is just learning their ABCs or working on plans for after graduation, there’s something in this landmark legislation to help them.
For decades, the 529 education savings plan has been a powerful tool for parents to save for their children’s education. At first, a 529 account could only be used for college, but in 2017 Republicans expanded them to cover K-12 expenses too. Last year in the Working Families Tax Cuts, we expanded 529s again, allowing these savings to be used for homeschooling materials, tutoring, vocational training, and continuing education. On top of that, we doubled the withdrawal limit to $20,000 per year, giving even greater flexibility to parents.
Parents also now have another option for investing in their kids’ futures: Trump Accounts. These new tax-advantaged investment accounts are designed to give parents another tool to invest in their children’s futures beyond their education. The money can go toward education expenses, but it can also be used to buy a first home, start a business, or be converted into a retirement account in adulthood. Parents can opt-in to receive a $1,000 initial deposit from the federal government for kids born between 2025 and 2028, and several companies have offered to make contributions to the Trump Accounts of their employees’ children.
The Working Families Tax Cuts also created the new Workforce Pell grant program, which will provide financial support for shorter-term job training programs for in-demand jobs. This promising new program is available to those who are just starting their career as well as mid-career professionals or people looking to change careers. Workforce Pell provides hardworking people with the flexibility they need to pursue the opportunities that open the way to a brighter future.
I’m always impressed with South Dakota’s future leaders, whether it’s when I’m visiting a school, seeing them compete on the playing field, or talking with them in South Dakota or in Washington. Cultivating a brighter future for them is an important responsibility for me as a senator for our state. I’m proud of the work we did in the Working Families Tax Cuts to create more pathways to success, and I’ll continue working to strengthen the American Dream for the next generation.
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Saddling them with a brighter future of a $40 trillion debt. Yeah right John.