As Students Head Back to School, Republicans’ Working Families Tax Cuts Law Is Providing New Opportunities for Students to Follow an Educational Path that Suits Them Best
REPUBLICANS’ WORKING FAMILIES TAX CUTS LAW EXPANDED THE USE OF 529 SAVINGS ACCOUNTS AND PELL GRANTS, TWO VALUABLE PROGRAMS THAT HELP FAMILIES SAVE MONEY FOR SCHOOL
- 529 Savings Accounts: The Working Families Tax Cuts law widened the scope of qualified expenses on which funds can be used and increased the accounts’ annual expense limit from $10,000 to $20,000. (U.S. Senate Committee on Finance: Expanding Educational Opportunity and Affordability – accessed 8/21/26; Fortune: New 529 plan rules let Gen Z invest in careers, not just college—and it reflects a seismic shift in education – 7/28/25)
- “The latest amendments to 529 plans are transformative, expanding them into tax-free savings accounts for a range of K-12 expenses, job-training, workforce-development and even disability-related costs… these accounts can be used to cover tutoring, vocational training in skilled trades such as plumbing and welding, professional licensing, credential programs and continuing education.” (The Wall Street Journal: op-ed: The 529 Education Revolution Is Here – 6/27/25)
- Pell Grants: This past July “marked the official launch of Workforce Pell Grants, making the federal financial-aid program long popular with college students available for short-term vocational training.” (The Wall Street Journal: The Toolbelt Generation Can Now Get Federal Aid for Trade School. Here’s What to Know. – 7/2/26)
- “As of July 1, they are also available to students earning career credentials. Think of people studying to be paramedics, cybersecurity technicians, court reporters, or HVAC—heating, ventilation and air conditioning—specialists.” (The Wall Street Journal: The Toolbelt Generation Can Now Get Federal Aid for Trade School. Here’s What to Know. – 7/2/26)
- “The initiative will allow eligible students to use Pell Grants for credential and certification programs that can lead to employment in as little as eight weeks… The administration says the program is aimed at helping fill labor shortages in industries including skilled trades, manufacturing and health care as companies ramp up hiring and expand domestic production.” (Fox Business: Trump admin rolls out Workforce Pell Grants to fast-track workers into high-demand jobs – 5/18/26)
- In addition to expanding eligibility for Pell Grants, the Working Families Tax Cuts law also increased Pell Grant funding by $10.5 billion overall. (The Wall Street Journal: Tax Cuts, Student Loans, Medicaid: What’s in the GOP’s Megabill – 7/3/25; U.S. Senate Committee on Health, Education, Labor & Pensions: President Trump, Republicans Deliver Historic Wins in One Big Beautiful Bill, Reforming America’s Broken Higher Education System – 8/1/25)
IN ADDITION TO HELPING CURRENT STUDENTS, THE WORKING FAMILIES TAX CUTS’ TRUMP ACCOUNTS PROGRAM IS HELPING THE NEXT GENERATION OF AMERICANS GET AHEAD FINANCIALLY
- “The Trump Accounts program is ‘the most successful launch in government history,’ Treasury Secretary Scott Bessent said… at a meeting of the Financial Literacy and Education Commission.” (CNBC: Trump Account signups reach 7 million — Bessent says it’s ‘the most successful launch in government history’ – 7/27/26)
- “So far, about 7 million children have been signed up, Bessent said. That’s up from 6.5 million [in July].” (CNBC: Trump Account signups reach 7 million — Bessent says it’s ‘the most successful launch in government history’ – 7/27/26)
- At least “1.4 million of those registered are babies born between 2025 and 2028, who are eligible to receive the $1,000 seed investment from the federal government.” (CNBC: Trump Accounts are live. Here’s how some families plan to use them – 7/6/26)
- “Stock wealth has largely been accrued by the richest U.S. households, studies show.” (CNBC: Trump Account signups reach 7 million — Bessent says it’s ‘the most successful launch in government history’ – 7/27/26)
- As of 2025, only 62% of Americans reported owning stocks. (Gallup: What Percentage of Americans Own Stock? – 5/5/25)
- The program is successfully opening up the stock market to working-class Americans: “Trump officials said 86 percent of the signups so far are from families making less than $200,000 annually. ‘Trump Accounts level the playing field by allowing every parent to invest in their children’s future, not just wealthy families with trust funds,’ said a Treasury spokesperson in a statement.” (Politico: Republicans bank on a Trump Accounts boost – 7/4/26)
- “With the free money as a draw, Trump Accounts could potentially generate $80 billion to more than $900 billion in long-term asset accumulation for children across all income levels over the next decade, according to a recent analysis by consulting firm McKinsey.” (CNBC: Trump Account signups reach 7 million — Bessent says it’s ‘the most successful launch in government history’ – 7/27/26)
REPUBLICANS’ TAX LAW ACTUALLY INCENTIVIZES UNIVERSITIES TO FINALLY STOP THE RUNAWAY RISE OF TUITION COSTS, WHICH WAS ONLY ENCOURAGED BY DEMOCRATS’ STUDENT LOAN TRANSFER SCHEME
- Over the last 30 years, as of 2024, tuition and fees at private non-profit colleges have risen by 75%. (College Board: Trends in College Pricing and Student Aid 2024 – Oct. 2024)
- Worse, over that 30-year period, the cost of public four-year colleges has gone up 102%. (College Board: Trends in College Pricing and Student Aid 2024 – Oct. 2024)
- During the Biden presidency, Democrats fought to use taxpayer money to forgive student loan debt incurred by wealthy graduates:
- These actions primarily benefitted upper-income borrowers and “mostly helped middle-aged borrowers, since most federal programs require payment for at least a decade before eligibility for cancellation.” (Bloomberg: Biden’s New Student Debt Plan Faces Pressure From Civil Rights, Labor Groups – 1/18/24)
- As of 2022, “almost a third of all student debt is owed by the wealthiest 20 percent of households and only 8 percent by the bottom 20 percent. Across-the-board student loan forgiveness is regressive measured by income, family affluence, educational attainment—and also wealth.” (Brookings: Student loan forgiveness is regressive whether measured by income, education, or wealth – 1/14/22)
- According to a 2022 Penn Wharton Business Model, “forgiving federal college student loan debt will cost between $300 billion and $980 billion over the 10-year budget window, depending on program details. About 70 percent of debt relief accrues to borrowers in the top 60 percent of the income distribution.” (Penn Wharton Business Model: Forgiving Student Loans: Budgetary Costs and Distributional Impact – 8/23/22)
- Republicans took a different approach, and it’s working to finally stem the rise in tuition costs:
- “The press is reporting that MBA programs are slashing tuition, though they’re focusing on the hole and not the donut: Colleges are at long last under pressure to cut prices because last year’s tax bill limits federal loans for graduate students.” (The Wall Street Journal: Editorial: Why Colleges Are Slashing MBA Prices – 5/17/26)
- “The GOP tax bill last year capped the aggregate federal debt that graduate students can take out at $100,000, and $200,000 for professional degrees like law and medicine. Previously, grad students could borrow an unlimited amount. As a result, many grads took out mortgage-sized debts to pursue pricy degrees, many of which don’t pay off in future income.” (The Wall Street Journal: Editorial: Why Colleges Are Slashing MBA Prices – 5/17/26)
- “Struggling borrowers would then enroll in the Obama and Biden loan forgiveness plan in which the feds wrote off one-third of debt. Graduate programs became cash cows for universities, which raised prices to take advantage of the open spigot of federal loans.” (The Wall Street Journal: Editorial: Why Colleges Are Slashing MBA Prices – 5/17/26)
- “All of this reinforces that universities respond to government incentives like any business. For too long those incentives encouraged colleges to raise prices and bury students in debt. One of the 2025 tax bill’s overlooked benefits is that it will impose a modicum of financial discipline in higher ed.” (The Wall Street Journal: Editorial: Why Colleges Are Slashing MBA Prices – 5/17/26)