S. 1244: Education Savings Accounts for Military Families Act of 2025

The Education Savings Accounts for Military Families Act of 2025 is a bill designed to provide eligible military families with financial support for their children's education through the establishment of Military Education Savings Accounts (MESAs). Here are the key features and provisions of the bill:

Overview of Military Education Savings Accounts

The act allows parents of eligible military dependent children to create dedicated savings accounts for educational expenses. The Secretary of Education, in partnership with the Secretary of Defense, will oversee this initiative.

Establishment of Accounts

• Parents can request the establishment of a MESA for their eligible children, which will receive an initial deposit of $6,000.
• The accounts can be used for qualified educational expenses, and there will be an application process for families to apply for these accounts throughout the year.
• If funds are insufficient for all applicants, priority will be given to those renewing existing accounts and then selected via a lottery system.

Funding and Usage of Accounts

The funds in these accounts may be used for various educational expenses, including:

• Tuition at private schools, learning pods, or online educational programs
• Private tutoring, educational materials, and computers
• Fees for standardized testing or preparatory courses
• Extracurricular activities, therapeutic educational services, and transportation to educational facilities

The amount of funds deposited annually will be adjusted based on inflation indexes after the first year.

Eligibility Requirements

To qualify for a MESA, parents must submit an application that shows their child is an eligible military dependent, defined as a child with a parent currently in the active duty military and enrolled in public school for a designated period in the previous academic year.

Account Management and Oversight

Manageability features of the accounts include the following:

• Parents can select their preferred transfer schedule for fund distributions.
• The Secretary of Education will ensure a registry of qualified education service providers to whom account funds can be disbursed.
• Any remaining balances in the accounts at the end of a school year can roll over for use in subsequent years until the child reaches specific age milestones or conditions for account termination are met.

Tax Treatment and Fraud Prevention

Funds deposited into or withdrawn from the MESAs are exempt from taxation. The act includes provisions for fraud prevention, such as establishing a hotline for reporting suspected fraudulent activities and conducting audits to ensure compliance.

Administrative Support

The Secretary of Education is also authorized to allocate a portion of the funds for administrative expenses to manage the program effectively.

Relevant Companies

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