WASHINGTON, DC -- In a victory for parents and students, President George W. Bush today signed into law legislation allowing parents to save money in tax-free Education Savings Accounts (ESAs) for their children’s K-12 education expenses, including private school tuition. The ESA expansion, a key element of President Bush’s No Child Left Behind education plan, was signed into law as part of the most significant tax relief package in 20 years.

            “This new law marks a significant expansion of parental choice in education,” said Boehner. “It means parents now have more options in planning for their children’s K-12 education, and more power to choose the best possible schools for their children to attend.”

            The new tax law allows parents to invest up to $2,000 annually in ESAs (from the current limit of $500) and permits tax-free withdrawals from ESAs to pay for both college tuition and K-12 education expenses.

            Boehner noted that the ESA expansion, passed as part of the tax relief package that the House and Senate produced shortly before Memorial Day, was delivered just 48 hours after the House gave overwhelming approval to H.R. 1, President Bush’s No Child Left Behind education bill, which provides an array of additional new options for parents. H.R. 1 provides immediate public school choice and allows parents to choose a private tutor -- including private, faith-based and religiously-affiliated tutors -- for children trapped in chronically-failing public schools.

            “Parents of all income levels are gaining an array of new education options under President Bush,” Boehner said. “These are important steps toward the ultimate goal of equal educational opportunity in America.”

            The new tax law allows parents to use the tax-free withdrawals to pay for tuition, fees, books, supplies, room and board, uniforms and transportation associated with enrollment in, or attendance at, a public, private, or parochial school providing K-12 education, and computer equipment. In 1999, President Clinton vetoed similar legislation.

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