Washington, D.C. – Congressman Jim Banks (IN-03), a member of the House Armed Services Committee, today introduced the Education Savings Accounts for Military Families Act. This legislation would provide military families with the option of establishing an education savings account (ESA).
“The men and women who serve our country in uniform make sacrifices daily, but the education of their children should not be one of them,” said Banks. “My legislation will help improve military readiness by boosting recruitment and retention of our nation’s best and brightest. Expanding educational opportunities for military-dependent children will give parents who serve the peace of mind to focus on their missions. Portability is key for students who are often required to move because of a change in a parent’s military assignment. The flexibility in this legislation will allow military families the freedom to tailor their children’s education to best fit individual needs and maximize academic achievement.”
Under this legislation, a small portion of funding from the federal Impact Aid program would follow military-dependent students through an ESA rather than schools. This type of portability would provide military families with access to more educational opportunities and allow them to customize their child’s education. The opening of an account would be optional and account balances could be rolled over from year to year, while deposit levels would increase in accordance with changes in the Chained CPI. Deposits and withdrawals from the fund would be tax-free and the autonomy of education service providers would be preserved.