This bill, the "Achieving Choice in Education Act," significantly expands the permissible uses of 529 education savings plans and introduces new tax incentives for educational expenses. It broadens the definition of qualified higher education expenses to include a wide range of costs for elementary and secondary education, encompassing public, private, religious, and homeschool settings. These newly eligible expenses include tuition, curriculum materials, online educational resources, tutoring fees, standardized test fees, dual enrollment costs, and educational therapies for students with disabilities. The legislation also increases the annual limit on tax-free distributions from 529 plans for elementary and secondary school expenses from $10,000 to $20,000 . Additionally, it creates a new gift tax exclusion , allowing an extra $20,000 annual exclusion for contributions made to a 529 plan for a designated beneficiary, beyond the standard annual gift tax exclusion, aiming to provide greater financial flexibility for families funding K-12 education. A major provision links the tax-exempt status of state and local bonds to a state's implementation of school choice laws. Bonds will only retain full tax-exempt status if issued by a "minimum school choice State" or its political subdivision, defined as a state with school choice programs covering at least 40 percent of school-age children with specific spending parity. States meeting higher criteria—65 percent student eligibility and 75 percent spending parity—qualify for full tax exemption, while other "minimum school choice States" receive only a 50 percent tax exemption on bond interest, incentivizing the adoption and expansion of school choice programs.