On Tuesday, President Obama dropped his proposal to remove the ability for people to withdraw money tax-free from 529 college savings plans.
The administration said that the tax break disproportionately benefited the wealthy, with more than 70 percent of accounts held by families who make at least $200,000 annually, and wanted to redirect more money to the middle class, The Washington Post reports. The White House faced criticism from parents and lawmakers on both sides of the aisle, who said the accounts are one of the best ways for families to save for college. "The President's plan has the puzzle pieces necessary to bring the middle class back, but this particular piece didn't fit," Sen. Charles Schumer (D-NY) said.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Judge: Trump's US attorney in NJ serving unlawfullySpeed Read The appointment of Trump's former personal defense lawyer, Alina Habba, as acting US attorney in New Jersey was ruled 'unlawful'
-
Third judge rejects DOJ's Epstein records requestSpeed Read Judge Richard Berman was the third and final federal judge to reject DOJ petitions to unseal Epstein-related grand jury material
-
Texas OKs gerrymander sought by TrumpSpeed Read The House approved a new congressional map aimed at flipping Democratic-held seats to Republican control
-
Israel starts Gaza assault, approves West Bank planSpeed Read Israel forces pushed into the outskirts of Gaza City and Netanyahu's government gave approval for a settlement to cut the occupied Palestinian territory in two
-
Court says labor board's structure unconstitutionalSpeed Read The ruling has broad implications for labor rights enforcement in Texas, Louisiana and Mississippi
-
Feds seek harsh charges in DC arrests, except for riflesSpeed Read The DOJ said 465 arrests had been made in D.C. since Trump federalized law enforcement there two weeks ago
-
Trump taps Missouri AG to help lead FBISpeed Read Missouri Attorney General Andrew Bailey has been appointed FBI co-deputy director, alongside Dan Bongino
-
Trump warms to Kyiv security deal in summitSpeed Read Ukrainian President Volodymyr Zelenskyy called Trump's support for guaranteeing his country's security 'a major step forward'
