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Senate OKs bill to let nonprofits open 529 accounts for schoolchildren; parents may opt out
Summary
Senate Bill 422 lets nonprofits establish 529 college-savings accounts for identified students while keeping student data confidential to the treasurer's office and allowing parental opt-out.
The Arkansas Senate passed Senate Bill 422 on March 20, 2025, authorizing nonprofit organizations to establish 529 college-savings accounts for identified elementary-school students, with safeguards to keep student data confidential to the state treasurer's office and to allow parents to opt out.
Sponsor Senator Tucker described a constituent-led effort to let a foundation open a 529 account for every child at a particular elementary school and said the treasurer's office supports the bill. "The nonprofit organization that's contributing the money to the 529 accounts will never have access to that confidential data. That will stay exclusive to the treasurer's office," Tucker said on the floor.
The bill does not mandate participation; parents retain the right to opt out. Senator Tucker and other supporters said the measure simply enables nonprofit grants to be deposited into accounts created for students when parents consent.
The Senate approved the bill without recorded opposition; the roll call was announced as 33 yeas, 0 nays and the bill was transmitted to the House.
Supporters framed the change as a modest, privacy-protected tool for increasing children's college savings at a district or school level. The treasurer's office had participated in drafting the bill and signaled support during floor remarks.
