[Congressional Record Volume 163, Number 196 (Friday, December 1, 2017)]
[Senate]
[Page S7757]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1852. Mr. CORNYN (for Mr. Cruz (for himself, Mr. Cotton, Mr. 
Kennedy, and Mr. Sasse)) proposed an amendment to amendment SA 1618 
proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms. 
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant 
to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; as follows:

       At the end of part IV of subtitle A of title I, insert the 
     following:

     SEC. 11033. 529 ACCOUNT FUNDING FOR ELEMENTARY AND SECONDARY 
                   EDUCATION.

       (a) In General.--
       (1) In general.--Section 529(c) is amended by adding at the 
     end the following new paragraph:
       ``(7) Treatment of elementary and secondary tuition.--Any 
     reference in this subsection to the term `qualified higher 
     education expense' shall include a reference to--
       ``(A) expenses for tuition in connection with enrollment or 
     attendance at an elementary or secondary public, private, or 
     religious school, and
       ``(B) expenses for--
       ``(i) curriculum and curricular materials,
       ``(ii) books or other instructional materials,
       ``(iii) online educational materials,
       ``(iv) tuition for tutoring or educational classes outside 
     of the home (but only if the tutor or instructor is not 
     related to the student),
       ``(v) dual enrollment in an institution of higher 
     education, and
       ``(vi) educational therapies for students with 
     disabilities,
     in connection with a homeschool (whether treated as a 
     homeschool or a private school for purposes of applicable 
     State law).''.
       (2) Limitation.--Section 529(e)(3)(A) is amended by adding 
     at the end the following: ``The amount of cash distributions 
     from all qualified tuition programs described in subsection 
     (b)(1)(A)(ii) with respect to a beneficiary during any 
     taxable year shall, in the aggregate, include not more than 
     $10,000 in expenses described in subsection (c)(7) incurred 
     during the taxable year.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to contributions made after December 31, 2017.
       (c) Offset.--
       (1) Modification of rules relating to hardship withdrawals 
     from cash or deferred arrangements.--Section 401(k) is 
     amended by adding at the end the following:
       ``(14) Special rules relating to hardship withdrawals.--For 
     purposes of paragraph (2)(B)(i)(IV)--
       ``(A) Amounts which may be withdrawn.--The following 
     amounts may be distributed upon hardship of the employee:
       ``(i) Contributions to a profit-sharing or stock bonus plan 
     to which section 402(e)(3) applies.
       ``(ii) Qualified nonelective contributions (as defined in 
     subsection (m)(4)(C)).
       ``(iii) Qualified matching contributions described in 
     paragraph (3)(D)(ii)(I).
       ``(iv) Earnings on any contributions described in clause 
     (i), (ii), or (iii).
       ``(B) No requirement to take available loan.--A 
     distribution shall not be treated as failing to be made upon 
     the hardship of an employee solely because the employee does 
     not take any available loan under the plan.".''.
       (2) Conforming amendment.--Section 401(k)(2)(B)(i)(IV) is 
     amended to read as follows:

       ``(IV) subject to the provisions of paragraph (14), upon 
     hardship of the employee, or".''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to plan years beginning after December 31, 2017.
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