Balancing Educational Investments Amendment Act of 2026

COUNCIL OF THE DISTRICT OF COLUMBIA The John A. Wilson Building 1350 Pennsylvania Avenue, NW Washington, D.C. 20004

Statement of Introduction Balancing Educational Investments Amendment Act of 2026 March 30, 2026 Today, I am proud to introduce the Balancing Educational Investments Amendment Act of 2026, along with Councilmembers Charles Allen, Brianne K. Nadeau, Matthew Frumin, Janeese Lewis George, and Zachary Parker. This bill would increase the maximum account contribution limit for the District’s College Savings Plan to align with rising costs of education. The bill would also require the Chief Financial Officer to review and adjust the account maximum every ten years, adapting to changes in the education economy. This bill reflects our commitment to making higher education more attainable for District families by ensuring that District’s College Savings Plan adjusts in response to changing educational costs. Now more than ever, District residents need access to stable educational investment options. H.R. 1 made significant changes to students’ and families’ options when paying for higher education. These include changes to federal student aid effective July 1, 2026, such as the phase-out of the Grad PLUS Loan Program, new annual and lifetime loan limits, adjustments to federal grant and loan programs, and fewer repayment options for new borrowers. As the cost of education continues to rise and access to affordable loans and financing opportunities become increasingly limited, it is important that families have systems to plan and save for higher education in advance. One such option is the District’s College Savings Plan, which currently caps total savings for a beneficiary at $500,000. That limit no longer reflects the total cost of pursuing advanced or professional degrees. Today, the cost of attending a private four-year college within the region can exceed $80,000 per year when tuition, fees, room, and board are included, bringing the total cost of an undergraduate degree to more than $300,000 in many cases. For students pursuing professional degrees the costs are even higher. For instance, the total cost of attending medical school can often exceed $250,000. When undergraduate education is combined with graduate or professional training, total education costs can exceed $600,000 over the course of a student’s academic career. Families may also use college savings accounts to cover up to $10,000 per year for K-12 tuition, which further increases the potential need for savings beyond $500,000 to finance an individual’s education. This bill establishes a framework by which the Chief Financial Officer periodically reviews and adjusts the account maximum based on objective measures of educational costs. The formula would consider factors such as reported tuition, fees, room and board for on-campus students at eligible institutions, as well as federal financing limits and the availability of financial assistance. By updating these limits and requiring regular review, we can ensure that the District’s College Savings Plan keeps pace with the cost of education and continues to serve families effectively. I look forward to working with my colleagues to advance this legislation.
Christina Henderson Committee Member Councilmember, At-Large Facilities Chairperson, Committee on Health Human Services Transportation and the Environment

______________________________ ______________________________ 1 Councilmember Charles Allen Councilmember Christina Henderson 2 3 4 ______________________________ ______________________________ 5 Councilmember Brianne K. Nadeau Councilmember Matthew Frumin 6 7 8 ______________________________ ______________________________ 9 Councilmember Janeese Lewis George Councilmember Zachary Parker 10 11 12 13 14 A BILL 15 16 __________ 17 18 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 19 20 _________________________ 21 22 23 To amend Chapter 45 of Title 47 of the District of Columbia Official Code to require the Office of 24 the Chief Financial Officer to conduct comprehensive periodic reviews to determine 25 increases in the maximum contribution limit for college savings accounts. 26 27 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act 28 may be cited as the “Balancing Educational Investments Amendment Act of 2026”. 29 Sec. 2. Chapter 45 of Title 47 of the District of Columbia Official Code is amended as 30 follows: 31 (a) Section 47-4503(o) is amended to read as follows: 32 “(o)(1) The Chief Financial Officer shall promulgate regulations establishing the maximum 33 account contribution limit and prevent contributions on behalf of a designated beneficiary in excess 34 of the amount determined by actuarial estimates necessary to pay qualified higher education 35 expenses. Any amount in excess of the amount necessary to pay qualified higher education 36

2
expenses shall be promptly withdrawn in a nonqualified withdrawal or transferred to another 37 account. 38 “(2) Beginning on July 1, 2027, and no later than by July 1 of every 5 years 39 thereafter, the Chief Financial Officer shall revise the maximum account contribution limit and 40 make adjustments according to actuarial estimates necessary to pay qualified education expenses. 41 The Chief Financial Officer shall publish the actuarial estimates underlying the revisions to the 42 maximum account contribution limit on its website. Any maximum account contribution limit 43 increase shall be adjusted to the nearest multiple of $1,000. The actuarial estimates review shall 44 consider the following when revising the maximum account contribution limit: 45 “(A)(i) The product of 7 times the average of one year’s undergraduate total 46 direct charges at the 10 most expensive regional 4-year eligible educational institutions as measured 47 and last published by the College Board’s Independent College 500 Index that have the largest total 48 direct charges. 49 “(ii) For purposes of this subparagraph, the term “total direct charges” 50 means the charges determined for each eligible educational institution including reported tuition, 51 fees, room and board for an on-campus student at the eligible educational institution; and 52 “(B) Financing limitations set by the federal government and availability of 53 financial assistance.”. 54 Sec. 3. Financial impact statement. 55 The Council adopts the fiscal impact statement in the committee report as the fiscal impact 56 statement required by section 4a of the General Legislative Procedures Act of 1975, approved 57 October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 58 Sec. 4. Effective date. 59

3
This act shall take effect after approval by the Mayor (or in the event of veto by the Mayor, 60 action by the Council to override the veto) and a 30-day period of congressional review as provided 61 in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 62 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 63