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🛝 529 Plan Expansion, K12 Federal Funds, Literacy Gains

Welcome to Playground Post, a bi-weekly newsletter that keeps education innovators ahead of what’s next.

Here’s what we have on deck for today…

529 plans now cover microschools and tutoring

A new bill expands 529 education savings accounts beyond traditional K-12 tuition to cover microschooling, tutoring, curriculum, and educational therapy. The National Microschooling Center reports growing demand across all 50 states as families seek smaller learning environments.

Families everywhere are excited for their children to be part of innovative small learning environments where they can feel seen and heard

Don Soifer, CEO of the National Microschooling Center

For education entrepreneurs, this expansion opens new funding streams as more families gain access to tax-advantaged savings for alternative education services.

Federal education funds face big changes ahead

Three former education secretaries gathered to discuss the Department of Education's $32B annual K-12 funding streams. Amid debates about the agency's future, these past leaders emphasized its vital role in data collection and civil rights protection.

The great military is our best defense as a nation, and a great education system is our best offense.

Arne Duncan, former secretary under President Obama

The department currently manages $18.4B in Title I funds for low-income students and $14.2B for special education services. Organizations receiving these funds should prepare for potential shifts in grant requirements while keeping student achievement at the forefront.

New federal nominee brings literacy wins forward

Tennessee's student reading scores tell a compelling story under Penny Schwinn's leadership.

  • The state saw reading proficiency rise from 34% pre-pandemic to 38% last year after implementing science-based reading instruction for 30,000 teachers

  • Schwinn directed COVID relief funds toward a statewide tutoring program and required districts to screen students for reading difficulties

For education organizations, her nomination as deputy education secretary could signal a continued focus on literacy and achievement measurement.

Her track record suggests a potential emphasis on evidence-based reading instruction and systematic student assessment — priorities that could shape federal funding opportunities in 2025.

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