This legislative proposal seeks to amend the Internal Revenue Code of 1986, broadening the scope of permissible uses for funds held within qualified tuition programs (529 plans) . The primary objective is to enable beneficiaries to utilize these tax-advantaged savings for specific qualified housing expenses without incurring tax penalties. Specifically, the bill defines qualified housing expenses as those related to the purchase of a principal residence by an individual who qualifies as a first-time homebuyer . This includes covering associated closing costs and mortgage payments, thereby expanding the utility of 529 plans beyond traditional educational expenditures. These new provisions are slated to become effective for all distributions made from qualified tuition programs after December 31, 2026.