Capital Briefs: Senate Passes Bill Expanding Education Savings

The Senate on Wednesday voted 59 to 36 for legislation that would expand education savings accounts, but the tally fell short of the two-thirds necessary to override a promised presidential veto.

The bill would let parents contribute $2,000 annually to tax-free accounts for a child's education costs, quadrupling the current limit and widening permitted spending beyond college expenses to include elementary and secondary school costs.

Last week the House passed the same bill on a 225-to-197 vote, or 57 votes shy of a veto-proof majority. The Clinton administration objects because it says the accounts represent bad tax policy and would encourage students to abandon public schools.

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