By a 230-198 vote, the House approved legislation Thursday that would allow parents to make tax-deferred contributions of up to $2,500 a year to a child's education savings account. The funds could be used to pay tuition at private elementary and high schools as well as college. Similar legislation has been introduced in the Senate.

Democrats and the Clinton administration have argued that the measure would undermine support for public education. Current law allows tax-exempt contributions of $500 and restricts the money to be used only for higher education.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.