Last week, President Obama announced several new proposals in his State of the Union address to the nation. While he succeeded in highlighting many of the problems that have existed for years, his solutions were a far cry from the serious focus that is required to make our nation better for the long term.

Many of the president’s initiatives continued to focus on expanding the size of our federal government and raising taxes - such tired ideologies punish Americans rather than provide innovative new solutions to embolden people and encourage them to make the best choices for themselves and their families. One proposal in particular highlights problems that I have already been hard at work on since last Congress.

Families across Nebraska continue to struggle with ways to pay for their children’s education. I have always believed that earning a degree is one of the most important investments our children can make in their future success. But balancing an education with tight budgets and evolving priorities is a difficult task – one that continues to burden millions of families across the country.

That’s why last week I reintroduced a bill that would help families save for their children’s education. This bill, known as the ACE Act, would increase the annual contribution limit for Coverdell education savings accounts from $2,000 to $5,000 per beneficiary, thereby enabling parents to earn more money for their children’s education.

Currently, families can set aside savings in a Coverdell account to pay for expenses like education-related technology, tuition, or tutoring. When funds are withdrawn from the Coverdell account and used for qualified educational expenses, they are entirely tax-free. As a result, families who regularly contribute to Coverdell accounts can save thousands of dollars over the long-term. This plan can make a difference, and I believe it could also realistically pass Congress.

President Obama was right to shed light on this important issue last week, but instead of focusing on ways to help families, he advocated for policies that would punish American taxpayers and the very people who rely on these programs to deliver a better life for their children. As a U.S. Senator, President Obama voted to make permanent popular 529 college savings plans. Now as president, Obama is targeting these same plans which are popular with middle class families. Under his proposal, the IRS could tax as income any withdrawals from future 529 contributions. This is misguided and goes against the values we hold dear. My hope is that through the ACE Act, Americans will have a better option.

Millions of families are forced to balance their checkbooks while providing the best for their children. With this new proposal, we’ll be there to ease the burden without punishing hardworking American taxpayers. I’m excited to see this legislation move forward, and with your help, we can give our children and grandchildren the ability to earn a solid foundation for their future.

Thank you for participating in the democratic process, and I look forward to visiting with you again next week.