Application FEES Act

HR7205, titled the "Application FEES Act," was introduced in the House on January 22, 2026, by Rep. Janelle S. Bynum [D-OR-5]. The bill was immediately referred to the House Committee on Ways and Means, indicating it is in the very early stages of the legislative process. The bill proposes to amend Section 529(e)(3)(A) of the Internal Revenue Code of 1986 to include fees for admissions applications to higher education institutions as qualified expenses that can be paid from a 529 plan. This bill does not involve direct government funding or appropriations. Instead, it modifies the tax code to expand the eligible uses of existing 529 plan funds. The financial benefit to individual 529 account holders would be minor, as college application fees typically represent a small fraction of overall higher education costs. Consequently, this change is not anticipated to generate new revenue streams or significantly increase the total assets under management for financial institutions that offer 529 plans. Major financial institutions such as The Charles Schwab Corporation ($SCHW) and JPMorgan Chase & Co. ($JPM) manage 529 plans. While this bill slightly broadens the utility of these plans, it does not create a material impact on their business operations or profitability. The market data for $SCHW shows a 7-day change of -0.08% and a 30-day change of -2.54%, with its current price at $92.99. $JPM shows a 7-day change of +4.12% and a 30-day change of +0.65%, with its current price at $295.45. These movements are not attributable to HR7205, given its early stage and limited scope. For the bill to progress, it would need to be considered and passed by the House Ways and Means Committee, then the full House, followed by the Senate, and finally signed into law by the President. The legislative timeline for HR7205 is extensive. As of April 7, 2026, the bill has only been introduced and referred to a single committee. There have been no further actions since its introduction on January 22, 2026. This indicates a low legislative velocity, and it is uncertain if or when the bill will advance further.