March 19, 2001

Orthodox Union Applauds Senate Finance Approval
Of Education Savings Account Expansion

Today, the Union of Orthodox Jewish Congregations of America, through
its Institute for Public Affairs, applauded action yesterday by the
Senate Finance Committee to include the expansion of tax-free education
savings accounts to K-12 education.  The expansion was offered by
Senator Robert Torricelli (D-NJ) as an amendment to the Committee
Chairman's proposed "Affordable Education Act."  The amendment was
approved and the bill was reported out of committee by a unanimous vote.

Education Savings Accounts would permit parents to invest up to $2000 in
a tax free IRA account each year after the birth of a child.  (Middle
income taxpayers eligible for the $500 child tax credit could contribute
up to $2500 annually.)  Parents could withdraw money invested in the IRA
for use towards a broad range of primary, secondary or college education
expenses including tuition, activity fees, supplies, tutoring or
transportation costs.  The legislation would permit parents to use these
funds to further their children's education at any school - public,
private, sectarian or home school.

Identical legislation was passed by congress last year but vetoed by
President Clinton.  President Bush has included a similar, but broader,
provision in his education proposal - it would allow investment of up to
$5,000 in the tax-free accounts.  The measure proposed in committee by
Senator Torricelli is cosponsored by Senator Tim Hutchinson (R-Ark.).

"We believe this type of savings account would provide meaningful
support to parents in their struggle to provide the best education to
their children," said Nathan Diament, director of the Union's
Institute.  He continued: "America already has tax-free education
savings accounts for college education expenses and we all realize that
the early years of education are where the foundation for a better life
is laid; therefore, we must support parents in their effort to provide
the best K-12 education for their kids as they see fit - whether in
public, private or parochial schools."

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