HB 1300: Georgia Higher Education Savings Plan Act; raise maximum amount of contributions allowed per beneficiary for savings trust accounts

Under current Georgia law, families cannot add more money to a state 529 college savings account (called a savings trust account) once the balance reaches $235,000.00 per beneficiary. This bill raises that ceiling to $550,000.00. It also creates a new tax deduction of up to $2,000 per beneficiary for contributions to similar tuition savings plans, effective for tax years 2026 through 2031. Beyond savings accounts, the bill creates the DREAMS scholarship, a need based award of up to $3,000 per year funded through a new state endowment fund, for students at University System of Georgia and Technical College System of Georgia schools. It adds advanced fine arts courses to the GPA calculation used for HOPE scholarship eligibility, requires public colleges and technical schools to stock opioid antagonists like naloxone near defibrillators, creates a repayable scholarship for medical students who agree to practice in Georgia, removes part-time students from a state retirement plan, and adjusts how the lottery shortfall reserve is calculated. Most changes take effect July 1, 2026, except the savings account cap increase, which takes effect once signed by the Governor.

• Raises the maximum balance allowed in a Georgia 529 college savings trust account from $235,000.00 to $550,000.00 per beneficiary before contributions must stop.
• Creates a new state income tax deduction of up to $2,000 per beneficiary (more for joint filers) for contributions to qualifying tuition savings programs, running from 2026 through 2031.
• Establishes the DREAMS scholarship and a DREAMS Scholarship Endowment Fund to give undergraduates at Georgia public colleges and technical schools need based awards of up to $3,000 per year.
• Adds advanced fine arts courses to the grade point average calculation used to decide eligibility for the HOPE scholarship, starting with students graduating after July 1, 2026.
• Requires University System of Georgia and Technical College System of Georgia campuses to keep a stock supply of opioid antagonists (like naloxone) near defibrillators and allows trained staff to administer them with legal immunity.
• Creates a new medical school scholarship covering full cost of attendance in exchange for a four-year commitment to practice medicine in Georgia, and removes part-time students from the Georgia Defined Contribution Plan.

Families saving for college through Georgia's 529 plan, income taxpayers who contribute to tuition savings programs, undergraduate students with financial need at University System and Technical College System schools, high school students seeking HOPE scholarships who take fine arts classes, medical school students, part-time state employees enrolled in the Georgia Defined Contribution Plan, and college and technical school staff responsible for opioid overdose response.

Families with larger college savings goals could keep contributing further under the higher cap, and some taxpayers would get a new deduction. Students could tap a new scholarship fund, fine arts students could see GPA benefits for HOPE, campuses would be required to stock overdose reversal medication, and medical students could get help paying for school in exchange for practicing in Georgia.

• Section 1-1 creates a new subpart of Georgia law establishing the DREAMS scholarship, capped at $3,000 per student per academic year and limited to eight semesters, funded through a new endowment with principal, scholarship, and transitional accounts.
• Section 2-1 adds advanced fine arts courses to the GPA formula used for HOPE scholarship eligibility, but excludes students who graduated before July 1, 2026.
• Sections 3-1 and 3-2 require University System of Georgia institutions and Technical College System units to maintain opioid antagonist supplies near defibrillators and grant legal immunity to staff who administer them in good faith.
• Section 4-1 creates a medical school scholarship requiring recipients to practice medicine in Georgia for at least four years after graduation or repay the award.
• Section 5-1 raises the 529 savings trust account contribution ceiling from $235,000.00 to $550,000.00 per beneficiary, effective upon the Governor's signature.
• Section 5-2 creates a state income tax deduction of up to $2,000 per beneficiary for contributions to qualifying tuition savings programs, set to repeal automatically on January 1, 2031.
• Section 6-1 excludes part-time students from being classified as employees under the Georgia Defined Contribution Plan.
• Section 7-1 changes how the lottery shortfall reserve's minimum balance is calculated, basing it on whichever is greater between average net proceeds or 'base lottery spend' over the prior three years.

1. 2026-04-02House Committee Favorably Reported By Substitute (House)
2. 2026-02-18House Second Readers (House)
3. 2026-02-17House First Readers (House)
4. 2026-02-12House Hopper (House)

• Devan Seabaugh (R, HD-034)Primary sponsor
• Beth Camp (R, HD-135)
• Jan Jones (R, HD-047)
• Carmen Rice (R, HD-139)
• Trey Kelley (R, HD-016)
• Matt Barton (R, HD-005)

• college savings plans
• HOPE scholarship
• opioid overdose response
• higher education funding
• state income tax deductions