529 Plans Grow 8% in Q2 2025 Before Big Rule Changes

In the three months ending June 30, 2025, 529 college savings and prepaid plans saw one of their strongest periods of growth in years. The latest data from ISS Market Intelligence shows 17.3 million accounts holding $568 billion in assets, up from 16.8 million accounts and $508 billion a year earlier. That’s a 7.9% increase in accounts and an 11.8% jump in total assets over the same period.

What makes this surge noteworthy is that it occurred before the full impact of the One Big Beautiful Bill Act (OBBBA). The new law, signed in July 2025, significantly broadens what families can pay for with 529 funds. While historically focused on higher education, 529 plans will soon be able to cover certain workforce training programs, licensing exam fees, and professional credentialing costs. The law also increased what's allowed for elementary education as well.

This expansion has the potential to accelerate account openings and contributions in the second half of the year and beyond, particularly among families who see 529s as a tax-advantaged way to invest in both traditional education and career-focused training.