North Carolina Sen. Jones education savings protection bill passes House and Senate

Passed bill sponsored by State Sen. Dana Jones seeks to protect education savings and investment accounts from creditor claims while allowing certain legal actions, following its approval in both chambers, according to the North Carolina State Senate.

In the House, 46 Democrats and 64 Republicans voted in favor of the bill.

Meanwhile, in the Senate, 17 Democrats and 28 Republicans voted in favor of the bill.

Jones filed the bill in the North Carolina Senate on Feb. 13 during the 2025 regular session.

The legislation, known as SB 101, was passed on June 25 during the 2025 regular session.

According to the North Carolina General Assembly site, the bill’s official text was formally listed with the short title: “Protect Tax-Advantaged Accts. & Living Donors.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill aims to enhance protections for education savings and investment accounts qualified under section 529 of the Internal Revenue Code and ABLE accounts qualified under section 529A. It exempts funds in these accounts or those withdrawn for qualifying purposes from creditor claims, including liens, garnishment, and other legal actions to pay debts. However, it does not prevent the distribution of ABLE account funds following the account owner’s death or the enforcement of judgments on funds misused or acquired through fraud. The bill repeals G.S. 1C-1601(a)(10) and takes effect Sept. 1, 2025, applying to relevant actions filed on or after that date.

The bill was sponsored by Sen. Michael V. Lee (Republican-7th District), Sen. Paul Newton (Republican-34th District), and Sen. Dana Jones (Republican-31st District).

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Jones graduated from High Point University in 1993 with a BA.

Jones, a Republican, was elected to the North Carolina State Senate in 2025 to represent the state’s 31st Senate district, replacing previous state senator Joyce Krawiec.

Under North Carolina law, bills must receive three readings in each chamber. According to the UNC School of Government, once a bill “passes its constitutionally required second reading and moves to its constitutionally required third reading,” additional debate can occur, but the final stage is often treated as a formality. Unless a legislator requests a roll-call, the third reading may be approved by voice vote or unanimous consent without a separate recorded tally.