White House drops 529 college savings proposal

(CNN) The White House is giving up on a costly fight with Congress over the Obama administration's increasingly unpopular proposal to effectively end 529 college savings plans.

A White House official confirmed the move on Tuesday as fierce opposition to the provision was building in Congress, even among fellow Democrats.

READ: Obama proposes scaling back benefits of 529 college savings plans

"Given it has become such a distraction, we're not going to ask Congress to pass the 529 provision so that they can instead focus on delivering a larger package of education tax relief," the official said.

Also known as "qualified tuition programs," 529 college savings plans are typically offered by the states and allow holders to save money and withdraw it tax-free, as long as the proceeds are used towards approved college costs -- typically tuition, fees, room, board and other required supplies. Another kind of 529, prepaid tuition plans, let savers prepay for future tuition and lock in current prices, but they typically do not cover other expenses.

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