Bill to use 529 savings plans for training, credentialing gains 100 cosponsors

Originally introduced in March 2023 by U.S. Reps. Abigail Spanberger and Rob Wittman of Virginia, Freedom to Invest in Tomorrow’s Workforce now has 100 cosponsors.

The Freedom to Invest in Tomorrow’s Workforce Act would give American workers the freedom to use their 529 savings plans to cover the costs of certain workforce training and credentialing programs. The bill would also allow students to use their 529 funds to pay for associated costs related to certification exams and maintenance of certification credentials.

Currently only expenses for colleges, vocational schools, universities or other post-secondary institutions are considered eligible for 529 education savings plan expenditures.

 “For years, we’ve led this bipartisan effort to make job training and continued education more affordable and attainable for all Virginians — because we know a four-year college is not always the right fit. More than four years later, we now have 100 of our colleagues on board,” Spanberger said. “529 savings accounts have long helped Virginians afford a higher education — whether at a four-year college or a trade school. Our commonsense, bipartisan bill would allow students and workers across our Commonwealth to use their 529 plans to cover the cost of tuition, books, and testing related to valuable workforce training programs.”

According to Wittman, “the majority of America’s workforce consists of middle-skill jobs that require more than a high school education but not a bachelor’s degree, which is why I’m proud to be leading this legislation in the House. I will keep fighting to equip our students with the tools and resources they need to lead our nation forward.”

 “The Freedom to Invest in Tomorrow’s Workforce Act can empower workers of any educational background, skill level or age,” said Michelle Mason, American Society of Associations Executives (ASAE) President and CEO, FASAE, CAE. “This pragmatic policy would support all industries and professions that rely on employees with specialized training or credentials. Our community is grateful to the Congressional champions for their commitment to supporting our current and future workforce.”