Freedom to Invest in Tomorrow’s Workforce Act
Freedom to Invest in Tomorrow’s Workforce Act
Plain Language Summary
# Freedom to Invest in Tomorrow's Workforce Act — Summary **What it would do:** This bill would expand what parents and students can use 529 education savings plans for. Currently, these tax-advantaged accounts primarily cover college tuition and related expenses. The bill would allow withdrawals to also pay for career certification and credentialing programs—such as welding, emergency medical technician (EMT), project management, and other industry-recognized credentials. Eligible expenses would include tuition, fees, books, supplies, and equipment needed for these programs. **Who it affects:** The bill would benefit families saving for education through 529 plans, as well as students pursuing alternatives to traditional four-year college degrees.
It would also affect people seeking mid-career training or skills certifications. Credential-granting organizations and trade/technical programs would likely see increased enrollment if these savings plans become available to their students. **Current status:** The bill is currently in committee, meaning it has been introduced but has not yet been voted on by the full House of Representatives. It was sponsored by Representative Robert Wittman (R-VA).
CRS Official Summary
Freedom to Invest in Tomorrow’s Workforce ActThis bill expands the expenses eligible for tax-free withdrawals from a qualified tuition program (known as a 529 plan) to include tuition, fees (including test fees), books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program.Under the bill, a recognized postsecondary credentialing program includes certain programs identified by a state as providing training services, a program listed in the Web Enabled Approval Management System (WEAMS) maintained by the Department of Veterans Affairs, certain examinations required to obtain or maintain a credential, and other reputable credentialing programs.Further, under the bill, such programs must be designed for an individual to obtainan industry-recognized postsecondary employment credential (e.g., project management professional certificate, advanced emergency medical technician certificate, and welding supervisor certificate),a certificate of completion of a registered and certified apprenticeship,an occupational or professional license issued or recognized by a state or the federal government (and any certification required for obtaining such license), oran associate or baccalaureate degree.
Latest Action
Referred to the House Committee on Ways and Means.