Legislation would allow Americans to use ‘529’ education savings accounts to pay for training programs
Washington, D.C. - U.S. Senators Susan Collins (R-ME), Amy Klobuchar (D-MN), and Mike Braun (R-IN) introduced the Freedom to Invest in Tomorrow’s Workforce Act, bipartisan legislation to allow Americans to use ‘529’ education savings accounts for skills training, credentialing, and certification programs. Current law only permits workers and families to use ‘529’ accounts to pay for college, university, and vocational school expenses.
“Whether it’s a college degree or a credentialing program, education and workforce training play a vital role in opening the doors of opportunity to all Americans,” said Senator Collins. “529 plans are a great option for parents to save for education expenses, but currently these accounts cannot be used for skills training and credentialing programs. Our bipartisan bill would address this barrier and improve the flexibility of 529 plans. By allowing 529 plans to cover these additional workforce training expenses, we can help students achieve their dreams and develop skills that are in high demand by employers.”
“Skills training and development programs help provide people with the tools and resources they need to succeed in our economy,” said Senator Klobuchar. “By allowing workers to use their ‘529’ educational savings to pay for additional training and certification, our bipartisan legislation will enable more Americans to access and benefit from these valuable programs.”
“Every high school student in America needs to know that you don’t necessarily have to go to college to have a great career. By expanding opportunities and access to skills training programs, and letting Americans use their ‘529’ education savings to pay for it, we can address the nationwide skills shortage and fill American jobs,” said Senator Braun.
In addition to Senators Collins, Klobuchar, and Braun, the legislation is cosponsored by Senators Tammy Duckworth (D-IL), Dianne Feinstein (D-CA), Joe Manchin (D-WV), Martin Heinrich (D-NM), Peter Welch (D-VT), and Tommy Tuberville (R-AL).