The Freedom to Invest in Tomorrow’s Workforce Act Picks Up Steam in Congress

Legislation aimed at broadening the scope of qualified expenses under 529 savings plans to include post-secondary training and credentialing is gaining momentum in Congress. The “Freedom to Invest in Tomorrow’s Workforce Act” (HR 1151) sponsored by Representatives Rob Wittman (R-VA) and Abigail Spanberger (D-VA) would provide tax-advantaged resources to families, students, and workers by allowing 529 college plans to be used for trade certification and training, among other things. This would help expand our manufacturing and high-tech workforce while introducing these fields to a broader range of the American workforce.  

Currently, training and credentialing certifications are ineligible for 529s. America’s workforce is comprised mostly of middle-skill jobs that require more than a high school education but not a bachelor’s degree, according to the National Skills Coalition. A differentiator amid the 21st century workforce economy is postsecondary credentialing—for workers with or without a college degree. 

The bi-cameral legislation, which has nearly 150 co-sponsors in the House and strong bi-partisan support in the Senate (S-722, Sems Braun and Klobuchar) focuses on those pursuing career growth, mid-career changes, or pathways diverging from traditional academic routes.  

This legislation aligns with ASME’s efforts to expand the engineering workforce and utilize diverse paths to learning, such as community colleges. ASME’s Community College Engineering Pathways initiative aims to attract, support, and retain the broadest and most skilled next generation of engineering professionals, and increases access to engineering and skilled technical jobs for students at Community Colleges. 

This legislative initiative is an encouraging sign that Congress is working in a bi-cameral and bi-partisan effort to address the challenges we face in the engineering workforce. The Government Relations team is working to help advocate for this bill, and we will keep you informed on our progress.