The Tomorrow’s Workforce Coalition, of which IHMM is a part, proudly supports the U.S. House of Representatives’ inclusion of legislation expanding the use of 529 savings plans in the One, Big, Beautiful Bill. The Freedom to Invest in Tomorrow’s Workforce Act, included in this bill, expands qualified expenses under 529 savings plans to include postsecondary training and credentialing, such as licenses and nongovernmental certifications. It provides valuable tax-advantaged resources to more workers pursuing career growth, mid-career changes, or alternative career pathways. 

 

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. Postsecondary credentialing for workers with or without a two- or four-year degree is a differentiator in the 21st century workforce. 

 

Associations are the primary source of this post-college education and skills training for America’s workforce. 57 million adults take formal work-related courses or training each year. 70% of those individuals receive training courses from either a private business or a professional association. Providing additional opportunities for people to access this training and credentialing provides an alternative to traditional higher education for those seeking access to family-sustaining careers. This paradigm shift in 529 savings accounts from “college savings plans” to “career savings plans” will make these accounts more accessible to contributors of all income levels and beneficiaries of all skill levels. Families could save money—utilizing the unique tax advantages that 529 plans offer—for beneficiaries at any stage of their careers and at any education level to boost career prospects and earning potential. This legislation would also provide flexibility for 529 beneficiaries to use their plan funds to cover the high quality educational, training, or credentialing programs that best fit their skills development, professional growth, and chosen career path.  

 

As the bill makes its way to the Senate, the Tomorrow’s Workforce Coalition urges Senators to pass legislation that includes the Freedom to Invest in Tomorrow’s Workforce Act. Doing so will help strengthen our nation’s workforce now and well into the future.