# Plain Language Summary: Freedom To Invest in Tomorrow's Workforce Act

Right now, 529 savings accounts are special tax-advantaged accounts that let families save money for college without paying taxes on the earnings—but only if the money goes toward traditional four-year college expenses. This bill expands what you can use that money for by allowing it to cover costs for career training programs and professional certifications that don't require a college degree.

Under this bill, you could use your 529 account to pay for things like trade school programs, nursing certifications, IT certifications, welding courses, or other recognized career credentials. The bill covers tuition, fees, books, supplies, and equipment needed for these programs, as well as the fees you have to pay to get or keep your certification current. The key requirement is that the credential has to be "recognized"—meaning it's either on an official workforce training list, accredited by organizations like the National Commission on Certifying Agencies, or approved by the IRS in consultation with the Department of Labor.

This change matters because it gives families more flexibility in how they use their 529 savings. Instead of being locked into traditional college funding, parents and students can now invest in career paths that might lead to jobs faster and with less debt. It recognizes that not everyone needs a four-year degree to build a successful career, and it makes it easier for families to save for these alternative pathways without tax penalties. The change would take effect for expenses paid after the bill becomes law.

Freedom To Invest in Tomorrow's Workforce Act

Wittman, Robert J.

Freedom To Invest in Tomorrow's Workforce Act This bill allows the use of funds in a qualified tuition program (commonly known as a 529 account) to pay for expenses associated with obtaining or maintaining recognized postsecondary credentials.