Currently, only colleges, universities, vocational schools, or other post-secondary educational institutions are considered an eligible ‘529’ education savings account expense
Legislation would allow workers to use ‘529’ education savings accounts for training and credentialing programs to develop the skills needed for 21st century jobs
WASHINGTON– U.S. Senator Amy Klobuchar (D-MN) reintroduced legislation today to expand the eligible uses of the ‘529’ tax advantaged education savings program to include training and credentialing programs that help workers develop the skills needed for 21st century jobs. The bill would amend current law to allow workers to use ‘529’ education savings accounts to pay for training or credentialing programs recognized by a state, the federal government, or industry, in addition to currently allowable uses for colleges, universities, vocational schools, or other post-secondary educational institutions. Senators Dianne Feinstein (D-CA), Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), and Joe Manchin (D-WV) have cosponsored the legislation.
“The American workforce is changing and workers need new skills to compete in the 21st century economy,” Klobuchar said. “Whether they’re enrolling in college, getting a license or credential for a trade, or attending a short-term training program, people need the ability to save for their futures. There’s more than one pathway to success, and this legislation will help workers find—and afford—the best path for them.”
Klobuchar has long supported efforts to help workers succeed in an increasingly specialized workforce while making the country’s economy more competitive. Klobuchar and Senator Susan Collins (R-ME) are the lead sponsors of the bipartisan American Apprenticeship Act, which would provide funding to states for the creation or expansion of tuition assistance programs that benefit participants in pre-apprenticeship and Registered Apprenticeship programs. She is also a cosponsor of the bipartisan Apprenticeships and Jobs Training Act of 2017 and the Leveraging and Energizing America’s Apprenticeship Programs (LEAP) Act, which would provide a tax credit to employers to hire registered apprentices and help increase the number of registered apprenticeships in the U.S. respectively. In 2017, Klobuchar successfully pushed for a $5 million grant from the Department of Labor to strengthen partnerships between community colleges and local businesses and expand apprenticeship programs.