WASHINGTON — U.S. Senators Amy Klobuchar (D-MN) and Roger Marshall (R-KS) introduced the Freedom to Invest in Tomorrow’s Workforce Act, which would allow Americans to use 529 education savings accounts to pay for training programs. By broadening the scope of qualified expenses under 529 savings plans to include postsecondary training and credentialing, the bill would expand tax-advantaged resources to families, students, and workers who are pursuing career growth outside of a traditional four-year degree. This will expand Americans’ access to well-paying jobs that require training and credentialing such as licenses and certifications. 

“Workforce training is key to expanding opportunity and strengthening our economy by providing workers with the tools and resources they need to succeed,” said Klobuchar. “By allowing Americans to use their ‘529’ educational savings to pay for training and certification outside of a four-year degree, our bipartisan legislation will enable more people to access these valuable programs and open doors to good-paying jobs.”

“Back home, not a day goes by that I don’t hear about the workforce shortages across the state. We have high-paying jobs at the ready but struggle to find qualified employees. Our bill helps fill these workforce gaps and empowers Kansans to pursue non-traditional educational opportunities more easily,” said Marshall. “Allowing 529 funds to be used beyond a four-year education makes sense. Whether it’s a bachelor's degree or an apprenticeship opportunity, 529 savings plans need to be flexible to meet the growing demands of our workforce.”

The legislation is co-sponsored by Senators Peter Welch (D-VT) and Susan Collins (R-ME). Representative Rob Wittman (R-VA) leads companion legislation in the House. This bill has garnered the support of more than 800 trade associations, professional societies, and businesses.

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