CBS19: Bill to let 529 plans be used for certain training, credentialing programs

CBS19

A bill before the U.S. House of Representatives aims to help more students and workers afford workforce training and credentialing programs.

Congresswoman Abigail Spanberger reintroduced the Freedom to Invest in Tomorrow’s Workforce bill Wednesday.

According to a release, this bill would give people the freedom to use a “529” savings plan to cover the costs of some workforce training and credentialing programs.

The legislation would also let students use such funds to pay for associated costs from certification exams and maintenance of certification credentials.

Under current law, eligible 529 expenses only cover colleges, vocational schools, universities and other post-secondary institutions.

“Especially as we rebuild our economy in the wake of COVID-19, we need to make sure Central Virginia students and workers receive the training required to remain competitive and successful. 529 savings plans have long ensured that the next generation of Virginia workers can afford a higher education, but students are currently constrained from using these accounts to pay for necessary credentialing programs and exams,” said Spanberger. “Our bipartisan, bicameral legislation would give Virginia students and workers the ability to use their 529 plans to cover tuition, books, and testing costs related to these training programs. I’m proud to stand alongside Representatives [Fred] Upton, [Dean] Phillips, and [Rob] Wittman in reintroducing this commonsense bill, and I’d like to thank Senators [Amy] Klobuchar and [Mike] Braun for leading this effort in the U.S. Senate. As we watch incredibly specialized trades emerge across our area, I’ll keep working to make these programs more affordable and accessible.”

The National Skills Coalition says middle-skill jobs, which require more than a high school education but not a bachelor’s degree, make up the largest part of the labor market in the United States.

However, there is a lack of adequately-trained workers to fill such openings.

The release says this legislation would amend the current law to let workers and students use a 529 plan to pay for training or credentialing programs that are recognized by a state government or the federal government.

This would also include such programs that are widely recognized as providing reputable credentials in a given occupation.

To read the full text of the legislation, click here.

Recent Posts


Jun 20, 2024
Press

Spanberger, Carey Lead Bipartisan Effort to Waive Passport Fees for Family Visiting Injured Servicemembers Abroad

The “No Passport Fees for Heroes’ Families Act” Would Apply to Family Members Visiting Injured Servicemembers Who Are Not Yet Medically Cleared to Travel Back to the United States WASHINGTON, D.C. — U.S. Representative Abigail Spanberger (D-VA-07) and Mike Carey (R-OH-15) introduced bipartisan legislation to waive passport fees for family members obtaining a passport for […]



Jun 17, 2024
Local Issues

NEW MILESTONE: Spanberger’s Office Returns More Than $39 Million in Federal Benefits to Virginians

Since the Start of 2019, the Congresswoman’s Office Has Returned More Than $39 Million in Backlogged IRS Refunds, Social Security Checks, VA Benefits, & More WASHINGTON, D.C. — U.S. Representative Abigail Spanberger announced today that her office has now returned more than $39 million in federal casework funds to residents of Virginia’s Seventh District. Casework dollars […]



Jun 14, 2024
Press

Spanberger Statement on Supreme Court Ruling to Strike Down Federal Bump Stock Ban

Congresswoman: “As a Former Federal Law Enforcement Officer, I Know that Weapons Designed to Inflict Maximum Casualties Do Not Belong on Our Streets, in Our Schools, or in Our Communities” WASHINGTON, D.C. — U.S. Representative Abigail Spanberger today released the following statement following the U.S. Supreme Court’s decision in Garland v. Cargill, which overturns a […]