To help address the costs of professional training and licensure - the Freedom to Invest in Tomorrow’s Workforce Act- has been reintroduced in both the House and Senate. This bill aims to expand 529 education savings plans, allowing them to cover costs related to career development, certifications, and licensure. If passed, it would give professionals a tax-advantaged way to afford essential training and licensure. 

Currently, 529 savings plans can only be used for traditional college expenses, excluding many vocational and professional development programs. This limitation prevents workers from using their savings plan for key career-building costs, such as licensing exams and continuing education fees. The proposed expansion would make 529 plans more flexible, helping professionals invest in their futures without added financial strain. 

The Freedom to Invest in Tomorrow’s Workforce Act was reintroduced in the House of Representatives on February 7th by Representatives Rob Wittman (R-VA) and Steven Horsford (D-NV) later in the Senate on March 5th by Senators Amy Klobuchar (D-MN) and Roger Marshall (R-KS). The bill aims to amend the Internal Revenue Code of 1986 to expand the definition of "qualified higher education expenses" within 529 plans, which could include: 

• Tuition, fees, books, supplies, and equipment for recognized postsecondary credential programs. 
• Testing fees required to obtain or maintain credentials. 
• Continuing education costs necessary for credential renewal. 

The Freedom to Invest in Tomorrow’s Workforce Act is a key step toward updating 529 savings plans, allowing them to cover more than just college costs. By expanding these tax-advantaged accounts to include job training and professional development, the bill would help emerging and experienced professionals, and others afford the expenses of licensure, certifications, and continuing education. This change would make it easier for workers to invest in their careers, reduce financial stress, and support growth in skilled industries. 

ASLA members are encouraged to TAKE ACTION and contact their legislators about cosponsoring the Freedom to Invest in Tomorrow’s Workforce Act.