Freedom to Invest in Tomorrow’s Workforce Act
Key claim: The Freedom to Invest in Tomorrow’s Workforce Act (HR1151) expands tax-free 529 plan withdrawals to cover tuition, fees, books, supplies, and related expenses for recognized postsecondary credentialing programs, apprenticeships, and occupational or professional licenses.
Abstract
(HR1151 · 119th Congress) Freedom to Invest in Tomorrow’s Workforce Act This bill expands the expenses eligible for tax-free withdrawals from a qualified tuition program (known as a 529 plan) to include tuition, fees (including test fees), books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program. Under the bill, a recognized postsecondary credentialing program includes certain programs identified by a state as providing training services, a program listed in the Web Enabled Approval Management System (WEAMS) maintained by the Department of Veterans Affairs, certain examinations required to obtain or maintain a credential, and other reputable credentialing programs. Further, under the bill, such programs must be designed for an individual to obtain an industry-recognized postsecondary employment credential (e.g., project management professional certificate, advanced emergency medical technician certificate, and welding supervisor certificate), a certificate of completion of a registered and certified apprenticeship, an occupational or professional license issued or recognized by a state or the federal government (and any certification required for obtaining such license), or an associate or baccalaureate degree. Latest action (2025-02-07): Referred to the House Committee on Ways and Means.
Why this matters
For families and workers, HR1151 would let 529 savings be used tax-free for shorter-form workforce credentials, apprenticeships, and licensure rather than only degree-granting programs, aligning a longstanding college-savings vehicle with non-degree career pathways. For institutions and credential issuers, inclusion on the qualifying-program list (via VA WEAMS, state WIOA lists, or federal recognition) becomes a meaningful eligibility gate that could shift enrollment and financing dynamics.