Freedom to Invest in Tomorrow’s Workforce Act

The Freedom to Invest in Tomorrow's Workforce Act would expand what expenses families can pay for tax-free using 529 education savings plans. Currently, these plans primarily cover traditional college tuition and fees. If enacted, this bill would allow withdrawals to also cover costs associated with postsecondary credentialing programs, including tuition, fees, books, supplies, and equipment.

The bill defines eligible programs broadly to include industry-recognized certificates (such as project management or welding credentials), registered apprenticeships, occupational or professional licenses, and traditional associate or bachelor's degrees. Programs would need to be recognized by states, listed in the Department of Veterans Affairs' approval system, or identified as reputable credentialing programs.

For families saving for education, this change could provide more flexibility in how 529 plan funds are used, allowing them to support workforce training and credential programs alongside or instead of four-year college degrees. The bill is currently in committee and has not yet been voted on by the full House.