Freedom to Invest in Tomorrow’s Workforce Act

Use 529 savings for workforce credentials

This bill would let you use money from a 529 college savings plan to pay for certain workforce credentials. It would add "qualified postsecondary credentialing expenses" to what counts as qualified higher education expenses for 529 plans. You would be able to use 529 distributions for tuition, fees, books, supplies, equipment, testing fees required to obtain or maintain a recognized credential, and continuing education fees required to maintain a recognized credential. The expense must be for a designated beneficiary enrolled in a recognized postsecondary credential program. A recognized program would include programs on State WIOA lists, programs listed in the VA WEAMS public directory, programs that credentialing organizations recognize as preparing students for required exams, or programs the Secretary identifies after consulting the Labor Secretary. Recognized credentials would include industry credentials accredited by specified credentialing bodies, Department of Defense COOL-listed credentials, registered apprenticeship completion certificates, state or federal occupational or professional licenses (and related certifications), and WIOA-defined credentials provided through State-listed programs. If enacted, these rules would apply to distributions made after the date of enactment.