Congressman Rob Wittman (R-VA-01) and Congresswoman Abigail Spanberger (D-VA-07) are teaming up to try and provide some financial relief to students that pursue job training opportunities.
H.R. 2171: the Freedom to Invest in Tomorrow’s Workforce Act would allow for the use of 529 funds to pay for the tuition, exam, and supply costs associated with career technical education. A 529 is a tax-exempt savings plan that can be used to fund college expenses at eligible educational institutions nationwide.
“Even before the pandemic, businesses across Virginia faced a severe talent shortage due to a lack of career and technical training as well as STEM education. Now, as we rebuild our economy, cultivating a workforce with in-demand skill sets is more important than ever,” said Wittman. “One of my top priorities is ensuring our students cultivate the skill sets needed to thrive in today’s workforce. This bipartisan legislation creates opportunities for students to pursue post-secondary credentialing programs by allowing them to use their 529 savings to pay for tuition, exams, and supplies.”
Currently, 529 funds can only be used to cover expenses for students that are enrolled at or applying for an accredited college, university, vocational or technical school. 529 funds can also be used to pay for certified and registered apprenticeship expenses, certain payments on qualified education loans, and up to $10,000 per year for tuition at a private, religious or public primary or secondary school.
The bill would change the internal revenue code to allow people attempting to earn an industry-recognized certificate to use their 529 funds for expenses like tuition, supplies, and test fees.
“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.”
“Virginia529 looks forward to working with @RepSpanberger and other legislators to help close 529 plan education gaps,” tweeted the Virginia chapter of 529 after the bill was introduced in the House of Representatives.
.@RepSpanberger on the bipartisan push for workforce training: “Allowing people the flexibility to invest in these programs that will allow them — with the certification necessary — to enter a career of their choosing… [is] an option that should be available across the board.” pic.twitter.com/ynYnaHkwko
— Yahoo Finance (@YahooFinance) March 24, 2021
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