With bipartisan support, more flexible 529 plans will make Virginia stronger

In today's ever evolving 21st century economy, key industries are struggling to find adequately trained workers to fill middle-skill jobs. Many of these jobs don't require a traditional four-year degree but do require post-secondary credentials or licenses - training programs that can be costly.

In Virginia, 529 savings plans - which permit investment earnings in these accounts to be tax-exempt if used for qualified education expenses - have long helped the next generation of our workforce afford a higher education. But Virginians cannot currently use these accounts to cover costs for credentialing programs or licenses.

Especially as we see more specialized, cutting-edge industries grow in the commonwealth, we must empower as many Virginians as possible to obtain and retain good-paying jobs. That's why we're working in a bipartisan manner to help Virginians - and all Americans - pursuing skilled jobs pay for post-secondary credentials or licenses using 529 accounts.

When we introduced the Freedom to Invest in Tomorrow's Workforce Act in March of 2023, we were inspired by countless Virginia students who are choosing to forgo a four-year degree to join the workforce and pursue in-demand jobs. We have also heard from students who have limited funds to pay for the training and credentialing programs these well-paying jobs require.

Sixteen months later, we are proud to say this bipartisan legislation has garnered the support of more than 140 of our colleagues and the endorsement of more than 800 trade associations, professional societies and businesses.

Our workforce landscape is changing, both in Virginia and across the country. The majority of jobs today are middle-skill positions that require some education beyond high school. These are the jobs that keep our economy running - skilled tradespeople, health care technicians, information technology (IT) support specialists, and professionals across industries.

Our Freedom to Invest in Tomorrow's Workforce Act seeks to broaden the scope of qualified expenses under 529 savings plans, allowing these funds to cover the costs of post-secondary training and credentialing, including licenses and nongovernmental certifications. This change is crucial, because it recognizes the diverse pathways to career success beyond attending college.

Our bill would provide families, students and workers with the financial flexibility they need to succeed. Whether it's a young person embarking on their first career, a mid-career worker seeking new skills, or someone pivoting to a different field entirely, this bill offers a practical solution for their educational and professional development.

We're proud that this legislation empowers workers from all educational backgrounds, skill levels and ages to invest in their futures without an unaffordable financial burden. This effort would not only support personal career growth but also strengthen our workforce and our economy.

For Virginia, this bill would be a game-changer. The commonwealth is home to the largest 529 program in the country, and our districts are home to a diverse array of industries, including advanced manufacturing, health care and IT. By expanding 529 plan eligibility, we are directly supporting the development of a skilled workforce that can meet our industries' needs. In turn, we'll attract more businesses to the commonwealth, foster economic growth and enhance the quality of life for our residents.

Nationally, the Freedom to Invest in Tomorrow's Workforce Act is a forward-thinking approach to education and workforce development. If passed, this bill would make a meaningful commitment to the American workforce - recognizing the value of all post-secondary educational paths and providing the means for individuals to succeed in their chosen careers.

We urge our colleagues in the U.S. House to join us in supporting this commonsense, bipartisan legislation. This bill empowers all Americans to pursue their dreams, supports domestic industries with skilled professionals, and solidifies America's strength and competitiveness in our global economy. By passing the Freedom to Invest in Tomorrow's Workforce Act, we can build a workforce that is equipped for the challenges of tomorrow and poised to lead our nation forward today.

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