Freedom to Invest in Tomorrow’s Workforce Act

Hozzl · 2025-03-21T04:08:32Z

Explore the details of Senate Bill 756 Freedom to Invest in Tomorrow’s Workforce Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on undefined. Stay informed on legislative developments.

3/21/2025, 4:08 AM

Summary of Bill S 756

Bill 119 s 756, also known as the "529 Expansion and Modernization Act," aims to amend the Internal Revenue Code of 1986 to include certain postsecondary credentialing expenses as qualified higher education expenses for 529 accounts.

529 accounts are tax-advantaged savings plans designed to help families save for future higher education expenses. Currently, these accounts can only be used for traditional higher education expenses such as tuition, fees, books, and room and board.

This bill seeks to expand the allowable uses of 529 funds to include expenses related to postsecondary credentialing programs. These programs provide individuals with specific skills and certifications that can lead to better job opportunities and higher earning potential. By allowing 529 funds to be used for these programs, the bill aims to make higher education more accessible and affordable for all Americans. The bill is non-partisan in nature and has garnered support from both Democrats and Republicans in Congress. Supporters argue that expanding the allowable uses of 529 funds will help individuals gain valuable skills and credentials needed in today's workforce. Overall, Bill 119 s 756 aims to modernize and improve the 529 savings plans to better meet the needs of today's students and workers.

Congressional Summary of S 756

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.

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Current Status of Bill S 756

Bill S 756 is currently in the status of Bill Introduced since February 26, 2025. Bill S 756 was introduced during Congress 119 and was introduced to the Senate on February 26, 2025. Bill S 756's most recent activity was Read twice and referred to the Committee on Finance. as of February 26, 2025

Bipartisan Support of Bill S 756

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Unaffiliated Sponsors

Total Number of Cosponsors

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Policy Area and Potential Impact of Bill S 756

Primary Policy Focus

Alternate Title(s) of Bill S 756

A bill to amend the Internal Revenue Code of 1986 to treat certain postsecondary credentialing expenses as qualified higher education expenses for purposes of 529 accounts.