On July 9, the Education and Workforce Freedom Act (H.R. 8915) passed out of the House Ways and Means Committee by a vote of 23-13. The legislation would allow 529 college savings plans to be used for individuals obtaining credentials or licenses through career and technical education (CTE). Sponsored by Rep. Kevin Hern (R-OK-01), the bill will now be considered by the full House, at a time yet to be determined.
As a member of Tomorrow’s Workforce Coalition (TWC), PRINTING United Alliance supports the bipartisan Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1477/S. 722), which would transform 529s from “college savings plan” to “career savings plan.” Section 3 of the Education and Workforce Freedom Act encompasses a revised version of that legislation.
There are two primary differences between H.R. 1477 and Section 3 of H.R. 8915. First, H.R. 8915 has language that expressly covers programs connected with obtaining a postsecondary credential, including those required to obtain a state or federal license. This change would effectively cover training programs for pilots and airplane mechanics required to obtain Federal Aviation Administration (FAA) certification for those professions.
Second, H.R. 8915 includes more examples of qualified recognized post-secondary credentials and credential programs, such as accreditation by the National Commission of Certifying Agencies, the American National Standards Institute or the Institute for Credentialing Excellence; inclusion in the Department of Defense’s “Credentialing Opportunities Online” database; inclusion in the database of training programs maintained by the Department of Veterans Affairs; or meeting other criteria established by the Internal Revenue Service (IRS) in consultation with the Department of Labor (DOL).
As such, the coalition believes the postsecondary credential provisions in H.R. 8915 represent an improvement to the introduced version of the Freedom to Invest to Invest in Tomorrow’s Workforce Act. Both H.R. 8915 and H.R. 1477 would cover the Alliance’s credentialing programs.
It is unclear how the Education and Workforce Freedom Act will fare, since detractors are opposed to the provisions that expand 529s to cover costs related to private education and homeschooling, without a cap.
The Alliance will continue to support the use of 529 account funds to cover education and credentialing needed to train future print and graphic communications professionals. As legislative developments occur the Alliance will provide updates.
In this article, Stephanie Buka, government affairs coordinator, PRINTING United Alliance, explains the Education and Workforce Freedom Act. More information can be found at Business Excellence-Legislation or reach out to Steph should you have additional questions specific to how these issues may affect your business: sbuka@printing.org.
To become a member of the Alliance and learn more about how our subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.