S.756 - Freedom to Invest in Tomorrow’s Workforce Act (119th Congress)
Summary
S.756, the "Freedom to Invest in Tomorrow's Workforce Act," amends the Internal Revenue Code of 1986 to expand the definition of qualified higher education expenses for 529 accounts. This expansion includes certain postsecondary credentialing expenses, such as tuition, fees, books, supplies, and testing fees associated with recognized postsecondary credential programs. The bill aims to make skills-based training more accessible and affordable by allowing individuals to use 529 savings plans for a broader range of educational opportunities.
Expected Effects
The bill's passage would allow individuals to use 529 savings accounts for expenses related to obtaining or maintaining postsecondary credentials. This change could incentivize more people to pursue vocational training and skills development. It may also lead to an increase in the number of individuals obtaining industry-recognized credentials, potentially boosting the workforce and economy.
Potential Benefits
- Increased access to skills-based training and vocational programs.
- Potential for a more skilled and adaptable workforce.
- Encourages individuals to pursue industry-recognized credentials.
- Provides financial relief to individuals seeking postsecondary credentials through 529 accounts.
- May stimulate economic growth by enhancing workforce capabilities.
Potential Disadvantages
- Potential strain on 529 account funds if used extensively for credentialing programs.
- Risk of misuse if the definition of 'recognized postsecondary credential program' is too broad.
- Possible administrative burden for states and federal agencies in managing and overseeing the expanded 529 program.
- The actual impact may be limited if awareness of the change is low or if the cost of credentialing programs remains a barrier.
- The bill does not address the underlying quality or relevance of the credentialing programs themselves.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Article I, Section 8), which grants Congress the power to provide for the general Welfare of the United States. By promoting education and workforce development, the bill can be argued to contribute to the overall well-being of the nation. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).