H.R. 1151House119th Congress (2025-2027)In Committee

Freedom to Invest in Tomorrow’s Workforce Act

Introduced February 7, 2025

AI-Generated Summary

Updated November 24, 2025 at 2:52 AM UTC

The Freedom to Invest in Tomorrow’s Workforce Act changes the tax rules for 529 college‑savings plans so that money from these accounts can be used for certain post‑secondary credentialing programs, such as industry certifications, apprenticeships, and professional licenses. It expands what counts as a qualified higher‑education expense, letting families and students apply 529 funds toward tuition, fees, books, testing and continuing‑education costs for these programs. The change takes effect for any 529 distribution made after the law is enacted.

Key Provisions

  • Amends the Internal Revenue Code to add “qualified postsecondary credentialing expenses” to the list of qualified higher‑education expenses for 529 plans.
  • Defines qualified credentialing expenses to include tuition, fees, books, supplies, equipment, required testing fees, and continuing‑education fees for recognized credential programs.
  • Specifies that a “recognized postsecondary credential program” is one listed on a state‑approved list, the VA’s WEAMS directory, approved by a reputable credential‑issuing organization, or identified by the Secretary of Labor after consultation.
  • Defines a “recognized postsecondary credential” as industry‑recognized employment credentials, apprenticeship certificates, state or federal occupational licenses, or credentials listed under the Workforce Innovation and Opportunity Act.
  • Applies the new rules to any 529 plan distributions made after the law’s enactment.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

February 7, 2025

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HouseIntro Referral

Introduced in House

February 7, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

February 7, 2025

Floor Debate

1 member

What members said about H.R. 1151 on the floor

1 Republican
Monica De La Cruz
Rep. Monica De La CruzR-TX-15 · May 6, 2025

Under clause 7 of rule XII, sponsors were added to public bills and resolutions, as follows: H.R. 116: Ms. Boebert. H.R. 151: Ms. Van Duyne. H.R. 255: Mr. Gill of Texas, Mr. Self, and Ms. Crockett.…

Bill Text

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Introduced in HouseIssued February 7, 2025

I

119th CONGRESS

1st Session

H. R. 1151

IN THE HOUSE OF REPRESENTATIVES

February 7, 2025

Mr. Wittman (for himself, Mr. Horsford, Mr. Hern of Oklahoma, Mr. Larson of Connecticut, Mr. Finstad, Ms. McClellan, Mr. Collins, Mr. Panetta, Mr. Carey, and Mr. Subramanyam) introduced the following bill; which was referred to the Committee on Ways and Means

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.

1.

Short title

This Act may be cited as the Freedom to Invest in Tomorrow’s Workforce Act.

2.

Certain postsecondary credentialing expenses treated as qualified higher education expenses for purposes of 529 accounts

(a)

In general

Section 529(e)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(C)

Certain postsecondary credentialing expenses

The term qualified higher education expenses includes qualified postsecondary credentialing expenses (as defined in subsection (f)).

.

(b)

Qualified postsecondary credentialing expenses

Section 529 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

(f)

Qualified postsecondary credentialing expenses

For purposes of this section—

(1)

In general

The term qualified postsecondary credentialing expenses means—

(A)

tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in a recognized postsecondary credential program, or any other expense incurred in connection with enrollment in or attendance at a recognized postsecondary credential program if such expense would, if incurred in connection with enrollment or attendance at an eligible educational institution, be covered under subsection (e)(3)(A),

(B)

fees for testing if such testing is required to obtain or maintain a recognized postsecondary credential, and

(C)

fees for continuing education if such education is required to maintain a recognized postsecondary credential.

(2)

Recognized postsecondary credential program

For purposes of this subparagraph, the term recognized postsecondary credential program means any program to obtain a recognized postsecondary credential if—

(A)

such program is included on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d)),

(B)

such program is listed in the WEAMS Public directory (or successor directory) maintained by the Department of Veterans Affairs,

(C)

an examination (developed or administered by an organization widely recognized as providing reputable credentials in the occupation) is required to obtain or maintain such credential and such organization recognizes such program as providing training or education which prepares individuals to take such examination, or

(D)

such program is identified by the Secretary, after consultation with the Secretary of Labor, as being a reputable program for obtaining a recognized postsecondary credential for purposes of this subparagraph.

(3)

Recognized postsecondary credential

The term recognized postsecondary credential means—

(A)

any postsecondary employment credential that is industry recognized, including—

(i)

any postsecondary employment credential issued by a program that is accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute,

(ii)

any postsecondary employment credential that is included in the Credentialing Opportunities On-Line (COOL) directory of credentialing programs (or successor directory) maintained by the Department of Defense or by any branch of the Armed Services, and

(iii)

any postsecondary employment credential identified for purposes of this clause by the Secretary, after consultation with the Secretary of Labor, as being industry recognized,

(B)

any certificate of completion of an apprenticeship that is registered and certified with the Secretary of Labor under the National Apprenticeship Act (29 U.S.C. 50),

(C)

any occupational or professional license issued or recognized by a State or the Federal Government (and any certification that satisfies a condition for obtaining such a license), and

(D)

any recognized postsecondary credential as defined in section 3(52) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

.

(c)

Effective date

The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.