Freedom to Invest in Tomorrow’s Workforce Act

This bill amends the Internal Revenue Code to significantly broaden the permissible uses of 529 education savings accounts, expanding the definition of qualified higher education expenses . It will now include certain postsecondary credentialing expenses , allowing account holders to use their savings for a wider range of workforce development opportunities beyond traditional college degrees. This aims to provide greater financial flexibility for individuals investing in skills-based training and professional development. Specifically, the legislation defines qualified postsecondary credentialing expenses to cover tuition, fees, books, supplies, and equipment for recognized postsecondary credential programs, as well as testing and continuing education fees required to obtain or maintain these credentials. The bill outlines criteria for what constitutes a recognized postsecondary credential program and a recognized postsecondary credential , encompassing industry-recognized certifications, registered apprenticeships, and occupational or professional licenses. These amendments will apply to distributions made from 529 accounts after the bill's enactment, supporting investments in crucial workforce skills.