The recently signed One Big Beautiful Bill Act (H.R. 1) has expanded the federal 529 College Savings Plan program to include a wider range of job training, credentialing, and certification expenses that are considered elidable expenses under the program.
For years, NGWA has supported and advocated for these changes through its membership in the Tomorrow’s Workforce Coalition, working alongside hundreds of associations to modernize how 529 funds can be used.
Previously, 529 plans were largely limited to covering tuition and fees for college, some K–12 expenses, and limited apprenticeship programs. Now, 529 savings can be used tax-free for:
- Non-degree credential programs including water well drilling, plumbing, electrical, HVAC, and more
- Trade and vocational schools and registered apprenticeships
- Certification and licensing costs, including application fees, prep courses, textbooks, and exams
- Continuing education required to maintain licenses or credentials, including those required for many NGWA members
- Workforce training programs recognized under the Workforce Innovation and Opportunity Act (WIOA)
- Programs approved by the Department of Veterans Affairs and Department of Labor.
These changes are just the most recent policy shifts at the state and federal level to broaden opportunities in job training and education, which for decades has largely been focused on supporting traditional four-year universities.
NGWA will continue to work on educating its membership on how to best utilize the 529 College Saving Plans and the new eligible expenses.
If you have any questions, email NGWA Government Affairs at government@ngwa.org.