H.R. 1151: Freedom to Invest in Tomorrow’s Workforce Act

Signed Into LawPublic Law 119-21

Enacted as part of HR1: An act to provide for reconciliation pursuant to title II of H. Con. Res. 14.· Jul 4, 2025

Sponsor

Robert Wittman

Republican · VA-1

Bill Progress

IntroducedFeb 7

Committee

Pass House

Pass Senate

Signed

Law

Latest Action · Feb 7, 2025

1/4

Referred to the House Committee on Ways and Means.

Your 529 should cover job training too

3 min readLast updated July 2, 2026

Why it matters

203 cosponsors are backing a simple change: let your 529 savings pay for licensing exams, apprenticeships, and career certificates tax-free — not just college bills. H.R. 1151 would expand 529 plans to cover many workforce credentials as soon as it becomes law.

H.R. 1151 would expand what you can pay for with 529 money. Instead of steering those tax-advantaged accounts mostly toward traditional college expenses, the bill would let you use withdrawals tax-free for many postsecondary credential programs tied to actual jobs.

That includes tuition, fees, books, supplies, and equipment for qualifying programs. It also covers testing fees to get or keep a credential, plus continuing education fees when a license or certification has to be renewed.

The bill is broad enough to reach several common career paths. It explicitly includes registered apprenticeships, state and federal occupational licenses, military-connected credential programs in the VA's WEAMS directory, and credentials in the Defense Department's COOL directory.

Not every training program would qualify automatically. H.R. 1151 sets out several ways a program can count, including state workforce lists, VA listings, exam-based programs recognized by reputable credentialing groups, and other programs Treasury identifies after consulting Labor.

The change would apply to 529 distributions made after enactment. The bill does not raise contribution limits, create a new federal subsidy, or add direct spending — it mainly changes which education and training costs get tax-free treatment.

H.R. 1151 Bill Summary

What H.R. 1151 actually does.

529 money can follow noncollege career paths

The bill lets 529 withdrawals be used tax-free for qualified postsecondary credentialing expenses, not just the traditional college costs most people associate with these accounts.

Training costs beyond tuition would count

Covered expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance in a qualifying credential program.

Licensing exams and renewals would be covered

The bill also includes testing fees required to obtain or maintain a credential, plus continuing education fees required to keep that credential active.

Apprenticeships and professional licenses are included

Registered apprenticeships, occupational licenses, professional licenses, and certifications tied to those licenses would count as recognized credentials under the bill.

Military-connected credential programs get named routes in

Programs in the VA's WEAMS directory and credentials in the Defense Department's COOL directory are specifically included among the qualifying pathways.

Treasury and Labor could recognize more programs later

Beyond the listed categories, Treasury could identify additional reputable programs and industry-recognized credentials after consulting the Department of Labor.

Who benefits from H.R. 1151?

Families with 529 savings but no four-year college plan

If your child wants a license, certificate, or other job credential instead of a bachelor's degree, H.R. 1151 would make your 529 money more usable for that path.

Apprentices and skilled-trades workers

People entering registered apprenticeships could use 529 funds for qualifying training expenses tied to earning a completion certificate.

Workers chasing licensed careers

Future nurses, cosmetologists, electricians, real-estate agents, and others in licensed fields could use 529 savings for required training, testing, and ongoing education if their credential fits the bill's rules.

Military and veteran families

Families using programs in the VA's WEAMS directory or credentials listed in the Defense Department's COOL directory would have clearer access to 529 tax benefits for those training routes.

Who is affected by H.R. 1151?

529 account owners and beneficiaries

You would get more flexibility, but you'd still need to confirm that a program or credential qualifies before taking a tax-free distribution.

Training providers and credentialing groups

Programs that fit the bill's definitions could become more attractive to families already holding 529 savings.

Treasury and the Department of Labor

The agencies would have to administer the new rules and decide which additional programs and credentials qualify beyond the categories named in the bill.

Families using 529 plans only for traditional college

They would keep the same core tax benefit, but the accounts would no longer be as tightly centered on degree programs.

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Tracking floor activity — no debate on H.R. 1151 yet. Updates when a legislator speaks on the record.

HR1151 Legislative Journey

1 actions

House: Committee Action

Feb 7, 2025

Referred to the House Committee on Ways and Means.

About the Sponsor

Robert Wittman

Republican, Virginia's 1st congressional district · 19 years in Congress

Committees: Natural Resources, House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, Armed Services

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Cosponsors at time of passage (203)

This bill has 203 cosponsors: 88 Democrats, 115 Republicans, reflecting bipartisan support. Cosponsors represent 45 states: Alaska, Alabama, Arkansas, and 42 more.

88Democrats115Republicans·45 statesBipartisan

Steven Horsford

Democrat · NV

Kevin Hern

Republican · OK

John Larson

Democrat · CT

Brad Finstad

Republican · MN

Jennifer McClellan

Democrat · VA

Mike Collins

Republican · GA

Jimmy Panetta

Democrat · CA

Mike Carey

Republican · OH

Suhas Subramanyam

Democrat · VA

Frank Mrvan

Democrat · IN

Richard McCormick

Republican · GA

John McGuire

Republican · VA

Cosponsor Coverage Map

Committee Sponsors

Ways and Means Committee

19D26R

|24 signed21 others

24 of 45 committee members cosponsored at the time

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H.R. 1151 Quick Facts

Cosponsors

203

+198 more

Committee: Ways and Means
Chamber: House
Policy: Taxation
Introduced: Feb 7, 2025

Referred to the House Committee on Ways and Means.

Feb 7, 2025

Constituent Resources

Find your legislators

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Official Sources

H.R. 1151 on Congress.gov

Official bill page with status, text, cosponsors, and committee referral for H.R. 1151.

IRS Publication 970: Tax Benefits for Education

IRS guidance covering qualified tuition programs under section 529, useful for understanding the tax rules this bill would expand.

U.S. Code, 26 U.S.C. 529

Official U.S. Code page for section 529, the statute H.R. 1151 would amend to add postsecondary credentialing expenses.

Workforce Innovation and Opportunity Act Eligible Training Provider Lists

Department of Labor information on WIOA programs, relevant because the bill incorporates state lists prepared under WIOA section 122(d).

Registered Apprenticeship

Official federal apprenticeship site explaining registered apprenticeship programs that the bill specifically treats as qualifying credentials.

VA WEAMS Institution Search

Department of Veterans Affairs WEAMS public directory referenced in the bill as one route for a credential program to qualify.

National Apprenticeship Act

Official U.S. Code page for the National Apprenticeship Act cited in the bill text for qualifying apprenticeship completion certificates.

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H.R. 1151 Common Questions

Did H.R. 1151 pass?

No. H.R. 1151 has been introduced and referred to the House Ways and Means Committee. It had 203 cosponsors in the bill data you provided, but it has not passed.

Would H.R. 1151 let you use a 529 plan for trade school?

Yes, if the program qualifies under the bill. H.R. 1151 would let 529 money be used tax-free for many postsecondary credential programs, not just traditional college expenses.

What expenses would a 529 cover under H.R. 1151?

Tuition, fees, books, supplies, equipment, required testing fees, and continuing education fees to maintain a credential could all qualify under H.R. 1151.

Would licensing exams and renewal courses count?

Yes. H.R. 1151 says 529 funds could cover tests required to get or keep a credential, plus continuing education required to maintain it.

Would apprenticeships qualify for 529 withdrawals?

Yes. The bill specifically includes certificates of completion for apprenticeships registered or certified with the Department of Labor.

Can 529 money be used for state professional licenses?

Yes, in many cases. H.R. 1151 includes occupational or professional licenses issued or recognized by a state or the federal government, along with certifications needed to get them.

Which programs would qualify under H.R. 1151?

Programs could qualify through state workforce lists, the VA's WEAMS directory, exam-based training recognized by reputable credentialing groups, or later Treasury recognition after consulting Labor.

When would the 529 expansion take effect?

It would apply to 529 distributions made after H.R. 1151 becomes law.

Based on H.R. 1151 bill text

H.R. 1151 Bill Text

“To amend the Internal Revenue Code of 1986 to treat certain postsecondary credentialing expenses as qualified higher education expenses for purposes of 529 accounts.”

Source: U.S. Government Publishing Office