H.R. 1151: Freedom to Invest in Tomorrow’s Workforce Act
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
Latest Action · Feb 7, 2025
Referred to the House Committee on Ways and Means.
Your 529 can now pay for trade school, not just college
Why it matters
For years, a 529 plan paid off cleanly only if your path ran through a college campus. H.R. 1151 set out to change that — letting the same tax-free savings cover licensing exams, apprenticeships, and industry certificates. It drew 203 cosponsors, and its provisions were folded into the July 2025 reconciliation law (Public Law 119-21), so the expanded uses are now on the books.
H.R. 1151 widened what 529 money can pay for. Instead of pointing those tax-advantaged accounts mostly at traditional college bills, it lets you take withdrawals tax-free for many job-focused credential programs.
That covers tuition, fees, books, supplies, and equipment for a qualifying program. It also covers the testing fees to earn or keep a credential, plus the continuing-education fees when a license or certification comes up for renewal.
The reach is broad. It names registered apprenticeships, occupational and professional licenses issued or recognized by a state or the federal government, credential programs in the VA's WEAMS directory, and industry credentials in the Defense Department's COOL directory.
Not every training program qualifies automatically. The law spells out several routes a program can take to count: state workforce lists, VA listings, exam-based programs recognized by reputable credentialing groups, and other programs Treasury identifies after consulting the Labor Department.
It does not raise 529 contribution limits, create a new grant, or add direct spending. It changes which education and training costs get the tax-free treatment, and it applies to withdrawals taken after the reconciliation law was enacted in July 2025.
H.R. 1151 Bill Summary
What H.R. 1151 actually does.
529 money follows noncollege career paths
529 withdrawals can 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 count
Covered expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance in a qualifying credential program.
Licensing exams and renewals are covered
The rules also include 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 count as recognized credentials.
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 listed among the qualifying pathways.
Treasury and Labor can recognize more programs later
Beyond the listed categories, Treasury can 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, the expanded rules make your 529 money usable for that path.
Apprentices and skilled-trades workers
People entering registered apprenticeships can 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 can use 529 savings for required training, testing, and ongoing education when their credential fits the rules.
Military and veteran families
Families using programs in the VA's WEAMS directory or credentials listed in the Defense Department's COOL directory have a clear route to 529 tax benefits for those training paths.
Who is affected by H.R. 1151?
529 account owners and beneficiaries
You get more flexibility, but you 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 definitions become more attractive to families already holding 529 savings.
Treasury and the Department of Labor
The agencies have to administer the new rules and decide which additional programs and credentials qualify beyond the categories named in the law.
Families using 529 plans only for traditional college
They keep the same core tax benefit, and the accounts are no longer centered only on degree programs.
HR1151 Legislative Journey
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
View full profile →
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.
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
24 of 45 committee members cosponsored at the time
H.R. 1151 Quick Facts
- Committee
- Ways and Means
- Chamber
- House
- Policy
- Taxation
- Introduced
- Feb 7, 2025
Referred to the House Committee on Ways and Means.
Feb 7, 2025
Official Sources
Official bill page with status, text, cosponsors, and committee referral for H.R. 1151.
IRS guidance covering qualified tuition programs under section 529, useful for understanding the tax rules this bill would expand.
Official U.S. Code page for section 529, the statute H.R. 1151 would amend to add postsecondary credentialing expenses.
The statute behind the state training-provider lists the bill uses as one route for a credential program to qualify (WIOA section 122(d)).
Official federal apprenticeship site explaining registered apprenticeship programs that the bill specifically treats as qualifying credentials.
Department of Veterans Affairs tool that surfaces the approved programs from the WEAMS directory the bill names as one qualifying route.
Official U.S. Code page for the National Apprenticeship Act cited in the bill text for qualifying apprenticeship completion certificates.
About Legisletter
Legisletter is the advocacy platform that tracks every bill from introduction to Public Law — and connects the constituents affected by a bill to the legislators who vote on it.
H.R. 1151 Common Questions
Did H.R. 1151 pass?
The standalone bill stayed in the House Ways and Means Committee, but its 529 expansion was folded into the July 2025 reconciliation law (Public Law 119-21), so the change is now on the books.
Can you use a 529 plan for trade school under H.R. 1151?
Yes, if the program qualifies. H.R. 1151 lets 529 money be used tax-free for many postsecondary credential programs, not just traditional college expenses.
What expenses does a 529 cover under H.R. 1151?
Tuition, fees, books, supplies, equipment, required testing fees, and continuing education fees to keep a credential active can all qualify under H.R. 1151.
Do licensing exams and renewal courses count?
Yes. H.R. 1151 lets 529 funds cover tests required to get or keep a credential, plus continuing education required to maintain it.
Do apprenticeships qualify for 529 withdrawals?
Yes. H.R. 1151 specifically includes certificates of completion for apprenticeships registered and certified with the Department of Labor.
Can 529 money be used for state professional licenses?
Yes, in many cases. H.R. 1151 covers occupational or professional licenses issued or recognized by a state or the federal government, along with certifications needed to get them.
Which programs qualify under H.R. 1151?
Programs can 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 does the 529 expansion take effect?
The expanded uses apply to 529 distributions made after the reconciliation law that carried this language took effect in July 2025.
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
Taxation Bills
9 related bills we're tracking
American Family Act
Referred to the House Committee on Ways and Means.
Apr 9, 2025
Main Street Tax Certainty Act
Referred to the House Committee on Ways and Means.
Jan 23, 2025
Death Tax Repeal Act
Referred to the House Committee on Ways and Means.
Feb 13, 2025
To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.
Referred to the House Committee on Ways and Means.
Jan 16, 2025
Tax Fairness for Workers Act
Referred to the House Committee on Ways and Means.
Apr 7, 2025
Health Care Affordability Act of 2025
Referred to the House Committee on Ways and Means.
Jan 9, 2025
Affordable Housing Credit Improvement Act of 2025
Referred to the House Committee on Ways and Means.
Apr 8, 2025
More Homes on the Market Act
Referred to the House Committee on Ways and Means.
Feb 13, 2025
Protecting Health Care and Lowering Costs Act of 2025
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Aug 1, 2025
Trending Right Now
Bills gaining momentum across Congress
Great American Outdoors Act 250
Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.
Jun 24, 2026
American Franchise Act
Ordered to be Reported (Amended) by the Yeas and Nays: 18 - 15.
Jul 21, 2026
Accelerating Access to Dementia and Alzheimer’s Provider Training Act
Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Jul 21, 2026
Tracking Taxation in Congress? Monitor bills, track cosponsor momentum, and launch advocacy campaigns — all from one advocacy platform.