Education and Workforce Freedom Act

This bill expands the types of expenses that can be paid for with tax-advantaged 529 savings accounts to include more elementary and secondary school costs and certain postsecondary credentialing expenses.

Sec. 2, Additional elementary, secondary, and home school expenses: This section expands the definition of qualified higher education expenses for 529 accounts to include tuition, curriculum materials, books, online materials, tutoring from licensed or experienced instructors, standardized test fees, dual enrollment fees, and educational therapies for students with disabilities at public, private, or religious elementary or secondary schools, as well as for homeschools. This applies to distributions made after the bill's enactment.

Sec. 3, Certain postsecondary credentialing expenses: This section adds qualified postsecondary credentialing expenses to the list of expenses that can be paid with 529 funds. These include tuition, fees, books, supplies, and equipment for a recognized postsecondary credential program, testing fees required for the credential, and continuing education fees needed to maintain it. A recognized postsecondary credential program is defined as one on a state list under the Workforce Innovation and Opportunity Act, listed in a Department of Veterans Affairs directory, recognized by a reputable credentialing organization, or identified by the Secretary of the Treasury. A recognized postsecondary credential includes industry-recognized employment credentials, certificates of completion of registered apprenticeships, state or federal occupational licenses, and credentials defined in the Workforce Innovation and Opportunity Act. This also applies to distributions made after the bill's enactment.