Congressman Jeff Van Drew Introduces Bipartisan Bill to Encourage Technical Skills Training and Apprenticeships

(Washington, DC) – Today, Jeff Van Drew (D-NJ)), Congressman Jim Hagedorn (R-MN) Congressman Ron Estes (R-KS), and Congressman Paul Mitchell (R-MI) introduced American Workforce Empowerment Act, a bipartisan solution to address the growing shortage of skilled workers to fill job openings in the technical and skilled trades.

Workforce development is key to sustaining jobs and economic growth. Trade unions, manufacturers, small businesses and industry groups have long been concerned about the increasing shortage of skilled trade workers, and under current law, hardworking individuals wishing to pursue post-secondary technical training, trade skills or an industry-recognized credential are often limited to eligible institutions as defined by the IRS and in Section 3 of the Workforce Innovation and Opportunity Act (WIOA). As a result, folks are unable to use pre-tax dollars from their 529 savings plans to purchase necessary tools or equipment for their vocations.

Additionally, many registered apprenticeship programs formed under the National Apprenticeship Act of 1937 (NAA), along with programs defined as leading to a “recognized post-secondary credential” as defined in WIOA, are not Section 529 eligible.

This bill will expand Section 529 eligibility to include educational and training expenses spent on any training program leading to a “recognized post-secondary credential” as defined in WIOA, including tools and equipment, and NAA registered apprenticeship programs, which trade unions and manufacturers describe as vital to training America’s workforce of tomorrow.

“Even with unemployment at record lows, well-paying jobs that require skilled workers remain unfilled. Not everyone wants to pursue a four-year college education, which has led to record-levels of student debt and delayed important milestones in young peoples’ lives such as marriage and homeownership. We should incentivize and promote training and apprenticeships which can lead to a ticket to the middle-class for those who like to work with their hands and see the product of their hard work,” said Congressman Jeff Van Drew. “The bipartisan American Workforce Empowerment Act expands the list of eligible 529 savings plans activities, traditionally for higher education expenses, to include educational and training expenses, including tools and equipment, for technical training, trade skills, or industry-recognized credentials.”

“We should empower workers who are willing to pursue new opportunities and make better lives for themselves, not stand in their way. We must we tear down barriers to individual success and economic development. My legislation will allow dedicated men and women to spend their own pre-tax dollars in apprenticeship programs, eliminate the significant obstacles that people wishing to pursue careers in skilled labor face and fill the existing gaps in the workforce,” said Congressman Jim Hagedorn.

“The American workforce must be ready to meet our nation’s expanding needs, and we currently face a shortage of skilled trade workers. The bipartisan American Workforce Empowerment Act will make it easier for those pursuing technical training and apprenticeships to utilize 529 savings plans to achieve their goal. I’m glad to be working with my colleagues Reps. Hagedorn, Van Drew, and Estes to enable hard-working Americans to pursue fulfilling careers,” said Congressman Paul Mitchell.

“The recreational boating industry needs a skilled 21st century workforce to maintain and grow our role as a significant job creator and this bill will go a long way towards addressing the workforce shortfall our businesses are facing,” said Nicole Vasilaros, Senior Vice President of government and legal affairs at the National Marine Manufacturers Association. “We thank Representatives Van Drew and Hagedorn for introducing commonsense legislation that will expand access to invaluable apprenticeship programs and we encourage all members of Congress to support this bipartisan measure.”