Legislation endorsed by CEDIA titled "Freedom to Invest in Future Workforce" has been officially approved and enacted as law
In a significant move for workforce development, the "Freedom to Invest in Tomorrow’s Workforce Act" was signed into law as part of the major federal tax legislation H.R. 1 in 2025. This bipartisan legislation marks a shift in the use of 529 education savings plans, allowing them to be used for expenses related to trade education, skills training programs, professional licenses, industry certifications, and post-secondary training, beyond traditional college tuition [1][2][3][5].
Key Details:
The act allows 529 plan funds to be used for expenses related to trade schools, skills development, and certifications—covering tuition, exam fees, and licensing costs outside of four-year colleges and universities [2][5]. This expansion removes some of the financial barriers for individuals pursuing careers in trades and skilled professions, including industries like the smart home sector and printing, as advocated by organizations such as CEDIA and PRINTING United Alliance [1][5].
The legislation was the culmination of multi-year bipartisan advocacy efforts by coalitions including the Tomorrow’s Workforce Coalition, which comprises over 900 organizations across 50 industries actively lobbying for workforce development reforms [2].
Implications:
This law brings broader access and financial flexibility to families and individuals, allowing them to invest education savings in alternative but high-demand career paths that may better fit learners' interests, rather than being limited to traditional college degrees [1][3]. By incentivizing trade and skills education, the law aims to address workforce shortages and talent gaps in skilled trades and technical industries, creating a stronger, diversified pipeline of workers [1][5].
Moreover, mid-career workers seeking credential upgrades or career shifts can utilize 529 plan funds for continuous learning and reskilling without incurring tax penalties [2][5]. This law is viewed as a major workforce development win, modernizing education funding and supporting the evolving needs of America's labor market [5].
The signing of H.R. 1 into law followed advocacy events such as CEDIA on the Hill Day in March 2025 and was passed later that year [1][3]. In summary, the Freedom to Invest in Tomorrow’s Workforce Act transforms 529 plans into a more inclusive and flexible tool to support diverse career and technical education pathways, reflecting the growing emphasis on skilled trades and certifications in the workforce landscape.
- The smart home sector, along with printing industry, could witness an influx of skilled workers as a result of the Freedom to Invest in Tomorrow’s Workforce Act, as individuals can now use 529 plan funds for career-related expenses, such as trade school tuition, skills training programs, industry certifications, and licensing costs.
- The financial industry is expected to play a significant role in this changing landscape, providing investment opportunities for families and individuals in high-demand technical careers, beyond traditional college education-and-self-development programs.
- As businesses and industries across various sectors strive to fill workforce gaps, the Act's passage will lead to a stronger, more diversified workforce equipped with the necessary skills, as individuals are motivated to invest in continuous learning, career development, and upskilling in high-demand fields.
