WASHINGTON– U.S. Senators Mike Braun and Amy Klobuchar reintroduced a bill to increase access to skills training. The Skills Investment Act would expand Coverdell Education Savings Accounts (ESAs)—tax advantaged savings accounts for educational expenses—so American workers can use the accounts to pay for skills training, career-related learning, adult education, and professional development. Companion legislation for the Skills Investment Act was introduced in the House of Representatives by U.S. Representatives Derek Kilmer and Brian Fitzpatrick.
“You don’t need a four-year degree to land a great job and we need to make education savings accounts more flexible so they can also be used for trade schools and other skills training programs. This commonsense and bipartisan bill is a win-win for students pursuing career and technical education and businesses looking to fill high-demand jobs.”– Senator Braun
“Now more than ever, innovation is key to moving the American economy forward. With technological advancements in advanced manufacturing and many other parts of our economy, it is critical that American workers are positioned for success. That means increasing access to the specialized training and education needed to pursue good-paying, high-demand careers. My bipartisan Skills Investment Act will expand tax advantaged savings accounts so workers can build skills for the 21st century economy.”– Senator Klobuchar
“In recent years – even before the pandemic – we’ve seen massive, disruptive economic change. It’s crucial that we don’t leave workers behind. The Skills Investment Act is designed to equip American workers so they can navigate economic change rather than being victimized by it. The bipartisan bill offers workers the opportunity to use lifelong learning accounts to acquire essential skills so they can get new jobs and higher wages while also enabling employers to attract top talent. It’s a win-win and a step toward maintaining America’s competitive edge in the global economy of the 21st Century.” – Representative Kilmer
The Skills Investment Act will allow workers to use tax-advantaged savings accounts to pay for skills training programs throughout an account holder’s lifetime. The bill would eliminate the age-based contribution limit on Coverdell ESAs and expand the scope of allowable distributions to cover a broad array of career and technical education services. These savings accounts would now be eligible for pretax contributions and mid-career workers would be allowed to contribute up to $4,000 tax-free each year, with a maximum contribution limit of $10,000. Employers would receive a 25 percent tax credit for contributions to a worker’s account.
Click HERE to read full bill text.
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