Last week, members of the MRAA team had the chance to discuss the bill with Congressman Jim Hagedorn.
Today, Congressmen Jim Hagedorn (MN-01), Jeff Van Drew (NJ-02), Ron Estes (KS-04) and Paul Mitchell (MI-10) introduced the “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.
The Hagedorn-Van Drew legislation empowers aspiring skilled workers to pursue vocational training by utilizing pre-tax dollars from their 529 savings plans for education, training, certain apprenticeships and the purchase of necessary tools and equipment for their vocations.
Specifically, the bill expands Section 529 eligibility to include educational and training expenses spent on any training program leading to a “recognized post-secondary credential” as defined in the Workforce Innovation and Opportunity Act (WIOA), including tools and equipment, and National Apprenticeship Act of 1937 (NAA) registered apprenticeship programs, which trade unions and manufacturers describe as vital to training America’s workforce.
Workforce development is key to sustaining jobs and economic growth. Trade unions, manufacturers, small businesses and industry groups are 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 WIOA.
Additionally, many apprenticeship programs formed under the (NAA), along with programs defined as leading to a “recognized post-secondary credential” as defined in WIOA, are currently not Section 529 eligible.
“The bipartisan bill Rep. Van Drew and I have introduced will give students and workers the choice to use pre-tax savings to pursue their goals and dreams,” said Hagedorn. “For more than a generation, younger Americans have been discouraged from seeking vocational and skill-based training. Our bill is designed to help reverse that trend and create opportunity. Businesses are begging for machinists, welders, truck drivers and an array of other qualified trades and labor-intensive professions, most of which offer excellent pay and long-term stability. Investing in our workforce to grow our economy is a bipartisan goal,” he continued.
“Rep. Hagedorn’s bill is a great step toward creating a more robust workforce for our many dealers and manufacturers who have struggled to find qualified technicians,” says Matt Gruhn, President of the Marine Retailers Association of the Americas. “By expanding the types of programs eligible for payment by 529 savings plans — and most significantly, by making registered apprenticeship programs eligible – we can more readily close the gap on the more-than-21-percent of positions that have gone unfilled in our industry.”
“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.”
“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.”
“The American Workforce Empowerment Act will build on our progress of expanding 529 savings accounts to cover costs for apprenticeships and postsecondary education,” said Congressman Ron Estes. “This will allow more families and students to use their hard-earned money to pursue needed training and education. While our economy grows at historic rates, apprenticeships and postsecondary education are critical to help fill open jobs. I look forward to working with my colleagues on this bipartisan solution to help get people to work and grow our economy.”
“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.
Press release courtesy of Rep. Hagedorn (MN-01), found here.
