President Donald Trump's "One Big, Beautiful Bill" tax package that advanced out of the House Ways and Means Committee this week includes a significant workforce development measure backed by the Ohio Society of Association Professionals (OSAP), the American Society of Association Executives (ASAE) and the Tomorrow’s Workforce Coalition, in which OSAP is a long-time member.
The bill incorporates key provisions from the bipartisan Freedom to Invest in Tomorrow’s Workforce Act, which would expand eligible uses of 529 education savings plans to cover postsecondary training and credentialing programs—such as licenses and nongovernmental certifications, including the CAE designation and others that OSAP's member organizations offer their members.
In partnership with the Professional Certification Coalition (PCC), ASAE leads the Tomorrow’s Workforce Coalition—a growing alliance of more than 900 organizations across more than 50 industries. The coalition is dedicated to modernizing workforce development policy by supporting opportunities for individuals to earn industry-recognized credentials and pursue diverse career pathways.
Earlier this year, attendees at ASAE’s Legislative Fly-in, including OSAP members from the American Society for Nondestructive Testing (ASNT), the Ohio Trucking Association (OTA), the Precision Machined Parts Association (PMPA), the Snow & Ice Management Association (SIMA) and OSAP leadership, strongly advocated for the Freedom to Invest in Tomorrow’s Workforce Act, alongside protecting nonprofit tax policy. This was not the first year advocates brought this message to lawmakers' attention. Their efforts helped spotlight the urgent need to make lifelong learning more accessible and to equip the workforce with tools to adapt in an increasingly dynamic economy.
"The inclusion of this language in the bill is such a victory for nonprofits and the communities they serve," said OSAP President & CEO Jarrod A. Clabaugh, CAE. "The vast certifications, accreditations and designations nonprofits offer to their members' and their industries should be attainable through funds Americans have already set aside for career growth and development. Not all Americans want to attend four-year institutions, but they should be able to access funds that may have been aside for this purpose to climb the career ladder."
Click here to find out more about the Tomorrow's Workforce Coalition.
If enacted, the bill's language would provide valuable tax-advantaged resources to more workers pursuing career growth, mid-career changes or alternative career pathways. America’s workforce is comprised mostly of middle-skill jobs that require more than a high school education but not a bachelor’s degree, according to the National Skills Coalition. Post-secondary credentialing for workers with or without a two- for four-year degree is a differentiator in the 21st century workforce.
Associations are the primary source of this post-college education and skills training for America’s workforce. Fity-seven million adults take formal work-related courses or training each year. Seventy-percent of those individuals receive training courses from either a private business or a professional association.
This paradigm shift in 529 savings accounts from "college savings plans" to "career savings plans" will make these accounts more accessible to contributors of all income levels and beneficiaries of all skill levels. Families could save money—utilizing the unique tax advantages that 529 plans offer—for beneficiaries at any stage of their careers and at any education level to boost career prospects and earning potential. This legislation would also provide flexibility for 529 beneficiaries to use their plan funds to cover the high quality educational, training or credentialing programs that best fit their skills development, professional growth and chosen career path.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.