A college savings program is expanding to help workers invest in their own career development, drawing support from the senior living and care industry.
The Freedom to Invest in Tomorrow’s Workforce Act, HR 1151, was rolled into the reconciliation packages signed into law on July 4. The bill expands eligible uses of 529 college savings plans to cover costs associated with workforce training and credentialing programs.
Senior living groups have called the legislation a “common-sense” approach to rebuilding the pipeline of long-term care workers — particularly certified nurse aides and other direct care workers.
Under the act, 529 education account funds can be used to cover tuition, books, certification and testing costs related to workforce training programs. 529 funds are exempt from federal taxes if they are used to pay for qualified education expenses, post-secondary skills training and credentialing programs, including licences and nongovernmental certifications.
The bill gained the support of Argentum, the American Health Care Association / National Center for Assisted Living, American Seniors Housing Association and LeadingAge, among others.
“Senior living offers incredible opportunities for workers to invest in their careers, as many current executive directors and administrators who started out in direct caregiving roles can attest,” Argentum Senior Vice President of Public Affairs Maggie Elehwany told McKnight’s Senior Living. “We believe the expansion in 529 savings plans for these purposes will result in more opportunities for existing and aspiring workers in the senior living industry to gain much-needed access to training programs that will result in helping to address the senior living workforce crisis while providing the excellent care that will meet the needs of America’s seniors.”
Senior living organizations — including Argentum, NCAL and several state-level senior living industry advocates — originally signed onto a coalition letter urging Congress to support the bill last year. The bill initially was introduced in 2023.
The senior living industry threw its support behind the effort following the loss of more than 100,000 positions during the COVID-19 pandemic. According to projections, the field will have 3 million job openings to fill by 2040.
“There is a critical shortage of workers across long-term care, and we need to make every investment to meet this shortage, including by supporting workers in their career growth,” Elehwany said.