U.S. Reps. Glenn “GT” Thompson (R-PA) and Brian Fitzpatrick (R-PA) on Jan. 15 offered a bipartisan bill that would improve access to skills training for America’s workers.
If enacted, the Skills Investment Act of 2025, H.R. 464, which Rep. Thompson sponsored alongside original cosponsors including Rep. Fitzpatrick and U.S. Rep. Suzanne Bonamici (D-OR), would amend the Internal Revenue Code of 1986 to provide for lifelong learning accounts, according to the bill’s text.
“Investing in a skilled workforce begins with enhancing educational opportunities,” Rep. Thompson said. “This common-sense legislation allows workers, at any point in their career, to further develop skills that will serve them in the future.”
Specifically, H.R. 464 would help expand tax-advantaged savings opportunities for Americans pursuing new job skills and better career prospects through Coverdell Education Savings Accounts (ESAs), which are tax-advantaged savings accounts for educational expenses, according to a bill summary provided by the lawmakers.
Currently, in order to take advantage of Coverdell ESAs, a beneficiary must establish their account before they turn 18, and they must use any funds in the account before they turn 30 with only limited exceptions.
The measure would raise the age limit on Coverdell accounts to 70 and broaden qualifying educational expenses that Coverdell funds can be used for, including career and technical education, literacy, and other workforce-focused programs.
Additionally, H.R. 464 would make any aged worker eligible to use Coverdell lifelong learning accounts to pay for skills training, apprenticeships, and professional development, the summary says.
“At a time when the need for a skilled workforce has never been greater, it is imperative to expand the flexibility of education savings accounts and create broader pathways for Americans to access trade schools and skill training programs,” said Rep. Fitzpatrick. “By equipping individuals and families with the resources to advance their careers and achieve financial stability, our… initiative will not only empower them to build brighter futures but strengthen our workforce and fuel sustainable economic progress across the nation.”
The measure also focuses on upskilling and reskilling incumbent workers by allowing individuals over 30 to contribute $4,000 each year tax-free to their Coverdell account. To ensure workers receive education and training that aligns with the needs of today’s workforce, employers would also receive a 25-percent tax credit for any contributions to an employee’s Coverdell account, states the summary.
H.R. 464 has garnered support from several organizations, including the National Skills Coalition, the Association for Career and Technical Education, Advance CTE, the National Association of Workforce Boards, AASA – The School Superintendents Association, and the American Council on Education, among others.
“As co-chair of the bipartisan Career and Technical Education Caucus, I am proud to support the Skills Investment Act to provide additional resources for workers to climb the next rung on the ladder of opportunity,” added Rep. Thompson.