U.S. Rep. Brian Fitzpatrick (R-PA) and Glenn “GT” Thompson (R-PA) on March 1 cosponsored a bipartisan bill to help more American workers access skills training.
The Skills Investment Act of 2024, H.R. 7517, which is sponsored by U.S. Rep. Derek Kilmer (D-WA), would expand Coverdell Education Savings Accounts (ESAs) – tax-advantaged savings accounts for educational expenses – so workers may use the accounts to pay for skills training, apprenticeships, and professional development.
“Americans should not be penalized for seeking new skills and a better career,” Rep. Fitzpatrick said. “I’m proud to join this bipartisan bill that will not only save workers money throughout their time in the workforce, but also train them to meet the demands of the evolving 21st century labor market.”
“I fully support expanding access to skills-based educational opportunities for learners of all ages, and this bill provides key incentives for individuals to invest in their futures,” said Rep. Thompson, co-chair of the bipartisan Career and Technical Education Caucus. “I am proud to support this legislation and provide additional resources for learners to climb the next run on the ladder of opportunity.”
If enacted, H.R. 7517 would provide for lifelong learning accounts, remove age limits on Coverdell ESAs, and broaden qualifying educational expenses, according to a bill summary provided by the lawmakers.
Contributions under the bill would be pre-tax, with $4,000 annual and $10,000 total limits for mid-career workers, and employers would receive a 25 percent tax credit for contributing to an employee’s account, the summary says.
“The Skills Investment Act is designed to equip American workers so they can navigate economic change rather than being victimized by it,” Rep. Kilmer said. “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.”
The measure has been endorsed by the Association for Career and Technical Education, Advance CTE, the National Association of Workforce Boards, the National Career Development Association, and the National Skills Coalition.
U.S. Sens. Amy Klobuchar (D-MN) and Mike Braun (R-IN) introduced a companion bill in the U.S. Senate.