Thompson Introduces Bipartisan Legislation to Bolster Skills Training

WASHINGTON, D.C.—Wednesday, U.S. Representatives Glenn “GT” Thompson (R-PA-15), Suzanne Bonamici (D-OR-1), Brian Fitzpatrick (R-PA-1), and Brad Schneider (D-IL-10) introduced the bipartisan Skills Investment Act to enhance workers access to skills training. This legislation aims to expand tax-advantaged savings opportunities for Americans pursuing new job skills and better career prospects through Coverdell Education Savings Accounts (ESAs) – tax-advantaged savings accounts for educational expenses. Under this legislation, workers of all ages would be eligible to use Coverdell lifelong learning accounts to pay for skills training, apprenticeships, and professional development.

“Investing in a skilled workforce begins with enhancing educational opportunities,” said Rep. Thompson. “This common-sense legislation allows workers, at any point in their career, to further develop skills that will serve them in the future. 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.”

“Education is a good investment, and the Skills Investment Act will help more Oregonians and Americans access career and technical education and workforce training,” said Rep. Bonamici. “The Act will allow Coverdell ESAs to pay for these additional opportunities. I’m pleased to join my colleagues in leading this bipartisan legislation that benefits workers, businesses, and the economy.”

“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 bipartisan, bicameral initiative will not only empower them to build brighter futures but strengthen our workforce and fuel sustainable economic progress across the nation.”

“To sustain and grow the American economy, American workers must have accessible pathways to high-paying jobs,” said Rep. Schneider. “We need to give our workforce the skills they need to successfully grow in their careers. By making career and technical education and skills training eligible for education savings accounts, the Skills Investment Act will help ensure workers of all ages are prepared for tomorrow’s economy and help employers better fill in-demand jobs with better trained workers.”

The Skills Investment Act is endorsed by the National Skills Coalition, Association for Career and Technical Education, Advance CTE, National Association of Workforce Boards, AASA – The School Superintendents Association, American Council on Education, and NAF.

Additional Information:

The Skills Investment Act introduces tax-advantaged savings accounts for lifelong skills development. 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. This legislation raises the age limit on Coverdell accounts to 70 and broadens qualifying educational expenses that Coverdell funds can be used for, including career and technical education, literacy, and other workforce-focused programs.

This bill 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% tax credit for any contributions to an employee’s Coverdell account.