A bipartisan bill gaining traction in Congress could soon provide a significant financial boost to individuals seeking careers as certified nursing assistants (CNAs) and other direct care workers. The “Freedom to Invest in Tomorrow’s Workforce Act” proposes expanding the permissible uses of state 529 savings plans to cover the costs associated with professional credentialing programs. This move, if enacted, could alleviate financial barriers and help address the persistent workforce shortages plaguing the nursing home industry.
Currently, 529 plans, initially designed to save for college expenses, have seen their scope broaden over the years to include vocational training and apprenticeship programs. This new bill, introduced in the Senate by Senators Amy Klobuchar (D-MN), Peter Welch (D-VT), Jerry Moran (R-KS), and Susan Collins (R-ME), and a companion bill in the House, aims to further this expansion by allowing these funds to be used for tuition, fees, books, supplies, equipment, and even testing and continuing education costs tied to recognized postsecondary credential programs.
LeadingAge, a prominent association of nonprofit aging services providers, has voiced strong support for the legislation. In a statement, the organization noted, “By allowing 529 funds to be used for non-degree programs, the bill could help address our sector’s workforce challenges by making it more financially feasible for individuals to pursue careers in aging services, such as certified nursing assistants.” This sentiment is echoed by the American Health Care Association/National Center for Assisted Living (AHCA/NCAL), which earlier this year advocated for the transition of 529 plans into “career savings plans,” calling the House bill “common-sense legislation” vital for rebuilding the long-term care workforce pipeline.
The potential impact of this legislation is significant, particularly given the critical need for CNAs in nursing homes. According to the Bureau of Labor Statistics, the median annual wage for nursing assistants was $35,760 in May 2023. While a fulfilling career, the upfront costs of training and certification can be a deterrent for some individuals. Allowing access to 529 funds could remove a key financial obstacle, encouraging more people to enter this vital field.
The bill specifies that eligible credentialing programs include those listed under the Workforce Innovation and Opportunity Act, programs in the Veterans Benefits Administration’s Web Enabled Approval Management System, and any program requiring a credentialing exam from a widely recognized organization. This broad definition ensures that a wide range of quality training programs for direct care workers would qualify.
As Congress continues its budget reconciliation process, there is growing optimism that this bipartisan legislation could be included. Its enactment would represent a meaningful step towards strengthening the nursing home workforce, ultimately benefiting both the dedicated professionals who provide care and the residents they serve.