Sponsors (13)
The bill broadens tax-favored savings options to make apprenticeships and career training more affordable and flexible, improving access to workforce education while creating federal revenue costs, new state administrative burdens, and potential risks of misuse without strong oversight.
Students, apprentices, and families can use new state 'Jumpstart' accounts tax-free to pay for apprenticeships, community/technical college, certifications, tools, and start-up costs — and families can rollover existing §529 college savings into these accounts to repurpose education savings toward career and trade training.
Students and workers gain expanded access to registered and certified apprenticeship programs because the bill explicitly covers apprenticeship costs, which can encourage workforce development and career training in skilled trades.
State program beneficiaries and the IRS will receive standardized reporting on Jumpstart account contributions and distributions, increasing transparency and oversight of these tax-preferred accounts.
Taxpayers may face increased federal revenue loss over time because payments from new tax-preferred Jumpstart accounts reduce taxable income, potentially increasing budget pressures or leading to trade-offs in federal spending or revenue elsewhere.
State governments must build, run, and report on new Jumpstart programs, creating administrative costs, compliance burdens, and resource demands for state agencies and program officers.
Students, taxpayers, and state program managers face a risk that funds designated for start-up costs or training could be misused for non-educational purposes if oversight is weak or definitions are ambiguous.
Based on analysis of 2 sections of legislative text.
Creates tax-exempt state-run accounts to pay trade, apprenticeship, community college, certification, tools, and certain business startup costs, with rollovers allowed from 529 plans.
Creates a new federal tax-preferred savings option under the Internal Revenue Code that allows states to establish accounts to pay qualified occupation-, profession-, or trade-related expenses for designated beneficiaries. Account earnings are tax-exempt for federal income tax purposes (but subject to unrelated business income tax rules), eligible expenses include apprenticeship and community/technical college costs, certification and licensure fees, trade tools and equipment, and costs to start a business, and existing 529 plan funds may be rolled into these accounts for the same beneficiary or family members. The provision also applies many of the administrative, beneficiary, and reporting rules already used for section 529 programs and becomes effective for taxable years beginning after December 31, 2025.
Introduced January 15, 2026 by Riley M. Moore · Last progress January 15, 2026