Sponsors (13)
The bill expands tax-advantaged savings and reporting to make apprenticeships and career/trade training more accessible and flexible (including rollovers from §529s), at the cost of reduced federal revenue, new state administrative burdens and complexity, and some risk of misuse of funds for non-educational purposes.
Students, apprentices, and workers gain tax-free access to state 'Jumpstart' accounts to pay for apprenticeship fees, community/technical college, certification, tools, and approved start-up costs, expanding access to career and trade training.
Families can roll over existing §529 college savings into Jumpstart accounts, making it easier to repurpose education savings toward career, trade, and apprenticeship pathways.
The bill requires standardized reporting to beneficiaries and the IRS on contributions and distributions, improving transparency and oversight of account activity.
State governments and program administrators will incur new startup and ongoing administrative, reporting, and compliance costs — and unresolved UBIT treatment adds complexity that can reduce the net benefit of programs.
Taxpayers may face increased federal revenue loss over time from creating new tax-preferred accounts, which could marginally worsen budget pressures.
Permitting account distributions for business start-up costs creates ambiguity that may be exploited for non-educational uses if oversight is weak, increasing risk of misuse of tax-preferred funds.
Based on analysis of 2 sections of legislative text.
Creates tax-exempt state Jumpstart accounts (new IRC 529B) to pay qualified apprenticeship, community college credential, certification, tool, and limited business startup costs.
Official title: To amend the Internal Revenue Code of 1986 to establish Jumpstart Programs for saving for apprenticeship and trade occupation training, and for other purposes.
Introduced January 15, 2026 by Riley M. Moore · Last progress January 15, 2026
Creates a new federal tax‑preferred “Jumpstart” program that lets states establish tax‑exempt accounts to pay eligible occupation, profession, or trade expenses for named beneficiaries. Account earnings are exempt from income tax (with unrelated business income tax still applying), and the bill borrows many administrative and tax rules from existing 529 education plans, allows rollovers from 529 accounts, and becomes effective for taxable years beginning after December 31, 2025.