Klobuchar, McCormick Introduce Bipartisan Legislation to Increase Access to Skills Training

WASHINGTON - U.S. Senators Amy Klobuchar (D-MN) and Dave McCormick(R-PA) reintroduced a bill to enhance access to skills training. The Skills Investment Act would expand Coverdell Education Savings Accounts (ESAs)-tax advantaged savings accounts for educational expenses-so American workers can use the accounts to pay for skills training, career-related learning, adult education, and professional development.

Companion legislation for the Skills Investment Act was introduced in the House of Representatives by U.S. Representatives Glenn "GT" Thompson (R-PA), Suzanne Bonamici (D-OR), Brian Fitzpatrick (R-PA), and Brad Schneider (D-IL).

"Now more than ever, innovation is key to moving the American economy forward. With technological advancements in manufacturing and many other parts of our economy, it is critical that American workers are positioned for success. That means increasing access to the specialized training and education needed to pursue good-paying, high-demand careers," said Klobuchar. "Our bipartisan Skills Investment Act will modernize tax advantaged savings accounts so workers can build skills for the 21st century economy."

"The energy and AI revolution is bringing demand for electricians, pipe and steamfitters, welders, and more skilled labor professions to levels we haven't seen in decades. These are good paying jobs that lead to create stable, fulfilling careers," said Senator McCormick. "This bill is an important step toward incentivizing more Americans to enter the skilled trades and fill these jobs while reinforcing that a four-year degree is far from the only path to the American Dream."

The Skills Investment Act transforms Coverdell ESAs into lifelong learning accounts, allowing workers to use tax-advantaged savings to pay for education and skills training programs throughout an account holder's lifetime. The bill would eliminate the age-based contribution limit on Coverdell ESAs and expand the scope of allowable distributions to cover a broad array of career and technical education services. These savings accounts would now be eligible for pretax contributions and mid-career workers would be allowed to contribute up to $4,000 tax-free each year, with a maximum contribution limit of $10,000. Employers would receive a 25 percent tax credit for contributions to a worker's account.

Klobuchar has long led efforts to boost workforce development and skills training.

In March 2025, Klobuchar and Senator Marshall (R-KS) introduced the Freedom to Invest in Tomorrow's Workforce Act, bipartisan legislation to allow Americans to use '529' education savings accounts for skills training, credentialing, and certification programs, which was signed into law earlier this year. Previously, '529' accounts could only be used to pay for college, vocational school, K-12 education, and apprenticeship expenses.

In March 2025, she and Senator Susan Collins (R-ME) reintroduced the American Apprenticeship Act, which would provide states with tuition assistance funding to support apprenticeship and pre-apprenticeship programs. She also partnered with Senator Jerry Moran (R-KS) to reintroduce the Apprenticeships to College Act, bipartisan legislation to allow workers to earn college credits for completed apprenticeships.

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