Thompson, Bonamici Introduce Bill to Create Skill Savings Accounts

WASHINGTON, D.C. - Today, U.S. Representative Glenn "GT" Thompson (R-PA), and Suzanne Bonamici (D-OR), co-chairs of the Congressional Career and Technical Education (CTE) Caucus, introduced the bipartisan Skill Savings Account Act.

This bill creates skill savings accounts for workers of all ages to use for education expenses including workforce development and nontraditional learning opportunities. Skill savings accounts can be utilized for a wide variety of workforce development opportunities including apprenticeships, online courses, credentials, short or long-term community college and university courses, bootcamps, certificates, skill accelerators, and more to give workers the opportunity to reskill and upskill throughout their careers.

Skill savings accounts allow for tax-free contributions from employers, workers, community investment organizations, family and friends, government agencies, and tax authorities to contribute to an individual's skill savings account, which are portable and follow the individual worker throughout their working life.

"A skilled workforce drives our economic growth and it's important that every American knows there is more than one path to a successful future," Rep. Thompson said. "I am proud to lead the Skill Savings Account Act, this commonsense, bipartisan legislation will create a tool for workers to reskill and upskill, ensuring that everyone can climb the ladder of opportunity."

"Investing in workforce development is investing in America's economic future," Rep. Bonamici said. "Skill savings accounts will allow more Oregonians to access continuing education, workforce training, and reemployment services to help workers and businesses thrive."

"The U.S. Chamber of Commerce commends Reps. Thompson and Bonamici for introducing the Skill Savings Account Act," said Rodney Davis, Head of Government Affairs of the U.S. Chamber of Commerce. "This bill offers workers and employers a practical, flexible tool to invest in skills development and training, helping address worker shortages and keep America's workforce competitive."

"The Skill Savings Account Act creates a portable, tax-advantaged tool that empowers learners and workers to invest in their own upskilling and reskilling, reflecting how today's careers and related pathways actually unfold," said Kate Kreamer, Executive Director of Advance CTE. "Career Technical Education (CTE) has long delivered the high-quality programs and pathways that learners need to cultivate in-demand skills, and Skill Savings Accounts can help complement this existing infrastructure with a worker-centered, demand-side investment. Advance CTE commends Representatives Thompson and Bonamici for their leadership on this issue and is pleased to endorse the Skill Savings Account Act."

"By creating tax-advantaged accounts for education and training, this legislation expands access to high-quality learning opportunities, supports lifelong learning and strengthens the connection between education and workforce needs, helping more individuals gain the skills necessary to succeed in today's economy," said LeAnne Curry, Executive Director of ACTE. "ACTE appreciates Congressman Thompson for his continued support of career and technical education and for introducing this legislation."

Specifically, this legislation would:

• Create tax-free skill savings accounts for the purpose of paying the qualified education expenses of the account beneficiary, a portable account that follows a worker throughout their working life.
• Workers can contribute to their own skill savings accounts and/or receive contributions from employers, family and friends, government agencies, tax authorities, and community investment organizations.
• The total amount contributed by the employer shall not exceed $5,250 and the total amount contributed by an employee shall not exceed $10,000 in any calendar year.
• A skill savings account balance may not exceed $50,000

Read the full text here.