November 5, 2025
For years, 529 savings plans have been widely recognized as a tax-advantaged way for families to save for college tuition. Traditionally, these funds were limited to expenses at four-year universities, creating the perception that higher education had to follow a single academic pathway. Recent changes, however, have expanded the use of 529 accounts to include technical and trade schools, a shift that carries significant benefits for students, American manufacturers, and AICC members.
AICC, through our partners on Capitol Hill, fought for this change in how 529 accounts may be used.
Technical and trade schools provide the hands-on training required for careers in advanced manufacturing, machining, robotics, and other skilled professions. By allowing 529 savings to cover these programs, families now have greater flexibility in choosing the educational path best suited to their child’s strengths and interests. This expansion helps remove financial barriers for students who may prefer or excel in a technical career rather than pursuing a traditional four-year degree.
For AICC members, this is especially good news. Across the country, manufacturers continue to face a shortage of skilled workers, with thousands of well-paid positions going unfilled. The manufacturing sector depends on a pipeline of talent trained in practical, high-demand skills, yet too often, students are steered away from these opportunities. By aligning educational savings with technical and trade programs, 529 expansion sends a clear signal: Skilled careers are equally valuable and worthy of investment!
The impact extends beyond workforce development. Families who save in 529 plans gain tax advantages while ensuring their children have multiple options for postsecondary education. Meanwhile, manufacturers benefit from a stronger, more diverse pool of workers prepared to operate and innovate in modern facilities.
In short, the expansion of 529 plans to cover trade and technical schools is more than just a financial adjustment—it’s a cultural one. It elevates the status of technical education, strengthens the manufacturing workforce, and provides young people with clearer, more affordable pathways into rewarding careers. For AICC members that thrive on skill, precision, and innovation, this is a step in the right direction.
Make sure you take advantage of it!
Eric Elgin is owner of Oklahoma Interpak and chairman of AICC’s Government Affairs subcommittee. He can be reached at 918-687-1681 or eric@okinterpak.com.
