House bill proposes tax-free savings accounts for the trades

A federal bill introduced in the U.S. House of Representatives would create a new type of savings plan — modeled after 529 college plans — geared toward careers in the trades. 

What’s happening: The Jumpstart Savings Act, introduced by West Virginia Rep. Riley Moore, would amend the Internal Revenue Code to create new, tax-free savings accounts that would be administered by states. 

• The accounts would allow Americans to make withdrawals for expenses related to apprenticeship programs, community colleges or trade schools, certifications and licensing, tools and equipment, and establishing a new business. 
• 529 account savings could also be rolled into Jumpstart accounts. 

Of note: President Trump’s big, beautiful bill, signed into law in 2025, expanded the allowable uses for 529 accounts, enabling families to use the funds to cover a wide range of workforce-related expenses, including credentialing and vocational programs.  

• Yes, but: The provisions did not extend to tools and equipment purchased independently of recognized programs — or to launching a new business. 

What they’re saying: “Too many hardworking Americans are locked out of the trades not because they lack skill or work ethic, but because the upfront costs are simply too high,” Moore said in a January statement. “The Jumpstart Savings Act helps workers overcome those barriers by giving them a tax-free option to save, start a business, and build a career in the trades.”

• “The average startup cost for a small business in the trades is $100,000,” added Iowa Congresswoman Ashley Hinson, who cosponsored the bill. “I’ll keep working to expand pathways into good-paying jobs without forcing people to borrow their way there.” 

Between the lines: Mike Rowe, former host of Dirty Jobs and founder of the mikeroweWORKS Foundation, said at a Wednesday conference that the bill “ought to be a no-brainer.”

• “To be fair, 529 can be used for a trade school, but the Jumpstart account will allow you to take pre-tax money, put it in there and then buy your tools,” he added. “It’s especially advantageous for people with an entrepreneurial spirit.” 

Go deeper: The bill is modeled after the West Virginia Jumpstart Savings Program that Moore led when he was state treasurer, which allows individuals to make up to $25,000 in annual tax-free contributions — and passed unanimously. 

Looking ahead: The bill has been referred to the House Ways and Means Committee, where it now awaits a hearing and a vote before it can advance further.