529 Plans Now Cover Trade Schools, Credentialing, and More Under New Federal Law
Evan Castillo
July 22, 2025
The One Big Beautiful Bill Act expands 529 plans beyond college to cover trade schools, credentialing programs, AP tests, tutoring, and workforce training, offering families more flexible, tax-free education savings options.
A 529 savings plan is an account anyone over 18 can open — for themselves or for another person — to save and withdraw tax-free funds for select educational expenses.
The One Big Beautiful Bill Act expanded the savings plan from being used primarily for college. It now can be used for trade school, credentialing, and training expenses.
Beneficiaries in high school can use their 529 plan for dual enrollment courses, AP tests and other college exams, and tutoring outside of school.
A 529 plan counts as an asset on the FAFSA, not income — so it does not largely impact a student’s financial aid eligibility.
President Donald Trump signed the 1,000-plus-page One Big Beautiful Bill Act into law on July 4, and it will significantly change how students pay for career-advancing education.
