New tax break for trade school savings—but only if your state sets it up
H.R. 7115 — Jumpstart Savings Act · Filed by Riley Moore (R-WV) · 14 cosponsors · Introduced Jan 15, 2026 · Referred to committee
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What it does
This bill creates a new tax-advantaged savings account called a Jumpstart Program, modeled on 529 college savings plans, that allows individuals to save money tax-free for apprenticeships, trade certifications, community college programs, and business startup costs related to skilled trades. Contributions grow tax-free, and withdrawals for qualified expenses are not taxed, giving workers and families a financial incentive to pursue vocational training instead of four-year degrees.
Why we flagged it
The bill's core mechanism is a tax exemption for state-run savings accounts dedicated to apprenticeships and skilled trades. It is functionally a tax policy designed to encourage workforce development in non-degree pathways.
What the text implies
- The bill allows rollover from existing 529 college savings plans to Jumpstart Programs, potentially redirecting education savings away from four-year degrees toward vocational training—a subtle policy signal favoring trades over traditional higher education.
- By allowing business startup costs as a qualified expense, the bill may incentivize self-employment in trades, which could reduce traditional employment relationships and associated worker protections (health insurance, unemployment benefits).
The full analysis lists 3 implications of this text.
Who stands to gain
apprenticeship programs; community and technical colleges; trade certification bodies