Skills Investment Act of 2025

This bill renames Coverdell education savings accounts as Coverdell lifelong learning accounts and lets account money be used, after the beneficiary turns 16, for workforce training, career and technical education, adult education, and related costs such as transportation, testing, and computers. It raises the age limit for contributing to these accounts from 18 to 70, and sets a $4,000 yearly contribution limit for beneficiaries age 30 or older, with a $10,000 cap on account balances for beneficiaries over 30. Employers could claim a tax credit equal to 25 percent of contributions they make to employees' accounts, and beneficiaries age 18 or older could deduct their contributions from taxable income. The extra tax on distributions not used for qualified expenses would rise from 10 percent to 20 percent. Most changes take effect January 1, 2026.

Full text and official record on Congress.gov

Sponsors

• Amy Klobuchar Democrat sponsor
• 1 cosponsors