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President Signs into law: Mike Collins Expansion of 529 Plan Eligibility to Include Postsecondary Credentialing Expenses

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Flight training students in America now have one more mechanism to pay for their training.

From the outset, flight schools nationwide have requested this on behalf of students and parents. We now have a valuable tool to help manage the ongoing costs of professional flight training”

— Lee Collins, CEO of NFTA

WASHINGTON DC, DC, UNITED STATES, August 13, 2025 /EINPresswire.com/ — With the President recently signing into law the Senate Bill and the Congressional Bill H.R. 1, known as “The One Big Beautiful Bill”; Flight training students in America now have one more mechanism to pay for their training.

Section 70414 amends 529 college savings plan rules to include certain postsecondary credentialing expenses as qualified education expenses. This amendment was passed with strong bipartisan support from the U.S. House of Representatives, Senate, and ultimately signed into law by the President, marking a significant step forward for workforce development and career readiness in aviation.

Since the Spring of 2023, the National Flight Training Association (NFTA), in close collaboration with Congressman Mike Collins’ office (R) GA, has actively supported and encouraged this critical legislative change expanding the scope of qualified higher education expenses covered under 529 Savings Plans. This change reflects NFTA’s ongoing commitment to ensuring students and their families have access to valuable and affordable financial resources that support career-focused education and training in aviation.

Key Highlights of SEC. 70414. – Certain Postsecondary Credentialing Expenses Treated As Qualified Higher Education Expenses Treated As Expenses Treated As Qualified Higher Education Expenses For Purposes Of 529 Accounts:

Broadened Eligibility: 529 plans now cover expenses for participation in postsecondary credentialing programs, including industry-recognized credentials and certifications in recognized occupations or professions.
Career-Focused Education: Eligible programs prepare students for gainful employment and are offered by eligible educational institutions but do not require enrollment in a degree program.
Immediate Effectiveness: The amendment applies to all qualifying distributions made after the law’s enactment, with no phase-in period.
Enhanced Financial Access: Students and parents can now utilize 529 savings to cover a wider array of educational paths that align with today’s evolving job market demands.

As the leading voice for flight training institutions nationwide, NFTA recognizes that aviation and aerospace careers demand specialized credentials that often fall outside traditional degree programs. This legislative update removes a significant financial barrier, enabling students and families to invest in industry-recognized certifications critical to pilot training, aircraft maintenance, and other aerospace professions. Flight training programs accredited by eligible institutions now qualify for 529 funding, making it easier for aspiring pilots and aviation professionals to pursue their goals with financial confidence. This advancement aligns with NFTA’s mission to promote accessible, career-focused training pathways that meet the evolving needs of the aviation industry and support America’s workforce development.

Effective Date:
The amendment is effective immediately for all 529 plan distributions made after the enactment of the Act, allowing families to benefit from these expanded provisions without delay.

For the full legislative text and details, visit [Congress.gov link to Section 70414, page 148].

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National Flight Training Alliance
+1 202-979-1728
info@nftaus.org
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