Representative Riley Moore (R-West Virginia) is set to introduce a federal savings program inspired by a West Virginia initiative he previously led as state treasurer. This program is designed to assist individuals in covering costs associated with equipment, certifications, start-up expenses, and other essentials related to their trade or professional careers.
The proposed legislation, known as the Jump Start Program Act, is planned for introduction on January 15. It aims to modify the Internal Revenue Code to create specialized accounts similar to 529 education savings plans, but specifically for career paths that go beyond traditional college routes. These accounts would enable individuals to contribute funds tax-free for “qualified occupational, professional, or trade expenses,” which include tools, certifications, licenses, community college programs, and even starting small businesses in their fields.
The bill outlines various qualifying expenses, such as participation in registered apprenticeship programs approved by the Department of Labor, tuition, and materials for obtaining an associate’s degree or certificate, along with costs related to starting a business in the beneficiary’s area of occupation. Additionally, these accounts would be exempt from federal income taxes and would allow tax-free rollovers from standard 529 plans.
This program reflects a state-level initiative that Moore championed during his tenure as West Virginia state treasurer, which received unanimous approval from both chambers of Congress. Moore noted that during his time overseeing the program, there were hundreds of participants who opened accounts for career-related expenses.
The federal proposal has attracted backing from prominent industry and labor organizations, including the Teamsters and various builders and contractors. It is co-sponsored by Representatives Michael Lurie (R-Ohio), Ashley Hinson (R-Iowa), Barry Moore (R-Ala.), and Craig Goldman (R-Texas).
Moore’s dedication to the JumpStart program stems from his personal experiences. “I started off as a welder. I was in trade school, and it felt like a great opportunity,” he shared. He expressed concern that, historically, government incentives have been skewed in favor of those pursuing university education. “We’ve invested so much to encourage college attendance… But it’s equally vital to support trades on par with college pathways.”
He highlighted that while the state-level initiative permitted participants to deduct contributions from their income taxes, the new federal proposal would go further by exempting these accounts from capital gains taxes when utilized for eligible expenses.
According to Moore, the savings account would remain open indefinitely, allowing users to withdraw funds tax-free to assist with job searches or promotions. In contrast to traditional 529 plans that target early education costs, JumpStart accounts focus on expenses arising after completing training or apprenticeship programs.
Recalling his journey, Moore mentioned that entering an industry often entails significant start-up costs. “At one point, I wanted to start a mobile welding business, but it was prohibitively expensive. I simply didn’t have the cash or credit,” he said. He reflected that with a program like JumpStart when he was younger, he might have realized his dream sooner.
Moore believes that this initiative could significantly impact the workforce, stating, “We aim to draw people into jobs that are crucial for our economy. The timing feels right as we’re working to bring many of these roles back to the United States, creating not just a trained workforce, but an equipped one as well.”
This legislation is not solely focused on trade; Moore clarified that it would support a variety of non-traditional educational paths, potentially benefiting individuals like hairdressers, chefs, and others in diverse careers. “Not everyone needs to go to college,” he argued. “There are too many kids chasing degrees in subjects like Russian literature who struggle to find work. They could have learned a trade and made a decent living instead.”
Addressing the broader implications, Moore remarked, “As Republicans, we often claim to support the working class.” Having worked in a blue-collar job himself, he resonates with this message. “But what does it really mean? We need to take action to support blue-collar workers. It’s about more than just words; we must back it up with initiatives like this.”
