Bill · S. 3217· Senate(119-S-3217)
Skills Investment Act of 2025
- Introduced
- 11/19/2025
- Last activity
- 11/19/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Amy Klobuchar
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Skills Investment Act of 2025 proposes to amend the Internal Revenue Code to rename Coverdell education savings accounts as "Coverdell lifelong learning accounts." This change expands the types of eligible expenses that can be covered by these accounts to include various training, career, and technical education activities. The bill also modifies age limits and contribution rules to better accommodate lifelong learning. Additionally, it introduces a new tax credit for employer contributions to these accounts and allows for deductions for certain beneficiaries. These changes are intended to facilitate skill development through various educational and workforce programs.
Yes· 3 of 13
Does this cut taxes for middle-income families?+5
The bill allows for tax deductions for contributions made to lifelong learning accounts by beneficiaries at least 18 years old.
Would people in their twenties and thirties be better off under this?+4
The bill expands eligible expenses to include many types of career and technical training useful to young adults.
Would people in middle age be better off under this?+4
The bill increases the contribution limit to $4,000 for those over 30 and allows contributions until age 70.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Expanded Educational Uses: The bill expands the use of accounts to include qualified educational or skill development expenses, such as training services, career and technical education, and adult education and literacy activities (Section 2, b, 1, A and 5).
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Coverage of Related Costs: Beneficiaries can use funds for expenses related to their education, including required transportation, necessary testing, and certain computer software or equipment (Section 2, b, 5, A and B, C, D).
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Increased Contribution Limits for Adults: Individuals over the age of 30 can contribute up to $4,000 per year, providing more flexibility for adult learners (Section 2, c, 3, A).
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Extended Contribution Age: The age limit for making contributions is increased to age 70, allowing people to save for education much later in life (Section 2, c, 2).
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Tax Benefits for Employers: Employers can receive a tax credit equal to 25 percent of nonelective contributions made to a Coverdell lifelong learning account for an employee (Section 2, d, 1, a).
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Tax Deductions for Beneficiaries: Certain individuals who are beneficiaries of these accounts and are at least 18 years old may be allowed a deduction for contributions made to their accounts (Section 2, e, 1, a).
Potential Negative Impacts for People
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Account Balance Restrictions: For beneficiaries over the age of 30, contributions cannot result in an account balance that exceeds $10,000 (Section 2, c, 1, A).
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Restrictions on Changing Beneficiaries: There are limitations on changing a beneficiary once an individual has attained the age of 30 (Section 2, c, 4).
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Increased Tax Rates on Certain Distributions: The additional tax rate for certain distributions is increased from 10 percent to 20 percent (Section 2, e, 2, A, i).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Aged+4Good For Middle Class Households+4Good For Young Adults+4Good For Business Owners+3Good For Seniors+3Good For Low Income Households+2
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Small Business Taxes+3Improves Economic Growth+2Increases Job Creation+2
- Education And Technology
- Improves College Affordability+4Improves Internet Access+3
- Social Issues And Justice
- Improves Poverty Reduction+2
- 11/19/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
David McCormickRepublican · Pennsylvania