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Recently the One Big Beautiful Bill Act (H.R. 1), a bill that expands how families and individuals can use 529 education savings accounts, was signed into federal law.

These updates affect a wide range of savers—from families with children in K–12 schools to adults already in the workforce who are looking to earn career credentials or change careers.

New: 529 Funds Can Be Used for Career Credentials

One of the bigger changes is that adult learners and career changers can now use their 529 account to pay for post-high school credential programs not offered by traditional college or universities.

You can now use your Invest529 account for:

• Tuition, books and required fees for credential programs
• Testing fees to earn or maintain a certification or license
• Continuing education costs needed to renew a credential

The law allows your 529 account to be used for a wide range of recognized postsecondary (post-high school) credentials and credential programs, including:

• Credentials and programs authorized under the Workforce Innovation and Opportunity Act (WIOA)
• Certificates from registered apprenticeship programs
• Licenses issued or recognized by a state or federal agency
• Credentials approved by national credentialing organizations
• Credentialing Opportunities On-Line (COOL) credentials and Web Enabled Approval Management System (WEAMS) programs for members of the Armed Forces

These provisions are particularly valuable for adult learners who want to use their 529 funds for real-world skills, licenses and certifications that can potentially help them grow in their careers or switch to new fields.

New: More K–12 Education Expenses Are Covered

Families with K–12 students now have more ways to use their 529 funds, too. Until now, 529 plans could only be used for K-12 public, private, or religious school tuition (up to $10,000 per year). Now, the law allows those savings to be used for a broader range of learning expenses.

New qualified K–12 expenses include:

• Curriculum and learning materials
• Online educational tools or platforms
• Tuition for qualifying tutoring and extracurricular educational programs
• National test fees (like SAT or ACT)
• Dual enrollment costs
• Special education therapies

These changes give families in Virginia and beyond more options to support their children’s learning in flexible, personalized ways.

Coming in 2026: More 529 and ABLE Flexibility

More changes are expected in January 2026, including:

• An increase in the annual K–12 withdrawal limit from $10,000 to $20,000
• Expanded, permanent benefits for ABLE account holders, including Saver’s Credit eligibility and rollover flexibility

How Invest529 Is Supporting Savers

Invest529 is working to keep account owners informed and supported. Stay tuned for updated guidance, web tools and customer resources to reflect the expanded flexibility in how your education savings can be used.

Commonwealth Savers, formerly known as Virginia529, recently rebranded to better reflect the growing and changing needs of families and the modern workforce. As lifelong learning becomes more important, Invest529 remains one of the nation’s highest-rated 529 plans, helping families save for college, credentials or other educational paths.

Start Saving or Learn More

Ready to make the most of your 529 savings?
Visit Invest529.com to explore your options or open an account today.