S.1590 - Aviation Workforce Development Act (119th Congress)
Summary
S.1590, the Aviation Workforce Development Act, aims to amend the Internal Revenue Code of 1986 to allow qualified distributions from qualified tuition programs (529 plans) for certain aviation maintenance and commercial pilot courses. This would effectively expand the permissible uses of 529 plans to include expenses related to aviation training. The bill was introduced in the Senate on May 5, 2025, and referred to the Committee on Finance.
Expected Effects
The primary effect of this bill would be to make aviation maintenance and commercial pilot training more accessible and affordable by allowing individuals to use 529 savings plans to cover the costs of these programs. This could lead to an increase in the number of qualified aviation professionals. Ultimately, this could address potential workforce shortages in the aviation industry.
Potential Benefits
- Increased accessibility to aviation training: Allowing 529 plans to cover aviation courses makes training more affordable.
- Workforce development: Addresses potential shortages in aviation maintenance and commercial piloting.
- Economic stimulus: Increased enrollment in aviation schools and related spending.
- Individual financial flexibility: Provides families with more options for using their 529 savings.
- Supports aviation industry growth: Helps ensure a steady supply of qualified personnel for the aviation sector.
Potential Disadvantages
- Potential strain on 529 funds: Increased demand on 529 plans could reduce funds available for traditional education.
- Tax revenue impact: Allowing these deductions could slightly reduce overall tax revenue.
- Risk of misuse: Funds could be used for non-qualified expenses if oversight is insufficient.
- Limited scope: Only benefits those pursuing aviation careers, potentially creating inequity with other vocational fields.
- Complexity: Adds complexity to the existing 529 plan regulations.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote economic growth and workforce development in a specific sector. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8). This bill uses the tax code to incentivize training in a specific industry, which falls under the purview of Congress's power to tax and spend for the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).