Yes, CDL School Costs Can Now Be Paid for with 529 Savings Plans

Do you have savings in a 529 plan? Starting now, those educational savings can be used for CDL training and similar workforce training programs.

Section 70414 of the One Big Beautiful Bill Act, which was signed into law on July 4, 2025, contains a provision expanding the types of eligible expenses that can be paid for with a tax-advantaged 520 savings plan.

529 plans are specialized investment accounts where the funds can be used for a beneficiary’s educational expenses. The funds in a 529 account can grow and be withdrawn without federal income taxes, and without state income taxes depending on the state. Additional benefits include tax deductions in some states for contributions to a 529 plan.

“For the first time, students and families can now use these tax-advantaged accounts to pay for tuition, books, fees, and supplies related to workforce training programs, on-the-job training, apprenticeships, and non-degree credentials,” according to a July 7 statement by Andrew Poliakoff, executive director of the Commercial Vehicle Training Association (CVTA), an industry association representing truck driving schools.

The CVTA advocated for this 529 plan provision expanding access to skills-based training in CDL driving. (Southwest Truck Driver Training president Sean Williams serves as a member of the CVTA board.)

Though 529 plans already allowed funds to be eligible for career and vocational training, before this latest expansion, that training had to be for programs in which students were eligible to receive Title IV federal financial aid. The shorter length of CDL programs relative to other vocational programs meant that they typically fall under the threshold for federal financial aid eligibility. This meant that 529 plans historically could not be used for certain workforce training programs, including CDL training. This latest change does away with this restriction.

This expansion to eligible programs under 529 plans was effective as of the passage of the bill into law.

“This is a very positive development for students who do not want to go the traditional university route,” says Steve Strong, Vice President of Administration for Southwest Truck Driver Training. “It is something that SWTDT and other career schools have been pushing for several years, and it is good to see that our students will have the same advantages when it comes to funding their education.”