Bill Overview
Title: Lifelong Learning and Training Account Act of 2021
Description: This bill establishes tax-exempt savings accounts that may be used to pay for training expenses and will be managed by state programs known as Lifelong Learning and Training Account programs. Tax-exempt distributions from an account may be used for training that results in a recognized postsecondary credential, such as an industry-recognized certificate or certification, a license recognized by the federal government or a state, or an associate or baccalaureate degree. The bill specifies contribution limits, age restrictions, and income limits that apply to beneficiaries of the accounts. Accounts that meet the requirements are eligible to receive certain federal matching funds for contributions made by the beneficiary or an employer.
Sponsors: Sen. Warner, Mark R. [D-VA]
Target Audience
Population: People seeking continuing education or retraining opportunities
Estimated Size: 60000000
- The bill establishes Lifelong Learning and Training Account programs which are likely intended for individuals seeking further education or training.
- The accounts can be used to pay for training that results in recognized credentials or degrees. This suggests the target population includes individuals interested in advancing their qualifications or pursuing higher education.
- The legislation specifies age restrictions, which implies the target population includes adults, likely those working or planning to enter the workforce, though it also depends on the specific age restrictions set by the bill.
- Income limits suggest that the program is targeted at lower to middle-income earners who may benefit from additional financial support for education and training.
- Federal matching funds for contributions made by beneficiaries or employers indicate that it also targets employees and potentially employers willing to invest in their workforce's skills.
Reasoning
- The policy targets people seeking further education or retraining opportunities, especially those in lower to middle-income brackets. It's also relevant to those who can benefit from federal matching funds, such as employed individuals or those looking to enter the workforce.
- Given the budget constraints and the target population, it's crucial to feature interviews with a mix of individuals, some of whom may be directly impacted and others who may experience little to no change.
- This distribution aims to cover various demographics, including different ages, locations, and income levels, as well as a range of occupations to provide a comprehensive view of the potential impacts.
- The wellbeing scores before and after attempt to quantify the potential improvements or stasis in quality of life, largely dependent on their access to education funding through the accounts.
Simulated Interviews
Retail worker (Atlanta, GA)
Age: 25 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- The account will help me afford IT certification programs.
- Having a recognized credential could improve my job prospects significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Construction worker (Des Moines, IA)
Age: 32 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This would really help pay for the courses I need for a managerial role.
- With my income, it’s hard to afford further education without help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Software Engineer (San Francisco, CA)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- My employer is supportive, and the federal matching will encourage them to contribute more to my education fund.
- This initiative makes pursuing a master’s degree financially feasible.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Truck driver (Rural Alabama)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 6/20
Statement of Opinion:
- Not sure I’ll use it, but it’s good to know the option is there if I want to switch careers.
- The age restrictions might be an issue for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Freelance designer (Chicago, IL)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- Access to affordable courses could really help me improve my business.
- I might not be eligible due to the specifics of the income limit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Nurse (New York, NY)
Age: 48 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- This support would be perfect for pursuing my bachelor’s degree and advancing in my career.
- It’s expensive even with my salary, but this would make it attainable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Entry-level IT support (Austin, TX)
Age: 23 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 16/20
Statement of Opinion:
- The new accounts would motivate me to continue my studies without extra loans.
- I might benefit from federal matching which is a big relief on finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Unemployed (Seattle, WA)
Age: 37 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- I really need this kind of support to pursue a career in nursing.
- The savings account could potentially cover a big part of my expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Plumber (Phoenix, AZ)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Occasionally thought about expanding my business skills.
- The policy could ease access to the courses without affecting my budget badly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Factory worker (Detroit, MI)
Age: 30 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 13/20
Statement of Opinion:
- If accessible, this policy would make pursuing an engineering degree so much easier.
- With my current income, saving for school is almost impossible.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Cost Estimates
Year 1: $350000000 (Low: $200000000, High: $500000000)
Year 2: $400000000 (Low: $250000000, High: $550000000)
Year 3: $450000000 (Low: $300000000, High: $600000000)
Year 5: $500000000 (Low: $350000000, High: $650000000)
Year 10: $600000000 (Low: $400000000, High: $700000000)
Year 100: $800000000 (Low: $500000000, High: $900000000)
Key Considerations
- Administrative costs of managing state programs may fluctuate based on adoption rates and infrastructure readiness.
- Potential disparities in state-level program execution could affect national cost consistency.
- Coordination with educational institutions and industry for recognized credentials is crucial for program success.
- Adoption rates amongst eligible individuals and employers are critical to achieving projected benefits and balancing federal costs against savings.
- Potential economic downturns could influence the pool of individuals seeking such training benefits.