Jamie Biesiada
When my now-2-year-old daughter was born, one of the first things I did was set up a 529 education savings plan for her (don't think I'm being too virtuous here -- there's not much money in it).
In 16 years or so, she'll be able to use the savings to fund her education at a U.S. college or university or through an apprenticeship program. That latter bit was important to me; college isn't for everyone, after all.
Now, a bill before the House of Representatives is attempting to widen the options of how that money is spent -- an unequivocal positive and one that could be a piece in solving one of the travel agency community's biggest problems.
The Freedom to Invest in Tomorrow's Workforce Act (H.R. 1477) would enable 529 funds to be applied to workforce training and credentialing programs. It is one of the policy issues the American Society of Association Executives (ASAE) is advocating for, and ASTA plans to support those efforts.
"So, if you didn't use your 529 funds for education, or you're a travel advisor who wants to take your travel advisor skills to the next level, you could use those 529 funds for, say, ASTA's Verified Travel Advisor program," ASTA vice president of advocacy Jessica Klement said.
It's not ASTA's top priority in 2024. That spot, understandably, is reserved for the FAA reauthorization bill. On that front, the Society has a number of asks, but most important is ensuring that travel advisors aren't on the hook for client refunds for air tickets when they are not in possession of the funds. ASTA also wants a "ticket agent" seat on the DOT's Aviation Consumer Protection Advisory Committee.
But H.R. 1477 is definitely on the Society's radar, Klement said, and she's already done some outreach to congressional offices on the bill. It already has more than 100 bipartisan co-sponsors, and a grassroots campaign to further push its value is likely forthcoming in 2024 from the ASAE. ASTA would participate in that campaign.
If the bill becomes law, it opens a world of possibility for unused 529 funds in the travel industry.
Not only would it seemingly apply to ASTA's courses, but the Travel Institute's, too, as well as myriad of other certifications that exist today. And as Klement said, those funds could also be used for continuing education.
What better way to help solve one of the agency community's most pressing issues -- a need for more advisors to meet spiking consumer demand -- than offering a new way for potential advisors to fund their education?
There is no panacea for the advisor shortage the industry is staring down. And not every potential advisor has unused 529 plans. We know that many start in the industry after another career, likely meaning they've spent education funds already.
But it would be another item in the toolbox to onboarding and training more advisors. That's never a bad thing, and that combination of tools is what will ultimately lead to more advisors.
Who knows? My kid could be one of them in 2039.