Press Releases

WASHINGTON, DC – U.S. Congressman Jason Smith and Congressman Danny K. Davis (D-IL) have introduced two bipartisan bills that will empower working students to pursue higher education while still participating in the workforce and earning money. These two pieces of legislation will reduce the reliance on student loans and reward those who work while learning by allowing employers to offer tax-free education assistance.

The first bill, the Upward Mobility Enhancement Act, was introduced by Rep. Jason Smith and will permanently increase the employer provided education assistance from $5,250 to $12,000, index the amount to inflation, and expand the eligible education-related tools and technology covered by the tax exclusion.

The second bill, the Upskilling and Retraining Assistance Act, was introduced by Rep. Danny K. Davis and provides a short-term expansion of employer provided education assistance by also increasing the exclusion amount from $5,250 to $12,000 for 2021-2022 and updating covered education-related tools and technology. Together, these bills meet the needs of both workers and employers as they cope with the immediate effects of COVID-19 and the long-term needs of the American workforce.

“We need to give the maximum support possible to students who wish to work their way through their education,” said Rep. Jason Smith. “As a Member of Congress who is still paying back my student loans, I know firsthand how big of a burden the cost of higher education is for the working class. Employer-provided assistance is a win-win for students and for small businesses by helping employees obtain and afford the skills they need to succeed in the workforce.” 

“Studies have shown that most college students are working as they study and that companies benefit from workers improving their education. Low-income students, Black, Latinx, older and female students tend to work longer hours than their high-income counterparts. We know that working can be beneficial for students,” said Rep. Danny K. Davis. “There is direct a correlation for employers with level of education of their workforce and worker productivity. These bills encourage employers to provide important educational and training opportunities to their workers without an increased tax burden, improving both the skills and economic well-being of the labor force.”

The bipartisan Upward Mobility Enhancement Act is endorsed by the National Association of Independent Colleges & Universities (NAICU), HR Policy Association, Jobs for the Future (JFF), The Manufacturing Institute, National Electrical Contractors Association (NECA), National Tooling and Machining Association, Precision Machined Products Association, Precision Metalforming Association, North American Die Casting Association, American Mold Builders Association, National Skills Coalition, Career Education Colleges and Universities, Higher Learning Advocates, National Association of College and University Business Officers, National Association of Professional Employer Organizations, Guild Education, Miami University (Ohio), Southern New Hampshire University, New York University, Cornell University, and Arizona State University.

The bipartisan Upskilling and Retraining Assistance Act is endorsed by the American Council on Education, National Association of Independent Colleges & Universities (NAICU), Assocation of Community College Trustees, Council of Graduate Schools, HR Policy Association, Jobs for the Future (JFF), The Manufacturing Institute, National Electrical Contractors Association (NECA), National Tooling and Machining Association, Precision Machined Products Association, Precision Metalforming Association, North American Die Casting Association, American Mold Builders Association, National Skills Coalition, Career Education Colleges and Universities, Higher Learning Advocates, National Association of College and University Business Officers, National Association of Professional Employer Organizations, Guild Education, Miami University (Ohio), Southern New Hampshire University, New York University, Cornell University, and Arizona State University.

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Contact: Ira Cohen (Davis), Matt Schuck (Smith)