DEMO Act
The DEMO Act would create a new demonstration program under the Health Profession Opportunity Grants (HPOG) established in the Social Security Act. Its goal is to provide grants to eligible entities to run 3-year demonstration projects that educate and train individuals with arrest or conviction records for health professions in high-demand or shortage occupations. Projects would focus on building career pathways, including credentials and licensure, and would require coordination with labor and education agencies and the Attorney General. Eligible entities include a broad mix of workforce boards, state or local government entities, tribes, colleges, hospitals, health centers, and certain nonprofits. The act emphasizes post-employment support, legal assistance to address barriers created by arrest/conviction records, and measures to assess and share best practices. It authorizes $10 million for FY 2026 and takes effect October 1, 2025.
Key Points
- 1Purpose and scope: Establishes grants for demonstration projects to help eligible individuals with arrest or conviction records enter and advance in health professions with good wages and in-demand jobs.
- 2Duration and funding: Each demonstration project must run for at least 3 years; $10 million is appropriated for FY 2026 to fund these efforts.
- 3Eligibility and applicants: Eligible entities include local workforce boards, state or tribal governments, colleges, hospitals, federally qualified health centers, skilled nursing facilities, nonprofits, and other organizations with experience in health-profession training.
- 4Participant eligibility: Eligible individuals are those with incomes at or below 138% of the federal poverty level.
- 5Application requirements: Applicants must show state policies that allow certain allied health and behavioral health credentials to be awarded to people with records; demonstrate capacity to work with job seekers with records and with low-income populations; outline recruitment, credentialing, and post-employment support plans; and identify innovative practices and evidence on workforce shortages.
- 6Preferences: Priority to previous grantees with demonstrated positive outcomes and to applications including an emergency cash fund to support participants in emergencies.
- 7Participant supports: Projects must provide access to legal assistance to address record-related barriers; allowed supports include emergency financial aid and other program activities to address these barriers.
- 8Evaluation and training: The Secretary must fund rigorous evaluations of the projects, with possible randomized trials, and provide technical assistance to grantees.
- 9Effective date: Provisions take effect October 1, 2025.