American Workforce Act
The American Workforce Act would create a new federal program, run through a new American Workforce Division within the Economic Development Administration (Department of Commerce), to offer an alternative path to college for job seekers. The core idea is to pair unemployed or underemployed individuals who are U.S. citizens with a high school diploma (or equivalent) but no bachelor’s degree with participating employers in paid, full-time “workforce projects.” Each project combines structured on-the-job work with employer-sponsored, education-based training designed to earn competency-based credentials. Employers receive subsidies to cover education costs and can receive a $1,000 bonus if a trainee is hired as a full-time employee after completion. The program emphasizes transparency (public disclosure documents and annual reporting), worker protections (whistleblower rights and penalties for noncompliance), and oversight (Director reviews of contracts and compliance, with enforcement mechanisms). Key design features include a standardized contract process, wage floors tied to local earnings, a cap on subsidies, and strict rules about use of funds (no wage subsidies, no DEI training funding, no political spending). The bill also requires E-Verify for all trainees and hires under the program, mandates public disclosures, and requires five- and ten-year evaluation reports to Congress. The proposal aims to scale practical, industry-aligned training that leads to portable credentials and employment outcomes in high-demand sectors, while maintaining strict federal oversight and reporting requirements. (Note: The provided full text ends abruptly partway through Section 6; the summary below reflects the provisions that are fully described in the document.)
Key Points
- 1Establishment and governance
- 2- Creates the American Workforce Division within the Economic Development Administration (EDA) and appoints a Director (President-appointed, Senate-confirmed) who reports to the Secretary of Commerce.
- 3- The Director must approve or disapprove proposed American workforce contracts within one month of receipt and maintain contract records, publish a 3-page standardized contract template, and oversee complaints and disciplinary actions.
- 4American workforce program and contracts
- 5- The program provides paid, full-time positions for trainees that combine structured on-the-job work with educational workforce training.
- 6- A prospective trainee must be a U.S. citizen, have a high school diploma (or equivalent), and have not earned a bachelor’s degree; current employees can also participate under certain conditions.
- 7- Contracts require detailed work/training plans, wage information, credentials to be pursued, and disclosures about costs and outcomes. There is a presumption that a proposed contract is approved if not disapproved within 32 days.
- 8Education subsidies and wage requirements
- 9- Employers receive a workforce education subsidy to cover the cost of educational training (not wages). Employers must pay trainees a wage not less than the higher of the federal minimum wage (FLSA 6(a)(1)) or the applicable state/local minimum wage, and ensure safe working conditions.
- 10- Subsidies are capped (not more than $1,500 per month and not more than $9,000 per trainee per contract). Subsidies are used for training costs, not wages.
- 11- Eligible third-party training entities include trade associations, companies, colleges (including community colleges), government agencies, nonprofits, unions, and other partnerships.
- 12- The trainee must be informed about widely used credentials; the Director may note additional credentials but cannot condition funding on earning a specific credential.
- 13- Payment timing: subsidies are paid in quarterly installments after training and on-the-job work are completed, with limitations on timing and amount.
- 14Hiring bonus and post-completion wages
- 15- If a trainee is hired as a full-time employee after completing a project, the employer receives a $1,000 hiring bonus (paid at least six months after hire). The bonus is subject to the same administrative rules as subsidies and may be used to supplement the trainee’s wage.
- 16Wages and remote work
- 17- Trainees should be paid at least 80% of the county’s median household income (or the nearest micropolitan/metro area’s income for non-metropolitan counties). For remote work, wages are determined by the trainee’s work location, and the trainee must reside in the U.S. and pay U.S. taxes.
- 18Educational training and credentials
- 19- Training must build portable skills and competency in the industry or occupation. Training may be provided by a broad range of eligible partners, including colleges and other educational entities. Trainees should be aware of credential options, and employers should not block credential attempts described in the contract.
- 20Public disclosures and transparency
- 21- Before approval, employers must provide a public disclosure document detailing costs, wages, project length, hours, expected credentials, and other key terms. Three years after project completion, a second disclosure must cover completion rates, hiring rates, and average wages of former trainees, among other metrics. These disclosures must be publicly available through the Director.
- 22Compliance, enforcement, and whistleblower protections
- 23- The Director can investigate complaints, impose warnings or civil penalties, and suspend employers for noncompliance (up to five years). Employees/trainees may file complaints, and there are protections against retaliation.
- 24Evaluation, reporting, and sunset planning
- 25- The Act requires five- and ten-year evaluation reports to Congress, comparing the program to other federal career/technical education and apprenticeship programs on outcomes such as completion rates, earnings, and employer engagement. It also requires analysis of uptake, credentialing, and potential program expansions (e.g., eligibility for others, greater use of intermediaries, engagement with high school students).
- 26Other provisions
- 27- Regulations to implement the program must be issued within three months of enactment. The program contemplates adjustments to employment ratios (employer-trainee) five years after enactment. The Act allows non-federal funding to supplement subsidies and clarify that entry into a workforce project by current employees is possible under specified conditions.