New Collar Jobs Act of 2025
The New Collar Jobs Act of 2025 seeks to grow the cybersecurity workforce and education pipeline through a mix of tax incentives, loan- repayment support, expanded scholarship programs, targeted funding for education in advanced technology, and a procurement incentive for federal contracts. Key mechanisms include a new employer tax credit for cybersecurity education expenses, a loan-forgiveness program targeted at cybersecurity workers in economically distressed areas, an expansion of the CyberCorps Scholarship-for-Service program, increased NSF funding for IT and cybersecurity education, and a government contract scoring incentive for firms that participate in the education credit. The bill emphasizes alignment with the National Initiative for Cybersecurity Education’s (NICE) Cybersecurity Workforce Framework (NCWF). Overall, if enacted, the bill would push employers to invest more in cybersecurity training, create more loan relief tied to cybersecurity work in distressed regions, boost federal scholarship opportunities for cybersecurity students, and reward bidders on federal contracts that support cybersecurity education and workforce development.
Key Points
- 1Employer cybersecurity education tax credit (Section 45BB): Creates a 50% credit for qualified cybersecurity education expenses paid or incurred by employers, with a per-employee cap of $5,000. Qualified expenses are for employees pursuing undergraduate/graduate certificates or industry-recognized certifications aligned with NICE NCWF work roles. The credit is incorporated into the general business credit and applies to apprenticeship programs starting after enactment.
- 2Student loan repayment for cybersecurity workers in economically distressed areas (Section 4): Adds a new loan-repayment provision under the Higher Education Act. Borrowers who make 36 consecutive monthly payments under specified repayment plans and work in a cybersecurity job located in an economically distressed area for at least 12 of the months (and 60% of hours) can have their remaining loan balance canceled—up to the lesser of the remaining balance or $25,000. Double-benefit restrictions apply. Definitions tie “cybersecurity job” to NCWF skill roles or teaching such courses; “economically distressed area” follows Public Works and Economic Development Act criteria.
- 3CyberCorps scholarship-for-service program expansion (Section 5): Increases NSF-funded cyber scholarships for fiscal years 2026 onward to not be less than double the number in FY2024. Expands allowable work to include cybersecurity course instruction by instructors teaching in NCWF-defined roles and removes a prior priority placement preference for federal government employment.
- 4Increased funding for Advanced Technology Education (Section 6): Expresses that FY2026 funding for NSF’s Information Technology and Cybersecurity Division should be at least 110% of the FY2024 level.
- 5Cybersecurity training incentive for government contracts (Section 7): Establishes a five-percent score increase in competitive evaluations for contracts over $5,000,000 if the offeror is a “qualified offeror” (one that has claimed the employee cybersecurity education credit under 45BB at least once in the prior three years). Applies to solicitations issued after enactment; defines executive agencies and qualified offerors.
- 6Findings and context (Section 2): Highlights the competition for manufacturing and cybersecurity talent, the rise of industrial cybersecurity incidents, and the need to integrate cybersecurity with modern manufacturing and automation.