Apprenticeship Opportunity Act

The Apprenticeship Opportunity Act would change how the federal Temporary Assistance for Needy Families (TANF) program treats income from the first year of a registered apprenticeship. Specifically, it requires states receiving TANF block grants to disregard all income earned during the first year of an apprenticeship that is registered under the National Apprenticeship Act when determining a recipient’s eligibility for TANF assistance. The bill also sets a penalty: if a state is found to have violated this rule in a fiscal year, the Secretary of Health and Human Services must reduce that state's next year’s TANF grant by 1 percent. The changes would take effect on the first day of the first federal fiscal year that begins after enactment. In short, the bill is aimed at encouraging participation in registered apprenticeships by low-income individuals by excluding that first-year apprenticeship income from TANF eligibility calculations, while providing a financial penalty to ensure compliance.