[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8181 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 8181
To amend the Workforce Innovation and Opportunity Act to require States
to establish critical industry funds or certain industry or sector
partnerships, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 2, 2026
Mr. Messmer introduced the following bill; which was referred to the
Committee on Education and Workforce
_______________________________________________________________________
A BILL
To amend the Workforce Innovation and Opportunity Act to require States
to establish critical industry funds or certain industry or sector
partnerships, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Critical Industry Skills Act''.
SEC. 2. RESERVATIONS; REALLOCATION.
(a) Reservations for Statewide Activities.--Section 128(a) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3163(a)) is
amended--
(1) in paragraph (2), by striking ``reserved amounts'' in
each place and inserting ``reserved amounts required under
paragraph (1)''; and
(2) by adding at the end the following:
``(3) Critical industry skills fund, and industry sector
partnership and career pathways development fund.--
``(A) Authorized reservation.--In addition to the
reservations required under paragraph (1) and section
133(a)(2), and subject to subparagraph (B), the
Governor may reserve not more than 10 percent of each
of the amounts allotted to the State under section
127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of
section 132(b) for a fiscal year to establish and
administer any one, or both, of the following:
``(i) A critical industry skills fund
described in section 134(a)(4).
``(ii) An industry or sector partnership
and career pathways development fund described
in section 134(a)(5).
``(B) Matching funds.--
``(i) Requirement.--The amount of funds
reserved by a Governor under subparagraph (A)
for a fiscal year may not exceed the amount of
funds that such Governor commits to using from
any of the funds listed in clause (ii) of this
subparagraph for the purposes of establishing
and administering the funds described in
clauses (i) and (ii) of subparagraph (A) for
such fiscal year.
``(ii) Sources of matching funds.--The
funds listed in this clause are as follows:
``(I) Funds reserved by the
Governor under paragraph (1) of this
subsection.
``(II) Other Federal funds not
described in subclause (I).
``(III) State funds.''.
(b) Reallocation Among Local Areas.--Section 128(c) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is
amended--
(1) in paragraph (1), by inserting the following before the
period at the end: ``as performance-based incentive payments'';
and
(2) in paragraph (4)--
(A) by striking ``that does not'' and inserting the
following: ``that--
``(A) does not'';
(B) by striking the period at the end and inserting
a semicolon; and
(C) by adding at the end the following:
``(B) has met or exceeded an average of 100 percent
of the local level of performance described in section
116(c)(1)(B) for the local area across all indicators
for the youth program authorized under this chapter for
the most recent program year for which performance data
is available; and
``(C) was not subject to corrective action by the
Governor under section 184(a)(5)(A) for a determination
of non-compliance with the uniform administrative
requirements described in section 184(a)(3) for the
program year for which the determination under
paragraph (2) is made.''.
SEC. 3. RESERVATIONS FOR STATE ACTIVITIES; WITHIN STATE ALLOCATIONS;
REALLOCATION.
(a) Reservations for State Activities.--Section 133(a) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3173(a)) is
amended--
(1) in paragraph (1), by striking ``section 128(a)'' and
inserting ``section 128(a)(1)''; and
(2) by adding at the end the following:
``(3) Critical industry skills fund, and industry or sector
partnership and career pathways fund.--In addition to the
reservations required under paragraphs (1) and (2), the
Governor may make the reservation authorized under section
128(a)(3).''.
(b) Within State Allocations.--Section 133(b)(1) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3173(b)) is amended--
(1) in subparagraph (A), by striking ``subsection (a)(1)''
and inserting ``paragraph (1) or (3) of subsection (a)''; and
(2) in subparagraph (B), by striking ``paragraph (1) or (2)
of subsection (a)'' and inserting ``paragraph (1), (2), or (3)
of subsection (a)''.
(c) Reallocation Among Local Areas.--Section 133(c) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is
amended--
(1) in paragraph (1), by inserting before the period at the
end, the following: ``as performance-based incentive
payments'';
(2) in paragraph (4)--
(A) in subparagraph (A)--
(i) by striking ``that does not'' and
inserting the following: ``that--
``(i) does not'';
(ii) by striking ``; and'' and inserting a
semicolon; and
(iii) by adding at the end the following:
``(ii) has met or exceeded an average of
100 percent of the local level of performance
described in section 116(c)(1)(B) for the local
area across all indicators for the adult
program authorized under this chapter for the
most recent program year for which performance
data is available; and
``(iii) was not subject to corrective
action by the Governor under section
184(a)(5)(A) for a determination of non-
compliance with the uniform administrative
requirements described in section 184(a)(3) for
the program year for which the determination
under paragraph (2) is made; and''; and
(B) in subparagraph (B)--
(i) by striking ``that does not'' and
inserting the following: ``that--
``(i) does not'';
(ii) by striking the period at the end and
inserting a semicolon; and
(iii) by adding at the end the following:
``(ii) has met or exceeded an average of
100 percent of the local level of performance
described in section 116(c)(1)(B) for the local
area across all indicators for the dislocated
worker program authorized under this chapter
for the most recent program year for which
performance data is available; and
``(iii) was not subject to corrective
action by the Governor under section
184(a)(5)(A) for a determination of non-
compliance with the uniform administrative
requirements described in section 184(a)(3) for
the program year for which the determination
under paragraph (2) is made; and''; and
(3) by adding at the end the following:
``(5) Use of incentive funds.--Any amounts provided to a
local area as a performance incentive payment under this
subsection shall not be subject to the requirements described
in section 134(c)(1)(B).''.
SEC. 4. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.
Section 134(a)(1) of the Workforce Innovation and Opportunity Act
(29 U.S.C. 3174(a)(1))--
(1) In general.--Section 134(a)(1) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3174(a)(1))--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B)--
(i) in the matter preceding clause (i), by
striking ``128(a)'' and inserting
``128(a)(1)''; and
(ii) by amending clause (ii) to read as
follows:
``(ii) may be used to carry out any of the
statewide employment and training activities
described in paragraph (3) (including
establishing and administering any one, or
both, of the funds referred to in subparagraph
(C));''; and
(C) by inserting before the flush left text at the
end the following:
``(C) as described in section 128(a)(3), shall be
used to establish and administer any one, or both, of
the following:
``(i) a critical industry skills fund
described in paragraph (4); or
``(ii) an industry or sector partnership
and career pathways development fund described
in paragraph (5).''.
(2) Required statewide employment and training
activities.--
(A) Statewide rapid response activities.--Section
134(a)(2)(A) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3174(a)(2)(A)) is amended--
(i) in clause (i)--
(I) in subclause (I)--
(aa) by striking
``working'' and inserting ``as
a rapid response unit
working''; and
(bb) by striking ``and'' at
the end;
(II) in subclause (II), by striking
the period at the end and inserting ``;
and''; and
(III) by adding at the end the
following:
``(III) provision of additional
assistance to any local area that has
excess demand for individual training
accounts for dislocated workers in such
local area and requests such additional
assistance under this subclause in
accordance with paragraph (4) of
section 414(c) of the American
Competitiveness and Workforce
Improvement Act of 1998 (29 U.S.C.
3224a(5)), upon a determination by the
State that, in using funds allocated to
such local area pursuant to paragraph
(1) of such section 414(c) and in using
funds as required under subsection
(c)(1)(B) of this section for the
purpose described in paragraph (2)(A)
of such section 414(c), the local area
is in compliance with the requirements
of such section 414(c).''; and
(ii) by adding at the end the following:
``(iii) Insufficient funds to meet excess
demand.--If a State determines that a local
area with excess demand as described in clause
(i)(III) has met the compliance requirements
described in such clause, but the State does
not have sufficient funds reserved under
section 133(a)(2) to meet such excess demand,
the State--
``(I) shall notify the Secretary of
such excess demand; and
``(II) if eligible, may apply for a
national dislocated worker grant under
section 170 of this Act.''.
(B) Statewide employment and training activities.--
Section 134(a)(2)(B) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3174(a)(2)(B)) is amended--
(i) in clause (i)--
(I) in subclause (III), by striking
``and'' at the end;
(II) by amending subclause (IV) to
read as follows:
``(IV) local areas, one-stop
operators, one-stop partners, and
eligible providers, including the
development and training of staff,
which may include--
``(aa) the development and
training of staff to provide
information about wage levels
and available benefits across
in-demand industry sectors or
occupations, and information
about opportunities for
individuals with barriers to
employment to enter in-demand
industry sectors or occupations
and nontraditional occupations;
``(bb) providing capacity
building and technical
assistance to State board and
local board members on the
development of exemplary
program activities;
``(cc) the development and
education of staff to increase
expertise in providing
opportunities for covered
veterans (as defined in section
4212(a)(3)(A) of title 38,
United States Code) to enter
in-demand industry sectors or
occupations and nontraditional
occupations; and
``(dd) the provision of
technical assistance to local
areas that fail to meet local
performance accountability
measures described in section
116(c); and''; and
(III) by adding at the end the
following:
``(V) local boards and eligible
providers of training services in
carrying out the performance reporting
required under section 116(d),
including facilitating data matches for
program participants--
``(aa) using quarterly wage
record information (including
the wage records made available
by any other State and
information provided from the
National Directory of New Hires
in accordance with section
453(j)(8) of the Social
Security Act (42 U.S.C.
653(j)(8))); and
``(bb) other sources of
information, as necessary to
measure the performance of
programs and activities
conducted under this chapter or
chapter 2 of this subtitle;'';
(ii) in clause (ii), by striking ``section
106(b)(7)'' and inserting ``section
106(b)(6)'';
(iii) in clause (iii), by striking
``section 116(i)'' and inserting ``section
116(j)'';
(iv) in clause (v)--
(I) in subclause (II)--
(aa) by striking
``customized training'' and
inserting ``employer-directed
skills development''; and
(bb) by striking
``transitional jobs'' and
inserting ``transitional jobs,
or sponsors of apprenticeships
and pre-apprenticeships'';
(II) in subclause (III), by
inserting ``, including business
engaged in joint labor-management
partnerships'' before the semicolon;
(III) by redesignating subclauses
(V) and (VI) as subclauses (VI) and
(VII), respectively;
(IV) by inserting after subclause
(IV) the following:
``(V) information on effective
coordination of supportive services for
workers and jobseekers;'';
(V) in subclause (VI), as so
redesignated--
(aa) by striking
``subsections (d) and (h) of
section 122'' and inserting
``subsections (d) and (i) of
section 122''; and
(bb) by striking ``and'' at
the end; and
(VI) by adding at the end the
following:
``(VIII) information to
participants on understanding and
accessing State-administered programs
and services available to
jobseekers;'';
(v) by redesignating clause (vi) as clause
(vii);
(vi) by inserting after clause (v) the
following:
``(vi) notifying participants of an
eligible program of training services whose
participation is funded under this Act, if such
program's status as an eligible program of
training services is revoked under section
122(c)(4);'';
(vii) in clause (vii), as so redesignated,
by striking the period at the end and inserting
a semicolon; and
(viii) by adding at the end the following:
``(viii) coordinating (which may be done in
partnership with other States) with industry
organizations, employers (including small and
mid-sized employers), industry or sector
partnerships, training providers, local boards,
and institutions of higher education to
identify or develop competency-based
assessments that are a valid and reliable
method of collecting information with respect
to, and measuring, the prior knowledge, skills,
and abilities of individuals who are adults or
dislocated workers for the purpose of--
``(I) awarding, based on the
knowledge, skills, and abilities of
such an individual validated by such
assessments--
``(aa) a recognized
postsecondary credential that
is used by employers in the
State for recruitment, hiring,
retention, or advancement
purposes;
``(bb) postsecondary credit
toward a recognized
postsecondary credential
aligned with in-demand industry
sectors and occupations in the
State for the purpose of
accelerating attainment of such
credential; and
``(cc) postsecondary credit
for progress along a career
pathway developed by the State
or a local area within the
State;
``(II) developing individual
employment plans under subsection
(c)(2)(B)(vii)(II) that incorporate the
knowledge, skills, and abilities of
such an individual to identify--
``(aa) in-demand industry
sectors or occupations that
require similar knowledge,
skills, and abilities; and
``(bb) any upskilling
needed for the individual to
secure employment in such a
sector or occupation; and
``(III) helping such an individual
communicate such knowledge, skills, and
abilities to prospective employers
through a skills-based resume, profile,
or portfolio; and
``(ix) disseminating to local areas and
employers information relating to the
competency-based assessments identified or
developed pursuant to clause (viii),
including--
``(I) any credential or credit
awarded pursuant to items (aa) through
(cc) of clause (viii)(I);
``(II) the industry organizations,
employers, training providers, and
institutions of higher education
located within the State that recognize
the knowledge, skills, and abilities of
an individual validated by such
assessments;
``(III) how such assessments may be
provided to, and accessed by,
individuals through the one-stop
delivery system; and
``(IV) information on the extent to
which such assessments are being used
by employers and local areas in the
State.''.
(3) Allowable statewide employment and training
activities.--Section 134(a)(3)(A) of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3174(a)(3)(A))--
(A) in clause (i)--
(i) by inserting ``or evidence-based''
after ``innovative'';
(ii) by inserting ``local communities and''
after ``needs of'';
(iii) by striking ``customized training''
and inserting ``employer-directed skills
development'';
(iv) by inserting ``and partnerships with''
after ``utilization of'';
(v) by inserting ``and labor-management
partnerships'' after ``business
intermediaries''; and
(vi) by inserting ``and medium-sized''
before ``employers) in the State, and'';
(B) in clause (ii)--
(i) by inserting ``, or bringing evidence-
based strategies to scale,'' after
``strategies''; and
(ii) by inserting ``supporting such
individuals in achieving economic self-
sufficiency and mobility, and'' after
``employment and'';
(C) in clause (iii)--
(i) by striking `` and prior learning
assessment to'' and inserting ``, prior
learning assessment, or a competency-based
assessment identified or developed by the State
under paragraph (2)(B)(viii), to''; and
(ii) by striking ``stackable'' and
inserting ``permit articulation into higher
level degree or other credential programs'';
(D) in clause (iv), by inserting ``, which may
include on-the-job training, employer-directed skills
development, transitional jobs, industry or sector
partnerships, apprenticeships, and other programs''
after ``employment'';
(E) in clause (viii)--
(i) in subclause (I), by inserting ``,
including such activities funded through other
Federal and State laws'' after ``development
activities''; and
(ii) in subclause (II)--
(I) in item (cc), by inserting
``activities carried out by
comprehensive transition and
postsecondary programs for students
with intellectual disabilities
established under section 767 of the
Higher Education Act of 1965 (20 U.S.C.
1140g),'' after ``developmental
disabilities,'';
(II) in item (dd), by striking
``activities, including those'' and
inserting ``activities and services to
promote digital literacy skills,
including activities and services'';
and
(III) by adding at the end the
following:
``(gg) programs under the
Older Americans Act of 1965 (42
U.S.C. 3001 et seq.) that
support employment and economic
security; and'';
(F) in clause (xi), by inserting ``that exceed the
local levels of performance'' after ``local areas'';
(G) in clause (xiii), by striking ``and'' at the
end;
(H) in clause (xiv)--
(i) by inserting ``conducting feasibility
studies for the effectiveness of such
strategies in meeting the employment and skills
development needs of target populations in the
local areas that are using such feasibility
studies,'' after ``data collection,''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(I) by adding at the end the following:
``(xv) supporting employers seeking to
implement skills-based hiring practices, which
may include technical assistance on the use and
validation of employment assessments (including
competency-based assessments developed or
identified by the State pursuant to paragraph
(2)(B)(viii)), and support in the creation of
skills-based job descriptions;
``(xvi) developing partnerships between
educational institutions (including area career
and technical education schools, local
educational agencies, and institutions of
higher education) and employers to create or
improve workforce development programs to
address the identified education and skill
needs of the workforce and the employment needs
of employers in regions of the State, as
determined by the most recent analysis
conducted under subparagraphs (A), (B), and (D)
of section 102(b)(1);
``(xvii) identifying and making available
to residents of the State, free or reduced cost
access to online skills development programs
that are aligned with in-demand industries or
occupations in the State and lead to attainment
of a recognized postsecondary credential valued
by employers in such industries or occupations;
``(xviii) establishing and administering a
critical industry skills fund described in
paragraph (4); and
``(xix) establishing and administering an
industry or sector partnership and career
pathways development fund described in
paragraph (5).''.
(4) Critical industry skills fund.--Section 134(a) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)),
as amended, is further amended by adding at the end the
following:
``(4) Critical industry skills fund.--
``(A) Performance-based payments.--In addition to
the funds described in paragraph (3)(A), a State may
use any funds reserved under paragraph (3)(A) of
section 128(a) to establish and administer a critical
industry skills fund to award performance-based
payments on a per-worker basis to eligible entities
that provide, to prospective workers or incumbent
workers (which may include youth age 18 through age
24), eligible skills development programs that are in
any of the industries and occupations identified by the
Governor (in consultation with the State board) for
purposes of this paragraph, and that will result in
employment or retention with an employer in such an
industry or occupation (in this paragraph referred to
as a `participating employer').
``(B) Optional priority.--The Governor (in
consultation with the State board) may select the
industries and occupations identified under
subparagraph (A) that should be prioritized under this
paragraph.
``(C) Submission of proposals.--To be eligible to
receive a payment under the critical industry skills
fund established under this paragraph by a State, an
eligible entity shall submit to the Governor, a
proposal describing the eligible skills development
program to be provided by the eligible entity under
this paragraph, in such form, at such time, and
containing such information, as the Governor may
reasonably require.
``(D) Reimbursement for approved proposals.--
``(i) State requirements.--
``(I) In general.--With respect to
each eligible entity whose proposal
under subparagraph (C) has been
approved by the Governor, the Governor
shall make payments (in an amount
determined by the Governor and subject
to the requirements of subclause (II)
of this clause, subparagraph (E), and
any other limitations determined
necessary by the State) from the
critical industry skills fund
established under this paragraph to
such eligible entity for each
participant of the eligible skills
development program described in such
proposal and with respect to whom the
eligible entity meets the requirements
of clause (ii).
``(II) Payments.--In making
payments to an eligible entity under
subclause (I) with respect to a
participant--
``(aa) a portion of the
total payment shall be made
after the participant
successfully completes the
eligible skills development
program offered by the eligible
entity; and
``(bb) the remainder of
such total payment shall be
made after the participant has
been employed by the
participating employer of the
eligible entity for the 6-month
period after successful
completion of the program.
``(ii) Eligible entity requirements.--To be
eligible to receive the payments described in
clause (i) with respect to a participant, an
eligible entity shall submit such documentation
as the Governor determines necessary to verify
whether the participant meets the requirements
of items (aa) and (bb) of clause (i)(II), and
to comply with the performance reporting
described in subparagraph (F).
``(E) Non-federal cost sharing.--
``(i) Limits on federal share.--An eligible
entity may not receive funds under subparagraph
(D) with respect to a participant of the
eligible skills development program offered by
the eligible entity in excess of the following
costs of such program with respect to such
participant:
``(I) In the case of a
participating employer of such eligible
entity with 25 or fewer employees, 90
percent of the costs.
``(II) In the case of a
participating employer of such eligible
entity with more than 25 employees, but
fewer than 100 employees, 75 percent of
the costs.
``(III) In the case of a
participating employer of such eligible
entity with 100 or more employees, 50
percent of the costs.
``(ii) Non-federal share.--
``(I) In general.--Any costs of the
eligible skills development program
offered to a participant by such
eligible entity that are not covered by
the funds received under subparagraph
(D) shall be the non-Federal share
provided by the eligible entity (in
cash or in-kind).
``(II) Employer cost sharing.--If
the eligible skills development program
is being provided on-the-job, the non-
Federal share provided by an eligible
entity may include the amount of the
wages paid by the participating
employer of the eligible entity to a
participant while such participant is
receiving the training.
``(F) Performance reporting.--Using the participant
information provided by eligible entities under
subparagraph (D)(ii), the State shall submit to the
Secretary a report, on an annual basis, with respect to
all participants for which the eligible entities
received funds under this paragraph for the most recent
program year, which shall include--
``(i) the number of individuals who
participated in eligible skills development
programs provided by such eligible entities
through the critical industry skills fund under
this paragraph; and
``(ii) the performance of such participants
on the primary indicators of performance
described in subclauses (I) through (III) of
section 116(b)(2)(A)(i).
``(G) Definitions.--In this paragraph:
``(i) Eligible entity.--The term `eligible
entity' means--
``(I) a participating employer or a
group of participating employers;
``(II) an industry or sector
partnership that includes a
participating employer; or
``(III) another entity serving as
an intermediary (such as a local board)
that is in partnership with a
participating employer.
``(ii) Eligible skills development
program.--The term `eligible skills development
program', when used with respect to an eligible
entity--
``(I) means a program with respect
to which a State may set a maximum and
minimum length (in weeks);
``(II) includes work-based
education or related occupational
skills instruction that--
``(aa) develops the
specific technical skills
necessary for successful
performance of the occupations
in which participants are to be
employed upon completion; and
``(bb) may be provided--
``(AA) by the
eligible entity; or
``(BB) by any
training provider that
is selected by the
eligible entity and
without regard to
whether such provider
is on a list of
eligible providers of
training services
described in section
122(d); and
``(III) does not include employee
onboarding, orientation, or
professional development generally
provided to employees.''.
(5) Industry or sector partnership and career pathways
development fund.--Section 134(a) of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3174(a)), as amended, is further
amended by adding at the end the following:
``(5) Industry or sector partnership and career pathways
development fund.--
``(A) Purpose.--The purpose of this paragraph is to
establish new or expand existing industry or sector
partnerships and career pathway programs to encourage
regional economic growth and competitiveness, and
improve worker training, retention, and advancement.
``(B) Description of fund.--In addition to the
funds described in paragraph (3)(A), a State may use
any funds reserved under paragraph (3)(A) of section
128(a) to establish and administer an industry or
sector partnership and career pathways development fund
to award grants to eligible partnerships to establish
or expand industry or sector partnerships that include
employers in a high-growth or high-wage industry of the
State in order to meet the following objectives:
``(i) Build capacity among such
partnerships to prepare jobseekers and
incumbent workers participating in such
partnerships for careers in such a high-growth
or high-wage industry.
``(ii) Leverage the capacity of such
partnerships to develop, improve, expand, or
implement education, employment, and training
opportunities for individuals with barriers to
employment.
``(iii) Strengthen coordination between
such industry or sector partnerships and one-
stop partners for the local areas involved that
are described in paragraphs (1) and (2) of
section 121(b).
``(iv) Develop or expand a career pathway
program that utilizes integrated education and
training strategies and supports multiple
points of entry and exit for working learners.
``(C) Duration.--Each grant awarded under this
paragraph shall be for a period of not more than 2
years.
``(D) Award basis.--
``(i) Geographic diversity.--The Governor
shall award grants under this paragraph in a
manner that ensures geographic diversity in the
areas in the State in which activities will be
carried out under the grants.
``(ii) Priority.--In awarding grants under
this paragraph, the Governor shall give
priority consideration to eligible partnerships
that--
``(I) include (or will include) as
a partner in the industry or sector
partnership to be established or
expanded under this paragraph, a 2-year
public institution of higher education;
``(II) demonstrate long-term
sustainability of such industry or
sector partnership; and
``(III) demonstrate the ability of
such industry or sector partnership to
serve individuals who--
``(aa) are individuals with
a barrier to employment,
including individuals with
disabilities;
``(bb) are facing
significant worker dislocation
due to a disruption or change
in the regional or State
economy or labor market;
``(cc) have traditionally
been underserved by regional
economic development and sector
partnership activities
(including rural areas in the
State); or
``(dd) are--
``(AA) out-of-
school youth,
disadvantaged youth, or
disadvantaged adults;
or
``(BB) unemployed
individuals, within the
meaning of section
6(b)(1)(B) of the
Wagner-Peyser Act (29
U.S.C. 49e(b)(1)(B)).
``(iii) Additional optional priority.--In
awarding grants under this paragraph, in
addition to the priority consideration required
under clause (ii), the Governor may give
priority consideration to eligible partnerships
that include, or will include, as a partner in
the industry or sector partnership to be
established or expanded under this section--
``(I) a 4-year public institution
of higher education at which the
highest degree that is predominantly
awarded to students is an associate
degree; or
``(II) a 2-year Tribal College or
University (as defined in section
316(b) of the Higher Education Act of
1965 (20 U.S.C. 1059c(b))).
``(E) Application.--
``(i) In general.--An eligible partnership
seeking a grant under this paragraph shall
submit an application to the Governor at such
time, in such manner, and containing such
information as the Governor may reasonably
require, including the contents described in
clause (ii).
``(ii) Contents.--An eligible partnership
seeking a grant under this paragraph shall
submit an application to the Governor under
clause (i) containing, at minimum--
``(I) a description of the eligible
partnership, and the industry or sector
partnership that will be established or
expanded with such grant;
``(II) the expected participation
and responsibilities of each of the
partners that will be included in such
industry or sector partnership;
``(III) a description of the high-
growth or high-wage industry sector to
be served by such industry or sector
partnership, and a description of how
such industry sector was identified;
``(IV) a description of the workers
and other individuals who will be
targeted or recruited by such industry
or sector partnership, including the
number of workers and other individuals
who will be served by the partnership;
``(V) an analysis of the existing
labor market to be served by such
industry or sector partnership, which
includes--
``(aa) a description of
potential barriers to
employment for the targeted
workers and other individuals;
``(bb) the estimated share
of such workers and other
individuals who are individuals
with a barrier to employment;
and
``(cc) a description of
strategies that will be
developed to help such workers
and other individuals overcome
such barriers;
``(VI) a description of the Federal
and non-Federal resources, available
under provisions of law other than this
paragraph, that will be leveraged in
support of such industry or sector
partnership and the activities carried
out by the partnership under this
paragraph;
``(VII) a description, using
common, linked, open-data descriptive
language, of the recognized
postsecondary credential that will be
provided to individuals who
successfully complete the education and
training program provided through an
education provider in such industry or
sector partnership;
``(VIII) an assurance that any
eligible provider of training services
in such industry or sector partnership
is on a list of eligible providers of
training services described in section
122(d); and
``(IX) a commitment from a
participating employer in such industry
or sector partnership to employ each
participant of such education and
training program (which may be a career
pathway program) for not less than a 1-
year period, in accordance with the
employment policies of such employer,
after successful completion of the
training portion of the education and
training program operated by such
participating employer.
``(F) Uses of funds.--
``(i) In general.--An eligible partnership
awarded a grant under this paragraph shall use
such grant funds to establish a new industry or
sector partnership or expand the industry or
sector partnership of the eligible partnership
to meet the objectives listed in subparagraph
(B)--
``(I) by engaging businesses in
accordance with clause (iii); and
``(II) by carrying out an education
and training program that--
``(aa) leads to the
recognized postsecondary
credential described in the
eligible partnership's
application in subparagraph
(E)(ii)(VII);
``(bb) includes an
apprenticeship, work-based
learning, or on-the-job
training program that leads to
an employment commitment
described in subparagraph
(E)(ii)(IX) with a
participating employer of the
industry or sector partnership;
``(cc) may include the
development or expansion of a
new or existing career pathway
program as described in clause
(iv); and
``(dd) may include the
provision of supportive
services as described in clause
(v).
``(ii) Planning activities.--An eligible
partnership receiving a grant under this
paragraph may use not more than 20 percent of
the grant funds to carry out planning
activities during the first year of the grant
period that are necessary to establish a new
industry or sector partnership or expand the
industry or sector partnership of the eligible
partnership, which may include--
``(I) recruiting key stakeholders
in the high-growth or high-wage
industry to be served by such industry
or sector partnership;
``(II) conducting outreach to local
businesses, employers, labor
organizations, local boards, education
and training providers, and business
and employer associations;
``(III) identifying, through an
evaluation, the training needs of
multiple businesses in the high-growth
or high-wage industry, including
identifying any needs for--
``(aa) skills critical to
competitiveness and innovation
in the high-growth or high-wage
industry;
``(bb) an education and
training program, including any
apprenticeship program or other
work-based learning program
supported by the grant; and
``(cc) the usage of career
pathways to align education and
training with job openings in
the high-growth or high-wage
industry; and
``(IV) recruiting individuals with
barriers to employment to participate
in the education and training program.
``(iii) Business engagement.--An industry
or sector partnership established or expanded
with a grant under this paragraph shall use the
grant funds to engage businesses (including
small and medium-sized businesses that are in
the high-growth or high-wage industry and that
may be a participating employer of the
partnership) in the establishment and
implementation of an apprenticeship, work-based
learning, or on-the-job training program
offered through the education and training
program of the partnership, and which may
include--
``(I) the navigation of the
registration process for a sponsor of
such an apprenticeship program;
``(II) the connection of the
business with an education provider in
the industry or sector partnership to
develop classroom instruction to
complement learning through such an
apprenticeship, work-based learning, or
on-the-job training program;
``(III) the development of such a
work-based learning program;
``(IV) the provision of career
awareness activities for participants
of such an apprenticeship, work-based
learning, or on-the-job training
program, such as career guidance and
academic counseling;
``(V) the recruitment of
individuals with barriers to employment
to participate in such an
apprenticeship, work-based learning, or
on-the-job training program; and
``(VI) other evidence-based
approaches to connecting businesses
with workers and establishing pathways
to unsubsidized employment for
individuals participating in the
education and training program and
other programs funded under this title.
``(iv) Career pathway programs.--
``(I) In general.--An industry or
sector partnership established or
expanded with a grant under this
paragraph may use such grant funds for
the development or expansion of a new
or existing career pathway program that
utilizes integrated education and
training strategies and supports
multiple entry and exit points for
working students and other working
participants, which may include--
``(aa) dual-enrollment
approaches for participants,
including youth, seeking to
participate in a career pathway
program; and
``(bb) strategies that help
working students and other
nontraditional and adult
student populations access
skills and the recognized
postsecondary credentials
described in subparagraph
(E)(ii)(VII) of the eligible
partnership's application.
``(II) Authorized activities.--In
establishing or expanding such new or
existing career pathway program, the
industry or sector partnership may use
a grant under this paragraph for--
``(aa) the provision of
evidence-based professional
development for faculty and
other staff of an education
provider in the industry or
sector partnership;
``(bb) the acquisition of
equipment necessary to support
the delivery of the career
pathway program; and
``(cc) any other evidence-
based activities to support the
development or implementation
of the career pathway program.
``(v) Supportive services.--In accordance
with section 181(h), an industry or sector
partnership established or expanded with a
grant under this paragraph may use such grant
funds to provide supportive services to support
the success of individuals, including
individuals with barriers to employment, who
are participating in training services, as
described in subsection (c)(3)(D), which are
offered through such partnership.
``(G) Designation of a fiscal agent.--An eligible
partnership receiving a grant under this paragraph
shall designate an entity of the eligible partnership
as the fiscal agent for the receipt, management, and
expenditure of the grant funds.
``(H) Non-federal cost sharing.--
``(i) Limits on federal share.--An industry
or sector partnership established or expanded
with a grant under this paragraph may not
receive such grant funds for purposes of
funding the education and training program
offered through such partnership in excess of
the following costs of establishing, operating,
and sustaining such program:
``(I) In the case in which the
participating employers in such
eligible partnership employ 25 or fewer
employees, 70 percent of the costs.
``(II) In the case in which the
participating employers in such
eligible partnership employ more than
25 employees, but fewer than 100
employees, 55 percent of the costs.
``(III) In the case in which the
participating employers in such
eligible partnership employ 100 or more
employees, 40 percent of the costs.
``(ii) Non-federal share.--Any costs of
establishing, operating, and sustaining such
program that are not covered by the grant
received under this paragraph shall be the non-
Federal share provided by the industry or
sector partnership.
``(I) Performance reporting.--Not later than 2
years after the first award of funds under this
paragraph is made by the Governor and on an annual
basis thereafter, the Governor shall prepare and submit
to the Secretary a report with respect to the
participants served by each eligible partnership
receiving funds under this paragraph in the most recent
program year, which report shall include--
``(i) levels of performance achieved by the
eligible partnership, with respect to the
primary indicators of performance under clause
(i) or (ii) of section 116(b)(2)(A), as
applicable, for all individuals served by the
eligible partnership, disaggregated by race,
ethnicity, sex, disability status, and age; and
``(ii) levels of performance achieved by
the eligible partnership with respect to the
primary indicators of performance under clause
(i) or (ii) of section 116(b)(2)(A), as
applicable, for individuals with barriers to
employment served by the eligible partnership,
disaggregated by race, ethnicity, sex,
disability status, and age.
``(J) Availability of report.--The report submitted
by eligible partnerships under subparagraph (I) shall--
``(i) be made digitally available by the
Secretary using linked, open, and interoperable
data; and
``(ii) include the number of individuals
who were served by each such eligible
partnership.
``(K) Limit on administrative costs.--An eligible
partnership receiving a grant under this paragraph may
not use more than 10 percent of the grant funds for
administrative costs.
``(L) Definitions.--In this paragraph:
``(i) Eligible partnership.--The term
`eligible partnership' means--
``(I) an industry or sector
partnership that--
``(aa) includes a
participating employer; and
``(bb) is seeking to
further implement or expand
such industry or sector
partnership; or
``(II) a workforce collaborative
that is seeking to become an industry
or sector partnership that includes a
participating employer.
``(ii) High-growth or high-wage industry.--
The term `high-growth or high-wage industry',
when used with respect to an eligible
partnership, means an industry that--
``(I) has, or is expected to have,
a high rate of growth and an unmet
demand for skilled workers, as
determined by the Governor of the State
in which the eligible partnership is
located;
``(II) has been designated by the
Governor as an in-demand industry
experiencing high growth in such State;
and
``(III) includes occupations
determined by the Governor--
``(aa) with wages that are
significantly higher than an
occupation of similar level of
skill or needed skill
development; or
``(bb) that are aligned
with career pathways into
higher wage occupations.
``(iii) Participating employer.--The term
`participating employer', when used with
respect to an eligible partnership, means an
employer in a high-growth or high-wage industry
that is (or will be) part of the industry or
sector partnership that will be expanded (or
established) by the eligible partnership under
this paragraph.''.
SEC. 5. STUDY ON STATEWIDE CRITICAL INDUSTRY SKILLS FUNDS.
Section 169(b)(4) of the Workforce Innovation and Opportunity Act
(29 U.S.C. 3224(b)(4)) is amended--
(1) by redesignating subparagraph (K) as subparagraph (L);
and
(2) by inserting after subparagraph (J) the following:
``(K) Study on statewide critical industry skills
funds.--The Secretary shall, not later than 4 years
after the date of enactment of this subparagraph,
conduct a study that will review the usage of statewide
critical industry skills funds established by States
under section 134(a)(4) and identify, for purposes of
measuring the overall effectiveness of the program--
``(i) the industries targeted by the funds
under section 134(a)(4);
``(ii) the occupations for which workers
are being upskilled;
``(iii) how frequently skills development
is provided to prospective workers and
incumbent workers; and
``(iv) the reported performance
outcomes.''.
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