[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8210 Introduced in House (IH)]

<DOC>






119th CONGRESS
  2d Session
                                H. R. 8210

      To reauthorize the Workforce Innovation and Opportunity Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2026

 Mr. Walberg introduced the following bill; which was referred to the 
Committee on Education and Workforce, and in addition to the Committee 
 on Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
      To reauthorize the Workforce Innovation and Opportunity Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``A Stronger 
Workforce for America Act of 2026''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
               TITLE I--WORKFORCE DEVELOPMENT ACTIVITIES

                     Subtitle A--General Provisions

Sec. 101. Purposes.
Sec. 102. Definitions.
Sec. 103. Table of contents amendments.
                      Subtitle B--System Alignment

                      Chapter 1--State Provisions

Sec. 111. State workforce development board.
Sec. 112. Unified State plan.
                      Chapter 2--Local Provisions

Sec. 115. Workforce development areas.
Sec. 116. Local workforce development boards.
Sec. 117. Local plan.
                 Chapter 3--Performance Accountability

Sec. 119. Performance accountability system.
       Subtitle C--Workforce Investment Activities and Providers

        Chapter 1--Workforce Investment Activities and Providers

Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. Eligible providers of youth workforce investment activities.
            Chapter 2--Youth Workforce Investment Activities

Sec. 131. Reservations; Reallocation.
Sec. 132. Use of funds for youth workforce investment activities.
    Chapter 3--Adult and Dislocated Worker Employment and Training 
                               Activities

Sec. 141. State allotments.
Sec. 142. Reservations for State activities; within State allocations; 
                            Reallocation.
Sec. 143. Use of funds for employment and training activities.
           Chapter 4--General Workforce Investment Provisions

Sec. 145. Authorization of appropriations.
                         Subtitle D--Job Corps

Sec. 151. Purposes.
Sec. 152. Definitions.
Sec. 153. Individuals eligible for the Job Corps.
Sec. 154. Recruitment, screening, selection, and assignment of 
                            enrollees.
Sec. 155. Job Corps Campuses.
Sec. 156. Program activities.
Sec. 157. Counseling and job placement.
Sec. 158. Support.
Sec. 159. Operations.
Sec. 160. Standards of conduct.
Sec. 161. Community participation.
Sec. 162. Workforce councils.
Sec. 163. Advisory committees.
Sec. 164. Experimental projects and technical assistance.
Sec. 165. Special provisions.
Sec. 166. Management information.
Sec. 167. Job Corps oversight and reporting.
Sec. 168. Authorization of appropriations.
Sec. 169. Conforming amendments.
                     Subtitle E--National Programs

Sec. 171. Native American programs.
Sec. 172. Migrant and seasonal farmworker programs.
Sec. 173. Technical assistance.
Sec. 174. Evaluations and research.
Sec. 175. National dislocated worker grants.
Sec. 176. YouthBuild Program.
Sec. 177. Reentry employment opportunities.
Sec. 178. Youth apprenticeship readiness grant program.
Sec. 179. Strengthening community colleges grant program.
Sec. 180. Authorization of appropriations.
                       Subtitle F--Administration

Sec. 191. Requirements and restrictions.
Sec. 192. Monitoring.
Sec. 193. Fiscal controls; sanctions.
Sec. 194. Administrative adjudication.
Sec. 195. Judicial review.
Sec. 196. General waivers of statutory or regulatory requirements.
Sec. 197. Make America Skilled Again grants.
Sec. 198. General program requirements.
                 TITLE II--ADULT EDUCATION AND LITERACY

   Subtitle A--Transferring All Functions of the Adult Education and 
             Family Literacy Act to the Department of Labor

Sec. 201. Transfer of functions.
Sec. 202. Personnel Determinations by the Office of Management and 
                            Budget.
Sec. 203. Delegation and assignment.
Sec. 204. Reorganization; Rules.
Sec. 205. Transfer and allocation of appropriations and personnel.
Sec. 206. Incidental transfers.
Sec. 207. Savings provisions.
Sec. 208. References.
Sec. 209. Transition.
Sec. 210. Updating references.
Sec. 211. Effective date.
          Subtitle B--Adult Education and Family Literacy Act

Sec. 221. Purposes.
Sec. 222. Definitions.
Sec. 223. Authorization of appropriations.
Sec. 224. Special rule.
Sec. 225. Performance accountability system.
Sec. 226. Matching requirement.
Sec. 227. State leadership activities.
Sec. 228. Programs for corrections education and other 
                            institutionalized individuals.
Sec. 229. Grants and contracts for eligible providers.
Sec. 230. Local application.
Sec. 231. Local administrative cost limits.
Sec. 232. National leadership activities.
Sec. 233. Integrated English literacy and civics education.
                  TITLE III--AMENDMENTS TO OTHER LAWS

Sec. 301. Amendments to the Wagner-Peyser Act.
Sec. 302. Job training grants.
Sec. 303. Access to National Directory of New Hires.
Sec. 304. References to other laws.
           TITLE IV--DEPARTMENT OF LABOR TECHNICAL ASSISTANCE

Sec. 401. Technical assistance for transforming to competitive 
                            integrated employment.
                      TITLE V--GENERAL PROVISIONS

Sec. 501. Report on data capability and interoperability of Federal and 
                            State databases and data exchange 
                            agreements.
Sec. 502. Effective dates; transition authority.

               TITLE I--WORKFORCE DEVELOPMENT ACTIVITIES

                     Subtitle A--General Provisions

SEC. 101. PURPOSES.

    Section 2 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3101) is amended--
            (1) in paragraph (1), by striking ``support services'' and 
        inserting ``supportive services'';
            (2) in paragraph (2), by inserting ``, for youth and 
        adults,'' after ``economic development systems'';
            (3) in paragraph (6), by striking ``of the workforce, 
        reduce welfare dependency,'' and inserting ``of the workforce, 
        provide economic mobility, reduce dependency on public 
        assistance programs,''; and
            (4) by adding at the end the following:
            ``(7) To prepare a globally competitive workforce by 
        developing robust education and skills development programs for 
        youth to access career pathways that will lead such youth into 
        in-demand industry sectors and occupations.''.

SEC. 102. DEFINITIONS.

    (a) Foundational Skill Needs.--Section 3(5) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102(5)) is amended to read 
as follows:
            ``(5) Foundational skill needs.--The term `foundational 
        skill needs' means, with respect to an individual who is a 
        youth or adult, that the individual--
                    ``(A) has English reading, writing, or computing 
                skills at or below the 8th grade level on a generally 
                accepted standardized test; or
                    ``(B) is unable to compute or solve problems, is 
                unable to read, write, or speak English, or does not 
                possess digital literacy skills, at a level necessary 
                to function in the individual's education or 
                occupation, in the individual's family, or in 
                society.''.
    (b) Career Pathway.--Section 3(7)(F) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3102(7)(F)) is amended by striking 
``secondary school diploma'' and inserting ``regular high school 
diploma''.
    (c) Employer-Directed Skills Development.--Section 3(14) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3102(14)) is 
amended to read as follows:
            ``(14) Employer-directed skills development.--The term 
        `employer-directed skills development' means skills development 
        provided through a program--
                    ``(A) that is selected or designed to meet the 
                specific skill demands of an employer (including a 
                group of employers, such as an industry or trade 
                association or an industry or sector partnership);
                    ``(B) that is conducted pursuant to the terms and 
                conditions established under an employer-directed 
                skills agreement described in section 134(c)(3)(I), 
                including a commitment by the employer to employ an 
                individual upon successful completion of the program; 
                and
                    ``(C) for which the employer pays a portion of the 
                cost of the program, as determined by the local board 
                involved, which shall not be less than--
                            ``(i) 10 percent of the cost, in the case 
                        of an employer with 50 or fewer employees;
                            ``(ii) 25 percent of the cost, in the case 
                        of an employer with more than 50 but not more 
                        than 100 employees; and
                            ``(iii) 50 percent of the cost, in the case 
                        of an employer with more than 100 employees.''.
    (d) Dislocated Worker.--Section 3(15)(B) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102(15)(B)) is amended--
            (1) in clause (i), by inserting ``, including such a 
        closure or layoff due to advances in automation technology'' 
        before the semicolon; and
            (2) in clause (iii), by striking ``section 
        134(c)(2)(A)(xii)'' and inserting ``section 
        134(c)(2)(B)(vii)''.
    (e) Displaced Homemaker.--Section 3(16) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3102(16)) is amended, in the matter 
preceding subparagraph (A), by striking ``family members'' and 
inserting ``a family member''.
    (f) English Learner.--Section 3 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102) is further amended--
            (1) in paragraph (21)--
                    (A) in the heading, by striking ``language''; and
                    (B) by striking ``language''; and
            (2) in paragraph (24)(I), by striking ``language''.
    (g) Individual With a Barrier to Employment.--Section 3(24) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3102(24)) is 
amended--
            (1) in subparagraph (G), by striking ``(42 U.S.C. 14043e-
        2(6)))'' and inserting ``(34 U.S.C. 12473(6)))'';
            (2) by redesignating subparagraphs (I) through (N) as 
        subparagraphs (J) through (O), respectively;
            (3) by inserting after subparagraph (H) the following:
                    ``(I) Out of school youth.''; and
            (4) in subparagraph (K), as so redesignated, by striking 
        ``section 167(i)'' and inserting ``167(j)''.
    (h) Industry or Sector Partnership.--Section 3(26) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102(26)) is amended--
            (1) in subparagraph (A)(ii), by striking ``or another labor 
        representative, as appropriate;'' and inserting ``and, to the 
        extent practicable, another labor representative;''; and
            (2) in subparagraph (B)--
                    (A) by redesignating clauses (vi) through (xi) as 
                clauses (viii) through (xiii), respectively; and
                    (B) by striking clause (v) and inserting the 
                following:
                            ``(v) State educational agencies or local 
                        educational agencies;
                            ``(vi) State higher education agencies, as 
                        defined in section 103 of the Higher Education 
                        Act of 1965 (20 U.S.C. 1003), or State systems 
                        of higher education;
                            ``(vii) other State or local agencies;''.
    (i) Local Area.--Section 3(32) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102(32)) is amended by striking ``sections 
106(c)(3)(A)'' and inserting ``sections 106(c)(4)(A)''.
    (j) Educational Agencies.--Section 3(34) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102(34)) is amended to read 
as follows:
            ``(1) Local educational agency; state educational agency.--
        The terms `local educational agency' and `State educational 
        agency' have the meanings given the terms in section 8101 of 
        the Elementary and Secondary Education Act of 1965.''.
    (k) Local Plan.--Section 3(35) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102(32)) is amended by striking ``section 
106(c)(3)(B)'' and inserting ``section 106(c)(4)(B)''.
    (l) Low-income Individual.--Section 3(36)(A)(iii) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102(36)(A)(iii)) is amended 
by striking ``(42 U.S.C. 14043e-2(6)))'' and inserting ``(34 U.S.C. 
12473(6)))''.
    (m) Pay-for-Performance Contract Strategy.--Section 3(47) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3102(47)) is 
amended to read as follows:
            ``(47) Pay-for-performance contract strategy.--The term 
        `pay-for-performance contract strategy' means a performance-
        based contract strategy that uses pay-for-performance contracts 
        in the provision of services described in paragraph (2) or (3) 
        of section 134(c) or activities described in section 129(c)(2), 
        and includes--
                    ``(A) contracts, each of which--
                            ``(i) shall specify a fixed amount that 
                        will be paid to an eligible service provider 
                        (which may include a local or national 
                        community-based organization or intermediary, 
                        community college, or other provider) based on 
                        the achievement of specified levels of 
                        performance on the primary indicators of 
                        performance described in section 116(b)(2)(A) 
                        for target populations as identified by the 
                        local board and which shall identify a specific 
                        target for the number or percentage of 
                        individuals to be served that will be 
                        individuals with barriers to employment, within 
                        a defined timetable; and
                            ``(ii) may provide for bonus payments to 
                        such service provider to expand capacity to 
                        provide effective training and other services, 
                        including bonus payments for exceeding the 
                        identified target for serving individuals with 
                        barriers to employment;
                    ``(B) a strategy for validating the achievement of 
                the performance described in subparagraph (A); and
                    ``(C) a description of how the State or local area 
                will reallocate funds not paid to a provider because 
                the achievement of the performance described in 
                subparagraph (A) did not occur, for further activities 
                related to such a contract strategy, subject to section 
                189(g)(2)(D).''.
    (n) Rapid Response Activity.--Section 3(51) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102(51)) is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``, through a rapid response unit'' after ``designated by a 
        State'';
            (2) in subparagraph (B), by inserting before the semicolon 
        at the end the following: ``, including access through 
        individual training accounts for eligible dislocated workers 
        under section 414(c) of the American Competitiveness and 
        Workforce Improvement Act of 1998 (29 U.S.C. 3224a)'';
            (3) in subparagraph (D), by striking ``and'' at the end;
            (4) by redesignating subparagraph (E) as subparagraph (F);
            (5) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) assistance in identifying workers eligible 
                for assistance, including workers who work a majority 
                of their time offsite or remotely;'';
            (6) in subparagraph (F), as so redesignated, by striking 
        the period at the end and inserting ``; and''; and
            (7) by adding at the end the following:
                    ``(G) the provision of business engagement or 
                layoff aversion strategies and other activities 
                designed to prevent or minimize the duration of 
                unemployment, such as--
                            ``(i) connecting employers to short-term 
                        compensation or other programs designed to 
                        prevent layoffs;
                            ``(ii) conducting worker skill assessment, 
                        and programs to match workers to different 
                        occupations;
                            ``(iii) establishing incumbent worker 
                        training or other upskilling approaches, 
                        including through incumbent worker upskilling 
                        accounts described in section 134(d)(4)(E);
                            ``(iv) facilitating business support 
                        activities, such as connecting employers to 
                        programs that offer access to credit, financial 
                        support, and business consulting; and
                            ``(v) partnering or contracting with 
                        business-focused organizations to assess risks 
                        to companies, and to propose, implement, and 
                        measure the impact of strategies and services 
                        to address such risks.''.
    (o) School Dropout.--Section 3(54) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102(54)) is amended by striking ``secondary 
school diploma'' and inserting ``regular high school diploma''.
    (p) Supportive Services.--Section 3(59) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3102(59)) is amended by striking 
``housing,'' and inserting ``assistive technology, housing, food 
assistance,''.
    (q) New Definitions.--Section 3 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102) is further amended by adding at the 
end the following:
            ``(72) Co-enrollment.--The term `co-enrollment' means 
        simultaneous enrollment in more than one of the programs or 
        activities carried out by a one-stop partner specified in 
        section 121(b)(1)(B).
            ``(73) Digital literacy skills.--The term `digital literacy 
        skills' has the meaning given the term in section 203.
            ``(74) Evidence-based.--The term `evidence-based', when 
        used with respect to an activity, service, strategy, or 
        intervention, or content of materials, means an activity, 
        service, strategy, or intervention, or content of materials 
        that--
                    ``(A) demonstrates a statistically significant 
                effect on improving participant outcomes or other 
                relevant outcomes based on--
                            ``(i) strong evidence from at least 1 well-
                        designed and well-implemented experimental 
                        study;
                            ``(ii) moderate evidence from at least 1 
                        well-designed and well-implemented quasi-
                        experimental study; or
                            ``(iii) promising evidence from at least 1 
                        well-designed and well-implemented 
                        correlational study with statistical controls 
                        for selection bias; or
                    ``(B)(i) demonstrates a rationale based on high-
                quality research findings or positive evaluation that 
                such activity, service, strategy, or intervention is 
                likely to improve student outcomes or other relevant 
                outcomes; and
            ``(ii) includes ongoing efforts to examine the effects of 
        such activity, service, strategy, or intervention.
            ``(75) Labor organization.--The term `labor organization' 
        means a labor organization, as defined in section 2(5) of the 
        National Labor Relations Act (29 U.S.C. 152(5)), and an 
        organization representing public sector employees.
            ``(76) Regular high school diploma.--The term `regular high 
        school diploma' has the meaning given the term in section 8101 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            ``(77) Work-based learning.--The term `work-based learning' 
        has the meaning given the term in section 3 of the Carl D. 
        Perkins Career and Technical Education Act of 2006 (20 U.S.C. 
        2302).
            ``(78) Talent marketplace.--
                    ``(A) Talent marketplace.--The term `talent 
                marketplace' means an array of publicly- and privately-
                owned platforms supported by interconnected and, where 
                relevant, interoperable and based on open standards, 
                technologies (which may include artificial 
                intelligence) that--
                            ``(i) is made available to the public;
                            ``(ii) is used to match individuals with 
                        employment and learning opportunities in a 
                        State (or a consortium of States) using 
                        information provided by users, including--
                                    ``(I) education and training 
                                providers;
                                    ``(II) employers;
                                    ``(III) jobseekers;
                                    ``(IV) students; and
                                    ``(V) any other individual; and
                            ``(iii) incorporates and allows users 
                        access to--
                                    ``(I) the learning and employment 
                                records of users of such marketplace;
                                    ``(II) a credential registry; and
                                    ``(III) a skills profile generator.
                    ``(B) Credential registry.--The term `credential 
                registry' means a process through which a digital 
                portal or repository may be used by education and 
                training providers to make publicly available, and, 
                where relevant, interoperable and based on open 
                standards, a description, using standardized 
                terminology, of the skills, competencies and learning 
                outcomes associated with credentials, including 
                recognized postsecondary credentials.
                    ``(C) Learning and employment record.--The term 
                `learning and employment record' means a digital, 
                machine-readable record of an individual's educational 
                and employment history that--
                            ``(i) contains information that may be self 
                        attested and is verified by the employers, 
                        persons for whom the individual performed 
                        services, and education and training providers 
                        of such individual;
                            ``(ii) allows the individual to control 
                        such information and use any such information 
                        for the purpose of matching such individual 
                        with employment and learning opportunities as 
                        described in subparagraph (A)(ii); and
                            ``(iii) uses standardized terminology.
                    ``(D) Skills profile generator.--The term `skills 
                profile generator' means a digital tool that can be 
                used to create a skill profile that, using standardized 
                terminology, describes skills gained through, or 
                necessary for--
                            ``(i) employment;
                            ``(ii) hiring; or
                            ``(iii) education.
                    ``(E) Standardized terminology.--The term 
                `standardized terminology' means, in relation to a 
                learning employment record, credential registry, or 
                skills profile generator made available through a 
                talent marketplace, a limited set of terms that is 
                provided through a publicly available, and, where 
                relevant, interoperable and based on open standards, 
                skills framework and used to describe skills, 
                competencies, or learning outcomes in a manner that--
                            ``(i) provides a definition of such skill, 
                        competency, or outcome, and identifies the 
                        skills framework used for such definition;
                            ``(ii) ensures that identical terms are 
                        used to describe substantially similar skills, 
                        competencies, or outcomes across such records, 
                        registries, and generators in such marketplace; 
                        and
                            ``(iii) permits such terms to be 
                        effectively used for the purpose of matching 
                        individuals with employment and learning 
                        opportunities as described in subparagraph 
                        (A)(ii).''.
    (r) Redesignations.--Section 3 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102) is further amended by reordering 
paragraphs (1) through (71), as amended by this section, and the 
paragraphs added by subsection (q) of this section in alphabetical 
order, and renumbering such paragraphs as so reordered.

SEC. 103. TABLE OF CONTENTS AMENDMENTS.

    The table of contents in section 1(b) of the Workforce Innovation 
and Opportunity Act is amended--
            (1) by redesignating the item relating to section 172 as 
        section 175;
            (2) by inserting after the item relating to section 171, 
        the following:

``Sec. 172. Reentry employment opportunities.
``Sec. 173. Youth apprenticeship readiness grant program.
``Sec. 174. Strengthening community colleges workforce development 
                            grants program.''; and
            (3) by striking the item relating to section 190 and 
        inserting the following:

``Sec. 190. Make America Skilled Again grants.''.

                      Subtitle B--System Alignment

                      CHAPTER 1--STATE PROVISIONS

SEC. 111. STATE WORKFORCE DEVELOPMENT BOARD.

    Section 101(d)(3)(B) of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3112(d)(3)(B)) is amended by striking ``low-skilled 
adults'' and inserting ``adults with foundational skill needs''.

SEC. 112. UNIFIED STATE PLAN.

    Section 102 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3112) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (C) 
                        through (E) as subparagraphs (D) through (F), 
                        respectively;
                            (ii) by inserting the following after 
                        subparagraph (B):
                    ``(C) a description of--
                            ``(i) how the State will use real-time 
                        labor market information to continually assess 
                        the economic conditions and workforce trends 
                        described in subparagraphs (A) and (B); and
                            ``(ii) how the State will communicate 
                        changes in such conditions or trends to the 
                        workforce system in the State;'';
                            (iii) in subparagraph (D), as so 
                        redesignated, by inserting ``the extent to 
                        which such activities are evidence-based,'' 
                        after ``of such activities,'';
                            (iv) in subparagraph (E), as so 
                        redesignated--
                                    (I) by striking ``and for meeting 
                                the skilled workforce needs of 
                                employers'' and inserting ``and for 
                                preparing workers to meet the skilled 
                                workforce needs of employers and to 
                                enter and remain in unsubsidized 
                                employment''; and
                                    (II) by striking ``and'' at the 
                                end;
                            (v) in subparagraph (F), as so 
                        redesignated, by striking the period at the end 
                        and inserting a semicolon; and
                            (vi) by adding at the end the following:
                    ``(G) a description of activities the State is 
                conducting to expand economic opportunity for 
                individuals and reduce barriers to labor market entry 
                by--
                            ``(i) developing, in cooperation with 
                        employers, education and training providers, 
                        and other stakeholders, statewide skills-based 
                        initiatives that promote the use of 
                        demonstrated skills and competencies as an 
                        alternative to the exclusive use of degree 
                        attainment as a requirement for employment or 
                        advancement in a career; and
                            ``(ii) evaluating the existing occupational 
                        licensing policies in the State and identifying 
                        potential changes to recommend to the 
                        appropriate State entity to--
                                    ``(I) remove or streamline 
                                licensing requirements, as appropriate; 
                                and
                                    ``(II) improve the reciprocity of 
                                licensing, including through 
                                participating in interstate licensing 
                                compacts;
                    ``(H) an analysis of the out-of-school youth 
                population in the State, including the estimated number 
                of out-of-school youth and any gaps in services 
                provided to such population by other existing workforce 
                development activities, as identified under 
                subparagraph (D);
                    ``(I) a description of the availability of 
                apprenticeship and pre-apprenticeship programs in the 
                State and the providers of such programs, including any 
                that serve youth; and
                    ``(J) a description of any strategies the State 
                will use to prioritize the funding of evidence-based 
                programs through the funds available for statewide 
                workforce development activities described in section 
                128(a).''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (B), by striking 
                        ``including a description'' and inserting 
                        ``which may include a description'';
                            (ii) in subparagraph (C)(viii), by striking 
                        ``necessary for effective State operating 
                        systems and policies'' and inserting ``useful 
                        to States to be included in the State plan, on 
                        an optional basis'';
                            (iii) in subparagraph (D)(i)--
                                    (I) in subclause (II), by striking 
                                ``any''; and
                                    (II) in subclause (IV), by striking 
                                ``section 121(h)(2)(E)'' and inserting 
                                ``section 121(h)(1)(E)''; and
                            (iv) in subparagraph (E)--
                                    (I) in clause (iv), by striking 
                                ``116(i)'' and inserting ``116(j)''; 
                                and
                                    (II) in clause (x), by striking 
                                ``necessary for the administration of 
                                the core programs'' and inserting 
                                ``useful to States to be included in 
                                the State plan, on an optional basis''; 
                                and
            (2) in subsection (c)(3)--
                    (A) in subparagraph (A), by striking ``shall'' the 
                second place it appears and inserting ``may''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``required''; and
                            (ii) by inserting ``, except that 
                        communicating changes in economic conditions 
                        and workforce trends to the workforce system in 
                        the State as described in subsection (b)(1)(C) 
                        shall not be considered modifications subject 
                        to approval under this paragraph'' before the 
                        period at the end.

                      CHAPTER 2--LOCAL PROVISIONS

SEC. 115. WORKFORCE DEVELOPMENT AREAS.

    (a) Regions.--Section 106(a) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3121(a)) is amended by adding at the end the 
following:
            ``(3) Review.--Before the second full program year after 
        the date of enactment of the A Stronger Workforce for America 
        Act of 2026, in order for a State to receive an allotment under 
        section 127(b) or 132(b) and as part of the process for 
        developing the State plan, a State shall--
                    ``(A) review each region in the State identified 
                under this subsection (as such subsection was in effect 
                on the day before the date of enactment of the A 
                Stronger Workforce for America Act of 2026); and
                    ``(B) after consultation with the local boards and 
                chief elected officials in the local areas and 
                consistent with the considerations described in 
                subsection (b)(1)(B)--
                            ``(i) revise such region and any other 
                        region impacted by such revision; or
                            ``(ii) make a determination to maintain 
                        such region with no revision.''.
    (b) Local Areas.--Section 106(b) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3121(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``subsection 
                (d), and consistent with paragraphs (2) and (3),'' and 
                inserting ``subsection (d)''; and
                    (B) in subparagraph (B), by striking ``(except for 
                those local areas described in paragraphs (2) and 
                (3))''; and
            (2) by striking paragraphs (2) through (7), and inserting 
        the following:
            ``(2) Continuation period.--Except as provided in paragraph 
        (5) of this subsection and subsection (d), in order to receive 
        an allotment under section 127(b) or 132(b), the Governor shall 
        maintain the designations of local areas in the State under 
        this subsection (as in effect on the day before the date of 
        enactment of the A Stronger Workforce for America Act of 2026) 
        until the end of the third full program year after the date of 
        enactment of the A Stronger Workforce for America Act of 2026.
            ``(3) Initial alignment review.--
                    ``(A) In general.--Prior to the third full program 
                year after the date of enactment of the A Stronger 
                Workforce for America Act of 2026, the Governor shall--
                            ``(i) review the designations of local 
                        areas in the State (as in effect on the day 
                        before the date of enactment of the A Stronger 
                        Workforce for America Act of 2026); and
                            ``(ii)(I) based on the considerations 
                        described in paragraph (1)(B), issue proposed 
                        redesignations of local areas in the State 
                        through the process described in paragraph 
                        (1)(A), which shall--
                                    ``(aa) include an explanation of 
                                the strategic goals and objectives that 
                                the State intends to achieve through 
                                such redesignations; and
                                    ``(bb) be subject to the approval 
                                of the chief elected officials of the 
                                local areas in the State in accordance 
                                with the process described in 
                                subparagraph (C); or
                            ``(II) with respect to a State described in 
                        subsection (d)(2)(B), if the Governor 
                        determines that such State should be designated 
                        as a single State local area, conduct a process 
                        in accordance with the requirements of 
                        subsection (d)(2).
                    ``(B) Designation of local areas.--A redesignation 
                of local areas in a State that is approved by a 
                majority of the chief elected officials of the local 
                areas in the State through the process described in 
                subparagraph (C) shall take effect on the first day of 
                the 4th full program year after the date of enactment 
                of the A Stronger Workforce for America Act of 2026.
                    ``(C) Process to reach majority approval.--To 
                approve a designation of local areas in the State, the 
                chief elected officials of the local areas in the State 
                shall comply with the following:
                            ``(i) Initial vote.--Not later than 60 days 
                        after the Governor issues proposed 
                        redesignations under subparagraph (A), the 
                        chief elected official of each local area shall 
                        review the proposed redesignations and submit a 
                        vote to the Governor either approving or 
                        rejecting the proposed redesignations.
                            ``(ii) Results of initial vote.--If a 
                        majority of the chief elected officials of the 
                        local areas in the State vote under clause 
                        (i)--
                                    ``(I) to approve such proposed 
                                redesignations, such redesignations 
                                shall take effect in accordance with 
                                subparagraph (B); or
                                    ``(II) to disapprove such proposed 
                                redesignations, the chief elected 
                                officials of the local areas in the 
                                State shall comply with the 
                                requirements of clause (iii).
                            ``(iii) Alternate redesignations.--In the 
                        case of the disapproval described in clause 
                        (ii)(II), not later than 120 days after the 
                        Governor issues proposed redesignations under 
                        subparagraph (A), the chief elected officials 
                        of the local areas in the State shall--
                                    ``(I) select 2 alternate 
                                redesignations of local areas--
                                            ``(aa) one of which aligns 
                                        with the regional economic 
                                        development areas in the State; 
                                        and
                                            ``(bb) one of which aligns 
                                        with the regions described in 
                                        subparagraph (A) or (B) of 
                                        subsection (a)(2); and
                                    ``(II) conduct a vote to approve, 
                                by majority vote, 1 of the 2 alternate 
                                redesignations described in subclause 
                                (I).
                            ``(iv) Effective date of alternate 
                        designations.--The alternate redesignations 
                        approved pursuant to clause (iii)(II) shall 
                        take effect in accordance with subparagraph 
                        (B).
            ``(4) Subsequent alignment reviews.--On the date that is 
        the first day of the 12th full program year after the date of 
        enactment of the A Stronger Workforce for America Act of 2026, 
        and every 8 years thereafter, the Governor shall--
                    ``(A) review the designation of local areas; and
                    ``(B) carry out the requirements of paragraph 
                (3)(A)(ii), except that any redesignation of local 
                areas in a State that is approved by a majority of the 
                chief elected officials of the local areas in the State 
                through the process described in paragraph (3)(C) shall 
                take effect on the first day of the next full program 
                year after the Governor's review pursuant to this 
                paragraph.
            ``(5) Interim revisions.--
                    ``(A) Approval of certain redesignation requests.--
                            ``(i) In general.--At any time, and 
                        notwithstanding the requirements of paragraphs 
                        (2), (3), and (4), the Governor, upon receipt 
                        of a request for a redesignation of a local 
                        area described in clause (ii), may approve such 
                        request.
                            ``(ii) Requests.--The following requests 
                        may be approved pursuant to clause (i) upon 
                        request:
                                    ``(I) A request from multiple local 
                                areas to be redesignated as a single 
                                local area.
                                    ``(II) A request from multiple 
                                local areas for a revision to the 
                                designations of such local areas, which 
                                would not impact the designations of 
                                local areas that have not made such 
                                request.
                                    ``(III) A request for designation 
                                as a local area from an area described 
                                in section 107(c)(1)(C).
                    ``(B) Other redesignations.--Other than the 
                redesignations described in subparagraph (A), the 
                Governor may only redesignate a local area outside of 
                the process described in paragraphs (3) and (4), if the 
                local area that will be subject to such redesignation 
                has not--
                            ``(i) performed successfully;
                            ``(ii) sustained fiscal integrity; or
                            ``(iii) in the case of a local area in any 
                        planning region described in subparagraph (B) 
                        or (C) of subsection (a)(2), met the 
                        requirements described in subsection (c)(1).
                    ``(C) Effective date.--Any redesignation of a local 
                area approved by the Governor under subparagraph (A) or 
                (B) shall take effect on the first date of the first 
                full program year after such date of approval.
            ``(6) Appeals.--
                    ``(A) In general.--The chief elected official of a 
                local area that is subject to a redesignation of such 
                local area under paragraph (3), (4), or (5) may submit 
                an appeal to maintain its existing designation to the 
                State board under an appeal process established in the 
                State plan as specified in section 
                102(b)(2)(D)(i)(III).
                    ``(B) State board requirements.--The State board 
                shall grant an appeal to maintain an existing 
                designation of a local area described in subparagraph 
                (A) only if the local board of the local area can 
                demonstrate that the process for redesignation of such 
                local area under paragraph (3), (4), or (5), as 
                applicable, has not been followed.
                    ``(C) Secretarial requirements.--If a request to 
                maintain an existing designation as a local area is not 
                granted as a result of such appeal, the Secretary, 
                after receiving a request for review from the local 
                board of such local area and determining that the local 
                board was not accorded procedural rights under the 
                appeals process referred to in subparagraph (A), 
                shall--
                            ``(i) review the process for the 
                        redesignation of the local area under paragraph 
                        (3), (4), or (5), as applicable; and
                            ``(ii) upon determining that the applicable 
                        process has not been followed, require that the 
                        local area's existing designation be 
                        maintained.
            ``(7) Redesignation incentive.--The State may provide 
        funding from funds made available under sections 128(a)(1) and 
        133(a)(1) to provide payments to incentivize--
                    ``(A) groups of local areas to request to be 
                redesignated as a single local area under paragraph 
                (5)(A); or
                    ``(B) multiple local boards in a planning region to 
                develop an agreement to operate as a regional 
                consortium under subsection (c)(3).''.
    (c) Regional Coordination.--Section 106(c) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3121(c)) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (F) through (H) 
                as subparagraphs (G) through (I), respectively; and
                    (B) by inserting the following after subparagraph 
                (E):
                    ``(F) the establishment of cost arrangements for 
                services described in subsections (c) and (d) of 
                section 134, including the pooling of funds for such 
                services, as appropriate, for the region;'';
            (2) in paragraph (2), by inserting ``, including to assist 
        with establishing administrative costs arrangements or cost 
        arrangements for services under subparagraphs (F) and (G) of 
        such paragraph'' after ``delivery efforts'';
            (3) by redesignating paragraph (3) as paragraph (4); and
            (4) by inserting after paragraph (2), as so amended, the 
        following:
            ``(3) Regional consortiums.--
                    ``(A) In general.--The local boards and chief 
                elected officials of any local area in any planning 
                region described in subparagraph (B) or (C) of 
                subsection (a)(2) may develop an agreement to receive 
                funding under section 128(b) and section 133(b) as a 
                single consortium for the planning region.
                    ``(B) Consortium agreements.--If the local boards 
                and chief elected officials develop such an agreement--
                            ``(i) one of the chief elected officials in 
                        the planning region shall designate the fiscal 
                        agent for the consortium;
                            ``(ii) the local boards shall develop a 
                        memorandum of understanding to jointly 
                        administer the activities for the consortium; 
                        and
                            ``(iii) the required activities for local 
                        areas under this Act (including the required 
                        functions of the local boards described in 
                        section 107(d)) shall apply to such a 
                        consortium as a whole and may not be applied 
                        separately or differently to the local areas or 
                        local boards within such consortium.''.
    (d) Single State Local Areas.--Section 106(d) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3121(d)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1), the following:
            ``(2) New designation.--
                    ``(A) Process.--If, upon a review described in 
                paragraph (3)(A) or (4)(B) of subsection (b) of a State 
                described in subparagraph (B)of this paragraph, the 
                Governor of such State determines, after consultation 
                with the State board, that such State should be 
                designated as a single State local area--
                            ``(i) the Governor shall propose to the 
                        legislature of the State to designate such 
                        State as a single State local area;
                            ``(ii) in a case in which the majority of 
                        the legislature of the State consents to the 
                        Governor's proposed designation--
                                    ``(I) such designation shall take 
                                effect in accordance with subparagraph 
                                (C); and
                                    ``(II) the Governor shall identify 
                                the State as a local area in the State 
                                plan; and
                            ``(iii) in a case in which in which the 
                        majority of the legislature of the State does 
                        not so consent to the Governor's proposed 
                        designation, the designations of the local 
                        areas in the State shall be maintained and 
                        shall be subject to the requirements of 
                        subsection (b)(4).
                    ``(B) State described.--A State described in this 
                subparagraph is a State that--
                            ``(i) has not been designated as a single 
                        State local area under paragraph (1); and
                            ``(ii)(I) has a population of less than 
                        5,100,000, as determined by the last decennial 
                        census preceding such designation; or
                            ``(II) contains 5 or fewer local areas.
                    ``(C) Effective date.--Notwithstanding subsection 
                (b)(2), a designation described in paragraph (A) shall 
                take effect on the later of--
                            ``(i) the first day of the third full 
                        program year after the date of enactment of the 
                        A Stronger Workforce for America Act of 2026; 
                        or
                            ``(ii) the first day of the first full 
                        program year following the date on which the 
                        Governor so designates the State as a single 
                        State local area.
                    ``(D) Reestablishment of local areas.--
                            ``(i) In general.--At the end of the 5-year 
                        period beginning on the date on which a State 
                        is designated as a single State local area 
                        under subparagraph (A), the Secretary shall 
                        notify the Governor of such State if, during 
                        such 5-year period, the average of the overall 
                        State program scores (as referred to in section 
                        116(f)(2)) across the adult and dislocated 
                        worker programs and youth programs authorized 
                        under chapters 2 and 3 of subtitle B are lower 
                        than the average of the State overall program 
                        scores across such programs during the 5-year 
                        period for such period ending on the date prior 
                        the date on which such State was so designated.
                            ``(ii) Determination after notice.--
                                    ``(I) In general.--If, after 
                                receiving the notice described in 
                                clause (i) with respect to a State, the 
                                Governor determines--
                                            ``(aa) that the designation 
                                        of the State as a single State 
                                        local area should be 
                                        maintained, the Governor shall 
                                        comply with subclause (II) or 
                                        (III), as appropriate; or
                                            ``(bb) that such 
                                        designation should not be so 
                                        maintained, the Governor shall 
                                        reestablish the local areas 
                                        that comprised the State prior 
                                        to the designation of the State 
                                        as a single State local area 
                                        under subparagraph (A), and 
                                        such reestablishment shall take 
                                        effect on the first day of the 
                                        first full program year after 
                                        the Governor receives such 
                                        notice.
                                    ``(II) Requirements for maintaining 
                                designation.--A designation described 
                                in subclause (I)(aa) with respect to a 
                                State may only be so maintained if the 
                                Governor--
                                            ``(aa) not later than 180 
                                        days after the date on which 
                                        Governor receives the notice 
                                        described in clause (i), issues 
                                        a public notice of the 
                                        determination by the Governor 
                                        that the designation of such 
                                        State as a single State local 
                                        area should be maintained; and
                                            ``(bb) not later than 1 
                                        year after the date on which 
                                        the Governor issues such public 
                                        notice, the Governor receives 
                                        the consent of a majority of 
                                        the legislature of the State to 
                                        so maintain the designation.
                                    ``(III) Failure to meet 
                                requirements.--If the Governor fails to 
                                comply with each of the requirements of 
                                subclause (II) with respect to a 
                                State--
                                            ``(aa) a designation 
                                        described in subclause (I)(aa) 
                                        for such State may not be so 
                                        maintained; and
                                            ``(bb) the Governor shall 
                                        reestablish the local areas 
                                        that comprised the State prior 
                                        to the designation of the State 
                                        as a single State local area 
                                        under subparagraph (A), and 
                                        such reestablishment shall take 
                                        effect on the first full 
                                        program year after the date 
                                        that is 1 year after the date 
                                        on which the Governor issues 
                                        the public notice described in 
                                        subclause (II)(aa) with respect 
                                        to the State.''.
    (e) Definition of Performed Successfully.--Section 106(e)(1) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3121(e)) is amended 
to read as follows:
            ``(1) Performed successfully.--The term `performed 
        successfully', used with respect to a local area, means the 
        local area is not subject to corrective action as described in 
        section 116(g)(2) on the local performance accountability 
        measures for the most recent year for which data are available 
        preceding the determination of performance under this 
        paragraph.''.

SEC. 116. LOCAL WORKFORCE DEVELOPMENT BOARDS.

    (a) Membership.--Section 107(b) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3122(b)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``20'' and 
                inserting ``30''; and
                    (B) in subparagraph (C)--
                            (i) in clause (i), by inserting after 
                        ``title II'' the following: ``(such as 
                        corrections education programs under such 
                        title)'';
                            (ii) in clause (ii), by inserting after 
                        ``community colleges'' the following: ``and, as 
                        applicable, other institutions of higher 
                        education''; and
                            (iii) by adding at the end the following:
                            ``(iv) may include faculty and staff 
                        members working directly with students in 
                        providing workforce investment activities 
                        through education or training programs that 
                        support an industry cluster.''; and
            (2) in paragraph (4)(A)--
                    (A) in clause (ii), by striking ``include'' and all 
                that follows through the period at the end and 
                inserting the following: ``include--
                                    ``(I) representatives from 
                                community-based organizations and other 
                                representatives with professional 
                                expertise in youth workforce 
                                development programs and with a 
                                demonstrated record of success in 
                                serving eligible youth;
                                    ``(II) out-of-school youth, 
                                including youth who are individuals 
                                with disabilities;
                                    ``(III) at least 1 representative 
                                of a public or nonprofit agency that 
                                serves youth, including juvenile 
                                justice and child welfare agencies, and 
                                at least 1 representative of a local 
                                public housing authority;
                                    ``(IV) for a local area in which a 
                                Job Corps campus (as such term is 
                                defined in section 142) is located, at 
                                least 1 representative of that campus; 
                                and
                                    ``(V) for a local area in which a 
                                YouthBuild program (as such term is 
                                defined in section 171(b)) is carried 
                                out, at least 1 representative of such 
                                program.''; and
                    (B) by adding at the end the following:
                            ``(iv) A standing committee to provide 
                        information and to assist with planning, 
                        operational, and other issues relating to the 
                        engagement of representatives of the workforce 
                        in the local area, which--
                                    ``(I) shall include at least 1 
                                representative of local labor 
                                organizations or joint labor-management 
                                organizations, including at least 1 
                                representative of either of such 
                                organizations with special interest or 
                                expertise in youth workforce readiness 
                                or apprenticeship and pre-
                                apprenticeship programs that serve 
                                youth; and
                                    ``(II) may include, in a local area 
                                with a significant number of dislocated 
                                workers (as determined by the local 
                                board), at least 1 representative with 
                                special interest or expertise in 
                                providing supports for finding 
                                education, training, and employment 
                                opportunities for dislocated workers.
                            ``(v) A standing committee to provide 
                        information and to assist with planning, 
                        operational, and other issues relating to the 
                        engagement of educational entities in the local 
                        area, which shall include, at a minimum--
                                    ``(I) at least 1 representative of 
                                a local educational agency that serves 
                                students residing in such local area;
                                    ``(II) at least 1 representative of 
                                institutions of higher education in the 
                                local area, including community 
                                colleges in the local area; and
                                    ``(III) at least 1 representative 
                                of entities administering education and 
                                training activities, including career 
                                and technical education programs or 
                                after- school and summer learning 
                                programs, in the local area.
                            ``(vi) A standing committee to provide 
                        information and to assist with planning, 
                        operational, and other issues relating to the 
                        provision of services to offenders, including 
                        pre-release education, training, and career 
                        services for such individuals, which shall 
                        include--
                                    ``(I) at least 1 offender; and
                                    ``(II) representatives from 
                                community-based organizations with 
                                special interest or expertise in 
                                reentry services for incarcerated 
                                individuals and ex-offenders, including 
                                at least 1 representative of an 
                                organization that is a recipient of a 
                                grant under section 172.''.
    (b) Functions of Local Board.--Section 107(d) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3122(d)) is amended--
            (1) in paragraph (2)(A), by striking ``section 
        108(b)(1)(D)'' and inserting ``108(b)(1)(E)'';
            (2) in paragraph (3), by inserting ``, including, to the 
        extent practicable, local representatives of the core programs 
        and the programs described in section 121(b)(1)(B),'' after 
        ``system stakeholders'';
            (3) in paragraph (4)--
                    (A) in subparagraph (B), by inserting ``and 
                industry and sector partnerships'' after 
                ``intermediaries'';
                    (B) in subparagraph (C), by inserting ``, local 
                educational agencies, community colleges and other 
                institutions of higher education'' after ``economic 
                development entities''; and
                    (C) in subparagraph (D)--
                            (i) by striking ``proven'' and inserting 
                        ``evidence-based'';
                            (ii) by inserting ``individual'' after 
                        ``needs of''; and
                            (iii) by inserting ``from a variety of 
                        industries and occupations'' after ``and 
                        employers'';
            (4) in paragraph (5), by inserting ``and which, to the 
        extent practicable, shall be aligned with career and technical 
        education programs of study (as defined in section 3 of the 
        Carl D. Perkins Career and Technical Education Act of 2006 (20 
        U.S.C. 2302(3)) offered within the local area'' before the 
        period at the end;
            (5) in paragraph (6)--
                    (A) in the heading, by striking ``PROVEN'' and 
                inserting ``EVIDENCE-BASED'';
                    (B) in subparagraph (A)--
                            (i) by striking ``proven'' and inserting 
                        ``evidence-based'';
                            (ii) by inserting ``and covered veterans 
                        (as defined in section 4212(a)(3)(A) of title 
                        38, United States Code)'' after ``employment''; 
                        and
                            (iii) by inserting ``, and give priority to 
                        covered persons in accordance with section 4215 
                        of title 38, United States Code'' after 
                        ``delivery system''; and
                    (C) in subparagraph (B), by striking ``proven'' and 
                inserting ``evidence-based'';
            (6) in paragraph (10)(C)--
                    (A) by inserting ``, on the State eligible training 
                provider list,'' after ``identify''; and
                    (B) by inserting ``that operate in or are 
                accessible to individuals'' after ``training 
                services''; and
            (7) in paragraph (12)(A), by striking ``activities'' and 
        inserting ``funds allocated to the local area under section 
        128(b) and section 133(b) for the youth workforce development 
        activities described in section 129 and local employment and 
        training activities described in section 134(b), and the 
        activities''.
    (c) Limitations.--Section 107(g)(1)(D) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3122(g)(1)(D)) is amended by striking 
``needed or'' and inserting the following: ``, that the local board is 
failing to meet the requirements for eligible providers of training 
services under section 122, or''.

SEC. 117. LOCAL PLAN.

    Section 108 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3123) is amended--
            (1) in subsection (a)--
                    (A) by striking ``section 102(b)(1)(E)'' and 
                inserting ``section 102(b)(1)(F)''; and
                    (B) by striking ``shall prepare'' and inserting 
                ``may prepare''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (D), 
                        (E), and (F) as subparagraphs (E), (F), and 
                        (H), respectively;
                            (ii) by inserting the following after 
                        subparagraph (C):
                    ``(D) a description of--
                            ``(i) how the local board will use real-
                        time labor market information to continually 
                        assess the economic conditions and workforce 
                        trends described in subparagraphs (A), (B), and 
                        (C); and
                            ``(ii) how changes in such conditions or 
                        trends will be communicated to jobseekers, 
                        education and training providers, and employers 
                        in the local area;'';
                            (iii) in subparagraph (F), as so 
                        redesignated, by striking ``and'' at the end; 
                        and
                            (iv) by inserting after subparagraph (F), 
                        as so redesignated, the following:
                    ``(G) an analysis, which may be conducted in 
                coordination with the State, of the out-of-school youth 
                population in the local area including the estimated 
                number of such youth and any gaps in services for such 
                population from other existing workforce development 
                activities, as identified under paragraph (9), and a 
                description of how the local board will address any 
                such gaps in services identified in such analysis; 
                and'';
                    (B) in paragraph (2), by striking ``section 
                102(b)(1)(E)'' and inserting ``section 102(b)(1)(F);
                    (C) in paragraph (4)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``and'' at the end 
                                of clause (iii); and
                                    (II) by adding at the end the 
                                following:
                            ``(v) carry out any statewide skills-based 
                        initiatives identified in the State plan that 
                        promote the use of demonstrated skills and 
                        competencies as an alternative to the exclusive 
                        use of degree attainment as a requirement for 
                        employment or advancement in a career; and''; 
                        and
                            (ii) in subparagraph (B), by striking 
                        ``customized training'' and inserting 
                        ``employer-directed skills development'';
                    (D) in paragraph (6)(B), by inserting ``, such as 
                the use of affiliated sites'' after ``means'';
                    (E) in paragraph (9)--
                            (i) by striking ``including activities'' 
                        and inserting the following: ``including--
                    ``(A) the availability of community based 
                organizations that serve youth primarily during 
                nonschool time hours to carry out activities under 
                section 129;
                    ``(B) activities'';
                            (ii) in subparagraph (B), as so 
                        redesignated--
                                    (I) by inserting ``or evidence-
                                based'' after ``successful''; and
                                    (II) by adding ``and'' at the end; 
                                and
                            (iii) by adding at the end the following:
                    ``(C) the availability of preapprenticeship and 
                apprenticeship programs serving youth;'';
                    (F) in paragraph (12), by inserting ``including as 
                described in section 134(c)(2),'' after ``system,''; 
                and
                    (G) in paragraph (13), by inserting before the 
                semicolon at the end the following: ``, and encourage 
                eligible youth who are enrolled in adult education and 
                literacy activities under title II to co-enroll in 
                youth workforce investment activities carried out by 
                the local board, as appropriate''.

                 CHAPTER 3--PERFORMANCE ACCOUNTABILITY

SEC. 119. PERFORMANCE ACCOUNTABILITY SYSTEM.

    (a) State Performance Accountability Measures.--
            (1) Primary indicators of performance.--Section 
        116(b)(2)(A) of the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3141(b)(2)(A)) is amended--
                    (A) in clause (i)--
                            (i) in subclause (II)--
                                    (I) by striking ``fourth'' and 
                                inserting ``second''; and
                                    (II) by inserting ``and remain in 
                                unsubsidized employment during the 
                                fourth quarter after exit from the 
                                program'' after ``the program'';
                            (ii) in subclause (IV), by striking 
                        ``secondary school diploma'' and inserting 
                        ``regular high school diploma'';
                            (iii) in subclause (V)--
                                    (I) by striking ``, during a 
                                program year,'';
                                    (II) by striking ``are in'' and 
                                inserting ``enter into''; and
                                    (III) by inserting before the 
                                semicolon at the end the following: 
                                ``within 12 months after the quarter in 
                                which the participant enters into the 
                                education and training program''; and
                            (iv) by amending subclause (VI) to read as 
                        follows:
                                    ``(VI) of the program participants 
                                who received training services during a 
                                program year, the percentage of such 
                                program participants who participated 
                                in on-the-job training, employer-
                                directed skills development, incumbent 
                                worker training, or an 
                                apprenticeship.'';
                    (B) in clause (ii)--
                            (i) in subclause (II)--
                                    (I) by striking ``fourth'' and 
                                inserting ``second'';
                                    (II) by inserting ``, and who 
                                remain either in such activities or 
                                unsubsidized employment during the 
                                fourth quarter after exit from the 
                                program'' after ``the program''; and
                                    (III) by striking ``and'' at the 
                                end;
                            (ii) in subclause (III)--
                                    (I) by striking ``(VI)'' and 
                                inserting ``(V)''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                                    ``(IV) of the program participants 
                                who exited the program during a program 
                                year, the percentage of such program 
                                participants who completed, prior to 
                                such exit, a work experience as 
                                described in section 129(c)(2)(C).''; 
                                and
                    (C) in clause (iii), by striking ``secondary school 
                diploma'' and inserting ``regular high school 
                diploma''; and
                    (D) by striking clause (iv).
            (2) Levels of performance.--Section 116(b)(3)(A) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 
        3141(b)(3)(A)) is amended--
                    (A) by amending clause (iii) to read as follows:
                            ``(iii) Identification in state plan.--
                                    ``(I) Secretaries.--For each State 
                                submitting a State plan, the Secretary 
                                of Labor shall, not later than January 
                                15 of the year in which such State plan 
                                is submitted, for the first 2 program 
                                years covered by the State plan, and 
                                not later than January 15 of the second 
                                program year covered by the State plan, 
                                for the third and fourth program years 
                                covered by the State plan--
                                            ``(aa) propose to the State 
                                        expected levels of performance, 
                                        for each of the corresponding 
                                        primary indicators of 
                                        performance for each of the 
                                        programs described in clause 
                                        (ii) for such State, which 
                                        shall--

                                                    ``(AA) be 
                                                consistent with the 
                                                factors listed in 
                                                clause (v); and

                                                    ``(BB) be proposed 
                                                in a manner that 
                                                ensures sufficient time 
                                                is provided for the 
                                                State to evaluate and 
                                                respond to such 
                                                proposals; and

                                            ``(bb) publish, on a public 
                                        website of the Department of 
                                        Labor, the statistical model 
                                        developed under clause (viii) 
                                        and the methodology used to 
                                        develop each such expected 
                                        level of performance.
                                    ``(II) States.--Each State shall--
                                            ``(aa) evaluate each of the 
                                        expected levels of performance 
                                        proposed under subclause (I) 
                                        with respect to such State;
                                            ``(bb) based on such 
                                        evaluation of each such 
                                        expected level of performance--

                                                    ``(AA) accept the 
                                                expected level of 
                                                performance as so 
                                                proposed; or

                                                    ``(BB) provide a 
                                                counterproposal for 
                                                such expected level of 
                                                performance, including 
                                                an analysis of how the 
                                                counterproposal 
                                                addresses factors or 
                                                circumstances unique to 
                                                the State that may not 
                                                have been accounted for 
                                                in the expected level 
                                                of performance; and

                                            ``(cc) include in the State 
                                        plan, with respect to each of 
                                        the corresponding primary 
                                        indicators of performance for 
                                        each of the programs described 
                                        in clause (ii) for such State--

                                                    ``(AA) the expected 
                                                level of performance 
                                                proposed under 
                                                subclause (I);

                                                    ``(BB) the 
                                                counterproposal for 
                                                such proposed level, if 
                                                any; and

                                                    ``(CC) the level of 
                                                performance that is 
                                                agreed to under clause 
                                                (iv).'';

                    (B) in clause (iv)--
                            (i) in subclause (I)--
                                    (I) in the second sentence, by 
                                striking ``the levels identified in the 
                                State plan under clause (iii) and the 
                                factors described in clause (v)'' and 
                                inserting ``the factors described in 
                                clause (v) and any counterproposal, and 
                                the analysis provided by the State with 
                                such counterproposal, described in 
                                clause (iii)(II)(bb)(BB)''; and
                                    (II) in the third sentence, by 
                                striking ``incorporated into the State 
                                plan'' and inserting ``included in the 
                                State plan, as described in clause 
                                (iii)(II)(cc),''; and
                            (ii) in subclause (II)--
                                    (I) in the second sentence, by 
                                striking ``the factors described in 
                                clause (v)'' and inserting ``the 
                                factors described in clause (v) and any 
                                counterproposal, and the analysis 
                                provided by the State with such 
                                counterproposal, described in clause 
                                (iii)(II)(bb)(BB)''; and
                                    (II) in the third sentence, by 
                                striking ``incorporated into the State 
                                plan'' and inserting ``included in the 
                                State plan, as described in clause 
                                (iii)(II)(cc),''; and
                    (C) in clause (v)(II)--
                            (i) in the matter preceding item (aa), by 
                        striking ``based on'' and inserting ``based on 
                        each consideration that is found to be 
                        predictive of performance on an indicator for a 
                        program and consists of''; and
                            (ii) in item (bb)--
                                    (I) by striking ``including'' and 
                                inserting ``such as''; and
                                    (II) by striking ``and welfare 
                                dependency'' and inserting ``school 
                                status, education level, highest grade 
                                level completed, low-income status, and 
                                receipt of public assistance''.
    (b) Performance Reports.--Section 116(d) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3141(d)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) In general.--
                    ``(A) Templates for performance reports.--Not later 
                than 24 months after the date of enactment of the A 
                Stronger Workforce for America Act of 2026, the 
                Secretary of Labor shall develop, or review and modify, 
                as appropriate, to comply with the requirements of this 
                subsection, the templates for performance reports that 
                shall be used by States (including by States on behalf 
                of eligible providers of training services under 
                section 122) and local areas to produce a report on 
                outcomes achieved by the core programs. In developing, 
                or reviewing and modifying, such templates, the 
                Secretary of Labor shall take into account the need to 
                maximize the value of the templates for workers, 
                jobseekers, employers, local elected officials, State 
                officials, Federal policymakers, and other key 
                stakeholders.
                    ``(B) Standardized reporting.--In developing, or 
                reviewing and modifying, the templates under 
                subparagraph (A), the Secretary of Labor shall ensure 
                that States and local areas, in producing performance 
                reports for core programs and eligible providers of 
                training services, collect and report information on 
                common data elements--
                            ``(i) in a comparable and uniform format; 
                        and
                            ``(ii) using terms that are assigned 
                        identical meanings across all such reports.
                    ``(C) Additional reporting.--The Secretary of 
                Labor--
                            ``(i) in addition to the information on the 
                        common data elements, may require additional 
                        information with respect to any core program as 
                        necessary for effective reporting; and
                            ``(ii) shall periodically review any such 
                        requirement for additional information to 
                        ensure the requirement is necessary and does 
                        not impose an undue reporting burden.
                    ``(D) Privacy.--The Secretary of Labor shall ensure 
                subparagraph (B) is carried out in a manner that 
                protects and promotes individual privacy and data 
                security, in accordance with applicable Federal privacy 
                laws.
                    ``(E) Access to wage records.--
                            ``(i) Access.--A State may facilitate for a 
                        local area that meets the requirements of 
                        clause (ii), for the sole purpose of fulfilling 
                        the reporting requirements under this 
                        subsection, access to the quarterly wage 
                        records (excluding such records made available 
                        by any other State) of program participants in 
                        the local area.
                            ``(ii) Privacy protections.--To receive 
                        access to such quarterly wage records, the 
                        local area shall have demonstrated to the State 
                        the ability to comply, and agree to comply, 
                        with all applicable Federal and State 
                        requirements relating to the access and use of 
                        such quarterly wage records, including 
                        requirements relating to data privacy and 
                        cybersecurity.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by inserting ``, and 
                aggregated to compare those levels of performance for 
                all individuals with barriers to employment with those 
                levels of performance for all other individuals'' 
                before the semicolon at the end;
                    (B) in subparagraphs (D) and (F), by striking 
                ``career and training services, respectively'' and 
                inserting ``career services, training services, and 
                supportive services, respectively'';
                    (C) by redesignating subparagraphs (J) through (L) 
                as subparagraphs (K) through (M), respectively and 
                inserting after subparagraph (I) the following:
                    ``(J) the median earnings gain of participants who 
                received training services, calculated as the median 
                value of the difference between--
                            ``(i) participant earnings in unsubsidized 
                        employment during the 4 quarters after program 
                        exit; and
                            ``(ii) participant earnings in the 4 
                        quarters prior to entering the program;''; and
                    (D) in subparagraph (L), as so redesignated--
                            (i) by striking clause (ii); and
                            (ii) by striking ``strategies for 
                        programs'' and all that follows through ``the 
                        performance'', and inserting ``strategies for 
                        programs, the performance'';
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``(L)'' and 
                inserting ``(M)'';
                    (B) in subparagraph (B), by striking ``and'' at the 
                end;
                    (C) by redesignating subparagraph (C) as 
                subparagraph (F); and
                    (D) by inserting after subparagraph (B) the 
                following:
                    ``(C) the percentage of the local area's allocation 
                under section 133(b) that the local area spent on 
                services paid for through an individual training 
                account described in section 134(c)(3)(F)(iii) or a 
                training contract described in section 
                134(c)(3)(G)(ii);
                    ``(D) the percentage of the local area's allocation 
                under section 133(b) that the local area spent on 
                supportive services;
                    ``(E) the percentage of the local area's allocation 
                under section 133(b), if any, that is spent on 
                incumbent worker training, disaggregated by whether the 
                amount so spent was spent on the provision of incumbent 
                worker training through contracts or through incumbent 
                worker upskilling accounts described in section 
                134(d)(4)(E); and'';
            (4) by amending paragraph (4) to read as follows:
            ``(4) Contents of eligible training providers performance 
        report.--
                    ``(A) In general.--The State shall use the 
                information submitted by the eligible providers of 
                training services under section 122 and administrative 
                records, including quarterly wage records, of the 
                participants of the programs offered by the providers 
                to produce a performance report on the eligible 
                providers of training services in the State, which 
                shall include, subject to paragraph (6)(C)--
                            ``(i) with respect to each program of study 
                        (or the equivalent) of a provider on the list 
                        described in section 122(d)--
                                    ``(I) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                with respect to all individuals 
                                engaging in the program of study (or 
                                the equivalent); and
                                    ``(II) the total number of 
                                individuals exiting from the program of 
                                study (or the equivalent), 
                                disaggregated by whether such 
                                individuals completed the program of 
                                study (or equivalent); and
                            ``(ii) with respect to all eligible 
                        providers of training services under section 
                        122--
                                    ``(I) the total number of 
                                participants who received training 
                                services through each adult and 
                                dislocated worker program authorized 
                                under chapter 3 of subtitle B, 
                                disaggregated by the type of entity 
                                that provided the training services, 
                                during the most recent program year and 
                                the 3 preceding program years;
                                    ``(II) the total number of 
                                participants who exited from training 
                                services, disaggregated by the type of 
                                entity that provided the training 
                                services, and by whether such 
                                participants completed the training 
                                services, during the most recent 
                                program year and the 3 preceding 
                                program years;
                                    ``(III) the average cost per 
                                participant for the participants who 
                                received training services, 
                                disaggregated by the type of entity 
                                that provided the training, during the 
                                most recent program year and the 3 
                                preceding program years;
                                    ``(IV) the average of the per-
                                program ratios of median earnings 
                                increase for a participant to the total 
                                cost of the provider's program, as 
                                described in section 
                                122(b)(5)(B)(i)(III) for the 
                                participant; and
                                    ``(V) the number of individuals 
                                with barriers to employment served by 
                                each adult and dislocated worker 
                                program authorized under chapter 3 of 
                                subtitle B, disaggregated by each 
                                subpopulation of such individuals, and 
                                by race, ethnicity, sex, and age; and
                            ``(iii) to the extent practicable, with 
                        respect to each recognized postsecondary 
                        credential on the list of credentials awarded 
                        by eligible providers in the State described in 
                        section 122(d)(2)--
                                    ``(I) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                for all participants in the State 
                                receiving such credential; and
                                    ``(II) information specifying the 
                                levels of performance achieved with 
                                respect to the primary indicators of 
                                performance described in subclauses (I) 
                                through (IV) of subsection (b)(2)(A)(i) 
                                for participants in the State receiving 
                                such credential who are individuals 
                                with barriers to employment, 
                                disaggregated by each subpopulation of 
                                such individuals, and by race, 
                                ethnicity, sex, and age.''; and
            (5) in paragraph (6)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) State performance reports.--The Secretary of 
                Labor shall annually make available the performance 
                reports for States containing the information described 
                in paragraph (2), which shall include making such 
                reports available--
                            ``(i) digitally using transparent, linked, 
                        open, machine readable, and interoperable data 
                        formats that are human readable and machine 
                        actionable such that the data from these 
                        reports--
                                    ``(I) are easily understandable; 
                                and
                                    ``(II) can be easily included in 
                                web-based tools and services supporting 
                                search, discovery, comparison, 
                                analysis, navigation, and guidance;
                            ``(ii) in a printable format; and
                            ``(iii) in multiple languages, to the 
                        extent practicable.'';
                    (B) in subparagraph (B)--
                            (i) by striking ``(including by electronic 
                        means), in an easily understandable format,''; 
                        and
                            (ii) by adding at the end the following: 
                        ``The Secretary of Labor shall include, on the 
                        website where the State performance reports are 
                        required under subparagraph (A) to be made 
                        available, a link to local area performance 
                        reports and the eligible provider of training 
                        services report for each State. Such reports 
                        shall be made available in each of the formats 
                        described in subparagraph (A).''; and
                    (C) by adding at the end the following:
                    ``(E) Rule of construction.--Nothing in this 
                subsection shall be construed to require the 
                retroactive collection of information, from program 
                years prior to the effective date described in section 
                502(a)(1) of the A Stronger Workforce for America Act 
                of 2026, that was not required under this subsection 
                prior to that effective date.''.
    (c) Evaluation of State Programs.--Section 116(e) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3141(e)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``shall 
                conduct ongoing'' and inserting ``shall use data to 
                conduct analyses and ongoing''; and
                    (B) in the second sentence, by striking ``conduct 
                the'' and inserting ``conduct such analyses and''; and
            (2) in paragraph (2), by adding ``A State may use various 
        forms of analysis, such as machine learning or other advanced 
        analytics, to improve program operations and outcomes and to 
        identify areas for further evaluation.'' at the end.
    (d) Sanctions for State Failure To Meet State Performance 
Accountability Measures.--Section 116(f) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3141(f)) is amended to read as follows:
    ``(f) Sanctions for State Failure To Meet State Performance 
Accountability Measures.--
            ``(1) Targeted support and assistance.--
                    ``(A) In general.--If a State fails to meet 80 
                percent of the State adjusted level of performance for 
                an indicator described in subsection (b)(2)(A) 
                (referred to in the regulations carrying out this 
                section as an `individual indicator score') for a core 
                program for any program year, the Secretary of Labor 
                shall provide technical assistance.
                    ``(B) Sanctions.--
                            ``(i) In general.--If the State fails in 
                        the manner described in subclause (I) or (II) 
                        of clause (ii) with respect to the program year 
                        specified in that subclause, the percentage of 
                        each amount that could (in the absence of this 
                        subsection) be reserved by the Governor under 
                        section 128(a)(1) for the immediately 
                        succeeding program year shall be reduced by 5 
                        percent and an amount equivalent to the amount 
                        reduced shall be returned to the Secretary of 
                        Labor until such date as the Secretary of Labor 
                        determines that the State meets the State 
                        adjusted level of performance, in the case of a 
                        failure described in clause (ii)(II), or has 
                        submitted the reports for the appropriate 
                        program years, in the case of a failure 
                        described in clause (ii)(I).
                            ``(ii) Failures.--A State shall be subject 
                        to clause (i)--
                                    ``(I) if (except in the case of 
                                exceptional circumstances as determined 
                                by the Secretary of Labor), such State 
                                fails to submit a report under 
                                subsection (d) for any program year; or
                                    ``(II) for a failure under 
                                subparagraph (A) that has continued for 
                                a second consecutive program year.
            ``(2) Comprehensive support and assistance.--
                    ``(A) In general.--If a State fails to meet an 
                average of 90 percent of the State adjusted levels of 
                performance for a single core program across all 
                indicators of performance (referred to in the 
                regulations carrying out this section as an `overall 
                State program score') for any program year, or if a 
                State fails to meet an average of 90 percent of the 
                State adjusted levels of performance for a single 
                indicator of performance across all core programs 
                (referred to in the regulations carrying out this 
                section as an `overall State indicator score') for any 
                program year, the Secretary of Labor shall provide 
                technical assistance, as described and authorized under 
                section 168(b), including assistance in the development 
                of a comprehensive performance improvement plan.
                    ``(B) Second consecutive year failure.--If such 
                failure under subparagraph (A) continues for a second 
                consecutive program year, the percentage of each amount 
                that could (in the absence of this subsection) be 
                reserved by the Governor under section 128(a)(1) for 
                the immediately succeeding program year shall be 
                reduced by 8 percent and an amount equivalent to the 
                amount reduced shall be returned to the Secretary of 
                Labor until such date as the Secretary of Labor 
                determines that the State meets such State adjusted 
                levels of performance.
            ``(3) Limitation.--The total reduction under this 
        subsection to the percentage of each amount that could (in the 
        absence of this subsection) be reserved by the Governor under 
        section 128(a)(1) may not exceed 10 percent for a program year.
            ``(4) Reallotment of reductions.--
                    ``(A) In general.--The amounts available for 
                reallotment for a program year shall be reallotted to a 
                State (in this paragraph referred to as an `eligible 
                State') that--
                            ``(i) was not subject to a reduction of 
                        funds under paragraph (1)(B) or paragraph 
                        (2)(B) of this subsection for such program 
                        year;
                            ``(ii) in the case of amounts available 
                        under section 127(b)(1)(C), was 1 of the 5 
                        States that achieved, in the most recent 
                        program year, the greatest increase from the 
                        prior year to the average of the State's 
                        adjusted levels of performance across all 
                        indicators of performance for the youth program 
                        under chapter 2 of subtitle B;
                            ``(iii) in the case of amounts available 
                        under section 132(b)(1)(B), was 1 of the 5 
                        States that achieved, in the most recent 
                        program year, the greatest increase from the 
                        prior year to the average of the State's 
                        adjusted levels of performance across all 
                        indicators of performance for the adult program 
                        under chapter 3 of subtitle B; and
                            ``(iv) in the case of amounts available 
                        under section 132(b)(2)(B), was 1 of the 5 
                        States that achieved, in the most recent 
                        program year, the greatest increase from the 
                        prior year to the average of the State's 
                        adjusted levels of performance across all 
                        indicators of performance for the dislocated 
                        worker program under chapter 3 of subtitle B.
                    ``(B) Amounts available for reallotment.--In this 
                paragraph, the term `amounts available for reallotment 
                for a program year' means the amounts available under 
                section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) 
                of section 132(b) for such program year which could (in 
                the absence of the requirements to return funds of 
                paragraph (1)(B) or paragraph (2)(B) of this 
                subsection) have otherwise been reserved under section 
                128(a)(1) by a Governor of a State for such program 
                year.
                    ``(C) Reallotment amounts.--In making reallotments 
                under subparagraph (A) for a program year to eligible 
                States, the Secretary shall allot to each eligible 
                State--
                            ``(i) in the case of amounts available 
                        under section 127(b)(1)(C), an amount based on 
                        the relative amount of the allotment made 
                        (before the reallotments under this paragraph 
                        are made) to such eligible State under section 
                        127(b)(1)(C) for such program year, compared to 
                        the total allotments made (before the 
                        reallotments under this paragraph are made) to 
                        all eligible States under section 127(b)(1)(C) 
                        for such program year;
                            ``(ii) in the case of amounts available 
                        under paragraph (1)(B) of section 132(b), an 
                        amount based on the relative amount of the 
                        allotment made (before the reallotments under 
                        this paragraph are made) to such eligible State 
                        under paragraph (1)(B) of section 132(b) for 
                        such program year, compared to the total 
                        allotments made (before the reallotments under 
                        this paragraph are made) to all eligible States 
                        under paragraph (1)(B) of section 132(b) for 
                        such program year; and
                            ``(iii) in the case of amounts available 
                        under paragraph (2)(B) of section 132(b), an 
                        amount based on the relative amount of the 
                        allotment made (before the reallotments under 
                        this paragraph are made) to such eligible State 
                        under paragraph (2)(B) of section 132(b) for 
                        such program year, compared to the total 
                        allotments made (before the reallotments under 
                        this paragraph are made) to all eligible States 
                        under paragraph (2)(B) of section 132(b) for 
                        such program year.''.
    (e) Sanctions for Local Area Failure To Meet Local Performance 
Accountability Measures.--Section 116(g) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3141(g)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``80 percent of the'' before 
                ``local performance''; and
                    (B) by striking ``local performance accountability 
                measures established under subsection (c)'' and 
                inserting ``local level of performance established 
                under subsection (c) for an indicator of performance 
                described in subsection (b)(2)(A) for a single program, 
                an average of 90 percent of the local levels of 
                performance across all such indicators for a single 
                program, or an average of 90 percent of the local 
                levels of performance for a single such indicator 
                across all programs,''; and
            (2) in paragraph (2)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--If such failure continues, the 
                Governor shall take corrective actions, which shall 
                include--
                            ``(i) in the case of such failure, as 
                        described in paragraph (1), for a second 
                        consecutive year, on any single indicator, 
                        across indicators for a single program, or on a 
                        single indicator across programs, a 5-percent 
                        reduction in the amount that would (in the 
                        absence of this clause) be allocated to the 
                        local area for the immediately succeeding 
                        program year under chapter 2 or 3 of subtitle B 
                        for the program subject to the performance 
                        failure;
                            ``(ii) in the case of such failure, as 
                        described in paragraph (1), for a third 
                        consecutive year, the development of a 
                        reorganization plan through which the Governor 
                        shall--
                                    ``(I) require the appointment and 
                                certification of a new local board, 
                                consistent with the criteria 
                                established under section 107(b);
                                    ``(II) prohibit the use of one-stop 
                                delivery system contractors or service 
                                providers identified as achieving a 
                                poor level of performance; and
                                    ``(III) redesignate a local area 
                                (which may include merging a local area 
                                with another local area), if the 
                                Governor determines that the likely 
                                cause of such continued performance 
                                failure of a local area is due to such 
                                local area's designation being granted 
                                without the appropriate consideration 
                                of parameters described under section 
                                106(b)(1)(B); or
                            ``(iii) taking another significant action 
                        determined appropriate by the Governor.'';
                    (B) in subparagraph (B)(i), by inserting ``(ii)'' 
                after ``subparagraph (A)''; and
                    (C) by adding at the end the following:
                    ``(D) Reallocation of reductions.--With respect to 
                any amounts available to carry out section 128(b), 
                paragraph (2)(A) or (3) of section 133(b), and section 
                133(b)(2)(B) to a Governor for a program year which 
                would (in the absence of subparagraph (A)(i)) have 
                otherwise been allocated by such Governor to a local 
                area (referred to individually in this subparagraph as 
                an `unallocated amount') for such program year--
                            ``(i) 10 percent of those 3 unallocated 
                        amounts shall be reserved by the Governor to 
                        provide technical assistance to local areas 
                        within the State that were subject to a 
                        reduction of allocation amounts pursuant to 
                        subparagraph (A)(i) for such program year; and
                            ``(ii) the amounts remaining after the 
                        reservations under clause (i) shall be 
                        reallocated by the Governor, to the local areas 
                        within the State that were not subject to a 
                        reduction of allocation amounts pursuant to 
                        subparagraph (A)(i) for such program year, in a 
                        manner determined by the Governor, which may 
                        take into consideration the extent to which 
                        local areas serve a significant number, as 
                        determined by the Governor, of individuals with 
                        barriers to employment.''.
    (f) Establishing Pay-for-Performance Contract Strategy 
Incentives.--Section 116(h) of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3141(h)) is amended by striking ``non-Federal funds'' 
and inserting ``not more than 5 percent of the funds reserved under 
section 128(a)(1)''.
    (g) Information and Technical Assistance.--Section 116 of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3141) is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following:
    ``(i) Information and Technical Assistance.--Beginning not later 
than 12 months after the date of enactment of the A Stronger Workforce 
for America Act of 2026, the Secretary of Labor shall hold meetings 
with each State board and State agency that administers a core program, 
and that requests such a meeting, to provide information and technical 
assistance concerning the performance accountability measures 
established in accordance with subsection (b), and related requirements 
for States under this section.''.
    (h) Fiscal and Management Accountability Information Systems.--
Section 116(j) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3141(j)), as so redesignated, is amended--
            (1) in the first sentence of paragraph (2), by inserting 
        ``, and may use 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))'' after ``State 
        law'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following:
            ``(3) Designated entity.--The Governor shall designate a 
        State agency (or appropriate State entity) to assist in 
        carrying out the performance reporting requirements of this 
        section for core programs and eligible providers of training 
        services. The designated State agency (or appropriate State 
        entity) shall be responsible for--
                    ``(A) facilitating data matches using quarterly 
                wage record information, including wage record 
                information made available by other States, to measure 
                employment and earnings outcomes;
                    ``(B) notifying State agencies that administer core 
                programs and eligible providers of training services of 
                the State's procedures for data validation and 
                reliability, as described in subsection (d)(5); and
                    ``(C) protection against disaggregation that would 
                violate applicable privacy standards, as described in 
                subsection (d)(6)(C).''.
    (i) Implementation of Performance Accountability Measures.--Section 
116 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141) is 
amended by adding at the end the following:
    ``(k) Implementation of Performance Accountability Measures.--Not 
later than 24 months after the date of enactment of the A Stronger 
Workforce for America Act of 2026, the Secretary of Labor shall fully 
implement the requirements of this section for programs described in 
subsection (b)(3)(A)(iv), including--
            ``(1) developing and disseminating the objective 
        statistical adjustment model framework described in subsection 
        (b)(3)(A)(viii) and using the model as described in subsection 
        (b)(3)(A)(viii) for each program; and
            ``(2) notifying the State agencies carrying out such 
        programs of the performance accountability measures established 
        under this section, of the reporting and evaluation 
        requirements for such programs, and of the sanctions 
        requirements for programs that fail to meet State adjusted 
        levels of performance under subsection (b)(3)(A)(iv).''.

       Subtitle C--Workforce Investment Activities and Providers

        CHAPTER 1--WORKFORCE INVESTMENT ACTIVITIES AND PROVIDERS

SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.

    (a) One-Stop Partners.--Section 121(b) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3151(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) in clause (xi), by inserting ``and'' at 
                        the end;
                            (ii) by striking clause (xii); and
                            (iii) by redesignating clause (xiii) as 
                        clause (xii); and
                    (B) in subparagraph (C), by striking ``subparagraph 
                (B)(xiii)'' and inserting ``subparagraph (B)(xii)''; 
                and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``With'' and 
                inserting ``At the direction of the Governor or with''; 
                and
                    (B) in subparagraph (B)--
                            (i) in clause (vi), by striking ``and'' at 
                        the end;
                            (ii) by redesignating clause (vii) as 
                        clause (viii);
                            (iii) by inserting after clause (vi) the 
                        following:
                            ``(vii) any applicable economic development 
                        and workforce development programs carried out 
                        in the State--
                                    ``(I) by the Economic Development 
                                Administration;
                                    ``(II) under Public Law 117-167 
                                (commonly known as the `CHIPS and 
                                Science Act of 2022');
                                    ``(III) under the Infrastructure 
                                Investment and Jobs Act (Public Law 
                                117-58); or
                                    ``(IV) under Public Law 117-168 
                                (commonly known as the `Inflation 
                                Reduction Act of 2022'); and''; and
                            (iv) in clause (viii), as so redesignated--
                                    (I) by inserting ``out-of-school 
                                youth services,'' after ``education,''; 
                                and
                                    (II) by inserting ``, by community-
                                based organizations,'' after 
                                ``libraries''.
    (b) Memorandum of Understanding.--Section 121(c)(2)(A)(iv) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3151(c)(2)(A)(iv)) 
is amended by striking ``access to services, including access to 
technology and materials, made'' and inserting ``access or referral to 
services, including access or referral to technology, materials, and 
other supportive services, made''.
    (c) One-Stop Operators.--Section 121(d) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3151(d)) is amended--
            (1) in paragraph (1), by striking ``paragraphs (2) and 
        (3)'' and inserting ``paragraphs (2) and (5)'';
            (2) in paragraph (2)(B)--
                    (A) in the matter preceding clause (i), by 
                inserting ``(including effectiveness in serving 
                individuals with barriers to employment)'' after 
                ``demonstrated effectiveness'';
                    (B) in clause (i), by inserting after ``education'' 
                the following: ``or an area career and technical 
                education school'';
                    (C) in clause (v), by striking ``and'';
                    (D) by redesignating clause (vi) as clause (viii);
                    (E) by inserting after clause (v) the following:
                            ``(vi) a public library;
                            ``(vii) a local board that meets the 
                        requirements of paragraph (4); and''; and
                    (F) in clause (viii), as so redesignated, by 
                inserting after ``labor organization'' the following: 
                ``or joint labor-management organization'';
            (3) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and (6), respectively; and
            (4) by inserting after paragraph (2) the following:
            ``(3) Responsibilities.--
                    ``(A) In general.--In operating a one-stop delivery 
                system referred to in subsection (e), a one-stop 
                operator--
                            ``(i) shall--
                                    ``(I) manage operations of the one-
                                stop delivery system in the local area;
                                    ``(II) facilitate coordination 
                                among the one-stop partners in such 
                                one-stop delivery system; and
                                    ``(III) take the necessary steps to 
                                ensure efficient and effective service 
                                delivery for individuals served by the 
                                one-stop delivery system, including 
                                individuals with barriers to 
                                employment; and
                            ``(ii) may, subject to the requirements 
                        under subparagraph (B), directly provide 
                        services to job seekers and employers.
                    ``(B) Internal controls.--In a case in which a one-
                stop operator seeks to operate as a service provider 
                pursuant to subparagraph (A)(ii), the local board shall 
                establish internal controls (which shall include 
                written policies and procedures)--
                            ``(i) with respect to the competition in 
                        which the one-stop operator will compete to be 
                        selected as such service provider, and the 
                        subsequent oversight, monitoring, and 
                        evaluation of the performance of such one-stop 
                        operator as such service provider; and
                            ``(ii) which require compliance with--
                                    ``(I) relevant Office of Management 
                                and Budget circulars relating to 
                                conflicts of interest; and
                                    ``(II) any applicable State 
                                conflict of interest policy.
            ``(4) Local boards as one-stop operators.--Subject to 
        approval from the chief elected official and Governor and in 
        accordance with any other eligibility criteria established by 
        the State, a local board may serve as a one-stop operator, if 
        the local board--
                    ``(A) enters into a written agreement with the 
                chief elected official that clarifies how the local 
                board will carry out the functions and responsibilities 
                as a one-stop operator in a manner that complies with 
                the appropriate internal controls to prevent any 
                conflicts of interest, which shall include how the 
                local board, while serving as a one-stop operator, 
                will--
                            ``(i) comply with the relevant Office of 
                        Management and Budget circulars relating to 
                        conflicts of interest; and
                            ``(ii) any applicable State conflict of 
                        interest policy; and
                    ``(B) complies with the other applicable 
                requirements of this subsection.''.
    (d) One-Stop Delivery.--Section 121(e) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3151(e)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), to read as follows:
                    ``(A) shall make each of the programs, services 
                (meaning a referral in the case of supportive services, 
                for the purposes of this paragraph), and activities 
                described in paragraph (1) available--
                            ``(i) at not less than 1 physical or 
                        virtual center for each local area of the 
                        State, except that local areas may share--
                                    ``(I) a virtual center, if the 
                                local area complies with subparagraph 
                                (E); or
                                    ``(II) a physical center, if such 
                                center is located in a location that 
                                promotes accessibility to services for 
                                individuals residing in all such local 
                                areas served by the center; and
                            ``(ii) in a manner that is designed to 
                        promote efficiency, coordination, quality, and 
                        accessibility for individuals with barriers to 
                        employment, as determined by the local board, 
                        in the delivery of such programs, services, and 
                        activities;'';
                    (B) in subparagraph (B)(i), by inserting after 
                ``affiliated sites'' the following: ``(such as a site 
                of any of the entities described in subsection 
                (d)(2)(B))'';
                    (C) in subparagraph (C)--
                            (i) by inserting after ``centers'' the 
                        following: ``(which may be virtual or physical 
                        centers)''; and
                            (ii) by striking ``and'' at the end;
                    (D) in subparagraph (D)--
                            (i) by striking ``as applicable and 
                        practicable, shall'' and inserting ``in the 
                        case of a one-stop delivery system that is 
                        making each of the programs, services, and 
                        activities described in paragraph (1) 
                        accessible at not less than 1 physical center, 
                        as described in subparagraph (A)(i), shall, in 
                        accordance with the regulations issued pursuant 
                        to paragraph (5),''; and
                            (ii) by striking the period at the end and 
                        inserting ``, and local areas that share at 
                        least 1 common border may coordinate in making 
                        such programs, services, and activities 
                        accessible through electronic means through 
                        such a one-stop delivery system; and''; and
                    (E) by inserting after subparagraph (D) the 
                following:
                    ``(E) in the case of a one-stop delivery system 
                that is making each of the programs, services, and 
                activities accessible through electronic means, as 
                described in subparagraph (A)(i), shall--
                            ``(i) have not fewer than 2 affiliated 
                        sites (not fewer than 1 of which will have not 
                        fewer than 1 professional staff member) with a 
                        physical location where individuals can access, 
                        virtually, each of the programs, services, and 
                        activities described in paragraph (1) that are 
                        virtually accessible; and
                            ``(ii) comply with the regulations issued 
                        pursuant to paragraph (5).'';
            (2) in paragraph (4), by inserting after the first sentence 
        the following: ``The system identifier shall be prominently and 
        visibly displayed at each comprehensive and specialized one-
        stop center operated by the one-stop delivery system, including 
        physical and virtual centers identified in paragraph (2)(A), 
        and the sites and centers described in subparagraphs (B) 
        through (E) of paragraph (2).''; and
            (3) by adding at the end the following:
            ``(5) Minimum digital functionality regulations.--The 
        Secretary shall issue regulations to establish minimum digital 
        functionality requirements with respect to the one-stop 
        delivery system.''.
    (e) Certification and Improvement Criteria.--Section 121(g)(2)(A) 
of the Workforce Innovation and Opportunity Act (29 U.S.C. 
3151(g)(2)(A)) is amended by striking ``under subsections (h)(1)'' and 
inserting ``under subsections (h)(1)(C)''.
    (f) Funding of One-Stop Infrastructure.--Section 121(h) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3151(h)) is 
amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively;
            (3) in paragraph (1), as so redesignated--
                    (A) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Partner contributions.--Subject to 
                subparagraph (D), the covered portions of funding for a 
                fiscal year shall be provided to the Governor from the 
                programs described in subsection (b)(1) to pay the 
                costs of infrastructure of one-stop centers in local 
                areas of the State.'';
                    (B) in subparagraph (C)(i)--
                            (i) by striking ``for funding pursuant to 
                        clause (i)(II) or (ii) of paragraph (1)(A) by 
                        each partner,''; and
                            (ii) by striking the third sentence; and
                    (C) in subparagraph (D)--
                            (i) in clause (ii), by striking ``For local 
                        areas in a State that are not covered by 
                        paragraph (1)(A)(i)(I), the'' and inserting 
                        ``The'';
                            (ii) in clause (ii)--
                                    (I) in subclause (I)--
                                            (aa) by striking ``Wia'' in 
                                        the header and inserting 
                                        ``Wioa''; and
                                            (bb) by striking ``3 
                                        percent'' and inserting ``5 
                                        percent''; and
                                    (II) by striking subclause (III) 
                                and inserting the following:
                                    ``(III) Vocational 
                                rehabilitation.--Notwithstanding 
                                subclauses (I) and (II), an entity 
                                administering a program described in 
                                subsection (b)(1)(B)(iii) shall not be 
                                required to provide from that program, 
                                under this paragraph, a portion that 
                                exceeds 1.5 percent of the amount of 
                                Federal funds provided to carry out 
                                such program in the State for a program 
                                year.''; and
                            (iii) in clause (iii), by striking ``For 
                        local areas in a State that are not covered by 
                        paragraph (1)(A)(i)(I), an'' and inserting 
                        ``An'';
            (4) in paragraph (2), as so redesignated--
                    (A) in subparagraph (A), by striking ``purposes of 
                assisting in'' and inserting ``purpose of''; and
                    (B) in subparagraph (B)--
                            (i) in the first sentence, by striking 
                        ``not funding costs of infrastructure under the 
                        option described in paragraph (1)(A)(i)(I)''; 
                        and
                            (ii) in the second sentence, by inserting 
                        after ``local area,'' the following: ``the 
                        intensity of services provided by such centers, 
                        the number and types of one-stop partners 
                        engaged by or providing services through such 
                        centers'';
            (5) by inserting after paragraph (2), as so redesignated, 
        the following:
            ``(3) Supplemental infrastructure funding.--For any fiscal 
        year in which the allocation received by a local area under 
        paragraph (2) is insufficient to cover the total costs of 
        infrastructure of one-stop centers in such local area, the 
        local board, the chief elected official, and the one-stop 
        partners that have entered into the local memorandum of 
        understanding with the local board under subsection (c) may 
        agree to fund, using Federal or other funds, the remainder of 
        any such costs using a method described in such memorandum.''; 
        and
            (6) in paragraph (4), by inserting after ``operation of the 
        one-stop center'' the following: ``(whether for in-person or 
        virtual service delivery)''.
    (g) Other Funds.--Section 121(i)(2) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3151(i)(2)) is amended by striking 
``intake,'' and all that follows through ``skills,'' and inserting 
``intake, case management, assessment of needs, appraisal of 
foundational skill needs,''.

SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

    (a) In General.--Section 122 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3152) is amended--
            (1) by redesignating subsections (f) through (i) as 
        subsections (g) through (j), respectively;
            (2) by striking the section heading and all that follows 
        through subsection (e) and inserting the following:

``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

    ``(a) Eligibility.--
            ``(1) In general.--Except as provided in subsection (i), 
        the Governor, after consultation with the State board and 
        considering the State's adjusted levels of performance 
        described in section 116(b)(3)(A)(iv), shall establish--
                    ``(A) procedures regarding the eligibility of 
                providers of training services to receive funds 
                provided under section 133(b) for the provision of 
                training services through programs with eligibility 
                under this section (in this section referred to as 
                `eligible programs') in local areas in the State; and
                    ``(B) the minimum levels of performance on the 
                criteria for a program to receive such eligibility.
            ``(2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive those funds for the 
        provision of training services, the provider shall be--
                    ``(A) an institution of higher education that 
                provides a program that leads to a recognized 
                postsecondary credential;
                    ``(B) an entity that carries out programs 
                registered under the Act of August 16, 1937 (commonly 
                known as the `National Apprenticeship Act'; 50 Stat. 
                664, chapter 663; 29 U.S.C. 50 et seq.); or
                    ``(C) another public or private provider of a 
                program of training services, which may include joint 
                labor-management organizations, providers of 
                entrepreneurial skills development programs, industry 
                or sector partnerships, groups of employers, trade or 
                professional associations, and eligible providers of 
                adult education and literacy activities under title II 
                (if such activities are provided in combination with 
                occupational skills training or integrated education 
                and training programs).
            ``(3) Inclusion in list of eligible providers.--
                    ``(A) Compliance with additional criteria, 
                information requirements and procedures.--A provider 
                described in subparagraph (A) or (C) of paragraph (2) 
                (other than a provider described in subparagraph 
                (B)(ii) of this paragraph) shall comply with the 
                criteria, information requirements, and procedures 
                established under this section to be included on the 
                list of eligible providers of training services 
                described in subsection (d).
                    ``(B) Automatic inclusion.--
                            ``(i) Providers of registered 
                        apprenticeship programs.--A provider described 
                        in paragraph (2)(B) shall be included and 
                        maintained on the list of eligible providers of 
                        training services described in subsection (d) 
                        for so long as the corresponding program of the 
                        provider remains registered as described in 
                        paragraph (2)(B).
                            ``(ii) Providers of workforce pell 
                        programs.--With respect to a provider described 
                        in paragraph (2)(A) that provides an eligible 
                        program for purposes of the Workforce Pell 
                        Grant program under section 401(k) of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1070a(k)), as added by section 83002(a) of 
                        Public Law 119-21, such provider shall be 
                        included and maintained on the list of eligible 
                        providers of training services described in 
                        subsection (d) for so long as the provider 
                        provides such eligible program.
    ``(b) Criteria and Information Requirements.--
            ``(1) General criteria for programs.--Each provider shall 
        demonstrate to the Governor that the program for which the 
        provider is seeking eligibility under this section--
                    ``(A) prepares participants to meet the hiring 
                requirements of potential employers in the State, or a 
                local area within the State, for employment that--
                            ``(i) is high-skill and high-wage; or
                            ``(ii) is in an in-demand industry sector 
                        or occupation;
                    ``(B) leads to a recognized postsecondary 
                credential;
                    ``(C) has been offered by the provider for not less 
                than 1 year; and
                    ``(D) meets the performance requirements for 
                eligibility described in paragraph (2).
            ``(2) Performance criteria for eligibility.--
                    ``(A) In general.--The Governor shall--
                            ``(i) establish and publicize minimum 
                        levels of performance for each of the criteria 
                        listed in subparagraph (B) that a program 
                        offered by a provider of training services 
                        shall achieve, for all participants in the 
                        program (including participants for whom the 
                        provider receives payments under this title) 
                        for the program to receive and maintain 
                        eligibility under this section;
                            ``(ii) verify the performance achieved by 
                        such a program with respect to each such 
                        criterion to determine whether the program 
                        meets the corresponding minimum level of 
                        performance established under clause (i)--
                                    ``(I) in the case of the criteria 
                                described in (ii) through (iv) of 
                                subparagraph (B), using State 
                                administrative data (such as quarterly 
                                wage records); and
                                    ``(II) in the case of the criteria 
                                described in subparagraph (B)(i), using 
                                any applicable method for such 
                                verification; and
                            ``(iii) in verifying the performance 
                        achievement of a program to make such 
                        determination, verify that such program 
                        included a sufficient number of program 
                        participants to protect participants' 
                        personally identifiable information, and to 
                        provide information that is a reliable 
                        indicator of performance achievement.
                    ``(B) Performance criteria.--The performance 
                criteria to receive and maintain eligibility for a 
                program under this section are each of the following:
                            ``(i) The credential attainment rate of 
                        program participants (calculated as the 
                        percentage of program participants who obtain 
                        the recognized postsecondary credential that 
                        the program prepares participants to earn 
                        within 6 months after exit from the program).
                            ``(ii) The job placement rate of program 
                        participants (calculated as the percentage of 
                        program participants in unsubsidized employment 
                        during the second quarter after exit from the 
                        program).
                            ``(iii) The median earnings of program 
                        participants who are in unsubsidized employment 
                        during the second quarter after exit from the 
                        program.
                            ``(iv) The ratio of median earnings 
                        increase to the total cost of program, 
                        calculated as the ratio of--
                                    ``(I) the median value of the 
                                difference between--
                                            ``(aa) participant wages 
                                        from unsubsidized employment 
                                        during the second quarter after 
                                        program exit; and
                                            ``(bb) participant wages 
                                        during the quarter prior to 
                                        entering the program; to
                                    ``(II) the total cost of the 
                                program (as described in paragraph 
                                (5)(B)(i)(III)).
                    ``(C) Local criteria.--With respect to any program 
                receiving eligibility under this section from a 
                Governor, a local board in the State may require higher 
                levels of performance than the minimum levels of 
                performance established by the Governor under this 
                paragraph for the program to be an eligible program in 
                the corresponding local area, but may not--
                            ``(i) require any information or 
                        application from the provider that is not 
                        required for such eligibility; or
                            ``(ii) establish a performance requirement 
                        with respect to any criterion not listed in 
                        subparagraph (B).
            ``(3) Employer-sponsored or industry or sector partnership 
        designation.--
                    ``(A) In general.--The Governor shall establish 
                procedures and criteria for a provider to demonstrate 
                that a program meets, in applying for an employer-
                sponsored designation for a program that has received 
                eligibility under this subsection, which shall include 
                demonstrating a commitment from an employer or an 
                industry or sector partnership to--
                            ``(i) pay to the provider, on behalf of 
                        each participant enrolled in such program under 
                        this Act, not less than 25 percent of the total 
                        cost of the program (as described in paragraph 
                        (5)(B)(i)(III)), which shall be provided in 
                        lieu of 25 percent of the amount that the 
                        provider would have otherwise received under 
                        section 133(b) for the provision of training 
                        services by such program to such participant; 
                        and
                            ``(ii) guarantee an interview and 
                        meaningful consideration for a job with the 
                        employer, or in the case of an industry or 
                        sector partnership, an employer within such 
                        partnership, for each such participant that 
                        successfully completes the program.
                    ``(B) Restriction on financial arrangement.--A 
                provider of a program receiving an employer-sponsored 
                designation under this paragraph may not--
                            ``(i) have an ownership stake in the 
                        employer or industry or sector partnership 
                        making a commitment described in subparagraph 
                        (A); or
                            ``(ii) enter into an arrangement to 
                        reimburse an employer or partnership for the 
                        costs of a participant paid by such employer or 
                        partnership under this paragraph.
            ``(4) Workforce innovation leader designation.--
                    ``(A) In general.--If the Governor determines that 
                a program offered by an eligible provider meets the 
                minimum levels of performance described in subparagraph 
                (B) to receive a Workforce Innovation Leader (or WIL) 
                designation, which designates the program as a WIL 
                program, the Governor shall grant the program 
                designation as a WIL program and inform the provider of 
                such program of their ability to display the WIL seal, 
                as described in subparagraph (C), in marketing 
                materials.
                    ``(B) Levels.--A eligible program shall meet the 
                levels of performance to receive a WIL designation if 
                such program has achieved--
                            ``(i) a credential attainment rate of 
                        program participants (calculated as the 
                        percentage of program participants who obtain 
                        the recognized postsecondary credential that 
                        the program prepares participants to earn 
                        within 6 months after exit from the program) of 
                        not less than 80 percent;
                            ``(ii) a job placement rate of program 
                        participants (calculated as the percentage of 
                        program participants in unsubsidized employment 
                        during the second quarter after exit from the 
                        program) of not less than 70 percent;
                            ``(iii) median earnings of program 
                        participants who are in unsubsidized employment 
                        during the second quarter after exit from the 
                        program that are not less than 25 percent 
                        greater than the State-level median earnings of 
                        individuals ages 25 through 34 in the labor 
                        force who have only a regular high school 
                        diploma or its recognized equivalent; and
                            ``(iv) a ratio of greater than 1.5 of 
                        median earnings increase to the total cost of 
                        program, calculated as the ratio of--
                                    ``(I) the median value of the 
                                difference between--
                                            ``(aa) participant wages 
                                        from unsubsidized employment 
                                        during the second quarter after 
                                        program exit; and
                                            ``(bb) participant wages 
                                        during the quarter prior to 
                                        entering the program; to
                                    ``(II) the total cost of the 
                                program (as described in paragraph 
                                (5)(B)(i)(III)).
                    ``(C) WIL seal.--Not later than 2 years after the 
                date of enactment of the A Stronger Workforce for 
                America Act of 2026, the Secretary shall design a seal 
                signifying that a program has achieved a WIL 
                designation, for the Governor of each State to provide 
                to any programs in their State that achieve the 
                performance necessary to receive a WIL designation.
                    ``(D) Loss of wil designation.--If, during the 
                annual review of eligibility described in subsection 
                (c)(3), the Governor determines that a WIL program no 
                longer meets the levels described in subparagraph (B) 
                or otherwise has eligibility under this section revoked 
                or terminated, or the provider of the program has 
                eligibility terminated under subsection (g)(1)(A), the 
                Governor shall revoke the program's WIL designation and 
                inform the provider of such program that such provider 
                may no longer display the WIL seal in marketing 
                materials or otherwise.
            ``(5) Information requirements.--A provider that seeks to 
        establish eligibility under this section, and an eligible 
        provider, shall submit appropriate, accurate, and timely 
        information to the Governor, to enable the Governor to carry 
        out subsection (d), with respect to all participants in each 
        eligible program (including participants for whom the provider 
        receives payments under this title) offered by the provider, 
        which information shall--
                    ``(A) be made available by the State in a common, 
                linked, open, and interoperable data format; and
                    ``(B) consist of--
                            ``(i) information on--
                                    ``(I) in the case of an eligible 
                                provider offering a program who is 
                                seeking to maintain eligibility, the 
                                performance of the program with respect 
                                to the indicators described in section 
                                116(b)(2)(A) for participants in the 
                                program;
                                    ``(II) the recognized postsecondary 
                                credentials received by such 
                                participants, including, in relation to 
                                each such credential, the issuing 
                                entity, any third-party endorsements, 
                                the occupations for which the 
                                credential prepares individuals, the 
                                competencies achieved by the 
                                individuals, the level of mastery of 
                                such competencies (including how 
                                mastery is assessed) achieved by the 
                                individuals, and any transfer value or 
                                stackability;
                                    ``(III) the total cost of the 
                                program, including the costs of the 
                                published tuition and fees, supplies, 
                                and books, and any other costs required 
                                by the provider, for a participant in 
                                the program;
                                    ``(IV) the percentage of such 
                                participants that complete the program 
                                within the expected time to completion; 
                                and
                                    ``(V) the program's level of 
                                performance on the criteria described 
                                in paragraph (2) and not otherwise 
                                included in clause (I) of this clause; 
                                and
                            ``(ii) with respect to employment and 
                        earnings measures described in subclauses (I) 
                        through (III) of section 116(b)(2)(A)(i) and 
                        the performance criteria described in 
                        subsection (b)(2) for such participants--
                                    ``(I) the necessary information for 
                                the State to develop program 
                                performance data using State 
                                administrative data (such as quarterly 
                                wage records); and
                                    ``(II) the necessary information to 
                                determine the percentage of such 
                                participants who entered unsubsidized 
                                employment in an occupation related to 
                                the program, to the extent practicable.
            ``(6) Eligible provider.--In this section, other than 
        subsection (i), a provider of an eligible program under this 
        section shall be considered to be identified as an eligible 
        provider of training services.
    ``(c) Procedures.--
            ``(1) Application procedures.--The procedures established 
        under subsection (a) shall identify the application process for 
        a provider of training services (for a program offered by the 
        provider) to become eligible to receive funds provided under 
        section 133(b) for the provision of training services. That 
        process shall be implemented in a manner that minimizes the 
        financial and administrative burden on the provider and shall 
        not require the submission of information in excess of the 
        information required to determine a program's eligibility under 
        paragraphs (1), (2), and (5) of subsection (b). The procedures 
        shall identify the respective roles of the State and local 
        areas in receiving and reviewing the applications and in making 
        determinations of such eligibility based on the criteria, 
        information requirements, and procedures established under this 
        section. The procedures shall also establish a process, for a 
        provider of training services to appeal a denial or revocation 
        or termination of eligibility under this section, that includes 
        an opportunity for a hearing and prescribes appropriate time 
        limits to ensure prompt resolution of the appeal.
            ``(2) Approval.--A Governor shall make a determination of 
        such eligibility with respect to a program for which the 
        provider is seeking eligibility under this section not later 
        than 30 days after receipt of an application submitted by such 
        provider consistent with the procedures in paragraph (1).
            ``(3) Renewal procedures.--The procedures established by 
        the Governor shall also provide for annual review and renewal 
        of eligibility under this section for a program of training 
        services that continues to meet the requirements under 
        paragraphs (1), (2), and (5) of subsection (b).
            ``(4) Revocation of eligibility.--The procedures 
        established under subsection (a) shall adhere to the following 
        requirements for revocation of eligibility by the Governor:
                    ``(A) Failure to provide required information.--
                With respect to a provider of training services that is 
                eligible under this section for a program year with 
                respect to an eligible program, but that does not 
                provide the information described in subsection (b)(5) 
                with respect to such program for such program year 
                (including information on performance necessary to 
                determine if the program meets the minimum levels of 
                performance on the performance criteria to maintain 
                eligibility), the provider shall be ineligible under 
                this section with respect to such program for the 
                program year after the program year for which the 
                provider fails to provide such information.
                    ``(B) Failure to meet performance criteria.--
                            ``(i) First year.--The provider of an 
                        eligible program that has received eligibility 
                        under subsection (c)(2) for a program year but 
                        fails to meet the minimum levels of performance 
                        on the performance criteria described in 
                        subsection (b)(2) for the most recent program 
                        year for which performance data on such 
                        criteria are available shall be notified of 
                        such failure by the Governor.
                            ``(ii) Second consecutive year.--A program 
                        that fails to meet the minimum levels of 
                        performance for a second consecutive program 
                        year shall be ineligible under this section 
                        with respect to such program for the program 
                        year following such second consecutive program 
                        year and until the program meets the minimum 
                        levels of performance.
                            ``(iii) Reapplication.--A provider that 
                        loses eligibility under this subparagraph with 
                        respect to a program may reapply to receive 
                        eligibility for the program according to the 
                        procedures described in this subparagraph if 
                        the program meets the minimum levels of 
                        performance described in clause (i), for the 
                        most recent program year for which performance 
                        data on the performance criteria are available.
                    ``(C) Repeated failure.--A program for which the 
                Governor revokes eligibility under subparagraph (A) or 
                (B)--
                            ``(i) 2 times shall be determined 
                        ineligible under this section by the Governor 
                        for a period of at least 2 years;
                            ``(ii) 3 times shall be determined 
                        ineligible under the section by the Governor 
                        for a period of at least 5 years; and
                            ``(iii) more than 3 times shall be 
                        determined ineligible under this section by the 
                        Governor for a period of at least 10 years.
            ``(5) Continuity of training services.--A provider of a 
        program for which the Governor revokes eligibility under 
        paragraph (4) shall--
                    ``(A) be prohibited from enrolling any new 
                participants whose participation would be funded under 
                section 133(b) in the program and from receiving any 
                payments from funds provided under section 133(b) for 
                any participants not already enrolled in the program on 
                the date of revocation or termination until and unless 
                the Governor determines that the provider has 
                demonstrated that the program offered by the provider 
                has met the requirements for the provider to gain the 
                opportunity to reapply for eligibility under the 
                procedure described in paragraph (4)(B)(iii); and
                    ``(B) enable each participant currently enrolled in 
                the program, on the date of the revocation or 
                termination, to complete such program.
            ``(6) Notification of program loss of eligibility.--The 
        local board serving participants whose participation is funded 
        under section 133(b) in a program for which eligibility is 
        revoked by the Governor under this subsection shall notify such 
        participants that such program no longer meets the State's 
        requirements for eligible providers of training services under 
        this Act and that the participant has the opportunity to 
        continue receiving training services from such program, in 
        order to complete the program.
            ``(7) Multistate providers.--The procedures established 
        under subsection (a) shall specify the process for any provider 
        of training services offering a program that is eligible under 
        this section in a first State to establish eligibility under 
        this section in an additional State, which shall, to the extent 
        practicable, minimize financial and administrative burdens on 
        any such provider by authorizing the provider to submit the 
        same application materials and information to the Governor of 
        the additional State that was accepted by the Governor granting 
        the provider's eligibility in the first State, as long as the 
        program meets the applicable State requirements for such 
        eligibility established under subsection (b).
            ``(8) Online providers.--The procedures established under 
        subsection (a) shall apply to a provider that delivers training 
        services exclusively online. If a participant chooses a 
        provider that delivers training services exclusively online and 
        is not located in the State of the local area that approved 
        such training services for the participant in accordance with 
        section 133(c)(3)(A)(i), such provider shall be ineligible to 
        receive payment for such participant from funds allotted to 
        such State under section 132 unless such provider is on the 
        list of eligible providers of training services described in 
        subsection (d) for such State with respect to the program 
        involved.
    ``(d) List and Information to Assist Participants in Choosing 
Providers.--
            ``(1) In general.--In order to facilitate and assist 
        participants in choosing employment and training activities and 
        in choosing providers of training services, the Governor shall 
        ensure that an appropriate list of providers determined to be 
        eligible under this section to offer a program in the State 
        (and, as appropriate, in a local area), accompanied by 
        information identifying the recognized postsecondary credential 
        offered by the provider and other appropriate information, is 
        prepared. The list shall be provided to the local boards in the 
        State, and made available to such participants and to members 
        of the public through the one-stop delivery system in the State 
        in accordance with paragraph (4).
            ``(2) Talent marketplace.--The Governor may establish (or 
        develop in partnership with other States) a talent marketplace.
            ``(3) Accompanying information.--The accompanying 
        information referred to in paragraph (1) shall consist of--
                    ``(A) with respect to providers described in 
                subparagraphs (A) and (C) of subsection (a)(2) (other 
                than providers described in subsection (a)(3)(B)(ii)), 
                information provided by such providers (disaggregated 
                by local areas served, as applicable) in accordance 
                with subsection (b);
                    ``(B) with respect to a program described in 
                subsection (b)(3) that is offered by a provider, 
                information promoting the program as having an 
                employer-sponsored designation and identifying the 
                employer or partnership sponsoring the program; and
                    ``(C) with respect to a program described in 
                subsection (b)(4) that is offered by a provider, 
                information promoting the program as being a WIL 
                program and displaying the seal described in subsection 
                (b)(4)(C).
            ``(4) Availability.--The list (including the talent 
        marketplace if one has been established by the State), and the 
        accompanying information shall be made available to such 
        participants and to members of the public through the one-stop 
        delivery system in the State--
                    ``(A) on a publicly accessible website that--
                            ``(i) is consumer-tested; and
                            ``(ii) is searchable, easily 
                        understandable, and navigable, and allows for 
                        the comparison of eligible programs through the 
                        use of common, linked, open-data descriptive 
                        language, including interoperable skills and 
                        competency data; and
                    ``(B) in a manner that does not reveal personally 
                identifiable information about an individual 
                participant.
            ``(5) Website technical assistance.--The Secretary shall--
                    ``(A) upon request, provide technical assistance to 
                a State on establishing a website that meets the 
                requirements of paragraph (4); and
                    ``(B) disseminate to each State effective practices 
                or resources from States and private sector entities 
                related to establishing a website that is consumer-
                tested to ensure that the website is easily understood, 
                searchable, and navigable.
            ``(6) Limitation.--In carrying out the requirements of this 
        subsection, no personally identifiable information regarding a 
        student, including a Social Security number, student 
        identification number, or other identifier, may be disclosed 
        without the prior written consent of the student or student's 
        parent in compliance with section 444 of the General Education 
        Provisions Act (20 U.S.C. 1232g).
    ``(e) Opportunity to Submit Comments.--In establishing, under this 
section, criteria, procedures, and the list of eligible providers 
described in subsection (d), the Governor shall provide an opportunity 
for interested members of the public to make recommendations and submit 
comments regarding such criteria, procedures, and list.
    ``(f) Provider Performance Incentives.--
            ``(1) In general.--The Governor shall establish a system of 
        performance incentive payments to be awarded to eligible 
        providers in addition to the amount paid under section 133(b) 
        to such providers for the provision of training services to 
        participants of eligible programs. Such system of performance 
        incentive payments may be established to award the payments to 
        providers of eligible programs that--
                    ``(A) achieve levels of performance above the 
                minimum levels established by the Governor under 
                subsection (b)(2);
                    ``(B) serve a significantly higher number of 
                individuals with barriers to employment compared to 
                training providers offering similar training services; 
                or
                    ``(C) achieve other performance successes, 
                including those related to jobs that provide economic 
                stability and upward mobility (such as jobs with high 
                wages and family sustainable benefits) as determined by 
                the State or the local board.
            ``(2) Incentive payments.--Incentive payments to providers 
        established under paragraph (1) shall be awarded to eligible 
        providers from funds reserved by the Governor under section 
        128(a)(1), except that not more than 5 percent of the funds 
        reserved by the Governor under section 128(a)(1) may be used 
        for such payments.'';
            (3) by striking subsections (i) and (j) and inserting the 
        following:
    ``(i) On-the-job Training, Employer-directed Skills Development, 
Incumbent Worker Training, and Other Training Exceptions.--
            ``(1) In general.--Providers of on-the-job training, 
        employer-directed skills development, incumbent worker 
        training, internships, paid or unpaid work experience 
        opportunities, or transitional employment shall not be subject 
        to the requirements of subsections (a) through (f).
            ``(2) Collection and dissemination of information.--A one-
        stop operator in a local area shall collect the minimum amount 
        of information from providers of on-the-job training, employer-
        directed skills development, incumbent worker training, 
        internships, paid or unpaid work experience opportunities, or 
        transitional employment as necessary to enable the use of State 
        administrative data to generate such performance information as 
        the Governor may require, and use the information to determine 
        whether the providers meet such performance criteria as the 
        Governor may require. The one-stop operator shall disseminate 
        information identifying such providers that meet the criteria 
        as eligible providers, and the performance information, through 
        the one-stop delivery system. Providers determined to meet the 
        criteria shall be considered to be identified as eligible 
        providers of training services.
    ``(j) Technical Assistance.--The Governor may apply to the 
Secretary for technical assistance, as described in section 168(c), for 
purposes of carrying out the requirements of the amendments made by the 
A Stronger Workforce for America Act of 2026 to this section, and the 
Secretary shall provide such technical assistance in a timely 
manner.''.
    (b) Report to Congress on State Performance Criteria.--Not later 
than 4 years after the date of enactment of this Act, the Secretary of 
Labor shall submit a report to the Committee on Education and Workforce 
of the House of Representatives and the Committee on Health, Education, 
Labor, and Pensions of the Senate on eligible providers of training 
services under section 122 of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3152), as amended by this Act, in each State that shall 
include--
            (1) the minimum levels of performance established by the 
        Governor of each State with respect to the performance criteria 
        under subsection (b)(2) of that section 122 for such eligible 
        providers of training services in the State;
            (2) the number of such eligible providers of training 
        services in the State in each program year that begins after 
        the date of enactment of this Act, compared with the number of 
        such providers in the State in the program year that began 
        immediately preceding that date of enactment; and
            (3) the average length of time that such eligible providers 
        of training services in the State maintain eligibility, 
        disaggregated by the type of entity that provided the training 
        services.

SEC. 123. ELIGIBLE PROVIDERS OF YOUTH WORKFORCE INVESTMENT ACTIVITIES.

    Section 123(a) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3153(a)) is amended by inserting ``, which may include providers 
of pre-apprenticeship programs, and apprenticeship programs, that serve 
youth,'' before ``identified based''.

            CHAPTER 2--YOUTH WORKFORCE INVESTMENT ACTIVITIES

SEC. 131. 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. 132. USE OF FUNDS FOR YOUTH WORKFORCE INVESTMENT ACTIVITIES.

    (a) Youth Participant Eligibility.--
            (1) Eligibility determination.--
                    (A) Eligibility.--Subparagraph (A) of section 
                129(a)(1) of the Workforce Innovation and Opportunity 
                Act (29 U.S.C. 3164(a)(1)) is amended to read as 
                follows:
                    ``(A) Eligibility determination.--
                            ``(i) In general.--To be eligible to 
                        participate in activities carried out under 
                        this chapter during any program year, an 
                        individual shall, at the time the eligibility 
                        determination is made, be an out-of-school 
                        youth or an in-school youth.
                            ``(ii) Enrollment.--If a one-stop operator 
                        or eligible provider of youth workforce 
                        activities carrying out activities under this 
                        chapter reasonably believes that an individual 
                        is eligible to participate in such activities, 
                        the operator or provider may allow such 
                        individual to participate in such activities 
                        for not more than a 40-day period during which 
                        the operator or provider shall obtain the 
                        necessary information to make an eligibility 
                        determination with respect to such individual 
                        (which may involve working with such individual 
                        and other entities in the local area, and using 
                        available sources of administrative data, to 
                        obtain the necessary information).
                            ``(iii) Determination of ineligibility.--
                        With respect to an individual who is determined 
                        to be ineligible for activities under this 
                        chapter by a one-stop operator or an eligible 
                        provider of youth workforce activities during 
                        the period described in clause (ii) and who 
                        does not qualify for an exception under 
                        paragraph (3)(A)(ii) applicable to the local 
                        area involved, such operator or service 
                        provider--
                                    ``(I) may--
                                            ``(aa) continue serving 
                                        such individual using non-
                                        Federal funds; or
                                            ``(bb) end the 
                                        participation of such 
                                        individual in activities under 
                                        this chapter and refer the 
                                        individual to other services 
                                        that may be available in the 
                                        local area for which the 
                                        individual may be eligible; and
                                    ``(II) shall be paid for any 
                                services provided to such individual 
                                under this chapter during the period 
                                described in clause (ii) by the local 
                                area involved using funds allocated to 
                                such area under section 128(b).
                            ``(iv) Determination process for homeless 
                        youth and foster youth.--In determining whether 
                        an individual is eligible to participate in 
                        activities carried out under this chapter on 
                        the basis of being an individual who is a 
                        homeless youth, or a youth in foster care, as 
                        described in subparagraph (B)(iii)(V), the one-
                        stop operator or service provider involved 
                        may--
                                    ``(I) if determining whether the 
                                individual is a homeless youth, use a 
                                process that is in compliance with the 
                                requirements of subsection (a) of 
                                section 479D of the Higher Education 
                                Act of 1965 (20 U.S.C. 1087uu-2) for 
                                financial aid administrators; and
                                    ``(II) if determining whether the 
                                individual is a youth in foster care, 
                                use a process that is in compliance 
                                with the requirements of subsection (b) 
                                of section 479D of the Higher Education 
                                Act of 1965 (20 U.S.C. 1087uu-2) for 
                                financial aid administrators.''.
                    (B) Definition of out-of-school youth.--
                Subparagraph (B) of section 129(a)(1) of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 3164(a)(1)) 
                is amended--
                            (i) in clause (i), by inserting ``, except 
                        that an individual described in subparagraph 
                        (IV) or (V) of clause (iii) may be attending 
                        school (as defined under State law)'' after 
                        ``(as defined under State law)'';
                            (ii) in clause (ii), by inserting before 
                        the semicolon at the end, the following : ``, 
                        except that an individual described in 
                        subparagraph (IV) or (V) of clause (iii) may be 
                        not younger than age 14 or older than age 24''; 
                        and
                            (iii) in clause (iii)--
                                    (I) in subclause (III)--
                                            (aa) in the matter 
                                        preceding item (aa)--

                                                    (AA) by striking 
                                                ``secondary school 
                                                diploma or its 
                                                recognized equivalent'' 
                                                and inserting ``regular 
                                                high school diploma or 
                                                its recognized 
                                                equivalent''; and

                                                    (BB) by striking 
                                                ``and is'' and 
                                                inserting ``and'';

                                            (bb) in item (aa), by 
                                        striking ``basic skills 
                                        deficient;'' and inserting 
                                        ``has foundational skill 
                                        needs;''; and
                                            (cc) in item (bb), by 
                                        striking ``an English language 
                                        learner'' and inserting ``is an 
                                        English learner''; and
                                    (II) in subclause (V), by striking 
                                ``(42 U.S.C. 14043e-2(6))'' and 
                                inserting ``(34 U.S.C. 12473(6))''.
                    (C) Definition of in-school youth.--Clause (iv) of 
                section 129(a)(1)(C) of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3164(a)(1)(C)) is amended--
                            (i) in subclause (I), by striking ``Basic 
                        skills deficient.'' and inserting ``An 
                        individual who has foundational skill needs.'';
                            (ii) in subclause (II), by striking 
                        ``language'';
                            (iii) by striking subclauses (III) and 
                        (IV); and
                            (iv) by redesignating subclauses (V), (VI), 
                        and (VII) as subclauses (III), (IV), and (V), 
                        respectively.
                    (D) Rule for certain out-of-school youth.--Section 
                129(a)(1) of the Workforce Innovation and Opportunity 
                Act (29 U.S.C. 3164(a)(1)) is amended by adding at the 
                end the following:
                    ``(D) Rule for certain out-of-school youth.--An 
                out-of-school youth described in subclause (IV) or (V) 
                of subparagraph (B)(iii) who is attending any school 
                (as defined under State law) shall be eligible to 
                participate in any activity for in-school youth carried 
                out under this chapter.''.
            (2) Exception and limitation.--Section 129(a)(3) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(3)) 
        is amended--
                    (A) in subparagraph (A)(ii), by striking ``5'' and 
                inserting ``10''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``5'' and inserting ``10''; 
                        and
                            (ii) by striking ``paragraph 
                        (1)(C)(iv)(VII)'' and inserting ``paragraph 
                        (1)(C)(iv)(V)''.
            (3) Out-of-school youth priority.--Section 129(a)(4) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(4)) 
        is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``75'' each place it 
                        appears and inserting ``70'';
                            (ii) by inserting ``the total amount of'' 
                        before ``funds available''; and
                            (iii) by inserting ``in the State'' after 
                        ``subsection (c)'';
                    (B) in subparagraph (B)(i), by striking ``75'' and 
                inserting ``70'';
                    (C) by redesignating subparagraph (B), as so 
                amended, as subparagraph (C); and
                    (D) by inserting after subparagraph (A) the 
                following:
                    ``(B) Local area targets.--The local board, the 
                chief elected official, and the Governor shall 
                negotiate and reach agreement on the minimum amount of 
                funds provided to a local area under subsection (c) 
                that shall be used to provide youth workforce 
                investment activities for out-of-school youth based on 
                the needs of the youth in the local area, which--
                            ``(i) may not be an amount that is less 
                        than 45 percent of the funds provided to such 
                        local area under subsection (c); and
                            ``(ii) shall be the amount that is 
                        necessary for the State to meet the 
                        requirements of subparagraph (A) with respect 
                        to the total amount of funds available for 
                        local areas under subsection (c).''.
    (b) Required Statewide Youth Activities.--Section 129(b)(1) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3164(b)(1)) is 
amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``sections 128(a)'' and inserting ``sections 128(a)(1)'';
            (2) in subparagraph (B), by inserting ``through a website 
        that is consumer-tested to ensure that the website is easily 
        understood, searchable, and navigable and allows for comparison 
        of eligible providers based on the program elements offered by 
        such providers and the performance of such providers on the 
        primary indicators of performance for the youth program as 
        described in section 116(b)(2)(A)(ii)'' after ``under section 
        123''; and
            (3) in subparagraph (D), by striking ``section 116(i)'' and 
        inserting ``section 116(j)''.
    (c) Allowable Statewide Youth Activities.--Section 129(b)(2) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3164(b)(2)) is 
amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``sections 128(a)'' and inserting ``sections 128(a)(1)'';
            (2) in subparagraph (C), by inserting ``, which may include 
        providing guidance on career options in in-demand industry 
        sectors or occupations'' after ``in the State'';
            (3) in subparagraph (D)--
                    (A) in clause (iv), by striking ``and'' at the end; 
                and
                    (B) by inserting after clause (v) the following:
                            ``(vi) supporting the ability to understand 
                        relevant tax information and obligations;'';
            (4) in subparagraph (E), by striking the period at the end 
        and inserting a semicolon; and
            (5) by adding at the end the following:
                    ``(F) establishing, supporting, and expanding work-
                based learning opportunities (including transitional 
                jobs and work-based learning opportunities designed for 
                youth to develop and gain experience using emerging 
                technologies, including artificial intelligence, in the 
                workplace) that are aligned with career pathways;
                    ``(G) raising public awareness (including through 
                public service announcements, such as social media 
                campaigns and elementary and secondary school showcases 
                and school visits) about career and technical education 
                programs and community-based and youth services 
                organizations, and other endeavors focused on programs 
                that prepare students for in-demand industry sectors or 
                occupations;
                    ``(H) developing partnerships between educational 
                institutions (including area career and technical 
                schools 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 (including the skills needed to 
                use emerging technology tools and systems in the 
                workplace) and the employment needs of employers in the 
                regions or local areas of the State, as determined 
                based on the most recent analysis conducted under 
                subparagraphs (B) and (C) of section 102(b)(1);
                    ``(I) coordinating activities with providers of a 
                pre-apprenticeship program or apprenticeship program 
                for youth in the State to establish, support, or expand 
                the program described in this subparagraph, including 
                any such program in the State receiving assistance 
                under section 173;
                    ``(J) coordinating activities with entities 
                implementing reentry projects in the State focused on 
                establishing or improving workforce development 
                programs for juvenile offenders, including any such 
                reentry projects in the State receiving assistance 
                under section 172; and
                    ``(K) coordinating activities with agencies 
                implementing corrections education and other education 
                programs in the State focused on providing incarcerated 
                youth with education and skills development programs, 
                including any such programs in the State receiving 
                assistance under section 225.''.
    (d) Local Elements and Requirements.--
            (1) Program design.--Section 129(c)(1) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3164(c)(1)) is 
        amended--
                    (A) in subparagraph (A), by striking ``basic 
                skills'' and inserting ``foundational skill needs'';
                    (B) in subparagraph (B), by inserting ``(which, in 
                the case of a participant 18 years or older, may 
                include co-enrollment in any employment or training 
                activity provided under section 134 for adults)'' after 
                ``services for the participant'';
                    (C) in subparagraph (C)--
                            (i) in clause (i), by striking ``secondary 
                        school diploma or its recognized equivalent'' 
                        and inserting ``regular high school diploma or 
                        its recognized equivalent''; and
                            (ii) in clause (v), by inserting ``high-
                        skill, high-wage, or'' after ``small employers, 
                        in''; and
                    (D) in subparagraph (D), by striking ``10'' and 
                inserting ``30''.
            (2) Program elements.--Section 129(c)(2) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3164(c)(2)) is 
        amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``secondary school diploma or its recognized 
                equivalent'' and inserting ``regular high school 
                diploma or its recognized equivalent'';
                    (B) in subparagraph (A), by striking ``secondary 
                school diploma or its recognized equivalent'' and 
                inserting ``regular high school diploma or its 
                recognized equivalent'';
                    (C) in subparagraph (C)--
                            (i) in clause (i)--
                                    (I) by striking ``other'' and 
                                inserting ``year-round''; and
                                    (II) by inserting ``that meet the 
                                requirements of paragraph (10)'' after 
                                ``school year'';
                            (ii) in clause (ii), by inserting ``and 
                        apprenticeship programs that serve youth'' 
                        after ``programs'';
                            (iii) by amending clause (iii) to read as 
                        follows:
                            ``(iii) internships that--
                                    ``(I) are paid internships or are 
                                unpaid internships for which academic 
                                credit may be awarded;
                                    ``(II) are, to the extent 
                                practicable, aligned with in-demand 
                                industry sectors or occupations in the 
                                State or local area; and
                                    ``(III) for which participants 
                                shall be paid (by the entity providing 
                                the internship, through funds allocated 
                                to the local area pursuant to paragraph 
                                (1) for the program, or by another 
                                entity) if such internships are longer 
                                than--
                                            ``(aa) 4 weeks in the 
                                        summer or 8 weeks during the 
                                        school year for in-school youth 
                                        and out-of-school youth who are 
                                        enrolled in school; or
                                            ``(bb) 8 weeks for out-of-
                                        school youth who are not 
                                        enrolled in school;'';
                            (iv) by redesignating clause (iv) as clause 
                        (v);
                            (v) by inserting after clause (iii), as so 
                        amended, the following:
                            ``(iv) job shadowing;'';
                            (vi) in clause (v), as so redesignated, by 
                        inserting ``and'' at the end; and
                            (vii) by adding at the end the following:
                            ``(vi) work-based learning;'';
                    (D) in subparagraph (H), by striking ``adult 
                mentoring'' and inserting ``coaching and adult 
                mentoring services'';
                    (E) in subparagraph (I), by inserting ``(including 
                case management)'' after ``services'';
                    (F) in subparagraph (M)--
                            (i) by inserting ``high-skill, high-wage, 
                        or'' before ``in-demand industry''; and
                            (ii) by striking the ``and'' at the end;
                    (G) in subparagraph (N), by striking the period at 
                the end and inserting ``; and''; and
                    (H) by adding at the end the following:
                    ``(O) activities to develop fundamental workforce 
                readiness, which may include creativity, collaboration, 
                critical thinking, digital literacy, persistence, and 
                other relevant skills.''.
            (3) Priority.--Section 129(c)(4) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3164(c)(4)) is 
        amended to read as follows:
            ``(4) Priority.--
                    ``(A) Work experiences.--Not less than 40 percent 
                of the funds allocated to the local area as described 
                in paragraph (1) shall be used to provide in-school 
                youth and out-of-school youth with activities under 
                paragraph (2)(C).
                    ``(B) Apprenticeships and pre-apprenticeships for 
                youth.--Not less than 12 and 1/2 percent of the funds 
                used for the purposes described in subparagraph (A) 
                shall be used to provide in-school youth and out-of-
                school youth with activities under paragraph 
                (2)(C)(ii).''.
            (4) Rule of construction.--Section 129(c)(5) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(5)) 
        is amended by inserting ``or local area'' after ``youth 
        services''.
            (5) Linkages.--Section 129(c)(7) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3164(c)(7)) is 
        amended by inserting ``, secondary schools, and area career and 
        technical schools'' after ``agencies''.
            (6) Individual training accounts.--Section 129(c) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)) is 
        amended by adding at the end the following:
            ``(9) Individual training accounts.--
                    ``(A) In general.--Subject to subparagraph (B), 
                funds allocated pursuant to paragraph (1) to a local 
                area may be used to pay, through an individual training 
                account, an eligible provider of training services 
                described in section 122(d) for training services 
                described in section 134(c)(3) provided to in-school 
                youth who are not younger than age 16 and not older 
                than age 21 and out-of-school youth, in the same manner 
                that an individual training account is used to pay an 
                eligible provider of training services under section 
                134(c)(3)(F)(iii) for training services provided to an 
                adult or dislocated worker.
                    ``(B) Special rule for in-school youth younger than 
                age 18.--To use an individual training account to pay 
                for a program of training services that will take place 
                during regular school hours for an in-school youth who 
                is younger than the age 18, the local area shall 
                receive written approval from the secondary school at 
                which the in-school youth is enrolled prior to the 
                start of the program of training services.''.
            (7) Summer and year-round employment opportunities 
        requirements.--Section 129(c) of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3164(c)) is further amended by 
        adding at the end the following:
            ``(10) Summer and year-round employment opportunities 
        requirements.--
                    ``(A) In general.--A summer employment opportunity 
                or a year-round employment opportunity referred to in 
                paragraph (2)(C)(i) shall be a program that matches 
                eligible youth participating in such program with an 
                appropriate employer (based on factors including the 
                needs of the employer and the age, skill, and informed 
                aspirations of the eligible youth) that--
                            ``(i) shall include--
                                    ``(I) a component of occupational 
                                skills education; and
                                    ``(II) not less than 2 of the 
                                activities described in subparagraphs 
                                (G), (H), (I), (K), (M), and (O) of 
                                paragraph (2);
                            ``(ii) may not use funds allocated under 
                        this chapter to subsidize more than 50 percent 
                        of the wages of each eligible youth participant 
                        in such program;
                            ``(iii) in the case of a summer employment 
                        opportunity, complies with the requirements of 
                        subparagraph (B); and
                            ``(iv) in the case of a year-round 
                        employment opportunity, complies with the 
                        requirements of subparagraph (C).
                    ``(B) Summer employment opportunity.--In addition 
                to the applicable requirements described in 
                subparagraph (A), a summer employment opportunity--
                            ``(i) may not be less than 4 weeks; and
                            ``(ii) may not pay less than the highest 
                        applicable wage required by the applicable 
                        Federal, State, or local minimum wage law.
                    ``(C) Year-round employment opportunity.--In 
                addition to the applicable requirements described in 
                subparagraph (A), a year-round employment opportunity--
                            ``(i) may not be shorter than 180 days or 
                        longer than 1 year;
                            ``(ii) may not pay less than the highest 
                        applicable wage required by the applicable 
                        Federal, State, or local minimum wage law; and
                            ``(iii) may not employ the eligible youth 
                        for less than 20 hours per week, except in 
                        instances when the eligible youth are under the 
                        age of 18 or enrolled in school.
                    ``(D) Priority.--In selecting summer employment 
                opportunities or year-round employment opportunities 
                for purposes of paragraph (2)(C)(i), a local area shall 
                give priority to such opportunities that meet the 
                requirements of this paragraph and that are in existing 
                or emerging high-skill, high-wage, or in-demand 
                industry sectors or occupations.''.
            (8) Conforming amendment.--Section 129(c)(3)(B) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 
        3164(c)(3)(B)) is amended by striking ``basic skills'' and 
        inserting ``foundational skill needs''.

    CHAPTER 3--ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
                               ACTIVITIES

SEC. 141. STATE ALLOTMENTS.

    Section 132(a)(2)(A) of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3172(a)(2)(A)) is amended by--
            (1) striking ``, 169(c) (relating to dislocated worker 
        projects),''; and
            (2) by inserting ``, and under subsections (c) (related to 
        dislocated worker projects) and (d) (related to workforce data 
        quality initiatives) of section 169'' before ``; and''

SEC. 142. 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. 143. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.

    (a) Statewide Employment and Training Activities.--
            (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)''; and
                            (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'';
                                    (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.''.
    (b) Required Local Employment and Training Activities.--
            (1) Minimum amount for skills development.--Section 
        134(c)(1) of the Workforce Innovation and Opportunity Act (29 
        U.S.C. 3174(c)(1)) is amended--
                    (A) in subparagraph (A)(iv), by striking ``to'' and 
                inserting ``to provide business services described in 
                paragraph (4) and'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A), as so 
                amended, the following:
                    ``(B) Minimum amount for skills development.--
                            ``(i) In general.--Subject to clause (ii), 
                        not less than 50 percent of the funds described 
                        in subparagraph (A) shall be used by the local 
                        area--
                                    ``(I) for the payment of training 
                                services--
                                            ``(aa) provided to adults 
                                        under paragraph (3)(F)(iii); 
                                        and
                                            ``(bb) provided to adults 
                                        and dislocated workers under 
                                        paragraph (3)(G)(ii); and
                                    ``(II) for the payment of training 
                                services under paragraph (2)(A) of 
                                section 414(c) of the American 
                                Competitiveness and Workforce 
                                Improvement Act of 1998 (29 U.S.C. 
                                3224a(c)) after funds allocated to such 
                                local area under paragraph (1) of such 
                                section 414(c) have been exhausted.
                            ``(ii) Exception.--With respect to a local 
                        area that uses any funds described in 
                        subparagraph (A) to provide supportive 
                        services, in accordance with subsection (d)(2) 
                        of this section, for adults and dislocated 
                        workers who are participating in training 
                        services, or individualized career services 
                        described in clauses (iii) and (vii) of 
                        paragraph (2)(B) that enable participation in 
                        training services, each percentage of such 
                        funds so used shall reduce, by one percentage 
                        point, the percentage of such funds required to 
                        be used by such local area in accordance with 
                        clause (i), except that such percentage of 
                        funds may not be reduced by more than 10 
                        percentage points pursuant to this clause.''; 
                        and
                    (D) in subparagraph (C), as so redesignated, by 
                striking ``and (ii)'' and inserting ``, (ii), and 
                (iv)''.
            (2) Career services.--Section 134(c)(2) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3174(c)(2)) is 
        amended--
                    (A) by redesignating subparagraphs (A) through (C) 
                as subparagraphs (B) through (D), respectively;
                    (B) by inserting before subparagraph (B), as so 
                redesignated, the following:
                    ``(A) Basic career services.--
                            ``(i) In general.--The one-stop delivery 
                        system--
                                    ``(I) shall coordinate with the 
                                Employment Service office colocated 
                                with the one-stop delivery system for 
                                such Employment Service office to 
                                provide, using the funds allotted to 
                                the State under section 6 of the 
                                Wagner-Peyser Act (29 U.S.C. 49e), 
                                basic career services, which--
                                            ``(aa) shall--

                                                    ``(AA) include, at 
                                                a minimum, the services 
                                                listed in clause (ii); 
                                                and

                                                    ``(BB) be available 
                                                to individuals who are 
                                                adults or dislocated 
                                                workers in an 
                                                integrated manner to 
                                                streamline access to 
                                                assistance for such 
                                                individuals, to avoid 
                                                duplication of 
                                                services, and to 
                                                enhance coordination of 
                                                services; and

                                            ``(bb) may include access 
                                        to talent marketplaces; and
                                    ``(II) may use funds allocated 
                                under paragraph (1), as necessary, to 
                                supplement the services that are 
                                provided pursuant to subclause (I) to 
                                individuals who are adults or 
                                dislocated workers.
                            ``(ii) Services.--The basic career services 
                        provided pursuant to clause (i) shall include--
                                    ``(I) provision of workforce and 
                                labor market employment statistics 
                                information, including the provision of 
                                accurate (and, to the extent 
                                practicable, real-time) information 
                                relating to local, regional, and 
                                national labor market areas, 
                                including--
                                            ``(aa) job vacancy listings 
                                        in such labor market areas;
                                            ``(bb) information on job 
                                        skills necessary to obtain the 
                                        jobs included on such listings; 
                                        and
                                            ``(cc) information relating 
                                        to local occupations in demand 
                                        (which may include 
                                        entrepreneurship 
                                        opportunities), and the 
                                        earnings, skill requirements, 
                                        and opportunities for 
                                        advancement for such 
                                        occupations;
                                    ``(II) labor exchange services, 
                                including job search and placement 
                                assistance and, in appropriate cases, 
                                career counseling, including--
                                            ``(aa) provision of 
                                        information on in-demand 
                                        industry sectors and 
                                        occupations;
                                            ``(bb) provision of 
                                        information on nontraditional 
                                        employment; and
                                            ``(cc) provision of 
                                        information on 
                                        entrepreneurship, as 
                                        appropriate;
                                    ``(III)(aa) provision of 
                                information, in formats that are usable 
                                by and understandable to one-stop 
                                center customers, relating to the 
                                availability of supportive services or 
                                assistance, including child care, child 
                                support, medical or child health 
                                assistance under title XIX or XXI of 
                                the Social Security Act (42 U.S.C. 1396 
                                et seq. and 1397aa et seq.), benefits 
                                under the supplemental nutrition 
                                assistance program established under 
                                the Food and Nutrition Act of 2008 (7 
                                U.S.C. 2011 et seq.), assistance 
                                through the earned income tax credit 
                                under section 32 of the Internal 
                                Revenue Code of 1986, and assistance 
                                under a State program for temporary 
                                assistance for needy families funded 
                                under part A of title IV of the Social 
                                Security Act (42 U.S.C. 601 et seq.) 
                                and other supportive services and 
                                transportation provided through funds 
                                made available under such part, 
                                available in the local area; and
                                    ``(bb) referral to the services or 
                                assistance described in item (aa), as 
                                appropriate;
                                    ``(IV) provision of information and 
                                assistance regarding filing claims for 
                                unemployment compensation; and
                                    ``(V) assistance in establishing 
                                eligibility for programs of financial 
                                aid assistance for training and 
                                education programs that are not funded 
                                under this Act.'';
                    (C) in subparagraph (B), as so redesignated--
                            (i) in the heading, by striking the heading 
                        and inserting ``Individualized career'';
                            (ii) in the matter preceding clause (i)--
                                    (I) by inserting ``individualized'' 
                                before ``career services''; and
                                    (II) by inserting ``shall, to the 
                                extent practicable, be evidence-
                                based,'' before ``and shall'';
                            (iii) in clause (iii), by inserting ``, and 
                        a determination (considering factors including 
                        prior work experience, military service, 
                        education, and the in-demand industry sectors 
                        and occupations in the local area) of whether 
                        such an individual would benefit from a 
                        competency-based assessment developed or 
                        identified by the State pursuant to subsection 
                        (a)(2)(B)(viii) to accelerate the time to 
                        obtaining employment that leads to economic 
                        self-sufficiency or career advancement'' before 
                        the semi-colon at the end;
                            (iv) by striking clauses (iv), (vi), (ix), 
                        (x), and (xi);
                            (v) by redesignating clauses (v), (vii), 
                        (viii), (xii), and (xiii) as clauses (iv), (v), 
                        (vi), (vii), and (viii), respectively;
                            (vi) in clause (v), as so redesignated, by 
                        inserting ``and credential'' after ``by 
                        program'';
                            (vii) in clause (vi), as so redesignated, 
                        by inserting ``and in multiple languages, to 
                        the extent practicable,'' after ``customers,''; 
                        and
                            (viii) in clause (vii), as so 
                        redesignated--
                                    (I) in subclause (I)(aa), as so 
                                redesignated, by inserting ``, 
                                including a competency-based assessment 
                                developed or identified by the State 
                                pursuant to subsection 
                                (a)(2)(B)(viii)'' after ``tools'';
                                    (II) in subclause (VI), by 
                                inserting ``digital literacy skills,'' 
                                after ``learning skills,'';
                                    (III) in subclause (X), by striking 
                                ``or'' at the end;
                                    (IV) in subclause (XI)--
                                            (aa) by striking 
                                        ``language''; and
                                            (bb) by striking ``and'' at 
                                        the end and inserting ``or'';
                                    (V) by adding at the end the 
                                following:
                                    ``(XII) review or creation of a 
                                resume or similar document showcasing 
                                the skills, experience, relevant 
                                credentials, and education of the 
                                individual; and''.
                    (D) by amending subparagraph (C), as so 
                redesignated, to read as follows:
                    ``(C) Use of previous assessments.--A one-stop 
                operator or one-stop partner shall not be required to 
                conduct a new interview, evaluation, or assessment of a 
                participant under subparagraph (B)(vii) if the one-stop 
                operator or one-stop partner determines that--
                            ``(i) it is appropriate to use a recent 
                        interview, evaluation, or assessment of the 
                        participant conducted pursuant to another 
                        education or training program; and
                            ``(ii) using such recent interview, 
                        evaluation, or assessment will accelerate an 
                        eligibility determination.''; and
                    (E) in subparagraph (D), as so redesignated--
                            (i) in the matter preceding clause (i)--
                                    (I) by inserting ``individualized'' 
                                before ``career''; and
                                    (II) by striking ``subparagraph 
                                (A)'' and inserting ``subparagraph 
                                (B)''; and
                            (ii) in clause (ii), by inserting ``, 
                        libraries, and community-based organizations'' 
                        after ``nonprofit service providers''.
            (3) Training services.--Section 134(c)(3) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)) is 
        amended--
                    (A) in subparagraph (A)--
                            (i) in clause (i), in the matter preceding 
                        subclause (I), by striking ``clause (ii)'' and 
                        inserting ``clause (ii) or (iii)'';
                            (ii) by amending clause (i)(II) to read as 
                        follows:
                                    ``(II) who select programs of 
                                training services that are directly 
                                linked to the employment 
                                opportunities--
                                            ``(aa) in the local area or 
                                        the planning region;
                                            ``(bb) in another area to 
                                        which the adults or dislocated 
                                        workers are willing to commute 
                                        or relocate; or
                                            ``(cc) that may be 
                                        performed remotely;''.
                            (iii) by redesignating clause (iii) as 
                        clause (iv);
                            (iv) by inserting after clause (ii) the 
                        following:
                            ``(iii) Employer referral.--
                                    ``(I) In general.--A one-stop 
                                operator or one-stop partner shall not 
                                be required to conduct an interview, 
                                evaluation, or assessment of an 
                                individual under clause (i) if such 
                                individual--
                                            ``(aa) is referred by an 
                                        employer to receive on-the-job 
                                        training or employer-directed 
                                        skills development in 
                                        connection with that employer; 
                                        and
                                            ``(bb) has been certified 
                                        by the employer as being an 
                                        individual who is in need of 
                                        training services to obtain 
                                        unsubsidized employment with 
                                        such employer and who has the 
                                        skills and qualifications to 
                                        successfully participate in the 
                                        selected program of training 
                                        services.
                                    ``(II) Priority.--A one-stop 
                                operator or one-stop partner shall 
                                follow the priority system in effect 
                                under subparagraph (E) to determine 
                                whether an individual who meets the 
                                requirements of subclause (I) of this 
                                clause is eligible to receive training 
                                services.''; and
                            (v) by adding at the end the following:
                            ``(v) Adult education and family literacy 
                        activities.--In the case of an individual who, 
                        after an interview, evaluation, or assessment 
                        under clause (i)(I), is determined to not have 
                        the skills and qualifications to successfully 
                        participate in the selected program of training 
                        services under clause (i)(I)(cc), the one-stop 
                        operator or one-stop partner shall refer such 
                        individual to adult education and literacy 
                        activities under title II, including for co-
                        enrollment in such activities, as 
                        appropriate.'';
                    (B) in subparagraph (B)--
                            (i) in clause (i)--
                                    (I) in subclause (I), by striking 
                                ``other grant assistance for such 
                                services, including'' and inserting 
                                ``assistance for such services under''; 
                                and
                                    (II) by striking ``under other 
                                grant assistance programs, including'' 
                                and inserting ``under''; and
                            (ii) by adding at the end the following:
                            ``(iv) Participation during eligibility 
                        determination.--An individual may participate 
                        in a program of training services during the 
                        period during which such individual's 
                        eligibility for training services under 
                        subparagraph (A)(i) is being determined, except 
                        that the provider of such a program shall 
                        receive reimbursement under this Act for the 
                        individual's participation during such period 
                        only if such individual is determined to be 
                        eligible under subparagraph (A)(i).'';
                    (C) in subparagraph (D)(xi), by striking 
                ``customized training'' and inserting ``employer-
                directed skills development'';
                    (D) in subparagraph (E)--
                            (i) by striking ``are basic skills 
                        deficient'' and inserting ``have foundational 
                        skill needs''; and
                            (ii) by striking ``paragraph (2)(A)(xii)'' 
                        and inserting ``paragraph (2)(B)(vii)'';
                    (E) in subparagraph (F)(ii), by inserting ``and the 
                levels of performance for such providers on the 
                performance criteria described in section 122(b) for 
                the 2 most recent program years'' after ``in section 
                122(d)'';
                    (F) in subparagraph (G)(ii)--
                            (i) in subclause (II), by striking 
                        ``customized training'' and inserting 
                        ``employer-directed skills development''; and
                            (ii) in subclause (IV)--
                                    (I) by striking ``is a'' and 
                                inserting ``is an evidence-based''; and
                                    (II) by inserting ``and to support 
                                such individuals in gaining requisite 
                                skills for in-demand industry sectors 
                                or occupations in the local area, 
                                obtaining recognized postsecondary 
                                credentials, and entering unsubsidized 
                                employment'' after ``employment'';
                    (G) in subparagraph (H)--
                            (i) in clause (i), in the matter preceding 
                        subclause (I), by striking ``reimbursement 
                        described in section 3(44)'' and inserting 
                        ``reimbursement described in section 3(48)''; 
                        and
                            (ii) in clause (ii)--
                                    (I) in subclause (I), by inserting 
                                ``, such as the extent to which 
                                participants are individuals with 
                                barriers to employment'' after 
                                ``participants''; and
                                    (II) in subclause (III), by 
                                inserting ``in an occupation or 
                                industry sector, including whether the 
                                skills a participant will obtain are 
                                transferable to other employers, 
                                occupations, or industries in the local 
                                area or the State'' after 
                                ``opportunities''; and
                    (H) by adding at the end the following:
                    ``(I) Employer-directed skills development.--An 
                employer may receive a contract from a local board to 
                provide employer-directed skills development to a 
                participant or group of participants if the employer 
                submits to the local board an agreement that 
                establishes--
                            ``(i) the provider of the skills 
                        development program, which may be the employer;
                            ``(ii) the length of the skills development 
                        program;
                            ``(iii) the recognized postsecondary 
                        credentials that will be awarded to, or the 
                        occupational skills that will be gained by, 
                        program participants;
                            ``(iv) the cost of the skills development 
                        program;
                            ``(v) the estimated earnings of program 
                        participants upon successful completion of the 
                        program;
                            ``(vi) the amount of such cost that will be 
                        paid by the employer, which shall not be less 
                        than the amount specified in subparagraph (C) 
                        of section 3(19); and
                            ``(vii) a commitment by the employer to 
                        employ the participating individual or 
                        individuals upon successful completion of the 
                        program.''.
    (c) Business Services.--Section 134(c) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3174(c)) is further amended by adding at 
the end the following:
            ``(4) Business services.--Funds described in paragraph (1) 
        shall be used to provide appropriate recruitment and other 
        business services and strategies on behalf of employers, 
        including small employers and mid-sized employers, that meet 
        the workforce investment needs of area employers, as determined 
        by the local board and consistent with the local plan under 
        section 108, which services--
                    ``(A) may be provided--
                            ``(i) through effective business 
                        intermediaries working in conjunction with the 
                        local board;
                            ``(ii) on a fee-for-service basis; or
                            ``(iii) through the leveraging of economic 
                        development, philanthropic, and other public 
                        and private resources in a manner determined 
                        appropriate by the local board; and
                    ``(B) may include one or more of the following:
                            ``(i) Developing and implementing industry 
                        sector strategies (including strategies 
                        involving industry partnerships, regional 
                        skills alliances, industry skill panels, and 
                        sectoral skills partnerships).
                            ``(ii) Developing and delivering innovative 
                        workforce investment services and strategies 
                        for area employers, which may include career 
                        pathways, skills upgrading, skill standard 
                        development and certification for recognized 
                        postsecondary credential or other employer use, 
                        apprenticeship, developing and offering 
                        industry-recognized credential (including 
                        short-term industry-recognized credential) 
                        programs, including those that support 
                        individuals with foundational skill needs, and 
                        other effective initiatives for meeting the 
                        workforce investment needs of area employers 
                        and workers.
                            ``(iii) Assistance to area employers in 
                        managing reductions in force in coordination 
                        with rapid response activities provided under 
                        subsection (a)(2)(A) and developing strategies 
                        for the aversion of layoffs, which strategies 
                        may include early identification of firms at 
                        risk of layoffs, use of feasibility studies to 
                        assess the needs of and options for at-risk 
                        firms, and the delivery of employment and 
                        training activities to address risk factors.
                            ``(iv) The marketing of business services 
                        offered under this title to appropriate area 
                        employers, including small and mid-sized 
                        employers.
                            ``(v) Technical assistance or other support 
                        to 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.
                            ``(vi) Other services described in this 
                        subsection, including providing information and 
                        referral to microenterprise services, as 
                        appropriate, and specialized business services 
                        not traditionally offered through the one-stop 
                        delivery system.''.
    (d) Permissible Local Employment and Training Activities.--
            (1) Activities.--Section 134(d)(1)(A) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3174(d)(1)(A)) is 
        amended--
                    (A) in clause (iii), by striking ``10 percent'' and 
                inserting ``30 percent'';
                    (B) in clause (v), by inserting ``case 
                management,'' after ``assessments,'';
                    (C) in clause (vi)--
                            (i) in subclause (III), by striking ``and'' 
                        at the end;
                            (ii) by redesignating subclause (IV) as 
                        subclause (VI); and
                            (iii) by inserting after subclause (III) 
                        the following:
                                    ``(IV) employment and training 
                                activities under subsections (d) and 
                                (o) of section 6 of the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 2015);
                                    ``(V) programs under the Older 
                                Americans Act of 1965 (42 U.S.C. 3001 
                                et seq.) that support employment and 
                                economic security; and'';
                    (D) in clause (vii)--
                            (i) in subclause (II)--
                                    (I) by inserting ``and providers of 
                                supportive services,'' after ``small 
                                employers,''; and
                                    (II) by striking ``and'' at the 
                                end;
                            (ii) in subclause (III), by inserting 
                        ``and'' at the end; and
                            (iii) by adding at the end the following:
                                    ``(IV) to strengthen, through 
                                professional development activities, 
                                the knowledge and capacity of one-stop 
                                staff to use the latest digital 
                                technologies, tools, and strategies to 
                                deliver high quality services and 
                                outcomes for jobseekers, workers, and 
                                employers;'';
                    (E) by striking clause (ix);
                    (F) by redesignating clauses (x) through (xii) as 
                clauses (ix) through (xi), respectively;
                    (G) in clause (x), as so redesignated, by striking 
                ``and'' at the end;
                    (H) in clause (xi), as so redesignated, by striking 
                the period at the end and inserting a semicolon; and
                    (I) by adding at the end the following:
                            ``(xii) training programs for individuals 
                        who are dislocated workers as a result of 
                        advances in automation technology;
                            ``(xiii) the use of competency-based 
                        assessments for individuals upon initial 
                        assessment of skills (pursuant to subsection 
                        (c)(2)(A)(iii)) or completion of training 
                        services or other learning experiences;
                            ``(xiv) the development of 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 a region, as determined based 
                        on the most recent analysis conducted by the 
                        local board under section 107(d)(2); and
                            ``(xv) assistance to one or more public 
                        libraries located in the local area that has 
                        demonstrated success in leveraging additional 
                        resources (such as staff, facilities, 
                        computers, and learning materials) to provide 
                        free and open access to individualized career 
                        services, in order to promote and expand access 
                        to such services.''.
            (2) Supportive services.--Section 134(d)(2)(B) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 
        3174(d)(2)(B)) is amended, by inserting ``, including through 
        programs of one-stop partners, who are'' after ``programs''.
            (3) Needs-related payments.--Section 134(d)(3) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(3)) 
        is amended--
                    (A) in subparagraph (A), by inserting ``or for 
                financial assistance through a program carried out by a 
                one-stop partner'' after ``compensation''; and
                    (B) in subparagraph (B), by inserting ``or 
                financial assistance through a program carried out by a 
                one-stop partner'' after ``compensation''
            (4) Incumbent worker training programs.--
                    (A) In general.--Section 134(d)(4)(A) of the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3174(d)(4)(A)) is amended--
                            (i) in clause (i), by striking ``20'' and 
                        inserting ``30'';
                            (ii) by redesignating clauses (ii) and 
                        (iii) as clauses (iii) and (iv), respectively; 
                        and
                            (iii) by inserting after clause (i) the 
                        following:
                            ``(ii) Increase in reservation of funds.--
                        Notwithstanding clause (i)--
                                    ``(I) with respect to a local area 
                                that had a rate of unemployment of not 
                                more than 3 percent for not less than 6 
                                months during the preceding program 
                                year, clause (i) shall be applied by 
                                substituting `40 percent' for `30 
                                percent'; or
                                    ``(II) with respect to a local area 
                                that meets the requirement in subclause 
                                (I) and is located in a State that had 
                                a labor force participation rate of not 
                                less than 69 percent for not less than 
                                6 months during the preceding program 
                                year, clause (i) shall be applied by 
                                substituting `45 percent' for `30 
                                percent'.''.
                    (B) Training activities.--Section 134(d)(4)(B) of 
                the Workforce Innovation and Opportunity Act (29 U.S.C. 
                3174(d)(4)(B)) is amended--
                            (i) by striking ``The training'', and 
                        inserting the following:
                            ``(i) In general.--The training''; and
                            (ii) by striking ``delivering training'' 
                        and inserting ``delivering training, such as 
                        industry or sector partnerships''.
                    (C) Non-federal share.--Section 
                134(d)(4)(D)(ii)(III) of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3174(d)(4)(D)(ii)(III)) is 
                amended by striking ``50'' and inserting ``55''.
                    (D) Incumbent worker upskilling accounts.--Section 
                134(d)(4) of the Workforce Innovation and Opportunity 
                Act (29 U.S.C. 3174(d)(4)) is further amended by adding 
                at the end the following:
                    ``(E) Incumbent worker upskilling accounts.--
                            ``(i) In general.--To establish incumbent 
                        worker upskilling accounts through which an 
                        eligible provider of training services under 
                        section 122 may be paid for the program of 
                        training services provided to an incumbent 
                        worker, a local board--
                                    ``(I)(aa) may use, from the funds 
                                reserved by the local area under 
                                subparagraph (A)(i), an amount that 
                                does not exceed 5 percent of the funds 
                                allocated to such local area under 
                                section 133(b); or
                            ``(bb) if the local area reserved funds 
                        under subparagraph (A)(ii), may use, from the 
                        funds reserved by the local area under 
                        subparagraph (A)(ii), an amount that does not 
                        exceed 10 percent of the funds allocated to 
                        such local area under section 133(b); and
                                    ``(II) may use funds reserved under 
                                section 134(a)(2)(A) for statewide 
                                rapid response activities and provided 
                                by the State to local area to establish 
                                such accounts.
                            ``(ii) Eligibility.--
                                    ``(I) In general.--Subject to 
                                subclause (II), a local board that 
                                seeks to establish incumbent worker 
                                upskilling accounts under clause (i) 
                                shall establish criteria for 
                                determining the eligibility of an 
                                incumbent worker to receive such an 
                                account, which shall take into account 
                                factors of--
                                            ``(aa) the wages of the 
                                        incumbent worker as of the date 
                                        of determining such worker's 
                                        eligibility under this clause;
                                            ``(bb) the career 
                                        advancement opportunities for 
                                        the incumbent worker in the 
                                        occupation of such worker as of 
                                        such date; and
                                            ``(cc) the ability of the 
                                        incumbent worker to, upon 
                                        completion of the program of 
                                        training services selected by 
                                        such worker, secure employment 
                                        in an in-demand industry or 
                                        occupation in the local area 
                                        that will lead to economic 
                                        self-sufficiency and wages 
                                        higher than the current wages 
                                        of the incumbent worker.
                                    ``(II) Limitation.--
                                            ``(aa) In general.--An 
                                        incumbent worker described in 
                                        item (bb) shall be ineligible 
                                        to receive an incumbent worker 
                                        upskilling account under this 
                                        subparagraph.
                                            ``(bb) Ineligibility.--Item 
                                        (aa) shall apply to an 
                                        incumbent worker--

                                                    ``(AA) whose total 
                                                annual wages for the 
                                                most recent year are 
                                                greater than the median 
                                                household income of the 
                                                State; or

                                                    ``(BB) who has 
                                                earned a baccalaureate 
                                                or professional degree.

                            ``(iii) Cost sharing for certain incumbent 
                        workers.--With respect to an incumbent worker 
                        who is determined to be eligible to receive an 
                        incumbent worker upskilling account and who is 
                        not a low-income individual--
                                    ``(I) such incumbent worker shall 
                                pay not less than 25 percent of the 
                                cost of the program of training 
                                services selected by such worker; and
                                    ``(II) funds provided through the 
                                incumbent worker upskilling account 
                                established for such worker shall cover 
                                the remaining 75 percent of the cost of 
                                the program.''.
                    (E) Transitional jobs.--Section 134(d)(5) of the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3174(d)(5)) is amended by striking ``10'' and inserting 
                ``15''.
    (e) Rule of Construction.--Section 134 of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3174) is further amended by adding at 
the end the following:
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to abrogate a collective bargaining agreement that covers 
employees of an entity providing a program of training services, 
including an incumbent worker training program.''.

           CHAPTER 4--GENERAL WORKFORCE INVESTMENT PROVISIONS

SEC. 145. AUTHORIZATION OF APPROPRIATIONS.

    Section 136 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3181) is amended to read as follows:

``SEC. 136. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Youth Workforce Investment Activities.--There are authorized 
to be appropriated to carry out the activities described in section 
127(a) $948,130,000 for each of the fiscal years 2027 through 2032.
    ``(b) Adult Employment and Training Activities.--There are 
authorized to be appropriated to carry out the activities described in 
section 132(a)(1) $875,649,000 for each of the fiscal years 2027 
through 2032.
    ``(c) Dislocated Worker Employment and Training Activities.--There 
are authorized to be appropriated to carry out the activities described 
in section 132(a)(2) $1,331,412,000 for each of the fiscal years 2027 
through 2032.''.

                         Subtitle D--Job Corps

SEC. 151. PURPOSES.

    Section 141 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3191) is amended--
            (1) by striking ``centers'' each place it appears and 
        inserting ``campuses''; and
            (2) in paragraph (1)(A)--
                    (A) by striking ``secondary school diplomas'' and 
                inserting ``regular high school diplomas or their 
                recognized equivalents'';
                    (B) in clause (i), by striking ``or'' at the end;
                    (C) in clause (ii), by striking ``, including an 
                apprenticeship program; and'' and inserting ``; or''; 
                and
                    (D) by adding at the end the following:
                            ``(iii) enrollment in an apprenticeship 
                        program; and''.

SEC. 152. DEFINITIONS.

    Section 142 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3192) is amended--
            (1) in paragraphs (1), (7), (8), and (10), by striking 
        ``center'' each place it appears and inserting ``campus'';
            (2) in paragraph (1)(B), by inserting ``the community in 
        which the Job Corps campus is located or the'' after 
        ``serves'';
            (3) in paragraph (5)--
                    (A) by striking ``secondary school diploma or'' and 
                inserting ``regular high school diploma or its'';
                    (B) by striking ``that prepares'' and inserting 
                ``that--
                    ``(A) prepares'';
                    (C) in subparagraph (A), as so redesignated, by 
                striking the period at the end and inserting ``; and''; 
                and
                    (D) by adding at the end the following:
                    ``(B) may lead to the attainment of a recognized 
                postsecondary credential.''; and
            (4) in paragraph (7), by striking ``center'' in the heading 
        and inserting ``campus''.

SEC. 153. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

    Section 144 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3194) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``21'' and inserting 
                        ``24'';
                            (ii) by inserting `` or, if the date of 
                        enrollment is not greater than 60 days after 
                        the date of application, the date of 
                        application,'' after ``enrollment,'';
                            (iii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) an individual who is age 16 or 17 shall be 
                eligible only upon an individual determination by the 
                director of a Job Corps campus that such individual 
                meets the criteria described in subparagraph (A) or (B) 
                of section 145(b)(1); and''; and
                            (iv) in subparagraph (B), by striking 
                        ``either'';
                    (B) in paragraph (2), by inserting after 
                ``individual'' the following: ``or a resident of a 
                qualified opportunity zone as defined in section 1400Z-
                1(a) of the Internal Revenue Code of 1986''; and
                    (C) in paragraph (3)--
                            (i) by amending subparagraph (A) to read as 
                        follows:
                    ``(A) Has foundational skill needs.''; and
                            (ii) in subparagraph (C), by striking ``(42 
                        U.S.C. 14043e-2(6)))'' and inserting ``(34 
                        U.S.C. 12473(6)))''.
            (2) in subsection (b)--
                    (A) in the heading, by inserting ``and Certain 
                Other Armed Forces Members'' after ``Veterans''; and
                    (B) by inserting ``or a member of the Armed Forces 
                eligible for preseparation counseling of the Transition 
                Assistance Program under section 1142 of title 10, 
                United States Code,'' after ``a veteran''; and
            (3) by inserting at the end the following:
    ``(c) Special Rule for Homeless Youth and Foster Youth.--In 
determining whether an individual is eligible to enroll for services 
under this subtitle on the basis of being a homeless youth, or a youth 
in foster care, as described in subsection (a)(3)(C), staff shall--
            ``(1) if determining whether the individual is a homeless 
        youth, use a process that is in compliance with the 
        requirements of subsection (a) of section 479D of the Higher 
        Education Act of 1965 (20 U.S.C. 1087uu-2) for financial aid 
        administrators; and
            ``(2) if determining whether the individual is a youth in 
        foster care, use a process that is in compliance with the 
        requirements of subsection (b) of such section 479D of the 
        Higher Education Act of 1965 (20 U.S.C. 1087uu-2) for financial 
        aid administrators.''.

SEC. 154. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF 
              ENROLLEES.

    Section 145 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3195) is amended--
            (1) in subsection (a)(2)--
                    (A) in subparagraph (A), by striking ``45'' and 
                inserting ``55'';
                    (B) in subparagraph (D), by striking ``and'';
                    (C) in subparagraph (E), by striking the period and 
                inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(F) assist applicable one-stop centers and other 
                entities identified in paragraph (3) in developing 
                joint applications for Job Corps, YouthBuild, and the 
                youth activities described in section 129.''; and
            (2) in subsections (b), (c), and (d)--
                    (A) by striking ``center'' each place it appears 
                and inserting ``campus''; and
                    (B) by striking ``centers'' each place it appears 
                and inserting ``campuses''.

SEC. 155. JOB CORPS CAMPUSES.

    Section 147 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3197) is amended--
            (1) in the heading, by striking ``centers'' and inserting 
        ``campuses'';
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``center'' each place it 
                        appears and inserting ``campus''; and
                            (ii) in subparagraph (A), by inserting 
                        after ``area career and technical education 
                        school,'' the following: ``an institution of 
                        higher education,'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``center'' each 
                                place it appears and inserting 
                                ``campus''; and
                                    (II) by inserting after ``United 
                                States Code,'' the following: ``and 
                                section 159(f)(2)(B)(i)(III),''; and
                            (ii) in subparagraph (B)--
                                    (I) in clause (i)--
                                            (aa) by striking ``operate 
                                        a Job Corps center'' and 
                                        inserting ``operate a Job Corps 
                                        campus'';
                                            (bb) by striking subclause 
                                        (IV);
                                            (cc) by redesignating 
                                        subclauses (I), (II), (III), 
                                        and (V), as subclauses (III), 
                                        (IV), (V), and (VI), 
                                        respectively;
                                            (dd) by inserting before 
                                        subclause (III), as so 
                                        redesignated, the following:
                                    ``(I)(aa) in the case of an entity 
                                that has previously operated a Job 
                                Corps campus, a numeric metric of the 
                                past achievement on the primary 
                                indicators of performance for eligible 
                                youth described in section 
                                116(b)(2)(A)(ii); or
                            ``(bb) in the case of an entity that has 
                        not previously operated a Job Corps campus, a 
                        comparable alternative numeric metric on the 
                        past effectiveness of the entity in 
                        successfully assisting at-risk youth to connect 
                        to the labor force, based on such primary 
                        indicators of performance for eligible youth;
                                    ``(II) in the case of an entity 
                                that has previously operated a Job 
                                Corps campus, any information regarding 
                                the entity included in any report 
                                developed by the Office of Inspector 
                                General of the Department of Labor;'';
                                            (ee) in subclause (III), as 
                                        so redesignated, by striking 
                                        ``center'' and inserting 
                                        ``campus'';
                                            (ff) by amending subclause 
                                        (IV), as so redesignated, to 
                                        read as follows:
                                    ``(IV) the ability of the entity to 
                                offer career and technical education 
                                and training that has been proposed by 
                                the workforce council under section 
                                154(c), including--
                                            ``(aa) the degree to which 
                                        such education and training 
                                        reflects employment 
                                        opportunities in the local 
                                        areas in which enrollees at the 
                                        campus intend to seek 
                                        employment; and
                                            ``(bb) the degree to which 
                                        such education and training 
                                        leads to a recognized 
                                        postsecondary credential, or 
                                        postsecondary credit, that 
                                        permits articulation into a 
                                        higher level or other degree or 
                                        credential program;'';
                                            (gg) in subclause (V), as 
                                        so redesignated, by striking 
                                        ``center is located;'' and 
                                        inserting ``campus is located, 
                                        including agreements to provide 
                                        off-campus work-based learning 
                                        opportunities aligned with the 
                                        career and technical education 
                                        provided to enrollees; and''; 
                                        and
                                            (hh) by amending subclause 
                                        (VI), as so redesignated, to 
                                        read as follows:
                                    ``(VI) the ability of the entity to 
                                implement an effective behavior 
                                management plan, as described in 
                                section 152(a), and maintain a safe and 
                                secure learning environment for 
                                enrollees.''; and
                                    (II) in clause (ii), by striking 
                                ``center'' and inserting ``campus''; 
                                and
                    (C) in paragraph (3)--
                            (i) by striking ``center'' each place it 
                        appears and inserting ``campus'';
                            (ii) in subparagraph (B), by inserting ``or 
                        postsecondary credit, which credit shall permit 
                        articulation into a credential program'' after 
                        ``program'';
                            (iii) in subparagraph (D), by inserting 
                        after ``is located'' the following: ``, 
                        including agreements to provide off-campus 
                        work-based learning opportunities aligned with 
                        the career and technical education provided to 
                        enrollees'';
                            (iv) by redesignating subparagraphs (E), 
                        (F), (G), (H), (I), (J), and (K) as 
                        subparagraphs (F), (G), (H), (I), (J), (K), and 
                        (L), respectively; and
                            (v) by inserting after subparagraph (D) the 
                        following:
                    ``(E) A description of the policies that will be 
                implemented at the campus regarding security and access 
                to campus facilities, including procedures to report on 
                and respond to violations of the disciplinary policy 
                described in section 152(b) and other emergencies 
                occurring on campus.'';
            (3) in subsection (b)--
                    (A) in the heading, by striking ``Centers'' and 
                inserting ``Campuses'';
                    (B) by striking ``center'' each place it appears 
                and inserting ``campus'';
                    (C) by striking ``centers'' each place it appears 
                and inserting ``campuses'';
                    (D) in paragraph (2)(A), by striking ``20 percent'' 
                and inserting ``25 percent''; and
                    (E) in paragraph (3)(A)(iv), by striking 
                ``secondary school diplomas'' and inserting ``regular 
                high school diplomas'';
            (4) in subsection (c)--
                    (A) by striking ``centers'' and inserting 
                ``campuses''; and
                    (B) by striking ``20 percent'' and inserting ``30 
                percent'';
            (5) in subsection (d)--
                    (A) in the first sentence, by striking ``centers'' 
                and inserting ``campuses''; and
                    (B) in the second sentence, by striking ``centers'' 
                and inserting ``Centers'';
            (6) in subsection (e)--
                    (A) in paragraph (1), by striking ``centers'' and 
                inserting ``campuses''; and
                    (B) in paragraph (2), by striking ``450b)'' and 
                inserting ``5304)'';
            (7) in subsection (f), by striking ``2-year period'' and 
        inserting ``3-year period''; and
            (8) in subsection (g)--
                    (A) by striking ``center'' each place it appears 
                and inserting ``campus'';
                    (B) in paragraph (1), by striking subparagraphs (A) 
                and (B) and inserting the following:
                    ``(A) failed to achieve an average of 80 percent or 
                higher of the expected level of performance under 
                section 159(c)(1) across all of the primary indicators 
                of performance for eligible youth described in section 
                116(b)(2)(A)(ii); or
                    ``(B) failed to--
                            ``(i) take reasonable measures to achieve 
                        an average of 80 percent of the planned average 
                        onboard strength that was agreed to in the 
                        agreement described in subsection (a)(1)(A); or
                            ``(ii) achieve an average of 60 percent of 
                        the planned average onboard strength that was 
                        agreed to in the agreement described in 
                        subsection (a)(1)(A).'';
                    (C) in paragraph (2)(B), by inserting ``or onboard 
                strength or enrollment'' after ``performance'';
                    (D) in paragraph (3), by striking ``shall provide'' 
                and inserting ``shall provide, at least 30 days prior 
                to renewing the agreement''; and
                    (E) in paragraph (4)--
                            (i) in subparagraph (C), by striking 
                        ``and'' after the semicolon;
                            (ii) by redesignating subparagraph (D) as 
                        subparagraph (E); and
                            (iii) by inserting after subparagraph (C) 
                        the following:
                    ``(D) has maintained a safe and secure campus 
                environment; and''.

SEC. 156. PROGRAM ACTIVITIES.

    Section 148 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3198) is amended--
            (1) by striking ``center'' each place it appears and 
        inserting ``campus'';
            (2) by striking ``centers'' each place it appears and 
        inserting ``campuses'';
            (3) in subsection (a)--
                    (A) in the subsection heading, by striking 
                ``CENTERS'' and inserting ``CAMPUSES''; and
                    (B) in paragraph (1)--
                            (i) by inserting before the period at the 
                        end the following: ``, and productive 
                        activities, such as tutoring or other skills 
                        development opportunities, for enrollees to 
                        participate in outside of regular class time 
                        and work hours''; and
                            (ii) by striking ``clauses (i) through (xi) 
                        of section 134(c)(2)(A)'' and inserting 
                        ``subclauses (I) through (V) of section 
                        134(c)(2)(A)(ii) or in clauses (i) through 
                        (viii) of section 134(c)(2)(B)'';
            (4) in subsection (b), by striking ``career and technical 
        educational institutions'' and inserting ``area career and 
        technical education schools'';
            (5) in subsection (c)(1)--
                    (A) by striking ``the eligible providers'' and 
                inserting ``any eligible provider''; and
                    (B) by inserting after ``under section 122'' the 
                following: ``that is aligned with the career and 
                technical education an enrollee has completed''; and
            (6) in subsection (d), by inserting ``, in coordination 
        with the operator of the Job Corps program in which a graduate 
        was enrolled,'' after ``Secretary''.

SEC. 157. COUNSELING AND JOB PLACEMENT.

    Section 149(b) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3199(b)) is amended--
            (1) by inserting ``, in coordination with the operator of a 
        Job Corps campus,'' after ``The Secretary'';
            (2) by inserting ``assigned to such campus'' after ``for 
        enrollees''; and
            (3) by inserting ``, in coordination with the operator,'' 
        after ``, the Secretary''.

SEC. 158. SUPPORT.

    Section 150 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3200) is amended--
            (1) in subsection (a), by striking ``centers'' and 
        inserting ``campuses''; and
            (2) by adding at the end the following:
    ``(d) Period of Transition.--Notwithstanding the requirements of 
section 146(b), a Job Corps graduate may remain an enrollee and a 
resident of a Job Corps campus for not more than one month after 
graduation as such graduate transitions into independent living and 
employment if such graduate receives written approval from the director 
of the Job Corps campus to remain such a resident.''.

SEC. 159. OPERATIONS.

    Section 151 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3201) is amended--
            (1) by striking ``center'' each place it appears and 
        inserting ``campus''; and
            (2) by adding at the end the following:
    ``(d) Local Authority.--
            ``(1) In general.--Subject to the limitations of the budget 
        approved by the Secretary for a Job Corps campus, the operator 
        of a Job Corps campus shall have the authority, without prior 
        approval from the Secretary, to--
                    ``(A) hire staff and provide staff professional 
                development;
                    ``(B) set terms and enter into agreements with 
                Federal, State, or local educational partners, such as 
                secondary schools, institutions of higher education, 
                child development centers, units of Junior Reserve 
                Officers' Training Corps programs established under 
                section 2031 of title 10, United States Code, or 
                employers; and
                    ``(C) engage with and educate stakeholders 
                (including eligible applicants for the Job Corps) about 
                Job Corps operations, selection procedures, and 
                activities.
            ``(2) Nonapplicability.--Notwithstanding section 6702 of 
        title 41, United States Code, or any other provision of law, 
        chapter 67 of such title shall not apply to any agreement 
        described in paragraph (1)(B) for the purpose of providing 
        child care to enrollees between an entity described in such 
        paragraph and an operator of a Job Corps campus, if the 
        operator is not using amounts made available under this 
        subtitle to pay for such child care services.
    ``(e) Prior Notice.--Prior to making a change to the agreement 
described in section 147(a) or an operating plan described in this 
section, the Secretary shall solicit from the operators of the Job 
Corps campuses information on any operational costs the operators 
expect to result from such change.''.

SEC. 160. STANDARDS OF CONDUCT.

    Section 152 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3202) is amended--
            (1) by striking ``centers'' each place it appears and 
        inserting ``campuses'';
            (2) in subsection (a), by inserting ``As part of the 
        operating plan required under section 151(a), the director of 
        each Job Corps campus shall develop and implement a behavior 
        management plan consistent with the standards of conduct and 
        subject to the approval of the Secretary.'' at the end;
            (3) in subsection (b)(2)--
                    (A) in subparagraph (A), by striking ``or 
                disruptive''; and
                    (B) in subparagraph (C)(ii), by inserting ``, 
                subject to the appeal process described in subsection 
                (c)'' after ``subparagraph (A)''; and
            (4) by amending subsection (c) to read as follows:
    ``(c) Appeal Process.--
            ``(1) Enrollee appeals.--A disciplinary measure taken by a 
        director under this section shall be subject to expeditious 
        appeal in accordance with procedures established by the 
        Secretary.
            ``(2) Director appeals.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the A Stronger Workforce for 
                America Act of 2026, the Secretary shall establish an 
                appeals process under which the director of a Job Corps 
                campus may submit a request that an enrollee who has 
                engaged in an activity which is a violation of the 
                guidelines established pursuant to subsection (b)(2)(A) 
                remain enrolled in the program, but be subject to other 
                disciplinary actions in lieu of automatic separation 
                from the program.
                    ``(B) Contents.--A request under subparagraph (A) 
                shall include--
                            ``(i) a signed certification from the 
                        director attesting that, to the belief of the 
                        director, the continued enrollment of such 
                        enrollee would not impact the safety or 
                        learning environment of the campus; and
                            ``(ii) the behavioral records of such 
                        enrollee.
                    ``(C) Default approval.--The Secretary shall review 
                such appeal within 30 days of receiving such appeal and 
                either approve or deny the appeal. An appeal shall be 
                considered approved if the Secretary has not denied 
                such appeal after 30 days.''.

SEC. 161. COMMUNITY PARTICIPATION.

    Section 153 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3203) is amended--
            (1) by striking ``center'' each place it appears and 
        inserting ``campus'';
            (2) in subsection (a), by striking ``centers'' and 
        inserting ``campuses'';
            (3) in subsection (b)(1)(C)--
                    (A) in clause (iii), by striking ``and'' at the 
                end; and
                    (B) by adding at the end the following:
                    ``(v) industry or sector partnerships, where 
                applicable; and''; and
            (4) in subsection (c), in the heading, by striking 
        ``Centers'' and inserting ``Campuses''.

SEC. 162. WORKFORCE COUNCILS.

    Section 154 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3204) is amended--
            (1) by striking ``center'' each place it appears and 
        inserting ``campus'';
            (2) in subsection (b)(1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting the following after subparagraph 
                (B):
                    ``(C) representatives of community-based 
                organizations; and'';
            (3) in subsection (c)(2)(C), by inserting ``, recognized 
        postsecondary credentials,'' after ``skills''; and
            (4) in subsection (d), in the heading, by striking ``New 
        Centers'' and inserting ``New Campuses''.

SEC. 163. ADVISORY COMMITTEES.

    Section 155 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3205) is amended--
            (1) by striking ``The Secretary'' and inserting ``(a) In 
        General.--The Secretary'';
            (2) by striking ``centers'' and inserting ``campuses'';
            (3) by striking ``center'' and inserting ``campus''; and
            (4) by adding at the end the following:
    ``(b) Advisory Committee to Improve Job Corps Safety and 
Performance.--Not later than one year after the date of enactment of 
the A Stronger Workforce for America Act of 2026, the Secretary shall 
establish an advisory committee to provide recommendations on effective 
or evidence-based strategies to improve--
            ``(1) safety, security, and learning conditions on Job 
        Corps campuses;
            ``(2) the standards for campus safety established under 
        section 159(c)(4);
            ``(3) the levels of performance established under section 
        159(c)(1), including recommendations to improve the 
        effectiveness and rigor of such levels of performance and 
        recommendations to ensure such levels promote continuous 
        performance improvement; and
            ``(4) the effectiveness of performance improvement plans 
        and other measures to continuously improve the performance of 
        the Job Corps program.''.

SEC. 164. EXPERIMENTAL PROJECTS AND TECHNICAL ASSISTANCE.

    Section 156 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3206) is amended--
            (1) by striking ``center'' and inserting ``campus'';
            (2) by striking ``centers'' and inserting ``campuses''; and
            (3) in subsection (b)--
                    (A) by striking ``\1/4\ of 1 percent to provide'' 
                and inserting ``1.25 percent to provide''; and
                    (B) in paragraph (1), by striking ``and'' at the 
                end of subparagraph (C) and by adding at the end the 
                following:
                    ``(D) in the development and implementation of a 
                behavior management plan under section 152(a); and
                    ``(E) in complying with the campus and student 
                safety standards described in section 159(c)(4); and''.

SEC. 165. SPECIAL PROVISIONS.

    Section 158 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3208) is amended--
            (1) by striking ``center'' each place it appears and 
        inserting ``campus''; and
            (2) in subsection (f)--
                    (A) by striking ``may accept on behalf of the Job 
                Corps or individual Job Corps campuses charitable 
                donations of cash'' and inserting ``(or the Secretary 
                of Agriculture, as appropriate), on behalf of the Job 
                Corps, or a Job Corps campus operator, on behalf of 
                such campus, may accept grants, charitable donations of 
                cash,''; and
                    (B) by inserting at the end the following: 
                ``Notwithstanding sections 501(b) and 522 of title 40, 
                United States Code, any property acquired by a Job 
                Corps campus shall be directly transferred, on a 
                nonreimbursable basis, to the Secretary.''.

SEC. 166. MANAGEMENT INFORMATION.

    (a) Levels of Performance.--Section 159 of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3209) is amended--
            (1) by striking ``center'' each place it appears and 
        inserting ``campus'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``The Secretary'' and 
                        inserting the following:
                    ``(A) In general.--The Secretary'';
                            (ii) by inserting ``that are ambitious yet 
                        achievable and'' after ``program''; and
                            (iii) by adding at the end the following 
                        new subparagraphs:
                    ``(B) Levels of performance.--In establishing the 
                expected levels of performance under subparagraph (A) 
                for a Job Corps campus, the Secretary may take into 
                account factors including--
                            ``(i) how the levels involved compare with 
                        the recent performance of such campus and the 
                        performance of other campuses within the same 
                        State or geographic region;
                            ``(ii) the levels of performance set for 
                        the primary indicators of performance described 
                        in section 116(b)(2)(A)(ii) for the youth 
                        programs authorized under chapter 2 of subtitle 
                        B for the State in which the campus is located;
                            ``(iii) the extent to which the levels 
                        involved promote continuous improvement in 
                        performance on the primary indicators of 
                        performance by such campus and ensure optimal 
                        return on the use of Federal funds; and
                            ``(iv) any other considerations identified 
                        by the Secretary after reviewing the 
                        recommendations of the advisory group described 
                        in section 155(b).
                    ``(C) Performance per contract.--The Secretary 
                shall ensure the expected levels of performance are 
                established in the relevant contract or agreement.
                    ``(D) Adjustments based on economic conditions and 
                individuals served during the program year.--
                            ``(i) In general.--In the event of a 
                        significant economic downturn, the Secretary 
                        shall adjust the applicable levels of 
                        performance for each of the campuses for a 
                        program year to reflect the actual economic 
                        conditions during such program year.
                            ``(ii) Report to congress.--Prior to 
                        implementing the adjustments described in 
                        clause (i), the Secretary shall submit to the 
                        Committee on Education and Workforce of the 
                        House of Representatives and the Committee on 
                        Health, Education, Labor, and Pensions of the 
                        Senate a report explaining the reason for such 
                        adjustments.
                    ``(E) Review of levels of performance.--The Office 
                of Inspector General of the Department of Labor shall, 
                every 5 years, submit to the Committee on Education and 
                Workforce of the House of Representatives and the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate, and publish in the Federal Register and on 
                a publicly available website of the Department, a 
                report containing--
                            ``(i) a quadrennial review of the expected 
                        levels of performance; and
                            ``(ii) an evaluation of whether--
                                    ``(I) the Secretary is establishing 
                                such expected levels of performance in 
                                accordance with this Act; and
                                    ``(II) such expected levels have 
                                led to continued improvement of the Job 
                                Corps program.'';
                    (B) in paragraph (2)(B), by striking ``(L), and 
                (M)'' and inserting ``(M), and (N)'';
                    (C) in paragraph (3)(B), by striking ``(J), and 
                (K)'' and inserting ``(K), and (L)'';
                    (D) by redesignating paragraph (4) as paragraph 
                (5);
                    (E) by inserting after paragraph (3) the following:
            ``(4) Campus safety.--
                    ``(A) In general.--The Secretary shall establish 
                campus and student safety standards. The Secretary 
                shall provide technical assistance and develop a safety 
                improvement plan for a Job Corps campus that fails to 
                achieve such standards.
                    ``(B) Considerations.--In establishing the campus 
                and student safety standards under subparagraph (A), 
                the Secretary shall take into account--
                            ``(i) incidents related to safety that are 
                        reported to the Secretary;
                            ``(ii) survey data from enrollees, faculty, 
                        staff, and community members; and
                            ``(iii) any other considerations identified 
                        by the Secretary after reviewing the 
                        recommendations of the advisory group described 
                        in section 155(b).'';
                    (F) in paragraph (5), as so redesignated--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iii) by adding at the end the following:
                    ``(C) the number of contracts that were awarded a 
                renewal compared to those eligible for a renewal;
                    ``(D) the number of campuses where the contract was 
                awarded to a new operator; and
                    ``(E) the number of campuses that were required to 
                receive performance improvement, as described under 
                subsection (f)(2).''; and
                    (G) by adding at the end the following:
            ``(6) Wage records.--The Secretary shall make arrangements 
        with a State or other appropriate entity to facilitate the use 
        of State wage records to evaluate the performance of Job Corps 
        campuses on the employment and earnings indicators described in 
        clause (i)(III) of subparagraph (A) of section 116(b)(2) and 
        subclauses (I) and (II) of clause (ii) of such subparagraph for 
        the purposes of the report required under paragraph (5).'';
            (3) in subsection (d)(1)--
                    (A) by inserting ``and make available on the 
                website of the Department pertaining to the Job Corps 
                program in a manner that is consumer-tested to ensure 
                it is easily understood, searchable, and navigable,'' 
                after ``subsection (c)(4),'';
                    (B) in subparagraph (B), by striking ``gender'' and 
                inserting ``sex'';
                    (C) in subparagraph (F), by striking ``regular 
                secondary school diploma'' and inserting ``regular high 
                school diploma'';
                    (D) in subparagraph (G), by striking ``regular 
                secondary school diploma'' and inserting ``regular high 
                school diploma'';
                    (E) by redesignating subparagraphs (J) through (O) 
                as subparagraphs (K) through (P), respectively; and
                    (F) by inserting the following after subparagraph 
                (I):
                    ``(J) the number of appeals under section 152(c) 
                and a description of each appeal that was approved;'';
            (4) in subsection (e), by striking ``116(i)(2)'' and 
        inserting ``116(j)(2)''; and
            (5) in subsection (g)(2), by striking ``comply'' and 
        inserting ``attest to compliance''.
    (b) Performance Assessments and Improvements.--Section 159(f) of 
the Workforce Innovation and Opportunity Act (29 U.S.C. 3209) is 
amended to read as follows:
    ``(f) Performance Assessments and Improvements.--
            ``(1) Assessments.--The Secretary shall conduct an annual 
        assessment of the performance of each Job Corps campus on the 
        primary indicators of performance described in section 
        116(b)(2)(A)(ii), where each indicator shall be given equal 
        weight in determining the overall performance of the campus. 
        Based on the assessment, the Secretary shall take measures to 
        continuously improve the performance of the Job Corps program.
            ``(2) Performance improvement.--
                    ``(A) Comprehensive improvement.--
                            ``(i) In general.--With respect to a Job 
                        Corps campus that, for a program year, performs 
                        as described in clause (ii) and is not already 
                        subject to a performance improvement plan under 
                        this paragraph for such program year or the 
                        succeeding program year, the Secretary shall 
                        develop and implement, for a comprehensive 
                        improvement period beginning with the 
                        succeeding program year, a performance 
                        improvement plan that meets the requirements of 
                        clause (iii).
                            ``(ii) Performance failures.--A Job Corps 
                        campus performs as described in this clause if, 
                        for a program year, such campus--
                                    ``(I) fails to meet an average of 
                                90 percent on the expected levels of 
                                performance across all the primary 
                                indicators of performance specified in 
                                subsection (c)(1); and
                                    ``(II) is ranked among the lowest 
                                20 percent of all Job Corps campuses.
                            ``(iii) Performance improvement plan 
                        requirements.--A performance improvement plan, 
                        with respect to a Job Corps campus, shall 
                        require the Secretary to take substantial 
                        action during a 3 consecutive program year 
                        period (in this paragraph, referred to as a 
                        `comprehensive improvement period') to improve 
                        the performance of such campus, which shall 
                        include--
                                    ``(I) providing technical 
                                assistance to the campus;
                                    ``(II) changing the management 
                                staff of the campus;
                                    ``(III) changing the career and 
                                technical education and training 
                                offered at the campus;
                                    ``(IV) replacing the operator of 
                                the campus; or
                                    ``(V) reducing the capacity of the 
                                campus.
                    ``(B) Chronic failure.--
                            ``(i) In general.--With respect to a Job 
                        Corps campus that, for the two consecutive 
                        program years immediately following a 
                        comprehensive improvement period and regardless 
                        of whether such campus is subject to a 
                        subsequent comprehensive improvement period, 
                        fails to meet an average of 85 percent on the 
                        expected levels of performance across all the 
                        primary indicators and is ranked among the 
                        lowest 15 percent of all Job Corps campuses, 
                        the Secretary shall take further substantial 
                        action to improve the performance of such 
                        campus, which shall include--
                                    ``(I) relocating the campus;
                                    ``(II) closing the campus; or
                                    ``(III) notifying the State in 
                                which the campus is located of such 
                                failure and, if such State submits a 
                                written plan to operate a residential 
                                campus in the current location, the 
                                Secretary--
                                            ``(aa) shall enter into a 
                                        memorandum of understanding 
                                        with the State for the purpose 
                                        of so operating a residential 
                                        campus and award funding 
                                        directly to the State for such 
                                        purpose;
                                            ``(bb) may encourage 
                                        innovation in such memorandum 
                                        of understanding by waiving any 
                                        statutory or regulatory 
                                        requirement of this subtitle 
                                        except for those related to 
                                        participant eligibility under 
                                        section 144, program activities 
                                        under section 148, counseling 
                                        and job placement under section 
                                        149, standards of conduct under 
                                        section 152, and performance 
                                        reporting and accountability 
                                        under this section; and
                                            ``(cc) if a State chooses 
                                        to award funds received under 
                                        this clause to an entity that 
                                        is not a State agency or other 
                                        State entity, require that such 
                                        State develop award criteria 
                                        that will give priority 
                                        consideration for the primary 
                                        contract or grant for operation 
                                        of the campus to any applicant 
                                        that is a non-profit 
                                        organization with expertise in 
                                        serving out-of-school youth and 
                                        that otherwise meets such award 
                                        criteria.
                            ``(ii) Indian tribes.--
                                    ``(I) In general.--In the case of a 
                                Job Corps campus described in clause 
                                (i) that is located on an Indian 
                                reservation, subclause (III) of such 
                                clause shall be applied by--
                                            ``(aa) by substituting 
                                        `Indian Tribe' for `State' in 
                                        each place it appears; and
                                            ``(bb) in item (cc), by 
                                        substituting `Tribal 
                                        organization' for `State agency 
                                        or other State entity'.
                                    ``(II) Definition.--In this 
                                paragraph, the terms `Indian Tribe' and 
                                `Tribal organization' have the meanings 
                                given such terms in subsections (e) and 
                                (l), respectively, of section 4 of the 
                                Indian Self-Determination and Education 
                                Assistance Act (25 U.S.C. 5304).
            ``(3) Additional performance improvement.--In addition to 
        the performance improvement plans required under paragraph (2), 
        the Secretary may develop and implement additional performance 
        improvement plans for a Job Corps campus that fails to meet 
        criteria established by the Secretary other than the expected 
        levels of performance described in subsection (c)(1).
            ``(4) Civilian conservation centers.--With respect to a 
        Civilian Conservation Center that, for 3 consecutive program 
        years, fails to meet an average of 90 percent of the expected 
        levels of performance across all the primary indicators of 
        performance specified in subsection (c)(1) and is ranked among 
        the lowest 15 percent of campuses, the Secretary of Labor or, 
        if appropriate, the Secretary of Agriculture shall select, on a 
        competitive basis, an entity to operate part or all of the 
        Civilian Conservation Center in accordance with the 
        requirements of section 147.''.
    (c) Conforming Amendments.--Section 159 of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3209) is further amended--
            (1) in subsection (a)(3), by striking ``centers'' and 
        inserting ``campuses'';
            (2) in subsection (g)(1), in the heading, by striking 
        ``Center'' and inserting ``Campus''; and
            (3) in subsection (j), in the heading, by striking 
        ``Center'' and inserting ``Campus''.

SEC. 167. JOB CORPS OVERSIGHT AND REPORTING.

    Section 161 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3211) is amended--
            (1) in subsection (c)--
                    (A) in the heading, by striking ``Center'' and 
                inserting ``Campus''; and
                    (B) by striking ``center'' and inserting 
                ``campus'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Report on Implementation of Recommendations.--The Secretary 
shall, on an annual basis, prepare and submit to the applicable 
committees a report regarding the implementation of all outstanding 
recommendations regarding the Job Corps program from the Office of 
Inspector General of the Department of Labor or the Government 
Accountability Office.''.

SEC. 168. AUTHORIZATION OF APPROPRIATIONS.

    Section 162 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3212) is amended to read as follows:

``SEC. 162. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $1,760,155,000 for each of the fiscal years 2027 through 
2032.''.

SEC. 169. CONFORMING AMENDMENTS.

    Section 146(a) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3196(a)) is amended by striking ``App. 451'' and inserting 
``3801''.

                     Subtitle E--National Programs

SEC. 171. NATIVE AMERICAN PROGRAMS.

    Section 166 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3221) is amended--
            (1) in subsection (a)(2), by striking ``(25 U.S.C. 450 et 
        seq.)'' and inserting ``(25 U.S.C. 5301 et seq.)'';
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``(25 U.S.C. 
                450b)'' and inserting ``(25 U.S.C. 5304)''; and
                    (B) in paragraph (3), by inserting ``(20 U.S.C. 
                7517)'' before the period at the end;
            (3) in subsection (d)(1)--
                    (A) in subparagraph (A), by striking ``and'';
                    (B) in subparagraph (B)--
                            (i) by striking ``leading'' and inserting 
                        ``or self-employment that leads''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) are evidence-based, to the extent 
                practicable.'';
            (4) in subsection (d)(2), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) Administrative costs.--Not more than 15 
                percent of the funds made available to an entity under 
                subsection (c) may be used for the administrative costs 
                of the activities and services described in 
                subparagraph (A).
                    ``(C) Special rules.--
                            ``(i) Eligibility.--Notwithstanding any 
                        other provision of this section, individuals 
                        who were eligible to participate in programs 
                        under section 401 of the Job Training 
                        Partnership Act (as such section was in effect 
                        on the day before the date of enactment of the 
                        Workforce Investment Act of 1998) shall be 
                        eligible to participate in an activity assisted 
                        under this section.
                            ``(ii) Transfer of unobligated funds.--An 
                        entity receiving funds under subsection (c) may 
                        transfer such funds that are unobligated for an 
                        award year to the following award year for 
                        activities described in subparagraph (A)(i) in 
                        that following award year.'';
            (5) in subsection (e)(3), by inserting ``or to develop 
        skills necessary for successful self-employment'' before the 
        semicolon at the end;
            (6) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in the heading, by striking the heading 
                        and inserting ``Performance standards'';
                            (ii) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) Consultation on performance standards.--The 
                Secretary, in consultation with the Native American 
                Employment and Training Council, shall develop 
                performance standards on the primary indicators of 
                performance described in section 116(b)(2)(A) that 
                shall be applicable to programs under this section.''; 
                and
                            (iii) in subparagraph (B), in the matter 
                        preceding clause (i), by striking ``indicators 
                        and'';
                    (B) in paragraph (2), by striking ``section 
                116(b)(2)(A)'' and all that follows through the period 
                at the end of the paragraph and inserting the 
                following: ``section 116(b)(2)(A)--
                    ``(A) taking into consideration--
                            ``(i) economic conditions;
                            ``(ii) characteristics and needs of the 
                        individuals and groups served, including the 
                        differences in needs among such groups in 
                        various geographic service areas; and
                            ``(iii) other appropriate factors, 
                        including the economic circumstances of the 
                        communities served; and
                    ``(B) using, to the extent practicable, the 
                statistical adjustment model under section 
                116(b)(3)(A)(viii).''; and
                    (C) by adding at the end the following:
            ``(3) Program plan.--The levels agreed to under paragraph 
        (2) shall be the adjusted levels of performance and shall be 
        incorporated in the program plan.
            ``(4) Wage records.--
                    ``(A) In general.--The Secretary shall make 
                arrangements with any State or other appropriate entity 
                to facilitate the use of State wage records to evaluate 
                the performance of entities funded under this section 
                on the employment and earnings indicators described in 
                subclauses (I) through (III) of section 116(b)(2)(A)(i) 
                for the purposes of the report required under paragraph 
                (5).
                    ``(B) Other wage records.--For any individual 
                working in Indian country (as defined in section 1151 
                of title 18, United States Code) whose wages are not 
                submitted to a relevant State as an unemployment 
                insurance wage record, the Indian tribe with 
                jurisdiction over that Indian country may submit other 
                forms of documentation of the wages of such individual 
                to the State for purposes of the report required under 
                paragraph (5).
            ``(5) Performance results.--For each program year, the 
        Secretary shall make available on a publicly accessible website 
        of the Department of Labor a report on the performance, during 
        such program year, of entities funded under this section on--
                    ``(A) the primary indicators of performance 
                described in section 116(b)(2)(A); and
                    ``(B) the adjusted levels of performance for such 
                entities as described in paragraph (2).''; and
            (7) in subsection (i)--
                    (A) in paragraph (4)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``Using'' and 
                                inserting the following:
                            ``(i) Establishment.--Using''; and
                                    (II) by adding at the end the 
                                following:
                            ``(ii) Recommendations.--The Secretary 
                        shall meet, on not less than an annual basis, 
                        with the Council to consider recommendations 
                        from the Council on the operation and 
                        administration of the programs assisted under 
                        this section.'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``The Council'' and 
                                inserting the following:
                            ``(i) In general.--The Council''; and
                                    (II) by inserting at the end the 
                                following:
                            ``(ii) Vacancies.--An individual appointed 
                        to fill a vacancy on the Council occurring 
                        before the expiration of the term for which the 
                        predecessor of such individual was appointed 
                        shall be appointed only for the remainder of 
                        that term. Such an individual may serve on the 
                        Council after the expiration of such term until 
                        a successor is appointed.''; and
                            (iii) in subparagraph (F), by inserting ``, 
                        virtually or in person'' before the period at 
                        the end; and
                    (B) in paragraph (6)--
                            (i) by striking ``more than one State'' and 
                        inserting ``a State'';
                            (ii) by inserting ``or provided by another 
                        grantee that receives funds awarded under 
                        subtitle B from any State for adult, youth, or 
                        dislocated worker programs'' after ``this 
                        title'';
                            (iii) by striking ``Governors of the 
                        affected States'' and inserting ``Governor of 
                        any affected State''; and
                            (iv) by striking ``the States'' and 
                        inserting ``the State or other grantee''.

SEC. 172. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

    Section 167 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3222) is amended--
            (1) in subsection (b)--
                    (A) by striking ``To be'' and inserting the 
                following:
            ``(1) In general.--To be''; and
                    (B) by adding at the end the following:
            ``(2) Prohibition on geographic limitations.--In 
        determining eligibility under paragraph (1), the Secretary may 
        not place limitations on the geographic location of the entity 
        or on the intended area to be served.'';
            (2) in subsection (c), by adding at the end the following:
            ``(5) Wage records.--The Secretary shall make arrangements 
        with a State or other appropriate entity to facilitate the use 
        of State wage records to evaluate the performance of entities 
        funded under this section on the employment and earnings 
        indicators described in subclauses (I) through (III) of section 
        116(b)(2)(A)(i) for the purposes of the report required under 
        paragraph (6).
            ``(6) Performance results.--For each program year, the 
        Secretary shall make available on a publicly accessible website 
        of the Department a report on the performance, during such 
        program year, of entities funded under this section on--
                    ``(A) the primary indicators of performance 
                described in section 116(b)(2)(A); and
                    ``(B) the adjusted levels of performance for such 
                entities as described in paragraph (3).'';
            (3) in subsection (d)(1), by inserting ``development of 
        digital literacy skills,'' after ``literacy instruction,'';
            (4) by redesignating subsections (e) through (i) as 
        subsections (f) through (j), respectively;
            (5) by inserting after subsection (d) the following:
    ``(e) Administrative Costs.--Not more than 10 percent of the funds 
provided to an entity under this section may be used for the 
administrative costs of the activities and services carried out under 
subsection (d).''; and
            (6) in subsection (i), as so redesignated--
                    (A) in the heading, by striking ``Allocation'' and 
                inserting ``Allocation; Funding Obligation'';
                    (B) by striking ``From'' and inserting the 
                following:
            ``(1) Funding allocation.--From''; and
                    (C) by adding at the end the following:
            ``(2) Funding obligation.--Funds appropriated and made 
        available to carry out this section for any fiscal year may be 
        obligated by the Secretary during the period beginning on April 
        1 of the calendar year that begins during such fiscal year and 
        ending on June 30 of the following calendar year to be made 
        available to an entity described in subsection (b).''.

SEC. 173. TECHNICAL ASSISTANCE.

    (a) General Technical Assistance.--Section 168(a)(1) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3223(a)(1)) is 
amended--
            (1) by striking ``appropriate training, technical 
        assistance, staff development'' and inserting ``appropriate 
        education, technical assistance, professional development for 
        staff'';
            (2) in subparagraphs (B), (C), and (D), by striking 
        ``training'' each place it appears and inserting ``professional 
        development'';
            (3) by redesignating subparagraphs (G) and (H) as 
        subparagraphs (J) and (K), respectively; and
            (4) by inserting after subparagraph (F) the following:
                    ``(G) assistance to the one-stop delivery system 
                and the Employment Service established under the 
                Wagner-Peyser Act for the integration of basic career 
                service activities pursuant to section 134(c)(2)(A);
                    ``(H) assistance to States with maintaining, and 
                making accessible to jobseekers and employers, the 
                lists of eligible providers of training services 
                required under section 122;
                    ``(I) assistance to States that apply for such 
                assistance under section 122(j) for the purposes 
                described in such subsection;''.
    (b) Performance Accountability Technical Assistance.--Section 
168(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 
3223(b)) is amended--
            (1) in the header, by striking ``Dislocated Worker'' and 
        inserting ``Performance Accountability''; and
            (2) in paragraph (1)--
                    (A) in the first sentence--
                            (i) by inserting ``, pursuant to paragraphs 
                        (1) and (2) of section 116(f),'' after 
                        ``technical assistance''; and
                            (ii) by striking ``with respect to 
                        employment and training activities for 
                        dislocated workers'' and inserting ``with 
                        respect to the core programs''; and
                    (B) in the second sentence--
                            (i) by striking ``assistance to dislocated 
                        workers'' and inserting ``assistance to 
                        individuals served by a core program''; and
                            (ii) by striking ``provided to dislocated 
                        workers'' and inserting ``provided to such 
                        individuals''.
    (c) Communities Impacted by Substance Use Disorders.--Section 168 
of the Workforce Innovation and Opportunity Act (29 U.S.C. 3223) is 
further amended by adding at the end the following:
    ``(d) Communities Impacted by Substance Use Disorders.--The 
Secretary shall, as part of the activities described in subsection 
(c)(2), evaluate and disseminate to States and local areas information 
regarding evidence-based and promising practices for addressing the 
economic workforce impacts associated with high rates of substance use 
disorders, which information shall--
            ``(1) be updated annually to reflect the most recent and 
        available research; and
            ``(2) include information--
                    ``(A) shared by States and local areas regarding 
                effective practices for addressing such impacts; and
                    ``(B) on how to apply for any funding that may be 
                available under section 170(b)(1)(E).''.

SEC. 174. EVALUATIONS AND RESEARCH.

    (a) In General.--Section 169 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3224) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) by redesignating subparagraph (G) as 
                        subparagraph (H);
                            (ii) in subparagraph (F)--
                                    (I) by striking ``; and'' at the 
                                end; and
                                    (II) by inserting ``, including 
                                individuals with barriers to 
                                employment'' after ``demographic 
                                groups''; and
                            (iii) by inserting the following after 
                        subparagraph (F):
                    ``(G) the extent to which such programs or 
                activities are using emerging technology to--
                            ``(i) collect, analyze, use, and 
                        disseminate accurate and transparent local and 
                        State level labor market information;
                            ``(ii) integrate administrative data, in 
                        accordance with Federal and State privacy laws, 
                        to more comprehensively understand and improve 
                        education and workforce outcomes; and
                            ``(iii) identify and address deficiencies 
                        in existing Federal, State, and local workforce 
                        data infrastructure and related source systems; 
                        and'';
                    (B) in paragraph (3)--
                            (i) by striking ``The Secretary'' and 
                        inserting the following:
                    ``(A) In general.--The Secretary''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(B) Limitation.--The Secretary may not use the 
                authority described in subparagraph (A) if the 
                evaluations required under paragraph (1) have not been 
                initiated or completed in the time period required.''; 
                and
                    (C) in paragraph (4), in the second sentence--
                            (i) by striking ``The Secretary'' and 
                        inserting ``Beginning after the date of 
                        enactment of the A Stronger Workforce for 
                        America Act of 2026, the Secretary''; and
                            (ii) by striking ``2019'' and inserting 
                        ``2028''; and
            (2) in subsection (b)--
                    (A) by amending paragraph (4) to read as follows:
            ``(4) Studies and reports.--
                    ``(A) Study on employment conditions.--The 
                Secretary, in coordination with other heads of Federal 
                agencies, as appropriate, may conduct a study examining 
                the nature of participants' unsubsidized employment 
                after exit from programs carried out under this Act--
                            ``(i) including with respect to factors 
                        such as the availability of paid time off in 
                        the employment, health and retirement benefits 
                        provided through the employment, workplace 
                        safety standards at the place of employment, 
                        the predictability and stability of the work 
                        schedule for the employment, the ability to 
                        obtain through the employment credentials that 
                        may permit articulation into a higher level or 
                        other degree or credential program, and 
                        advancement opportunities in the employment; 
                        and
                            ``(ii) that includes a description of the 
                        feasibility of Congress establishing, through 
                        future legislation, an indicator of performance 
                        under section 116 related to such factors.
                    ``(B) Study on improving workforce services for 
                individuals with disabilities.--The Secretary of Labor, 
                in coordination with the Secretary of Health and Human 
                Services, may conduct studies that analyze the access 
                to services by individuals with disabilities, including 
                whether an individual who is unable to receive services 
                under title IV due to a wait list for such services is 
                able to receive services under titles I through III.
                    ``(C) Study on the effectiveness of pay for 
                performance.--The Secretary shall, not later than 4 
                years after the date of enactment of the A Stronger 
                Workforce for America Act of 2026, conduct a study 
                that--
                            ``(i) compares the effectiveness of the 
                        pay-for-performance strategies used under 
                        sections 129, 134, and 172 after such date of 
                        enactment to the awarding of grants and 
                        contracts under such sections as in effect on 
                        the day before the date of enactment of such 
                        Act; and
                            ``(ii) examines, with respect to grants 
                        under sections 129, 134, and 172 after such 
                        date of enactment--
                                    ``(I) the competition structure of 
                                pay-for-performance grants and 
                                contracts under such sections;
                                    ``(II) the quality of applications 
                                received for grants and contracts under 
                                such sections; and
                                    ``(III) whether individuals with 
                                barriers to employment were effectively 
                                served under the pay-for-performance 
                                strategies for grants and contracts 
                                under such sections.
                    ``(D) Study on individual training accounts for 
                dislocated workers.--The Secretary shall, not later 
                than 4 years after the date of enactment of the A 
                Stronger Workforce for America Act of 2026, conduct a 
                study that compares the usage of individual training 
                accounts for dislocated workers after such date of 
                enactment to the usage of such accounts prior to such 
                date of enactment, including a comparison of--
                            ``(i) the types of training services and 
                        occupations targeted by dislocated workers when 
                        using their individual training accounts; and
                            ``(ii) the effectiveness of the skills 
                        development funded through individual training 
                        accounts in helping such individuals attain 
                        credentials and secure unsubsidized employment.
                    ``(E) Study on statewide critical industry skills 
                funds.--The Secretary shall, not later than 4 years 
                after the date of enactment of the A Stronger Workforce 
                for America Act of 2026, 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.
                    ``(F) Study on industry or sector partnership and 
                career pathways development funds.--The Secretary 
                shall, not later than 4 years after the date of 
                enactment of the A Stronger Workforce for America Act 
                of 2026, conduct a study that will review the usage of 
                industry or sector partnership and career pathways 
                development funds established by States under section 
                134(a)(5) and identify, for purposes of measuring the 
                overall effectiveness of the program--
                            ``(i) the industries targeted by the funds 
                        under section 134(a)(5) and the growth in 
                        employment opportunities in such industries 
                        over the period of the study;
                            ``(ii) the occupations workers are 
                        receiving skills development for and how 
                        frequently such skills development is occurring 
                        through the funds under section 134(a)(5);
                            ``(iii) the States where such funds were 
                        used to establish new industry or sector 
                        partnerships, the States where such funds were 
                        used to expand existing industry or sector 
                        partnerships, and an overview of the types of 
                        partners participating in such partnerships; 
                        and
                            ``(iv) the reported performance outcomes.
                    ``(G) Study on the effectiveness of employer-based 
                training.--The Secretary shall, not later than 4 years 
                after the date of enactment of the A Stronger Workforce 
                for America Act of 2026, conduct a study that measures 
                the effectiveness of on-the-job training, employer-
                directed skills training, apprenticeship, and incumbent 
                worker training under this title in preparing 
                jobseekers and workers, including those with barriers 
                to employment, for unsubsidized employment. Such study 
                shall include the cost per participant and wage and 
                employment outcomes, as compared to other methods of 
                training.
                    ``(H) Study on the effectiveness and use of 
                emerging technology in the workforce development 
                system.--The Secretary shall, not later than 4 years 
                after the date of enactment of the A Stronger Workforce 
                for America Act of 2026, conduct a study that--
                            ``(i) measures the effectiveness of 
                        emerging technology (including artificial 
                        intelligence and machine learning) and other 
                        advanced computational methods, in improving 
                        State workforce development system service 
                        delivery, labor market data system performance, 
                        data collection and integration to understand 
                        participant and program outcomes, and end-user 
                        tools for facilitating career exploration or 
                        related data insights;
                            ``(ii) measures the extent to which States 
                        have adopted and implemented such technology 
                        and methods in their workforce development 
                        systems, including by describing how the 
                        technology or method is being used, analyzing 
                        the accuracy of such technology or method, and 
                        identifying any exhibited bias by any such 
                        technology or method; and
                            ``(iii) includes an analysis of the 
                        consequences of advances in automation 
                        technology on employment opportunities, skills 
                        development, including digital literacy skills 
                        development, and worker dislocation.
                    ``(I) Study on the alignment between education and 
                workforce development systems.--The Secretary of Labor, 
                shall, not later than 4 years after the date of 
                enactment of the A Stronger Workforce for America Act 
                of 2026, conduct a study on the alignment of workforce 
                development programs under this Act with elementary and 
                secondary education and postsecondary education. The 
                study shall examine--
                            ``(i) State efforts to integrate data 
                        related to career and technical education 
                        programs, dual enrollment programs, pre-
                        apprenticeships and apprenticeships, and other 
                        work-based learning programs to inform 
                        decisionmaking and improve educational 
                        opportunities and outcomes;
                            ``(ii) challenges related to and strategies 
                        that promote such alignment to facilitate 
                        student participation in high-quality college 
                        and career pathways; and
                            ``(iii) governance structures and funding 
                        sources to promote such alignment.
                    ``(J) Study on job corps.--The Secretary of Labor 
                shall, not later than 4 years after the date of 
                enactment of the A Stronger Workforce for America Act 
                of 2026, conduct an evaluation that--
                            ``(i) uses the most rigorous available 
                        methods that are appropriate and feasible to 
                        evaluate program effectiveness;
                            ``(ii) measures the effect of the Job Corps 
                        program on participating individuals on 
                        outcomes related to the purposes described in 
                        section 141(1), including educational 
                        attainment, employment, earnings, and other 
                        related outcomes, compared with the non-
                        participant peers of those individuals, to 
                        determine if the program has a statistically 
                        significant effect (including long-term 
                        effects) on such outcomes; and
                            ``(iii) evaluates the cost-effectiveness of 
                        the program.
                    ``(K) Reports.--The Secretary shall prepare and 
                disseminate to the Committee on Health, Education, 
                Labor, and Pensions of the Senate and the Committee on 
                Education and Workforce of the House of 
                Representatives, and on the publicly available website 
                of the Department, reports containing the results of 
                the studies conducted under this paragraph.''; and
                    (B) in paragraph (5), by adding at the end the 
                following:
                    ``(C) Evaluation of grants.--
                            ``(i) In general.--For each grant or 
                        contract awarded under this paragraph, the 
                        Secretary shall conduct a rigorous evaluation 
                        of the multistate project to determine the 
                        impact of the activities supported by the 
                        project, including the impact on the employment 
                        and earnings of program participants.
                            ``(ii) Report.--The Secretary shall prepare 
                        and disseminate to the Committee on Health, 
                        Education, Labor, and Pensions of the Senate 
                        and the Committee on Education and Workforce of 
                        the House of Representatives, and to the 
                        public, including through electronic means, 
                        reports containing the results of evaluations 
                        conducted under this subparagraph.''.
    (b) Workforce Data Quality Initiative.--Section 169 of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3224) is further 
amended by adding at the end the following:
    ``(d) Workforce Data Quality Initiative.--
            ``(1) Grant program.--Of the amount made available pursuant 
        to section 132(a)(2)(A) for any program year, the Secretary 
        shall use not less than 5 percent and not more than 10 percent 
        of such amount, and may also use funds authorized for purposes 
        of carrying out this section, to award grants to eligible 
        entities to create workforce longitudinal data systems, talent 
        marketplaces, and associated resources for the purposes of 
        assisting States to--
                    ``(A) improve program quality;
                    ``(B) produce evidence for decision making;
                    ``(C) meet performance reporting requirements;
                    ``(D) protect the privacy of users; and
                    ``(E) improve transparency in relation to labor 
                market trends and changes in job skills needed to 
                obtain employment.
            ``(2) Application.--To be eligible to receive a grant under 
        this subsection, an eligible entity shall submit an application 
        to the Secretary, at such time and in such manner as the 
        Secretary may require, which shall include--
                    ``(A) a description of the activities the eligible 
                entity is proposing, including a description of the 
                need for such activities and a detailed budget;
                    ``(B) a description of the expected outcomes and 
                outputs (such as systems or products) that will result 
                from the proposed activities and the proposed uses of 
                such outputs;
                    ``(C) a description of how the proposed activities 
                will support the reporting of performance data for the 
                performance accountability requirements under section 
                116, including outcomes for eligible training 
                providers;
                    ``(D) a description of the methods and procedures 
                the eligible entity will use to ensure the security and 
                privacy of the collection, storage, and use of all data 
                involved in the systems and resources supported through 
                the grant, including compliance with State and Federal 
                privacy and confidentiality law;
                    ``(E) a plan for how the eligible entity will 
                continue the activities or sustain the use of the 
                outputs created with the grant funds after the grant 
                period ends; and
                    ``(F) a description of how the eligible entity will 
                ensure interoperability and portability between the 
                talent marketplace maintained by the eligible entity 
                and other talent marketplaces through the use of open 
                standards.
            ``(3) Priority.--In awarding grants under the subsection, 
        the Secretary shall give priority to eligible entities that--
                    ``(A) are--
                            ``(i) State agencies of States that have 
                        not previously received a grant from the 
                        Secretary for the purposes of this subsection 
                        and demonstrate a substantial need to improve 
                        its data infrastructure, including for the 
                        development of a talent marketplace; or
                            ``(ii) consortia of State agencies that are 
                        comprised of State agencies from multiple 
                        States and include at least one State agency 
                        described in clause (i) and have the capacity 
                        to make significant contributions toward 
                        building interoperable and portable interstate 
                        data infrastructure; and
                    ``(B) will use grant funds to--
                            ``(i) expand the adoption and use of 
                        linked, publicly available, and interoperable 
                        data on knowledge, skills, and abilities 
                        represented through credentials, occupational 
                        job descriptions, and learning assertions, 
                        including through the development of a talent 
                        marketplace or other tools and services 
                        designed to help learners and workers make 
                        informed decisions;
                            ``(ii) participate in and contribute data 
                        to a multistate data collaborative, including 
                        data that provides participating States the 
                        ability to better understand--
                                    ``(I) earnings and employment 
                                outcomes of individuals who work out-
                                of-State; and
                                    ``(II) interstate earnings and 
                                employment trends;
                            ``(iii) enhance collaboration with private 
                        sector workforce and labor market data entities 
                        and the end-users of workforce and labor market 
                        data, including individuals, employers, 
                        economic development agencies, and workforce 
                        development providers;
                            ``(iv) leverage the use of non-Federal 
                        contributions to improve workforce data 
                        infrastructure, including staff capacity 
                        building; or
                            ``(v) expand existing statewide integrated 
                        longitudinal data systems, including such 
                        systems receiving assistance under section 208 
                        of the Educational Technical Assistance Act of 
                        2002 (20 U.S.C. 9607).
            ``(4) Use of funds.--In addition to the activities 
        described in paragraph (3)(B), an eligible entity awarded a 
        grant under this subsection may use funds to carry out any of 
        the following activities:
                    ``(A) Developing or enhancing a State's workforce 
                longitudinal data system, including by participating 
                and contributing data to the State's data system, if 
                applicable, that links with elementary and secondary 
                school and postsecondary data.
                    ``(B) Accelerating the replication and adoption of 
                data systems, projects, products, or practices already 
                in use in one or more States to other States.
                    ``(C) Research and labor market data improvement 
                activities to improve the timeliness, relevance, and 
                accessibility of such data through pilot projects that 
                are developed locally but designed to scale to other 
                regions or States.
                    ``(D) Establishing or enhancing a talent 
                marketplace.
                    ``(E) Developing policies, guidelines, and security 
                measures for data collection, storing, and sharing to 
                ensure compliance with relevant Federal and State 
                privacy laws and regulations.
                    ``(F) Increasing local board access to and 
                integration with the State's workforce longitudinal 
                data system in a secure manner.
                    ``(G) Creating or participating in a data exchange 
                for collecting and using standards-based jobs and 
                employment data including, at a minimum, job titles or 
                occupation codes.
                    ``(H) Improving State and local staff capacity to 
                understand, use, and analyze data to improve decision-
                making and improve participant outcomes.
            ``(5) Administration.--
                    ``(A) Duration.--A grant awarded under this 
                subsection may be for a period of up to 3 years.
                    ``(B) Supplement, not supplant.--Funds made 
                available under this subsection shall be used to 
                supplement, and not supplant, other Federal, State, or 
                local funds used for development of State data systems.
                    ``(C) Report.--Each eligible entity that receives a 
                grant under this subsection shall submit a report to 
                the Secretary not later than 180 days after the 
                conclusion of the grant period on the activities 
                supported through the grant and improvements in the use 
                of workforce and labor market information that have 
                resulted from such activities.
            ``(6) Definition.--In this subsection--
                    ``(A) Eligible entity.--The term `eligible entity' 
                means a State agency, including a State workforce 
                agency or a consortium of State agencies, including a 
                multistate data collaborative, that is or includes the 
                State agency responsible for--
                            ``(i) State employer wage records used by 
                        the State's unemployment insurance programs in 
                        labor market information reporting and analysis 
                        and for fulfilling the reporting requirements 
                        under section 116(d);
                            ``(ii) the production of labor market 
                        information; and
                            ``(iii) the direct administration of one or 
                        more of the core programs.
                    ``(B) Multistate data collaborative.--The term 
                `multistate data collaborative' means a partnership 
                among two or more States to coordinate the governance 
                and standards for workforce related data maintained by 
                such States in order to facilitate interoperability and 
                the secure exchange of such data between such 
                States.''.

SEC. 175. NATIONAL DISLOCATED WORKER GRANTS.

    Section 170 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3225) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (C), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (D)(ii), by striking 
                        the period at the end and inserting ``; and''; 
                        and
                            (iii) by adding at the end the following:
                    ``(E) to an entity described in subsection 
                (c)(1)(B) to provide employment and training activities 
                related to the prevention and treatment of substance 
                use disorders, including addiction treatment, mental 
                health treatment, and pain management, in an area that, 
                as a result of widespread substance use, addiction, and 
                overdoses, has higher-than-average demand for such 
                activities that exceeds the availability of State and 
                local resources to provide such activities.''; and
                    (B) by adding at the end the following:
            ``(3) Performance results.--The Secretary shall collect the 
        necessary information from each entity receiving a grant under 
        this section to determine the performance of such entity on the 
        primary indicators of performance described in section 
        116(b)(2)(A)(i) and make such information available on the 
        publicly accessible website of the Department in a format that 
        does not reveal personally identifiable information.''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)(A)--
                            (i) by striking ``subsection (b)(1)(A)'' 
                        and inserting ``subparagraph (A) or (E) of 
                        subsection (b)(1)''; and
                             (ii) by striking ``, in such manner, and 
                        containing such information'' and inserting 
                        ``and in such manner''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (B)--
                                    (I) in the heading, by striking 
                                ``Retraining'' and inserting 
                                ``Reskilling''; and
                                    (II) by striking ``retraining'' and 
                                inserting ``reskilling'';
                            (ii) by redesignating subparagraphs (C) and 
                        (D) as subparagraphs (D) and (E), respectively; 
                        and
                            (iii) by inserting after subparagraph (B) 
                        the following:
                    ``(C) Substance use related grants.--In order to be 
                eligible to receive employment and training assistance 
                under a national dislocated worker grant awarded 
                pursuant to subsection (b)(1)(E), an individual shall 
                be--
                            ``(i) a dislocated worker;
                            ``(ii) a long-term unemployed individual;
                            ``(iii) an individual who is unemployed or 
                        significantly underemployed as a result of 
                        widespread substance use in the area; or
                            ``(iv) an individual who is employed or 
                        seeking employment in a health care profession 
                        involved in the prevention and treatment of 
                        substance use disorders, including such 
                        professions that provide addiction treatment, 
                        mental health treatment, or pain management.''.

SEC. 176. YOUTHBUILD PROGRAM.

    Section 171 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3226) is amended--
            (1) in subsection (b)(7), by striking ``(25 U.S.C. 450b)'' 
        and inserting ``(25 U.S.C. 5304)'';
            (2) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Amount of grants; reservation.--
                    ``(A) Amount of grants.--Subject to subparagraph 
                (B), the Secretary is authorized to make grants to 
                applicants for the purpose of carrying out YouthBuild 
                programs approved under this section.
                    ``(B) Reservation for rural areas and indian 
                tribes.--
                            ``(i) Tribal reservation.--Subject to 
                        clause (iii), in carrying out subparagraph (A), 
                        the Secretary shall reserve not less than 5 
                        percent of the total amount appropriated for 
                        the purposes of that subparagraph to make 
                        grants to applicants that are--
                                    ``(I) Indian tribes, tribal 
                                organizations, or Native Hawaiian 
                                organizations (as such term is defined 
                                in section 166(b)); or
                                    ``(II) carrying out programs for 
                                the benefit of Indians.
                            ``(ii) Rural reservation.--Subject to 
                        clause (iii), in carrying out subparagraph (A), 
                        the Secretary shall reserve not less than 10 
                        percent of the total amount appropriated for 
                        purposes of that subparagraph to make grants to 
                        applicants that are located in rural areas.
                            ``(iii) Exception.--If the Secretary does 
                        not receive a sufficient number of applications 
                        of sufficient quality to award the amounts 
                        reserved under clause (i) or amounts reserved 
                        under clause (ii) in accordance with the 
                        requirements of the applicable clause, the 
                        Secretary may--
                                    ``(I) award grants to applicants 
                                described in clause (i) or clause (ii), 
                                as the case may be, in an amount not to 
                                exceed $1,500,000 per grant; and
                                    ``(II) use any remaining amount 
                                reserved under the applicable clause 
                                to, notwithstanding the requirements of 
                                that clause, award grants under 
                                subparagraph (A) to other applications 
                                that are not described in such 
                                clause.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (iv)--
                                            (aa) in subclause (II), by 
                                        striking ``language learners'' 
                                        and inserting ``learners'';
                                            (bb) in subclause (III), by 
                                        striking ``a secondary'' and 
                                        inserting ``a regular high''; 
                                        and
                                            (cc) in subclause (IV), by 
                                        striking ``required'' and 
                                        inserting ``available Federal, 
                                        State, or institutional'';
                                    (II) in clause (v), by striking 
                                ``drug and alcohol abuse'' and 
                                inserting ``substance use disorder'';
                                    (III) in clause (vii)--
                                            (aa) by inserting ``to 
                                        ensure full participation in a 
                                        YouthBuild program, including 
                                        such services for individuals 
                                        with disabilities,'' after 
                                        ``services''; and
                                            (bb) by inserting 
                                        ``unsubsidized'' after 
                                        ``retaining''; and
                                    (IV) in clause (viii), by inserting 
                                ``, including career services'' after 
                                ``assistance''; and
                            (ii) by adding at the end the following:
                    ``(I) Provision of meals and other food assistance 
                to participants in conjunction with another activity 
                described in this paragraph.
                    ``(J) Provision of information on and referral to 
                Federal and State means tested programs.'';
                    (C) in paragraph (3)--
                            (i) in subparagraph (A), by striking ``such 
                        time, in such manner, and containing such 
                        information'' and inserting ``such time and in 
                        such manner''; and
                            (ii) in subparagraph (B)--
                                    (I) in the header, by striking 
                                ``Minimum requirements'' and inserting 
                                ``Requirements'';
                                    (II) by striking ``, at a 
                                minimum'';
                                    (III) in clause (iii), by striking 
                                ``unions'' and inserting ``labor 
                                organizations'';
                                    (IV) by amending clause (v) to read 
                                as follows:
                            ``(v) a description of the educational and 
                        job training activities, work opportunities, 
                        postsecondary education and training 
                        opportunities, and other services that will be 
                        provided to participants, and how those 
                        activities, opportunities, and services will--
                                    ``(I) prepare youth for employment 
                                in in-demand industry sectors or 
                                occupations in the labor market area 
                                described in clause (i); and
                                    ``(II) support youth in attaining a 
                                regular high school diploma or its 
                                recognized equivalent;'';
                                    (V) in clause (vii), by striking 
                                ``(including agencies of Indian 
                                tribes)'' and inserting ``, Indian 
                                tribes, tribal organizations, and 
                                tribal educational agencies (as such 
                                term is defined in section 6132(b) of 
                                the Elementary and Secondary Education 
                                Act of 1965 (20 U.S.C. 7452(b)))'';
                                    (VI) in clause (x), by inserting 
                                ``located in the region proposed to be 
                                served by such applicant, as 
                                applicable'' after ``tribes'';
                                    (VII) by amending clause (xii) to 
                                read as follows:
                            ``(xii) a description of the levels of 
                        performance the applicant expects to achieve on 
                        the primary indicators of performance described 
                        in section 116(b)(2)(A)(ii);'';
                                    (VIII) in clause (xiii), by 
                                striking ``unions'' and inserting 
                                ``labor organizations'';
                                    (IX) by redesignating clauses (xv) 
                                through (xxi) as clauses (xvi) through 
                                (xxii), respectively; and
                                    (X) by inserting after clause (xiv) 
                                the following:
                            ``(xv) a description of any strategies the 
                        applicant will use to engage program 
                        participants in providing feedback and 
                        informing decision-making related to the 
                        program;''; and
                    (D) in paragraph (4)--
                            (i) by striking ``such selection criteria 
                        as the Secretary shall establish under this 
                        section, which shall include criteria'' and 
                        inserting ``selection criteria'';
                            (ii) in subparagraph (J)(iii), by adding 
                        ``and'' after the semicolon;
                            (iii) in subparagraph (K), by striking ``; 
                        and'' and inserting a period; and
                            (iv) by striking subparagraph (L);
            (3) in subsection (e)(1)(B)(i)--
                    (A) by striking ``are basic skills deficient'' and 
                inserting ``have foundational skill needs''; and
                    (B) by striking ``secondary'' and inserting 
                ``regular high'';
            (4) in subsection (f), by striking paragraph (2) and 
        inserting the following:
            ``(2) Use of wage records.--The Secretary shall make 
        arrangements with a State or other appropriate entity to 
        facilitate the use of State wage records to evaluate the 
        performance of YouthBuild programs funded under this section on 
        the employment and earnings indicators described in section 
        116(b)(2)(A)(ii) for the purposes of the report required under 
        paragraph (3).
            ``(3) Performance results.--For each program year, the 
        Secretary shall make available, on a publicly accessible 
        website of the Department, a report on the performance of 
        YouthBuild programs, during such program year, funded under 
        this section on--
                    ``(A) the primary indicators of performance 
                described in section 116(b)(2)(A)(ii); and
                    ``(B) the expected levels of performance for such 
                programs as described in paragraph (1).
            ``(4) Consultation.--In establishing expected levels of 
        performance under paragraph (1), the Secretary shall consult, 
        on not less than an annual basis, with entities carrying out 
        YouthBuild programs to ensure such levels of performance 
        account for the workforce development and postsecondary 
        education experiences of youth served by such programs.'';
            (5) in subsection (g), by inserting at the end the 
        following:
            ``(4) Annual release of funding opportunity announcement.--
        The Secretary shall, to the greatest extent practicable, 
        announce new funding opportunities for grants under this 
        section during the same time period each year for which such 
        grants are available.''; and
            (6) by amending subsection (i) to read as follows:
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $105,000,000 for each of the 
fiscal years 2027 through 2032.''.

SEC. 177. REENTRY EMPLOYMENT OPPORTUNITIES.

    Subtitle D of title I of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3221 et seq.) is amended--
            (1) by redesignating section 172 as section 175; and
            (2) by inserting after section 171 the following:

``SEC. 172. REENTRY EMPLOYMENT OPPORTUNITIES.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to improve the employment, earnings, and skill 
        attainment, and reduce recidivism, of adults and youth who have 
        been involved with the justice system;
            ``(2) to prompt innovation and improvement in the reentry 
        of offenders into the workforce so that successful initiatives 
        can be established or continued, and replicated; and
            ``(3) to further develop the evidence on how to improve 
        employment, earnings, and skill attainment, and reduce 
        recidivism, of offenders, through rigorous evaluations of 
        specific services provided, including how they affect different 
        populations and how they are best combined and sequenced, and 
        disseminate such evidence to entities supporting the reentry of 
        offenders is into the workforce.
    ``(b) Reentry Employment Opportunities Program.--
            ``(1) In general.--From the amounts appropriated under 
        section 175(e) and not reserved under subsection (h), the 
        Secretary shall carry out a Reentry Employment Opportunities 
        Program, through which the Secretary--
                    ``(A) except as provided in subparagraph (B), in 
                order to implement reentry projects that serve eligible 
                adults or eligible youth shall, on a competitive 
                basis--
                            ``(i) make direct awards (through grants, 
                        contracts, or cooperative agreements) to 
                        eligible entities to implement such reentry 
                        projects; and
                            ``(ii) in any year for which the Secretary 
                        makes awards under clause (i), make 
                        intermediary awards to eligible entities who 
                        are national or regional intermediaries, who 
                        shall use the award funds--
                                    ``(I) to make direct awards to 
                                eligible entities to implement such 
                                reentry projects; or
                                    ``(II) to implement such reentry 
                                projects; and
                    ``(B) in order to implement youth reentry 
                employment opportunities projects, through that 
                program, that serve eligible youth shall, on a 
                competitive basis--
                            ``(i) make direct awards to youth project 
                        eligible entities to implement such youth 
                        reentry projects; and
                            ``(ii) in any year for which the Secretary 
                        makes awards under clause (i), make 
                        intermediary awards to youth project eligible 
                        entities who are national or regional 
                        intermediaries, who shall use the award funds--
                                    ``(I) to make direct awards to 
                                youth project eligible entities to 
                                implement such youth reentry projects; 
                                or
                                    ``(II) to implement such youth 
                                reentry projects.
            ``(2) Allocation to activities.--From the amounts 
        appropriated under section 175(e) and not reserved under 
        subsection (h), the Secretary--
                    ``(A) shall use not less than 20 percent of such 
                amounts for awards under paragraph (1)(A) to eligible 
                entities to serve as national or regional 
                intermediaries to provide the award funds to other 
                eligible entities--
                            ``(i) to implement reentry projects 
                        described in paragraph (1)(A); and
                            ``(ii) to monitor and support such 
                        entities;
                    ``(B) shall use not less than 20 percent of such 
                amounts for direct or intermediary awards under 
                paragraph (1)(B) to--
                            ``(i) implement youth reentry projects 
                        described in paragraph (1)(B); and
                            ``(ii) in cases in which the award 
                        recipients make direct awards to other youth 
                        reentry project eligible entities, monitor and 
                        support such entities;
                    ``(C) shall use 20 percent of such amounts, from 
                the portion reserved to carry out paragraph (1)(A), to 
                award funds to eligible entities using pay-for-
                performance contracts--
                            ``(i) that specify a fixed amount that will 
                        be paid to such an entity based on the 
                        achievement, within a defined timeframe, of 
                        proposed levels of performance described under 
                        subsection (e)(2)(A) on the indicators of 
                        performance described in subsection 
                        (e)(1)(A)(i); and
                            ``(ii) which may provide for bonus payments 
                        to such entity to expand capacity to provide 
                        effective services; and
                    ``(D) shall ensure awards made under this section 
                are made to eligible entities from geographically 
                diverse areas, in addition to giving the priorities 
                described in paragraph (5).
            ``(3) Initial award periods.--The Secretary shall make an 
        award under this section for an initial period of not more than 
        4 years.
            ``(4) Additional awards.--The Secretary may make, for a 
        period of not more than 4 years, 1 or more additional awards to 
        an eligible entity that received an award under this section if 
        the eligible entity achieved the levels of performance agreed 
        upon with the Secretary (as described in subsection (e)(2)) for 
        the most recent award period.
            ``(5) Priority.--In awarding funds under this section, the 
        Secretary shall give priority to eligible entities whose 
        applications submitted under subsection (c) demonstrate a 
        commitment to use such funds to implement a reentry project--
                    ``(A) that will serve a high-poverty area;
                    ``(B) that will enroll eligible youth or eligible 
                adults--
                            ``(i) prior to the release of such 
                        individuals from incarceration in a 
                        correctional institution; or
                            ``(ii) not later than 90 days after such 
                        release;
                    ``(C) whose strategy and design are evidence-based;
                    ``(D) for which the eligible entity will establish 
                a partnership with--
                            ``(i) a business;
                            ``(ii) an institution of higher education 
                        or provider under section 122 (as determined by 
                        the State where services are being provided) to 
                        provide project participants with a program 
                        leading to a recognized postsecondary 
                        credential in an in-demand industry sector or 
                        occupation;
                            ``(iii) a local educational agency; or
                            ``(iv) an agency that receives assistance 
                        for a program under section 225;
                    ``(E) that provides training services, including 
                employment-directed skills development and on-the-job 
                training, that are designed to meet the specific 
                requirements of an employer (including a group of 
                employers), industry, or sector, and are conducted with 
                a commitment by the employer to employ individuals upon 
                successful completion of the preparation; and
                    ``(F) that will serve a rural area.
            ``(6) Construction.--
                    ``(A) Projects with intermediaries.--An 
                intermediary who receives funds under paragraph (1), to 
                the extent that the intermediary uses the funds to make 
                direct awards to eligible entities, shall carry out the 
                functions of the Secretary described in paragraphs (3), 
                (4), and (5) of this subsection, and paragraphs (1), 
                (2) (other than paragraph (2)(J)), and (4) of 
                subsection (c).
                    ``(B) Reentry employment opportunities program 
                projects.--For purposes of this section, a reference to 
                an eligible entity, used with respect to a youth 
                reentry project carried out under paragraph (1)(B), 
                shall be considered to be a reference to a youth 
                project eligible entity.
    ``(c) Application.--
            ``(1) Form and procedure.--To be qualified to receive funds 
        under this section, an eligible entity shall submit an 
        application to the Secretary at such time, and in such manner, 
        as is determined by the Secretary, and containing the 
        information described in paragraph (2) and, as applicable, 
        paragraph (3) or (4).
            ``(2) Contents.--An application submitted by an eligible 
        entity under paragraph (1) shall contain the following:
                    ``(A) A description of the eligible entity, 
                including the experience of the eligible entity in 
                providing education, employment, and training services 
                for offenders.
                    ``(B) A description of the needs that will be 
                addressed by the reentry project supported by the funds 
                received under this section and the target participant 
                population and the geographic area to be served.
                    ``(C) A description of the proposed education, 
                employment, and training services and supportive 
                services, if applicable, to be provided under such 
                reentry project, and how such activities will prepare 
                participants for employment in an in-demand industry 
                sector or occupation within the geographic area to be 
                served by such reentry project.
                    ``(D) The anticipated schedule for carrying out the 
                activities proposed for the reentry project.
                    ``(E) A description of--
                            ``(i) the partnerships the eligible entity 
                        will establish with agencies and entities 
                        within the criminal justice system, agencies 
                        and entities within the juvenile justice 
                        system, local boards, one-stop operators, one-
                        stop partners, community-based organizations, 
                        and employers (including local businesses) to 
                        provide participants in the reentry project 
                        with work-based learning, job placement, and 
                        recruitment (if applicable); and
                            ``(ii) how the eligible entity will 
                        coordinate its activities with other services 
                        and benefits available to offenders in the 
                        geographic area to be served by the reentry 
                        project.
                    ``(F) A description of the manner in which 
                individuals will be recruited and selected for 
                participation for the reentry project.
                    ``(G) A detailed budget and a description of the 
                system of fiscal controls, and auditing and 
                accountability procedures, that will be used to ensure 
                fiscal soundness for the reentry project.
                    ``(H) A description of the proposed levels of 
                performance to be achieved with respect to the 
                indicators of performance described in subsection (e).
                    ``(I) A description of the evidence-based practices 
                the eligible entity will use in administration of the 
                reentry project.
                    ``(J) An assurance that the eligible entity will 
                collect, disaggregate by each subpopulation of 
                individuals with barriers to employment, and by race, 
                ethnicity, sex, and age, and report to the Secretary 
                the data required with respect to the reentry project 
                carried out by the eligible entity for purposes of 
                determining levels of performance achieved and 
                conducting the evaluation under this section.
                    ``(K) An assurance that the eligible entity will 
                provide a match as described in subsection (d)(4).
                    ``(L) A description of how the eligible entity 
                plans to continue the reentry project after the award 
                period.
                    ``(M) For any project offering a recognized 
                postsecondary credential, a description of how the 
                project leads to the credential.
                    ``(N) For a project that also serves as a program 
                carried out under section 225, a description of how the 
                award funds will be used to carry out the education 
                described in section 225, in conjunction with the 
                activities described in subsection (d).
            ``(3) Additional content for intermediary applicants.--An 
        application submitted by an eligible entity seeking to serve as 
        a national or regional intermediary as described in 
        subparagraph (A) or (B) of subsection (b)(1) shall also contain 
        each of the following:
                    ``(A) An identification and description of the 
                eligible entities that will be subawardees of such 
                intermediary and implement the reentry projects, which 
                shall include subawardees in--
                            ``(i) 3 or more noncontiguous metropolitan 
                        areas or rural areas; and
                            ``(ii) not fewer than 2 States.
                    ``(B) A description of the services and supports 
                the intermediary will provide to the subawardees, 
                including administrative and fiscal support to ensure 
                the subawardees comply with all subaward requirements.
                    ``(C) A description of how the intermediary will 
                facilitate the replication of evidence-based practices 
                or other best practices identified by the intermediary 
                across all subawardees.
                    ``(D) If such intermediary is currently receiving, 
                or has previously received, funds under this section as 
                an intermediary to implement a reentry project, an 
                assurance that none of the subawardees identified under 
                subparagraph (A) are current or were previous 
                subawardees of the intermediary for such reentry 
                project and failed to meet the levels of performance 
                established for such reentry project.
            ``(4) Additional content for youth reo applications.--An 
        application submitted under paragraph (1) by a youth project 
        eligible entity seeking to serve youth applicants through an 
        award described in subsection (b)(1)(B) shall also contain the 
        following:
                    ``(A) A description of--
                            ``(i) how the youth reentry project will 
                        facilitate the enrollment of eligible youth in 
                        a program of a local educational agency, a 
                        program of adult education and literacy 
                        activities, a YouthBuild program, the Job 
                        Corps, or a program of an institution of higher 
                        education;
                            ``(ii) how the youth reentry project will 
                        connect eligible youth with mentors or peer 
                        support groups to provide guidance, 
                        encouragement, and positive role modeling 
                        during the reentry process;
                            ``(iii) how the youth reentry project will 
                        involve family members, guardians, and other 
                        supportive people in an eligible youth's life 
                        in the reentry process;
                            ``(iv) how the youth reentry project will 
                        provide or support access to counseling and 
                        substance use disorder programs for an eligible 
                        youth;
                            ``(v) how the youth reentry project will 
                        assist eligible youth to find safe and stable 
                        housing;
                            ``(vi) how the youth reentry project will 
                        ensure activities carried out under an award 
                        described in subsection (b)(1)(B) are designed 
                        to meet the needs of the population served; and
                            ``(vii) the experience of the eligible 
                        entity in providing services to youth, 
                        including eligible youth, and the strategies 
                        the eligible entity will use to ensure that 
                        services provided are age-appropriate for 
                        eligible youth.
                    ``(B) A description of how a youth project eligible 
                entity plans to provide skills development, for 
                stakeholders involved in an eligible youth's reentry, 
                on best practices pertaining to eligible youth and 
                reentry.
    ``(d) Uses of Funds.--
            ``(1) Required activities.--An eligible entity that 
        receives funds under this section shall use such funds to 
        implement a reentry project for eligible adults, eligible 
        youth, or both, that provides each of the following:
                    ``(A) One or more of the individualized career 
                services listed in subclauses (I) through (IX) of 
                section 134(c)(2)(B)(vii).
                    ``(B) One or more of the training services listed 
                in clauses (i) through (xi) in section 134(c)(3)(D), 
                including subsidized employment opportunities through 
                transitional jobs.
                    ``(C) For participants who are eligible youth, 1 or 
                more of the program elements listed in subparagraphs 
                (A) through (O) of section 129(c)(2).
            ``(2) Allowable activities.--An eligible entity that 
        receives funds under this section may use such funds to provide 
        to eligible adults, eligible youth, or both, each of the 
        following:
                    ``(A) Followup services after placement in 
                unsubsidized employment as described in section 
                134(c)(2)(B)(viii).
                    ``(B) Apprenticeship programs.
                    ``(C) Education in digital literacy skills.
                    ``(D) Mentoring.
                    ``(E) Assistance in obtaining employment, including 
                as a result of the eligible entity--
                            ``(i) establishing and developing 
                        relationships and networks with large and small 
                        employers; and
                            ``(ii) coordinating with employers to 
                        develop employer-directed skills development 
                        programs and on-the-job training.
                    ``(F) Assistance with driver's license 
                reinstatement (including assistance with removing or 
                expunging records as permitted under the applicable 
                Federal or State law to facilitate that reinstatement) 
                and fees for driver's licenses and other necessary 
                documents for employment and removing barriers to 
                employment.
                    ``(G) Provision of or referral to evidence-based 
                mental health treatment by licensed practitioners.
                    ``(H) Provision of or referral to substance use 
                disorder treatment services, provided that funds 
                awarded under this section are only used to provide 
                such services to participants who are unable to obtain 
                such services through other programs providing such 
                services.
                    ``(I) Provision of or referral to supportive 
                services, provided that, notwithstanding section 
                181(h)(2), no more than 10 percent of funds awarded to 
                an eligible entity under this section may be used to 
                provide such services to participants who may be able 
                to obtain such services through other programs 
                providing such services.
            ``(3) Administrative cost limit.--An eligible entity may 
        not use more than 7 percent of the funds received under this 
        section for administrative costs, including for costs related 
        to collecting information, analysis, and coordination for 
        purposes of subsection (e) or (f).
            ``(4) Matching.--An eligible entity shall provide a match, 
        which may be provided in cash or in-kind, for the costs of the 
        project in an amount that is not less than 25 percent of the 
        total amount of funds awarded to the entity under this section 
        for the period involved, except that the Secretary may waive 
        the matching requirement, on a case-by-case basis and for not 
        more than 20 percent of all awards made under this section, if 
        the eligible entity involved demonstrates significant financial 
        hardship.
    ``(e) Levels of Performance.--
            ``(1) Establishment of levels.--
                    ``(A) In general.--The Secretary shall establish 
                expected levels of performance for reentry projects 
                funded under this section for--
                            ``(i) each of the primary indicators of 
                        performance--
                                    ``(I) for adults, as described in 
                                section 116(b)(2)(A)(i), for eligible 
                                adults in reentry projects for eligible 
                                adults or reentry projects for both 
                                eligible adults and eligible youth; and
                                    ``(II) for youth, as described in 
                                section 116(b)(2)(A)(ii), for eligible 
                                youth in reentry projects for eligible 
                                youth or reentry projects for both 
                                eligible adults and eligible youth; and
                            ``(ii) an indicator of performance 
                        established by the Secretary with respect to 
                        participant recidivism.
                    ``(B) Updates.--The levels established under 
                subparagraph (A) shall be updated for each 4-year-award 
                period.
            ``(2) Agreement on levels of performance.--In establishing 
        and updating levels of performance under paragraph (1), the 
        Secretary shall reach agreement on such levels with the 
        eligible entities receiving awards under this section that will 
        be subject to such levels, based on, as the Secretary 
        determines relevant for each indicator of performance 
        applicable under paragraph (1), each of the following factors:
                    ``(A) The proposed levels of performance of each 
                such eligible entity described in the application 
                submitted under subsection (c)(2)(H).
                    ``(B) The local economic conditions of the 
                geographic area to be served by each such eligible 
                entity, including differences in unemployment rates and 
                job losses or gains in particular industries.
                    ``(C) The characteristics of project participants 
                when entering the project involved, including--
                            ``(i) criminal records;
                            ``(ii) indicators of work history;
                            ``(iii) work experience;
                            ``(iv) educational or occupational skills 
                        attainment;
                            ``(v) levels of literacy or English 
                        proficiency;
                            ``(vi) disability status;
                            ``(vii) homelessness; and
                            ``(viii) receipt of public assistance.
            ``(3) Failure to meet levels of performance.--In the case 
        of an eligible entity that fails to meet the levels of 
        performance established under paragraph (1) and updated to 
        reflect the actual local economic conditions and 
        characteristics of participants (as described in subparagraphs 
        (B) and (C) of paragraph (2)) served by the reentry project 
        involved for any award year, the Secretary shall provide 
        technical assistance to the eligible entity, including the 
        development of a performance improvement plan.
    ``(f) Evaluation of Reentry Projects.--
            ``(1) In general.--Not later than 5 years after the first 
        award of funds under this section is made, the Secretary 
        (acting through the Chief Evaluation Officer) shall meet each 
        of the following requirements:
                    ``(A) Design and conduct of evaluation.--Design and 
                conduct an evaluation to evaluate the effectiveness of 
                the reentry projects funded under this section, which 
                meets the requirements of paragraph (2), and includes 
                an evaluation of each of the following:
                            ``(i) The effectiveness of such projects in 
                        assisting individuals with finding unsubsidized 
                        employment, and maintaining unsubsidized 
                        employment during the second quarter and fourth 
                        quarter after exit from the project.
                            ``(ii) The effectiveness of such projects 
                        in assisting individuals with earning 
                        recognized postsecondary credentials.
                            ``(iii) The effectiveness of such projects 
                        in relation to their cost, including the extent 
                        to which the projects improve reentry outcomes, 
                        including in employment, compensation (which 
                        may include wages earned and benefits), career 
                        advancement, measurable skills gains, and 
                        recognized postsecondary credentials earned, 
                        and including the extent to which the projects 
                        reduce recidivism of participants in comparison 
                        to comparably situated individuals who did not 
                        participate in such projects.
                            ``(iv) The effectiveness of specific 
                        services and interventions provided and of the 
                        overall project design.
                            ``(v) If applicable, the extent to which 
                        such projects effectively serve various 
                        demographic groups, including people of 
                        different geographic locations, ages, races, 
                        national origins, and criminal records, and 
                        individuals with disabilities.
                            ``(vi) If applicable, the appropriateness 
                        of the sequencing, combination, or concurrent 
                        structure, of services for each subpopulation 
                        of individuals who are participants in such 
                        projects, such as the order, combination, or 
                        concurrent structure of services in which 
                        transitional jobs and occupational skills 
                        development are provided, to ensure that such 
                        participants are prepared to fully benefit from 
                        education, employment, and training services 
                        provided under the project.
                            ``(vii) Limitations or barriers to 
                        education and employment encountered by 
                        participants served by the projects as a result 
                        of occupational or educational licensing 
                        restrictions.
                    ``(B) Data accessibility.--Make available, on the 
                publicly accessible website managed by the Department 
                of Labor, data collected during the course of 
                evaluation under this subsection, in an aggregated 
                format that does not disclose personally identifiable 
                information.
            ``(2) Design requirements.--An evaluation under this 
        subsection--
                    ``(A) shall--
                            ``(i) be designed by the Secretary (acting 
                        through the Chief Evaluation Officer) in 
                        conjunction with the eligible entities carrying 
                        out the reentry projects being evaluated;
                            ``(ii) include analysis of participant 
                        feedback and outcome and process measures; and
                            ``(iii) use designs that employ the most 
                        rigorous analytical and statistical methods 
                        that are reasonably feasible, such as the use 
                        of control groups; and
                    ``(B) may not--
                            ``(i) collect personally identifiable 
                        information, except to the extent such 
                        information is necessary to conduct the 
                        evaluation; or
                            ``(ii) reveal or share personally 
                        identifiable information.
            ``(3) Publication and reporting of evaluation findings.--
        The Secretary (acting through the Chief Evaluation Officer) 
        shall--
                    ``(A) in accordance with the timeline determined to 
                be appropriate by the Chief Evaluation Officer, publish 
                an interim report on such evaluation;
                    ``(B) not later than 90 days after the date on 
                which any evaluation is completed under this 
                subsection, publish and make publicly available the 
                results of such evaluation; and
                    ``(C) not later than 60 days after the completion 
                date described in subparagraph (B), submit to the 
                Committee on Education and Workforce of the House of 
                Representatives and the Committee on Health, Education, 
                Labor, and Pensions of the Senate a report on such 
                evaluation.
    ``(g) Annual Report.--
            ``(1) Contents.--Subject to paragraph (2), the Secretary 
        shall post, using transparent, linked, open, and interoperable 
        data formats, on the publicly accessible website described in 
        subsection (f)(1)(B), an annual report, covering the most 
        recent program preceding the report, on--
                    ``(A) the number of individuals who participated in 
                projects assisted under this section during the program 
                year;
                    ``(B) the percentage of such individuals who 
                successfully completed the requirements of such 
                projects;
                    ``(C) the performance of eligible entities on such 
                projects as measured by the indicators of performance 
                set forth in subsection (e); and
                    ``(D) an explanation of any waivers granted by the 
                Secretary of the matching requirement under subsection 
                (d)(4).
            ``(2) Disaggregation.--The information provided under 
        subparagraphs (A) through (C) of paragraph (1) with respect to 
        a program year shall be disaggregated by each project assisted 
        under this section for such program year.
    ``(h) Reservation of Funds.--Of the funds appropriated under 
section 175(e) for a fiscal year, the Secretary--
            ``(1) may reserve not more than 5 percent for the 
        administration of awards made under this section, of which not 
        more than 2 percent of the appropriated funds may be reserved 
        for the provision of--
                    ``(A) technical assistance to eligible entities 
                that receive funds under this section; and
                    ``(B) outreach and technical assistance to eligible 
                entities desiring to receive such funds, including 
                assistance with application development and submission; 
                and
            ``(2) shall reserve not less than 1 percent and not more 
        than 2.5 percent for the evaluation activities under subsection 
        (f) or to support eligible entities with any required data 
        collection, analysis, and coordination related to such 
        evaluation activities.
    ``(i) Definitions.--In this section:
            ``(1) Award.--The term `award' means an award of funds 
        through a grant, contract, or cooperative agreement.
            ``(2) Chief evaluation officer.--The term `Chief Evaluation 
        Officer' means the head of the independent evaluation office 
        located in the Office of the Assistant Secretary for Policy of 
        the Department of Labor.
            ``(3) Correctional institution.--The term `correctional 
        institution' has the meaning given the term in section 225(e).
            ``(4) Eligible entity.--The term `eligible entity' means--
                    ``(A) a private nonprofit organization under 
                section 501(c)(3) of the Internal Revenue Code of 1986 
                that is exempt from taxation under section 501(a) of 
                such Code, including a community-based or faith-based 
                organization;
                    ``(B) a local board;
                    ``(C) a State or local government;
                    ``(D) an Indian or Native American entity eligible 
                for grants under section 166;
                    ``(E) a labor organization or joint labor-
                management organization;
                    ``(F) an industry or sector partnership;
                    ``(G) an institution of higher education; or
                    ``(H) a consortium of the entities described in 
                subparagraphs (A) through (G).
            ``(5) Eligible adult.--The term `eligible adult' means an 
        offender who is age 25 or older.
            ``(6) Eligible youth.--The term `eligible youth' means an 
        offender who is not younger than age 14 or older than age 24.
            ``(7) High-poverty.--The term `high-poverty', when used 
        with respect to a geographic area, means an area with a poverty 
        rate of at least 20 percent as determined based on the most 
        recently available data from the American Community Survey 
        conducted by the Bureau of the Census.
            ``(8) Offender.--Notwithstanding section 3, the term 
        `offender' means--
                    ``(A) an individual of any age who--
                            ``(i) not more than 5 years before 
                        enrollment in a project funded under subsection 
                        (b)(1)--
                                    ``(I) was released from 
                                incarceration in a correctional 
                                institution (including being enrolled 
                                in a work release center at the 
                                institution); or
                                    ``(II) finished serving an 
                                alternative sentence, or a sentence to 
                                a diversion program, ordered through 
                                the adult criminal justice system; or
                            ``(ii) on such date of enrollment, is 
                        subject to the adult criminal justice system, 
                        including an individual who--
                                    ``(I) is incarcerated in a 
                                correctional institution (including 
                                being enrolled in a work release center 
                                at the institution), but is scheduled 
                                to be released not more than 180 days 
                                after such date of enrollment;
                                    ``(II) is residing in a residential 
                                reentry center;
                                    ``(III) is subject to electronic or 
                                home-based monitoring;
                                    ``(IV) is in the community on 
                                probation or parole; or
                                    ``(V) is serving an alternative 
                                sentence, or a sentence to a diversion 
                                program, ordered through that system; 
                                or
                    ``(B) an individual who--
                            ``(i) is not younger than age 14 or older 
                        than age 24; and
                            ``(ii) has been--
                                    ``(I) charged with, or convicted 
                                of, any criminal offense; or
                                    ``(II) charged with, detained for, 
                                or adjudicated of, a delinquent act or 
                                status offense in a juvenile court.
            ``(9) Youth project eligible entity.--The term `youth 
        project eligible entity' means--
                    ``(A) an organization described in section 
                501(c)(3) of the Internal Revenue Code of 1986 that is 
                exempt from taxation under section 501(a) of such Code; 
                or
                    ``(B) a State or local juvenile justice agency, or 
                a State or local adult correctional agency with a focus 
                on eligible youth.''.

SEC. 178. YOUTH APPRENTICESHIP READINESS GRANT PROGRAM.

    Subtitle D of title I of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3221 et seq.) is further amended by inserting after 
section 172, as added by the preceding section, the following:

``SEC. 173. YOUTH APPRENTICESHIP READINESS GRANT PROGRAM.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to increase earnings and employment for in-school 
        youth and out-of-school youth, ages 16 through 24, through 
        enrollment in and completion of evidence-based pre-
        apprenticeship programs and apprenticeship programs that serve 
        youth;
            ``(2) to engage educational entities, organizations 
        carrying out programs that serve out-of-school youth, local 
        educational agencies, State boards, local boards, employers, 
        workforce partners (including one-stop partners), and other 
        apprenticeship intermediaries, to establish innovative models 
        for pre-apprenticeship programs and apprenticeship programs 
        that serve youth, including coordinating with programs that 
        offer supportive services that can enable participation in and 
        completion of the program; and
            ``(3) to promote alignment between education and workforce 
        development systems (such as through public-private 
        partnerships) to enable in-school youth and out-of-school youth 
        to participate in postsecondary education and career pathways, 
        including apprenticeships, that result in careers.
    ``(b) Youth Apprenticeship Readiness Grant Program.--
            ``(1) In general.--From the amounts made available to carry 
        out this section under section 414(c) of the American 
        Competitiveness and Workforce Improvement Act (29 U.S.C. 3224a) 
        and not reserved under paragraph (2), the Secretary shall, on a 
        competitive basis, make grants to eligible entities for 
        projects to develop new or expand existing pre-apprenticeship 
        programs and apprenticeships that serve youth.
            ``(2) Administrative reservation.--Of the amounts made 
        available to carry out this section, the Secretary may reserve 
        not more than 5 percent for the administration of grants made 
        under this section, including--
                    ``(A) not more than 3 percent for the provision of 
                technical assistance to eligible entities during the 
                application period or the implementation phase of such 
                grant; and
                    ``(B) not more than 2 percent for evaluations of 
                employment and earnings outcomes described in clauses 
                (vi), (vii), and (viii) of subsection (e)(2)(B), 
                identifying best practices, and facilitating the 
                sharing of best practices among eligible entities by 
                carrying out the identification and dissemination 
                described in subsection (f)(2).
            ``(3) Grant period.--The Secretary shall make such a grant 
        for a period of not more than 4 years and may extend the grant 
        for a period of not more than 2 additional years if the grant 
        recipient is making progress in achieving the objectives of the 
        project's identified programs.
            ``(4) Priority.--In making grants under this section, the 
        Secretary shall give priority to eligible entities that--
                    ``(A) serve an area with significant workforce 
                shortages in the industry sector or occupation for 
                which the eligible entity proposes to establish an 
                identified program;
                    ``(B) propose to expand or have a demonstrated 
                track record of expanding employment opportunities and 
                career pathways for individuals with a barrier to 
                employment;
                    ``(C) propose to primarily serve a population that 
                is located in a rural or urban community and has an 
                area median household income of not more than 150 
                percent of the poverty line; or
                    ``(D) include within the eligible entity a high-
                need local educational agency or a high-need 
                educational service agency.
            ``(5) Matching requirement for grants.--In order to receive 
        a grant from the Secretary under this section, an eligible 
        entity shall provide a non-Federal contribution, which may be 
        provided in cash or in-kind, for the costs of the project in an 
        amount that is not less than 25 percent of the total amount of 
        funds awarded to the entity for such period.
    ``(c) Application.--An eligible entity that desires to receive a 
grant under this section shall submit an application to the Secretary 
at such time and in such manner as the Secretary may require and shall 
include the following:
            ``(1)(A) A description of the eligible entity's proposed 
        project, to be supported by such grant, including a provision 
        identifying whether such project will develop or expand 1 or 
        more pre-apprenticeship programs or 1 or more apprenticeship 
        programs that serve youth.
    ``(B) Except in the case of an identified program by an eligible 
entity described in subsection (i)(5)(A)(i) that is an apprenticeship 
program that serves youth and requires each enrolled youth apprentice 
to have a regular high school diploma (or recognized equivalent) as a 
condition of enrollment, an assurance that each identified program will 
be designed to enable--
            ``(i) in-school youth to receive a regular high school 
        diploma (in partnership with the local educational agency that 
        serves such youth) and receive a recognized postsecondary 
        credential (other than such a credential that is a 
        baccalaureate degree) upon completion of the program; or
            ``(ii) out-of-school youth to receive a high school diploma 
        or recognized equivalent and receive a recognized postsecondary 
        credential (other than such a credential that is a 
        baccalaureate degree) upon completion of the program.
            ``(2) A description of the eligible entity and a 
        description of how such eligible entity will--
                    ``(A) engage with employers to develop or expand, 
                and sustain, each identified program; and
                    ``(B) combine academic, career and technical 
                education, or related classroom instruction with on-
                the-job training, allowing youth to develop industry-
                specific or occupation-specific workplace competencies 
                and skills.
            ``(3) A description of the need for and design of the 
        project, including--
                    ``(A) a description of the specific youth 
                population to be served by the project, including--
                            ``(i) the subgroups of participants in the 
                        population and skill levels of such 
                        participants, and whether such participants are 
                        in-school youth or out-of-school youth;
                            ``(ii) how the project will increase 
                        employment opportunities for youth who are 
                        individuals with a barrier to employment and 
                        youth from different subgroups of participants; 
                        and
                            ``(iii) how the eligible entity will ensure 
                        that a wide range of youth, including youth who 
                        are individuals with a barrier to employment 
                        and youth from different subgroups of 
                        participants, are able to participate in each 
                        identified program;
                    ``(B) a description of the industry sector or 
                occupation targeted through the eligible entity's 
                proposed project, the projected demand for the project 
                in the area served by the eligible entity, and a 
                citation of the data source for the projected demand;
                    ``(C) a description of the on-the-job training 
                portion of the project, including a list of the 
                partners responsible for providing the on-the-job 
                training, and how such training will be designed 
                flexibly to meet the needs and schedule of in-school 
                youth and out-of-school youth;
                    ``(D) a description of the related classroom 
                instruction portion of the project, including--
                            ``(i) how coursework for that instruction 
                        will be integrated into each identified program 
                        and developed in conjunction with and provided 
                        by education and training providers that are or 
                        are within the eligible entity, the specific 
                        partners that will provide the related 
                        classroom instruction, and (as applicable) how 
                        the program may be aligned with the programs of 
                        early college high schools or dual or 
                        concurrent enrollment programs to support youth 
                        pre-apprentices or apprentices involved in 
                        earning postsecondary credit;
                            ``(ii) with respect to an identified 
                        project by an eligible entity described in 
                        subsection (i)(5)(A)(ii) that is designed to 
                        serve in-school youth, a description of how the 
                        eligible entity, through the project, will 
                        partner with the local educational agency that 
                        serves such youth to align challenging State 
                        academic standards and occupational skill 
                        standards to enable such youth to obtain a 
                        regular high school diploma while served by the 
                        program; and
                            ``(iii) an explanation of how the project 
                        will combine academic, career and technical 
                        education, or related classroom instruction 
                        with on-the-job training;
                    ``(E) a description of the proposed supportive 
                services strategy for the youth pre-apprentices or 
                apprentices involved, how the project will partner with 
                or refer youth pre-apprentices or apprentices to 
                entities in the area served by the eligible entity that 
                provide supportive services, how such supportive 
                services will promote retention in and completion of 
                the identified program involved, and the projected 
                Federal, State, and local costs of such supportive 
                services;
                    ``(F) if the eligible entity proposes to operate an 
                apprenticeship program that serves youth--
                            ``(i) the youth apprenticeship agreement 
                        the eligible entity intends to use;
                            ``(ii) a description of how such eligible 
                        entity will incorporate into the apprenticeship 
                        program recognized postsecondary credentials 
                        that enable youth apprentices to articulate to 
                        employment or higher level degree or other 
                        credential programs for multiple pathways, 
                        including enrollment in postsecondary education 
                        and employment; and
                            ``(iii) if the eligible entity proposes to 
                        develop a new apprenticeship program that 
                        serves youth, a description of how the lead 
                        applicant and partners will register such new 
                        program with the Office of Apprenticeship or 
                        State apprenticeship agency and ensure the 
                        employer or sponsor is in compliance with the 
                        standards and requirements of a registered 
                        apprenticeship under the Act of August 16, 1937 
                        (commonly known as the `National Apprenticeship 
                        Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 
                        et seq.), and that youth apprentices will earn 
                        a recognized postsecondary credential; and
                    ``(G) if the eligible entity proposes to operate a 
                pre-apprenticeship program--
                            ``(i) a description of how the eligible 
                        entity, through the program, will connect 
                        participants to and prepare participants for an 
                        apprenticeship program; and
                            ``(ii) an explanation of how the eligible 
                        entity, in carrying out the project involved, 
                        will work with alternative and non-traditional 
                        schools, institutions of higher education, and 
                        out-of-school youth programs.
            ``(4) A description of how the eligible entity will promote 
        alignment between local or State education and workforce 
        development systems by supporting policies or practices that 
        facilitate transitions from secondary school (including 
        alternative and nontraditional schools) and pre-apprenticeship 
        programs to apprenticeship programs and postsecondary 
        education.
            ``(5) A description of expected outcomes and outputs from 
        the project that includes--
                    ``(A) an attestation that the eligible entity will 
                report to the Secretary, in a timely and complete 
                manner, the information required under subsection (e); 
                and
                    ``(B) estimated levels of performance over each 
                year of the grant period for each of the indicators 
                described in subparagraphs (B) and (C) of subsection 
                (e)(2).
            ``(6) A description of the roles and responsibilities of 
        each entity involved in the project, including any such entity 
        that is a State or local government entity, qualified 
        intermediary, service provider, independent evaluator, or other 
        stakeholder.
            ``(7) An attestation that the eligible entity has, or will 
        attempt to develop, a memorandum of understanding with any 
        relevant State workforce agency to facilitate matches to wage 
        record data for youth pre-apprentices or apprentices to obtain 
        the necessary information to fulfill the requirements of 
        subsection (e)(2).
            ``(8) The total intended budget for the project, including 
        a description of any additional resources that may supplement 
        the amount awarded under this section, including any funds the 
        eligible entity intends to use to fulfill the matching funds 
        requirement described under subsection (b)(5), and a 
        description of the eligible entity's plan to sustain the 
        project funded through the grant beyond the conclusion of the 
        grant period.
            ``(9) For any program offering a recognized postsecondary 
        credential, a description of how the program leads to the 
        credential.
    ``(d) Uses of Funds.--
            ``(1) In general.--An eligible entity receiving a grant 
        under this section shall use the grant funds to carry out the 
        project proposed under subsection (c) for purposes of carrying 
        out 1 or more of the following activities:
                    ``(A) Develop or expand a pre-apprenticeship 
                program.
                    ``(B) Develop or expand an apprenticeship program 
                that serves youth, including registering such a program 
                and its youth apprentices through the Office of 
                Apprenticeship or an applicable State apprenticeship 
                agency.
            ``(2) Additional uses.--An eligible entity receiving a 
        grant under this section may use the grant funds, for each 
        identified program, to--
                    ``(A) recruit youth to and enroll youth in an 
                identified program, including conducting outreach to 
                individuals with a barrier to employment and 
                individuals preparing for nontraditional employment 
                (when the identified program is in such field);
                    ``(B) conduct participant assessments to determine 
                skill levels;
                    ``(C) support the provision of on-the-job training 
                for participants in accordance with subsection 
                (c)(3)(C), including by developing or modifying 
                training activities to meet the needs of participants, 
                as applicable;
                    ``(D) support the provision of related classroom 
                instruction by education and training providers for 
                participants in accordance with subsection (c)(3)(D), 
                including--
                            ``(i) the development of courses at the 
                        secondary level--
                                    ``(I) that are aligned with 
                                requirements to obtain a regular high 
                                school diploma and integrated into the 
                                identified program; and
                                    ``(II) that may be aligned with the 
                                requirements of early college high 
                                schools or dual or concurrent 
                                enrollment programs to support youth 
                                pre-apprentices or youth apprentices 
                                involved in earning postsecondary 
                                credit;
                            ``(ii) if the identified program is 
                        designed to serve in-school youth, the 
                        alignment of challenging State academic 
                        standards and occupational skill standards in 
                        secondary education;
                            ``(iii) payment of participant tuition or 
                        other educational fees for projects; and
                            ``(iv) the provision of instructional 
                        materials, equipment, and educational 
                        technology for such instruction;
                    ``(E) provide supportive services such as 
                transportation, child care, dependent care, housing, 
                and needs-related payments to enable youth to 
                participate in and complete the education and training 
                activities of the identified program;
                    ``(F) provide professional development 
                opportunities for secondary and postsecondary 
                educators, and employers and mentors in the project, to 
                prepare the educators, employers, and mentors to 
                effectively support youth participating in the 
                identified program;
                    ``(G) increase awareness among parents, educators, 
                students (especially individuals with a barrier to 
                employment, individuals from underserved populations, 
                and individuals from nontraditional apprenticeship 
                populations), and employers or apprenticeship sponsors 
                in the targeted service area about the benefits of 
                youth participating in a pre-apprenticeship program or 
                an apprenticeship program that serves youth;
                    ``(H) promote innovation, inclusion in the 
                identified program, and alignment of the program with 
                programs authorized under the Carl D. Perkins Career 
                and Technical Education Act of 2006 (20 U.S.C. 2301 et 
                seq.); and
                    ``(I) develop and integrate data collection 
                systems, including within a statewide longitudinal data 
                system, to track educational and employment outcomes of 
                participants in the identified program.
            ``(3) Supportive services.--An eligible entity receiving a 
        grant under this section may use, as provided in paragraph 
        (2)(E), not more than 15 percent of grant funds awarded under 
        this section to provide supportive services in accordance with 
        that paragraph.
    ``(e) Levels of Performance.--
            ``(1) Targeted levels of performance.--
                    ``(A) In general.--An eligible entity receiving a 
                grant under this section shall, in accordance with the 
                indicators for participant outcomes described in 
                paragraph (2)(B) and for program outputs described in 
                paragraph (2)(C), identify targeted levels of 
                performance for such indicators, which shall, at 
                minimum, be equal to or greater than the estimated 
                levels of performance identified by the eligible entity 
                in the entity's application under subsection (c)(5).
                    ``(B) Agreement on targeted levels of 
                performance.--Not later than 2 months after the 
                identification described in subparagraph (A), the 
                eligible entity shall reach an agreement with the 
                Secretary on levels of performance for each indicator 
                described in subparagraphs (B) and (C) of paragraph 
                (2).
            ``(2) Annual recipient report.--
                    ``(A) In general.--Not later than 2 years after 
                receipt of a grant under this section and annually 
                thereafter, the eligible entity shall prepare and 
                submit to the Secretary a report evaluating the 
                performance and impact of the project funded through 
                the grant with respect to participant outcome and 
                program output indicators described in subparagraphs 
                (B) and (C), disaggregated by the subgroups of 
                participants subject to paragraph (3).
                    ``(B) Participant outcomes.--Consistent with 
                subparagraph (A), an eligible entity receiving a grant 
                under this section shall report to the Secretary data, 
                for each identified program carried out by the eligible 
                entity, on participant outcome indicators for each such 
                program consisting of the--
                            ``(i) total participants served and 
                        enrolled in any identified program, 
                        disaggregated by youth pre-apprentices and 
                        apprentices;
                            ``(ii) retention rate during each fiscal 
                        year of participants enrolled in any identified 
                        program in the project that have not completed 
                        such program, compared to that retention rate 
                        for the previous fiscal year, disaggregated by 
                        youth pre-apprentices and apprentices;
                            ``(iii) total participants who attain a 
                        regular high school diploma or recognized 
                        equivalent, disaggregated by youth pre-
                        apprentices and apprentices;
                            ``(iv) total participants who complete such 
                        an identified program;
                            ``(v) total participants who receive an 
                        associate or baccalaureate degree or other type 
                        of recognized postsecondary credential during 
                        or upon completion of the identified program;
                            ``(vi) median hourly wage of youth pre-
                        apprentices (as applicable) or youth 
                        apprentices on the date of exit from the 
                        identified program and during the second and 
                        fourth quarters after exit from the program, 
                        and a comparison of such wage to the local 
                        median hourly wage for the industry sector or 
                        occupation for which the identified program is 
                        targeted;
                            ``(vii) total participants in employment 
                        during the second and fourth quarter after exit 
                        from the program; and
                            ``(viii) total participants who complete a 
                        pre-apprenticeship program, disaggregated by 
                        the type of education, skills development, and 
                        apprenticeship opportunities or employment 
                        pursued by such youth pre-apprentices after 
                        such completion.
                    ``(C) Program outputs.--Consistent with 
                subparagraph (A), an eligible entity receiving a grant 
                under this section shall report to the Secretary data 
                on program output indicators consisting of the--
                            ``(i) total number of all identified 
                        programs developed or expanded during the 
                        period covered by the report, disaggregated by 
                        pre-apprenticeship programs and apprenticeship 
                        programs that serve youth;
                            ``(ii) total number of apprenticeships that 
                        serve youth, if applicable, that were developed 
                        or expanded during that period, including an 
                        apprenticeship program expanded as described in 
                        subsection (d)(1) to new industry sectors, 
                        occupations, or service areas;
                            ``(iii) total number of employers who 
                        became engaged in an identified program during 
                        that period, as a direct result of a grant 
                        under this section; and
                            ``(iv) for each year of the period covered 
                        by the report, the total share of the grant 
                        received under this section spent by the 
                        eligible entity on the uses of funds described 
                        under subparagraphs (C) and (D) of subsection 
                        (d)(2).
            ``(3) Disaggregation.--The disaggregation of data under 
        paragraph (2) shall not be required in a case where the number 
        of participants in the subgroup of participants is insufficient 
        to yield statistically reliable information or the results 
        would reveal personally identifiable information about an 
        individual participant.
            ``(4) Use of results.--
                    ``(A) Evaluation.--
                            ``(i) Annual evaluation.--Not later than 2 
                        years after the date of enactment of the A 
                        Stronger Workforce for America Act of 2026 and 
                        annually thereafter, the Secretary shall 
                        evaluate whether each eligible entity involved 
                        met the agreed levels of performance described 
                        in paragraph (1)(B) for each of the eligible 
                        entity's identified programs.
                            ``(ii) End of program evaluation.--Not 
                        later than 30 days after each cohort of 
                        participants completes an eligible entity's 
                        identified program, the Secretary shall 
                        evaluate whether the eligible entity met the 
                        agreed levels of performance for that 
                        identified program.
                    ``(B) Technical assistance.--If the Secretary 
                determines under subparagraph (A) that an eligible 
                entity fails to meet 1 or more of the agreed levels of 
                performance for an identified program, the Secretary 
                shall provide technical assistance, including 
                assistance in the development of a performance 
                improvement plan.
                    ``(C) Nonrenewal of grant.--If the Secretary 
                determines, 1 year after the eligible entity receives 
                that technical assistance and implements that plan, 
                that the eligible entity fails to meet the agreed 
                levels of performance described in paragraph (1)(B) for 
                an identified program, the Secretary shall not extend a 
                grant for that eligible entity for that program under 
                subsection (b).
    ``(f) Evaluations and Reports.--
            ``(1) Report to congress.--Not later than 24 months after 
        the date of enactment of the A Stronger Workforce for America 
        Act of 2026 and annually thereafter, the Secretary, in 
        coordination with the Secretary of Education, using data 
        reported by eligible entities pursuant to the requirements 
        under subsection (e)--
                    ``(A) shall publish the data;
                    ``(B) shall prepare and make publicly available a 
                report containing the data on the indicators described 
                in subparagraphs (B) and (C) of subsection (e)(2); and
                    ``(C) shall submit the report to the Committee on 
                Health, Education, Labor, and Pensions of the Senate 
                and the Committee on Education and Workforce of the 
                House of Representatives.
            ``(2) Sharing of best practices.--Not later than 2 years 
        after the date of enactment of the A Stronger Workforce for 
        America Act of 2026, the Secretary shall use funds reserved 
        under subsection (b)(2)(C) to identify and disseminate, through 
        a website developed by the Department of Labor, best practices 
        in developing and expanding pre-apprenticeship opportunities or 
        apprenticeship opportunities for youth used by--
                    ``(A) eligible entities receiving a grant under 
                this section; and
                    ``(B) States and local areas adopting innovative 
                and effective practices to develop and expand such 
                opportunities.
    ``(g) Compliance With Other Laws and Agreements.--
            ``(1) Collective bargaining.--Nothing in a youth 
        apprenticeship agreement under this section shall be construed 
        to invalidate an applicable provision in a collective 
        bargaining agreement, between employers and employees, that 
        establishes higher standards for programs in the national 
        apprenticeship system.
            ``(2) Child labor.--
                    ``(A) In general.--An eligible entity carrying out 
                a project under this section shall ensure compliance 
                with the provisions on child labor under the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 201 et seq.) and State 
                law (including Federal and State regulations under 
                those laws), and with State workers' compensation laws.
                    ``(B) Minimum legal age.--The eligible entity shall 
                only serve in-school youth, and out-of-school youth, 
                who are not younger than the minimum legal age to be 
                employed as apprentices under the Fair Labor Standards 
                Act of 1938 (29 U.S.C. 201 et seq.) and any applicable 
                State laws.
                    ``(C) Pre-apprenticeship exception.--An eligible 
                entity that prepares or intends to prepare individuals 
                for a covered occupation may submit an application 
                under subsection (c) to develop or expand a pre-
                apprenticeship program that serves a youth who is 
                younger than the age of 18 only if the program is 
                limited to classroom instruction in the covered 
                occupation.
    ``(h) Special Rules Regarding Protections for Youth in Programs 
That Prepare Youth for Covered Occupations.--
            ``(1) Pre-apprenticeships in covered occupations for youth 
        under the age of 18.--A pre-apprenticeship program supported 
        using funds awarded under this section that serves or intends 
        to serve a youth who is younger than the age of 18 and prepares 
        such youth for a covered occupation may only provide classroom 
        instruction to such youth in such program and may not provide 
        on-the-job training in a covered occupation to such youth in 
        such program.
            ``(2) Prohibition on youth apprenticeships in covered 
        occupations for youth under the age of 18.--An apprenticeship 
        program that serves youth that is supported using funds awarded 
        under this section and that prepares a youth apprentice for a 
        covered occupation may not enroll in such program a youth who 
        is younger than the age of 18.
            ``(3) Apprenticeships for youth under the age of 18.--An 
        apprenticeship program supported using funds awarded under this 
        section may serve youth who are not younger than age 16 or 
        older than age 17, provided that such program is not preparing 
        such youth for a covered occupation.
    ``(i) Definitions.--In this section:
            ``(1) Apprenticeship program that serves youth.--The term 
        `apprenticeship program that serves youth' means a registered 
        apprenticeship program registered by the Office of 
        Apprenticeship or a State apprenticeship agency under the Act 
        of August 16, 1937 (commonly known as the `National 
        Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
        seq.), that is designed for youth not younger than age 16 or 
        older than age 24.
            ``(2) Covered occupation.--The term `covered occupation' 
        means an occupation in--
                    ``(A) manufacturing;
                    ``(B) construction;
                    ``(C) mining;
                    ``(D) trenching or excavation;
                    ``(E) logging or an occupation related to timber;
                    ``(F) work involving a saw mill;
                    ``(G) work involving the operation of heavy 
                machinery;
                    ``(H) work involving exposure to radioactive 
                substances or to ionizing radiations;
                    ``(I) meat processing;
                    ``(J) demolition;
                    ``(K) explosives; or
                    ``(L) work in any industry sector or occupation 
                that is prohibited to a youth who is younger than the 
                age of 18 under the laws or policies of the State where 
                the work occurs.
            ``(3) CTE terms.--The terms `Tribally controlled college or 
        university' and `Tribally controlled postsecondary career and 
        technical institution' have the meanings given the terms 
        `tribally controlled college or university' and `tribally 
        controlled postsecondary career and technical institution', 
        respectively, in section 3 of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2302).
            ``(4) Education and training provider.--The term `education 
        and training provider' means--
                    ``(A) an area career and technical education 
                school;
                    ``(B) an early college high school;
                    ``(C) a provider of a dual or concurrent enrollment 
                program;
                    ``(D) a community-based organization that offers 
                job training;
                    ``(E) a high school operated by a local educational 
                agency;
                    ``(F) a local educational agency, educational 
                service agency, or State educational agency;
                    ``(G) a Tribal education agency (meaning such an 
                agency within the meaning of section 3(20)(E) of the 
                Carl D. Perkins Career and Technical Education Act of 
                2006 (20 U.S.C. 2302(20)(E))), Tribally controlled 
                college or university, or Tribally controlled 
                postsecondary career and technical institution;
                    ``(H) the Bureau of Indian Education;
                    ``(I) an institution of higher education;
                    ``(J) a State entity that coordinates higher 
                education, such as a community college system office, a 
                single State educational board, or State higher 
                education agency (as defined in section 103 of the 
                Higher Education Act of 1965 (20 U.S.C. 1003));
                    ``(K) a historically Black college or university, 
                meaning a part B institution as defined in section 322 
                of the Higher Education Act of 1965 (20 U.S.C. 1061);
                    ``(L) a minority-serving institution;
                    ``(M) a local agency administering plans under 
                title I of the Rehabilitation Act of 1973 (29 U.S.C. 
                720 et seq.), other than section 112 or part C of that 
                title (29 U.S.C. 732, 741);
                    ``(N) a related integrated instruction provider, 
                including a qualified intermediary acting as a related 
                integrated instruction provider as approved by the 
                Office of Apprenticeship or a State apprenticeship 
                agency recognized by the Secretary;
                    ``(O) a consortium of entities described in any of 
                subparagraphs (A) through (N); or
                    ``(P) as used with respect to an eligible entity 
                described in paragraph (5)(A)(i), the joint labor-
                management organization that is such eligible entity.
            ``(5) Eligible entity.--
                    ``(A) In general.--The term `eligible entity' 
                means--
                            ``(i) a joint labor-management 
                        organization; or
                            ``(ii) a partnership that--
                                    ``(I) shall include as the lead 
                                applicant 1 entity that is--
                                            ``(aa) an education and 
                                        training provider;
                                            ``(bb) a workforce 
                                        development system entity;
                                            ``(cc) a qualified 
                                        intermediary;
                                            ``(dd) a State agency of 
                                        the State in which the 
                                        partnership is located; or
                                            ``(ee) a joint labor-
                                        management organization;
                                    ``(II) shall include as a partner--
                                            ``(aa) at least 1 employer 
                                        or an industry or trade 
                                        association that represents at 
                                        least 2 employers;
                                            ``(bb) an education and 
                                        training provider;
                                            ``(cc) the State 
                                        apprenticeship agency;
                                            ``(dd) a local board or the 
                                        State board;
                                            ``(ee) a local educational 
                                        agency, if the partnership is 
                                        serving in-school youth; or
                                            ``(ff) a qualified 
                                        intermediary; and
                                    ``(III) may include as an 
                                additional partner--
                                            ``(aa) the State 
                                        educational agency;
                                            ``(bb) an institution of 
                                        higher education;
                                            ``(cc) an Indian Tribe;
                                            ``(dd) the State entity 
                                        that coordinates higher 
                                        education, such as a community 
                                        college system office, a single 
                                        State educational board, or 
                                        State higher education agency 
                                        (as defined in section 103 of 
                                        the Higher Education Act of 
                                        1965 (20 U.S.C. 1003));
                                            ``(ee) a community-based 
                                        organization that offers job 
                                        training; or
                                            ``(ff) a joint labor-
                                        management organization.
                    ``(B) Rule of construction.--For purposes of this 
                section, a reference to a lead applicant, partner, or 
                partnership between a lead applicant and partners, with 
                respect to an eligible entity described in subparagraph 
                (A)(i), shall be deemed to be a reference to the 
                eligible entity.
            ``(6) ESEA terms.--The terms `dual or concurrent enrollment 
        program', `early college high school', `educational service 
        agency', and `high school' have the meanings given the terms in 
        section 8101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7801).
            ``(7) Grant.--The term `grant' means a contract, 
        cooperative agreement, or award.
            ``(8) High-need educational service agency.--The term 
        `high-need educational service agency' means an educational 
        service agency that serves a significant number or percentage 
        of high-need local educational agencies.
            ``(9) High-need local educational agency.--The term `high-
        need local educational agency' has the meaning given the term 
        in section 200 of the Higher Education Act of 1965 (20 U.S.C. 
        1021).
            ``(10) Identified program.--The term `identified program' 
        means a pre-apprenticeship program, or youth program that 
        serves youth, that is proposed to be carried out by an eligible 
        entity in an application approved under subsection (c) for a 
        project.
            ``(11) Minority-serving institution.--The term `minority-
        serving institution' means an institution defined in any of 
        paragraphs (1) through (7) of section 371(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1067q(a)).
            ``(12) National apprenticeship system.--The term `national 
        apprenticeship system' means the apprenticeship programs, 
        apprenticeship programs that serve youth, and pre-
        apprenticeship programs that are approved by the Office of 
        Apprenticeship or State apprenticeship agencies.
            ``(13) Pre-apprenticeship program.--The term `pre-
        apprenticeship program' means a program that--
                    ``(A) prepares youth to enroll in and complete an 
                apprenticeship program;
                    ``(B) maintains a written partnership with an 
                apprenticeship program; and
                    ``(C) in the case of a program with respect to a 
                covered occupation, is provided only through classroom 
                instruction for any youth pre-apprentice who is younger 
                than the age of 18.
            ``(14) Qualified intermediary.--The term `qualified 
        intermediary'--
                    ``(A) means a nonprofit entity operating in a State 
                or local area that demonstrates expertise and 
                experience in serving participants, employers, and 
                schools by--
                            ``(i) building, sustaining, measuring, and 
                        improving the quality and performance of 
                        apprenticeship programs that serve youth;
                            ``(ii) assisting in the design, approval, 
                        registration, and implementation of 
                        apprenticeship programs that serve youth, 
                        including program development and meeting 
                        program requirements, including registration 
                        and reporting requirements;
                            ``(iii) in collaboration with 1 or more 
                        State educational agencies, local educational 
                        agencies, or institutions of higher education 
                        included in the eligible entity involved, 
                        providing collaborative professional 
                        development activities such as training for 
                        workplace supervisors, mentors, counselors, and 
                        teachers, instructors, and other educators;
                            ``(iv) supporting the recruitment for, 
                        retention in, and completion of apprenticeship 
                        programs that serve youth with respect to 
                        potential or enrolled youth apprentices, 
                        including youth apprentices who are from low-
                        income backgrounds or members of nontraditional 
                        apprenticeship populations;
                            ``(v) developing and providing supportive 
                        services including by partnering with 
                        organizations to provide access to or referrals 
                        for supportive services, financial literacy 
                        services, and other support based upon needs of 
                        potential or enrolled youth apprentices; or
                            ``(vi) serving as a program sponsor; and
                    ``(B) may consist of--
                            ``(i) a joint labor-management 
                        organization;
                            ``(ii) a community-based organization; or
                            ``(iii) an industry association.
            ``(15) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and an outlying area.
            ``(16) State agency.--The term `State agency' means a State 
        educational agency, State workforce agency, or State 
        apprenticeship agency.
            ``(17) State apprenticeship agency.--The term `State 
        apprenticeship agency' means an agency of a State government 
        that has been authorized by the Office of Apprenticeship to 
        register and oversee apprenticeship programs and has the 
        responsibility and accountability for apprenticeship programs 
        within the State.
            ``(18) Subgroup of participants.--The term `subgroup of 
        participants' means--
                    ``(A) in-school youth;
                    ``(B) out-of-school youth; and
                    ``(C) each of the special populations, as defined 
                in section 3 of the Carl D. Perkins Career and 
                Technical Education Act of 2006 (20 U.S.C. 2302).
            ``(19) Workforce development system entity.--The term 
        `workforce development system entity' means an entity that is 
        involved in administering a workforce development system 
        established under this Act, which shall be a State board, a 
        local board, or an Indian Tribe, Tribal organization, or Native 
        Hawaiian organization, as defined in section 166(b).
            ``(20) Youth.--The term `youth' means an individual who is 
        not younger than age 16 or older than age 24.
            ``(21) Youth apprentice.--The term `youth', used with 
        respect to an apprentice, means a youth who is participating in 
        an apprenticeship program that serves youth.
            ``(22) Youth apprenticeship agreement.--The term `youth 
        apprenticeship agreement' means a written agreement under 
        subsection (c)(3)(F) that is agreed to by each of the 
        following:
                    ``(A) A youth.
                    ``(B) The youth's parent or legal guardian, as 
                applicable.
                    ``(C) One or more local educational agencies, if 
                the eligible entity involved is serving in-school 
                youth.
                    ``(D) The youth apprenticeship sponsor, which may 
                be an employer.
                    ``(E) As applicable, a qualified intermediary for 
                an apprenticeship program that serves youth.
                    ``(F) As applicable, one or more institutions of 
                higher education.
                    ``(G) As applicable, one or more employers.
            ``(23) Youth pre-apprentice.--The term `youth', used with 
        respect to a pre-apprentice, means a youth who is participating 
        in a pre-apprenticeship program.''.

SEC. 179. STRENGTHENING COMMUNITY COLLEGES GRANT PROGRAM.

     Subtitle D of title I of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3221 et seq.) is further amended by inserting after 
section 173, as added by the preceding section, the following:

``SEC. 174. STRENGTHENING COMMUNITY COLLEGES WORKFORCE DEVELOPMENT 
              GRANTS PROGRAM.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to establish, improve, or expand high-quality 
        workforce development programs at community colleges; and
            ``(2) to expand opportunities for individuals to obtain 
        recognized postsecondary credentials that are nationally or 
        regionally portable and stackable for high-skill, high-wage, or 
        in-demand industry sectors or occupations.
    ``(b) Strengthening Community Colleges Workforce Development Grants 
Program.--
            ``(1) In general.--From the amounts appropriated to carry 
        out this section under section 175(f) and not reserved under 
        paragraph (2), the Secretary shall, on a competitive basis, 
        make grants to eligible institutions to carry out the 
        activities described in subsection (e).
            ``(2) Reservation.--Of the amounts appropriated to carry 
        out this section under section 175(f), the Secretary may 
        reserve not more than 2 percent for the administration of 
        grants awarded under this section, including--
                    ``(A) providing technical assistance and targeted 
                outreach to support eligible institutions serving a 
                high number or high percentage of low-income 
                individuals or individuals with barriers to employment, 
                and rural-serving eligible institutions, to provide 
                guidance and assistance in the process of applying for 
                grants under this section; and
                    ``(B) evaluating and reporting on the performance 
                and impact of programs funded under this section in 
                accordance with subsections (f) through (h).
    ``(c) Award Period.--
            ``(1) Initial grant period.--Each grant under this section 
        shall be awarded for an initial period of not more than 4 
        years.
            ``(2) Subsequent grants.--An eligible institution that 
        receives an initial grant under this section may receive one or 
        more additional grants under this section for additional 
        periods of not more than 4 years each if the eligible 
        institution demonstrates that, during the most recently 
        completed grant period for a grant received under this section, 
        such eligible institution achieved the levels of performance 
        agreed to by the eligible institution with respect to the 
        performance indicators specified in subsection (f).
    ``(d) Application.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, an eligible institution shall submit an 
        application to the Secretary at such time and in such manner as 
        the Secretary may require.
            ``(2) Contents.--An application submitted by an eligible 
        institution under paragraph (1) shall include a description of 
        each the following:
                    ``(A) The extent to which the eligible institution 
                has demonstrated success building partnerships with 
                employers in in-demand industry sectors or occupations 
                to provide students with the skills needed for 
                occupations in such industries and an explanation of 
                the results of any such partnerships.
                    ``(B) The methods and strategies the eligible 
                institution will use to engage with employers in in-
                demand industry sectors or occupations, including any 
                arrangements to place individuals who complete the 
                workforce development programs supported by the grant 
                into employment with such employers.
                    ``(C) The proposed eligible institution and 
                industry partnership that the eligible institution will 
                establish or maintain to comply with subsection (e)(1), 
                including--
                            ``(i) the roles and responsibilities of 
                        each employer, organization, agency, or 
                        institution of higher education that the 
                        eligible institution will partner with to carry 
                        out the activities under this section; and
                            ``(ii) the needs that will be addressed by 
                        such eligible institution and industry 
                        partnership.
                    ``(D) One or more industries that such partnership 
                will target and real-time labor market data 
                demonstrating that those industries are aligned with 
                employer demand in the geographic area to be served by 
                the eligible institution.
                    ``(E) The extent to which the eligible institution 
                can--
                            ``(i) leverage additional resources to 
                        support the programs to be funded with the 
                        grant, which shall include written commitments 
                        of any leveraged or matching funds for the 
                        proposed programs; and
                            ``(ii) demonstrate the future 
                        sustainability of each such program.
                    ``(F) The steps the institution will take to ensure 
                the high quality of each program to be funded with the 
                grant, including the career pathways within such 
                programs.
                    ``(G) The population and geographic area to be 
                served by the eligible institution, including the 
                number of individuals the eligible institution intends 
                to serve during the grant period.
                    ``(H) The workforce development programs to be 
                supported by the grant.
                    ``(I) The recognized postsecondary credentials that 
                are expected to be earned by participants in such 
                workforce development programs and the related high-
                skill, high-wage, or in-demand industry sectors or 
                occupations for which such programs will prepare 
                participants.
                    ``(J) The evidence upon which the education and 
                skills development strategies to be used in such 
                workforce development programs are based and an 
                explanation of how such evidence influenced the design 
                of the programs to improve education and employment 
                outcomes.
                    ``(K) How activities of the eligible institution 
                are expected to align with the workforce strategies 
                identified in--
                            ``(i) any State plan or local plan 
                        submitted under this Act by the State, outlying 
                        area, or locality in which the eligible 
                        institution is expected to operate;
                            ``(ii) any State plan submitted under 
                        section 122 of the Carl D. Perkins Career and 
                        Technical Education Act of 2006 (20 U.S.C. 
                        2342) by such State or outlying area; and
                            ``(iii) any economic development plan of 
                        the chief executive of such State or outlying 
                        area.
                    ``(L) The goals of the eligible institution with 
                respect to--
                            ``(i) capacity building (as described in 
                        subsection (f)(1)(B)); and
                            ``(ii) the expected performance of 
                        individuals participating in the programs to be 
                        offered by the eligible institution, including 
                        with respect to any performance indicators 
                        applicable under section 116 or subsection (f) 
                        of this section.
            ``(3) Consideration of previous experience.--The Secretary 
        may not disqualify an eligible institution from receiving a 
        grant under this section solely because such institution lacks 
        previous experience in building partnerships, as described in 
        paragraph (2)(A).
            ``(4) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to eligible institutions that--
                    ``(A) will use the grant to serve--
                            ``(i) individuals with barriers to 
                        employment; or
                            ``(ii) incumbent workers who need to gain 
                        or improve foundational skills to enhance their 
                        employability;
                    ``(B) use competency-based assessments, such as the 
                competency-based assessment identified by the State in 
                which the eligible institution is located under section 
                134(a)(2)(B)(vii), to award academic credit for prior 
                learning for programs supported by the grant; or
                    ``(C) have, or will seek to have, the career 
                education programs supported by the grant included on 
                the list of eligible providers of training services 
                under section 122 for the State in which the eligible 
                institution is located.
    ``(e) Uses of Funds.--
            ``(1) Eligible institution and industry partnership.--For 
        the purpose of carrying out the activities specified in 
        paragraphs (2) and (3), an eligible institution that receives a 
        grant under this section shall establish a partnership (or 
        continue an existing partnership) with one or more employers in 
        an in-demand industry sector or occupation (in this section 
        referred to as an `eligible institution and industry 
        partnership') and shall maintain such partnership for the 
        duration of the grant period. The eligible institution shall 
        ensure that the partnership--
                    ``(A) targets one or more specific high-skill, 
                high-wage, or in-demand industries;
                    ``(B) includes collaboration with the workforce 
                development system;
                    ``(C) serves adult and dislocated workers, 
                incumbent workers, and new entrants to the workforce;
                    ``(D) uses an evidence-based program design that is 
                appropriate for the activities carried out by the 
                partnership;
                    ``(E) incorporates work-based learning 
                opportunities; and
                    ``(F) incorporates, to the extent appropriate, 
                virtual service delivery to facilitate technology-
                enabled learning.
            ``(2) Required activities.--An eligible institution that 
        receives a grant under this section shall, in consultation with 
        the employers in the eligible institution and industry 
        partnership described in paragraph (1)--
                    ``(A) establish, improve, or expand high-quality, 
                evidence-based workforce development programs, career 
                pathway programs, or work-based learning programs 
                (including apprenticeship programs or 
                preapprenticeships);
                    ``(B) provide career services to individuals 
                participating in the programs funded with the grant to 
                facilitate retention and program completion, which may 
                include--
                            ``(i) career navigation, coaching, 
                        mentorship, and case management services, 
                        including providing information and outreach to 
                        individuals with barriers to employment to 
                        encourage such individuals to participate in 
                        programs funded with the grant; and
                            ``(ii) providing access to course 
                        materials, technological devices, required 
                        equipment, and other supports necessary for 
                        participation in and successful completion of 
                        such programs; and
                    ``(C) make available, in a format that is open, 
                searchable, and easily comparable, information on--
                            ``(i) curricula and recognized 
                        postsecondary credentials offered through 
                        programs funded with the grant, including any 
                        curricula or credentials created or further 
                        developed using such grant, which for each 
                        recognized postsecondary credential, shall 
                        include--
                                    ``(I) the issuing entity of such 
                                credential;
                                    ``(II) any third-party endorsements 
                                of such credential;
                                    ``(III) the occupations for which 
                                the credential prepares individuals;
                                    ``(IV) the skills and competencies 
                                necessary to achieve to earn such 
                                credential;
                                    ``(V) the level of mastery of such 
                                skills and competencies (including how 
                                mastery is assessed); and
                                    ``(VI) any transfer value or 
                                stackability of the credential;
                            ``(ii) any skills or competencies developed 
                        by individuals who participate in such programs 
                        beyond the skills and competencies identified 
                        as part of the recognized postsecondary 
                        credential awarded; and
                            ``(iii) related employment and earnings 
                        outcomes on the primary indicators of 
                        performance described in subclauses (I) through 
                        (III) of section 116(b)(2)(A)(i).
            ``(3) Additional activities.--In addition to the activities 
        required under paragraph (2), an eligible institution that 
        receives a grant under this section shall, in consultation with 
        the employers in the eligible institution and industry 
        partnership described in paragraph (1), carry out one or more 
        of the following activities:
                    ``(A) Establish, improve, or expand--
                            ``(i) articulation agreements (as defined 
                        in section 486A(a) of the Higher Education Act 
                        of 1965 (20 U.S.C. 1093a(a)));
                            ``(ii) credit transfer agreements;
                            ``(iii) corequisite remediation programs 
                        that enable a student to receive remedial 
                        education services while enrolled in a 
                        postsecondary course rather than requiring the 
                        student to receive remedial education before 
                        enrolling in such a course;
                            ``(iv) dual or concurrent enrollment 
                        programs;
                            ``(v) competency-based education and 
                        assessment; or
                            ``(vi) policies and processes to award 
                        academic credit for prior learning or for the 
                        programs described in paragraph (2)(A).
                    ``(B) Establish or implement plans for providers of 
                the programs described in paragraph (2)(A) to meet the 
                criteria and carry out the procedures necessary to be 
                included on the list of eligible providers of training 
                services described in section 122(d).
                    ``(C) Purchase, lease, or refurbish specialized 
                equipment as necessary to carry out such programs, 
                provided that not more than 15 percent of the funds 
                awarded to the eligible institution under this section 
                may be used for activities described in this 
                subparagraph.
                    ``(D) Reduce or eliminate unmet financial need 
                relating to the cost of attendance (as defined under 
                section 472 of the Higher Education Act of 1965 (20 
                U.S.C. 1087ll)) of participants in such programs.
            ``(4) Administrative cost limit.--An eligible institution 
        may use not more than 7 percent of the funds awarded under this 
        section for administrative costs, including costs related to 
        collecting information, analysis, and coordination for purposes 
        of subsection (f).
    ``(f) Levels of Performance and Performance Reviews.--
            ``(1) In general.--The Secretary shall develop and 
        implement guidance that establishes the levels of performance 
        that are expected to be achieved by each eligible institution 
        receiving a grant under this section. Such levels of 
        performance shall be established on the following indicators:
                    ``(A) Each of the primary indicators of performance 
                for adults described in section 116(b)(2)(A)(i), which 
                shall be applied for all individuals who participated 
                in a program that received funding from a grant under 
                this section.
                    ``(B) The extent to which the eligible institution 
                built capacity by--
                            ``(i) increasing the breadth and depth of 
                        employer engagement and investment in workforce 
                        development programs in the in-demand industry 
                        sectors and occupations targeted by the 
                        eligible institution and industry partnership 
                        established or maintained by the eligible 
                        institution under subsection (e)(1);
                            ``(ii) designing or implementing new and 
                        accelerated instructional techniques or 
                        technologies, including the use of advanced 
                        online and technology-enabled learning (such as 
                        immersive technology); and
                            ``(iii) increasing program and policy 
                        alignment across systems and decreasing 
                        duplicative services or service gaps.
                    ``(C) With respect to individuals who participated 
                in a workforce development program funded with the 
                grant--
                            ``(i) the percentage of participants who 
                        successfully completed the program; and
                            ``(ii) of the participants who were 
                        incumbent workers at the time of enrollment in 
                        the program, the percentage who advanced into 
                        higher level positions during or after 
                        completing the program.
            ``(2) Consultation and determination of levels of 
        performance.--
                    ``(A) Consideration.--In developing levels of 
                performance in accordance with paragraph (1), the 
                Secretary shall take into consideration the goals of 
                the eligible institution pursuant to subsection 
                (d)(2)(L).
                    ``(B) Determination.--After completing the 
                consideration required under subparagraph (A), the 
                Secretary shall separately determine the levels of 
                performance that will apply to each eligible 
                institution, taking into account--
                            ``(i) the expected levels of performance of 
                        each eligible institution with respect to the 
                        goals described by the eligible institution 
                        pursuant to subsection (d)(2)(L); and
                            ``(ii) local economic conditions in the 
                        geographic area to be served by the eligible 
                        institution, including differences in 
                        unemployment rates and job losses or gains in 
                        particular industries.
                    ``(C) Notice and acknowledgment.--
                            ``(i) Notice.--The Secretary shall provide 
                        each eligible institution with a written 
                        notification that sets forth the levels of 
                        performance that will apply to the eligible 
                        institution, as determined under subparagraph 
                        (B).
                            ``(ii) Acknowledgment.--After receiving the 
                        notification described in clause (i), each 
                        eligible institution shall submit to the 
                        Secretary written confirmation that the 
                        eligible institution--
                                    ``(I) received the notification; 
                                and
                                    ``(II) agrees to be evaluated in 
                                accordance with the levels of 
                                performance determined by the 
                                Secretary.
            ``(3) Performance reviews.--On an annual basis during each 
        year of the grant period, the Secretary shall evaluate the 
        performance during such year of each eligible institution 
        receiving a grant under this section in a manner consistent 
        with the levels of performance determined for such institution 
        pursuant to paragraph (2).
            ``(4) Failure to meet levels of performance.--After 
        conducting an evaluation under paragraph (3), if the Secretary 
        determines that an eligible institution did not achieve the 
        levels of performance applicable to the eligible institution 
        under paragraph (2), the Secretary shall--
                    ``(A) provide technical assistance to the eligible 
                institution; and
                    ``(B) develop a performance improvement plan for 
                the eligible institution.
    ``(g) Evaluations and Reports.--
            ``(1) In general.--Not later than 4 years after the date on 
        which the first grant is made under this section, the Secretary 
        shall design and conduct an evaluation to determine the overall 
        effectiveness of the eligible institutions receiving a grant 
        under this section.
            ``(2) Elements.--The evaluation of the effectiveness of 
        eligible institutions conducted under paragraph (1) shall 
        include an assessment of the general effectiveness of programs 
        and activities supported by the grants awarded to such eligible 
        institutions under this section, including the extent to which 
        the programs and activities--
                    ``(A) developed new, or expanded existing, 
                successful industry sector strategies, including the 
                extent to which such eligible institutions deepened 
                employer engagement and developed workforce development 
                programs that met industry skill needs;
                    ``(B) created, expanded, or enhanced career 
                pathways, including the extent to which the eligible 
                institutions developed or improved competency-based 
                education and assessment, credit for prior learning, 
                modularized and self-paced curricula, integrated 
                education and workforce development, dual enrollment in 
                secondary and postsecondary career pathways, stacked 
                and latticed credentials, and online and distance 
                learning;
                    ``(C) created alignment between eligible 
                institutions and the workforce development system;
                    ``(D) assisted individuals with finding, retaining, 
                or advancing in employment;
                    ``(E) assisted individuals with earning recognized 
                postsecondary credentials; and
                    ``(F) provided equal access to various demographic 
                groups, including people of different geographic 
                locations, ages, races, national origins, and sexes.
            ``(3) Design requirements.--The evaluation under this 
        subsection shall--
                    ``(A) be designed by the Secretary (acting through 
                the Chief Evaluation Officer) in conjunction with the 
                eligible institutions being evaluated;
                    ``(B) include analysis of program participant 
                feedback and outcome and process measures; and
                    ``(C) use designs that employ the most rigorous 
                analytical and statistical methods that are reasonably 
                feasible, such as the use of control groups.
            ``(4) Data accessibility.--The Secretary shall make 
        available on a publicly accessible website of the Department of 
        Labor any data collected as part of the evaluation under this 
        subsection. Such data shall be made available in an aggregated 
        format that does not reveal personally identifiable information 
        and that ensures compliance with relevant Federal laws, 
        including section 444 of the General Education Provisions Act 
        (commonly known as the `Family Educational Rights and Privacy 
        Act of 1974') (20 U.S.C. 1232g).
            ``(5) Publication and reporting of evaluation findings.--
        The Secretary (acting through the Chief Evaluation Officer) 
        shall--
                    ``(A) in accordance with the timeline determined to 
                be appropriate by the Chief Evaluation Officer, publish 
                an interim report on the preliminary results of the 
                evaluation conducted under this subsection;
                    ``(B) not later than 60 days after the date on 
                which the evaluation is completed under this 
                subsection, submit to the Committee on Education and 
                Workforce of the House of Representatives and the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate a report on such evaluation; and
                    ``(C) not later than 90 days after such completion 
                date, publish and make the results of such evaluation 
                available on a publicly accessible website of the 
                Department of Labor.
    ``(h) Annual Reports.--The Secretary shall make available on a 
publicly accessible website of the Department of Labor, in transparent, 
linked, open, and interoperable data formats, the following 
information:
            ``(1) The performance of eligible institutions on the 
        capacity-building performance indicator set forth under 
        subsection (f)(1)(B).
            ``(2) The performance of eligible institutions on the 
        workforce development participant outcome performance 
        indicators set forth under subsection (f)(1)(C).
            ``(3) The number of individuals enrolled in workforce 
        development programs funded with a grant under this section.
    ``(i) Definitions.--In this section:
            ``(1) Chief evaluation officer.--The term `Chief Evaluation 
        Officer' means the head of the independent evaluation office 
        located in the Office of the Assistant Secretary for Policy of 
        the Department of Labor.
            ``(2) Community college.--The term `community college' 
        means--
                    ``(A) a public institution of higher education (as 
                defined in section 101(a) of the Higher Education Act 
                (20 U.S.C. 1001(a)), at which--
                            ``(i) the highest degree awarded is an 
                        associate degree; or
                            ``(ii) an associate degree is the most 
                        frequently awarded degree;
                    ``(B) a branch campus of a 4-year public 
                institution of higher education (as defined in section 
                101 of the Higher Education Act of 1965 (20 U.S.C. 
                1001)), if, at such branch campus--
                            ``(i) the highest degree awarded is an 
                        associate degree; or
                            ``(ii) an associate degree is the most 
                        frequently awarded degree;
                    ``(C) a 2-year Tribal College or University (as 
                defined in section 316(b)(3) of the Higher Education 
                Act of 1965 (20 U.S.C. 1059c(b)(3))); or
                    ``(D) a degree-granting Tribal College or 
                University (as defined in section 316(b)(3) of the 
                Higher Education Act of 1965 (20 U.S.C. 1059c(b)(3))) 
                at which--
                            ``(i) the highest degree awarded is an 
                        associate degree; or
                            ``(ii) an associate degree is the most 
                        frequently awarded degree.
            ``(3) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) a community college;
                    ``(B) a postsecondary vocational institution (as 
                defined in section 102(c) of the Higher Education Act 
                of 1965 (20 U.S.C. 1002(c))); or
                    ``(C) a consortium of such colleges or 
                institutions.
    ``(j) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local public funds made available for carrying out the 
activities described in this section.''.

SEC. 180. AUTHORIZATION OF APPROPRIATIONS.

    Section 175 of the Workforce Innovation and Opportunity Act, as so 
redesignated, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (g) and (h), respectively; and
            (2) by striking subsections (a) through (d) and inserting 
        the following:
    ``(a) Native American Programs.--There are authorized to be 
appropriated to carry out section 166 (not including subsection (k) of 
such section) $62,500,000 for each of the fiscal years 2027 through 
2032.
    ``(b) Migrant and Seasonal Farmworker Programs.--There are 
authorized to be appropriated to carry out section 167 $97,396,000 for 
each of the fiscal years 2027 through 2032.
    ``(c) Evaluations and Research.--There are authorized to be 
appropriated to carry out section 169 $6,000,000 for each of the fiscal 
years 2027 through 2032.
    ``(d) Reentry Program.--There are authorized to be appropriated to 
carry out section 172 $110,000,000 for each of the fiscal years 2027 
through 2032.
    ``(e) Strengthening Community Colleges Program.--There are 
authorized to be appropriated to carry out section 173 $65,000,000 for 
each of the fiscal years 2027 through 2032.''.

                       Subtitle F--Administration

SEC. 191. REQUIREMENTS AND RESTRICTIONS.

    (a) Labor Standards.--Section 181(b) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3241(b)) is amended by adding at the end 
the following:
            ``(8) Child labor.--Individuals in on-the-job training or 
        individuals employed in programs and activities under this 
        title shall be employed in accordance with the provisions on 
        child labor under the Fair Labor Standards Act of 1938 (29 
        U.S.C. 201 et seq.) and applicable State law.
            ``(9) Consultation.--If an employer provides on-the-job 
        training, incumbent worker training, or employer-directed 
        skills development with funds made available under this title 
        directly to employees of such employer that are subject to a 
        collective bargaining agreement with the employer, the employer 
        shall consult with the labor organization that represents such 
        employees on the planning and design of such training or 
        development.''.
    (b) Remedies.--Section 181(c)(3)(B) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3241(c)(3)(B)) is amended by inserting ``for 
a period of not less than 2 years'' before the semicolon at the end.
    (c) Relocation.--Section 181(d)(2) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3241(d)(2)) is amended by striking 
``incumbent worker training,'' and inserting ``incumbent worker 
training, employer-directed skills development,''.
    (d) Supportive Services.--Section 181 of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3241) is amended by adding at the end 
the following:
    ``(h) Supportive Services.--Except as provided in section 
134(d)(2), funds provided under this title may only be used to provide 
supportive services to individuals who--
            ``(1) are participating in activities under programs 
        authorized under this title;
            ``(2) are unable to obtain the supportive services through 
        programs listed in section 121(b)(2); and
            ``(3) require supportive services to enable participation 
        in activities under programs authorized under this title.''.

SEC. 192. MONITORING.

    Section 183 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3243) is amended by striking ``recipients'' each place it 
appears and inserting ``recipients and subrecipients''.

SEC. 193. FISCAL CONTROLS; SANCTIONS.

    Section 184(b) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3244(b)) is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        paragraphs (3), (5), and (6), respectively;
            (2) by inserting before paragraph (3), as so redesignated, 
        the following:
            ``(1) In general.--For the purposes of this title, a 
        substantial violation shall--
                    ``(A) be determined in accordance with the 
                procedures established by the Governor as described in 
                paragraph (2); and
                    ``(B) include any willful violation of the 
                requirements under subsections (a) or (b) of section 
                181 for which there has been a final determination of 
                the violation without any remaining right to appeal.
            ``(2) Procedures.--The Governor shall establish procedures 
        to be used by local areas and, in the case of funds described 
        in section 128(a) or pertaining to the enforcement provisions 
        under section 122(g), by any other individual or entity 
        specified by the Governor to determine if a substantial 
        violation of this title has occurred.'';
            (3) in paragraph (3), as so redesignated--
                    (A) in subparagraph (A), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in subparagraph (B)(v), by striking the period 
                at the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(C) reduce any local allotment under section 
                128(b) or 133(b) to the local area involved by not more 
                than 5 percent for the fiscal year after the fiscal 
                year in which the substantial violation, for which 
                corrective action was not taken, occurred.'';
            (4) by inserting after paragraph (3), as so redesignated, 
        the following:
            ``(4) Reallocation of reductions.--Any amount that was 
        reduced from an allotment to a local area in accordance with 
        paragraph (3)(C) shall be reallocated by the Governor to the 
        other local areas within the State that are not subject to an 
        action described in paragraph (3) in a manner determined by the 
        Governor, which may take into consideration whether such other 
        local area is serving a significant number of individuals with 
        barriers to employment.'';
            (5) in paragraph (5), as so redesignated, by striking ``(A) 
        and (B)'' and inserting ``(A), (B), and (C)''; and
            (6) in paragraph (6), as so redesignated, by striking 
        ``paragraph (1)'' and inserting ``paragraph (2)''

SEC. 194. ADMINISTRATIVE ADJUDICATION.

    Section 186(a) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3246(a)) is amended by striking ``184'' and inserting ``181 or 
184''.

SEC. 195. JUDICIAL REVIEW.

    Section 187(a)(1) of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3247(a)(1)) is amended by striking ``184'' and inserting 
``181 or 184''.

SEC. 196. GENERAL WAIVERS OF STATUTORY OR REGULATORY REQUIREMENTS.

    Section 189(i)(3) of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3249(i)(3)) is amended--
            (1) in subparagraph (A)(i) by striking ``procedures for 
        review and approval of plans'' and inserting ``the procedures 
        for review and approval of plans, the performance reports 
        described in section 116(d), and the requirement described in 
        section 134(c)(1)(B)''; and
            (2) by adding at the end the following:
                    ``(E) Model template.--Not later than one year 
                after the date of enactment of the A Stronger Workforce 
                for America Act of 2026, the Secretary shall issue 
                guidance and provide model templates to States to 
                assist States in requesting common waivers of statutory 
                or regulatory requirements under this subsection.''.

SEC. 197. MAKE AMERICA SKILLED AGAIN GRANTS.

    Section 190 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3250) is amended to read as follows:

``SEC. 190. MAKE AMERICA SKILLED AGAIN GRANTS.

    ``(a) Purpose.--The purpose of this section is to--
            ``(1) authorize States to apply under this section on 
        behalf of the State as a whole, or on behalf of a local area or 
        a consortium of local areas in the State, to receive the 
        allotments or allocations of the State or the local areas, 
        respectively, for youth workforce investment activities under 
        chapter 2 of subtitle B and adult and dislocated worker 
        employment and training activities under chapter 3 of subtitle 
        B as a consolidated grant for 5 years for the purpose of 
        carrying out a pilot project to pursue innovative reforms to 
        achieve better outcomes for jobseekers, workers, employers, and 
        taxpayers; and
            ``(2) require that rigorous evaluations be conducted to 
        demonstrate if better outcomes and opportunities to achieve 
        economic self-sufficiency for participants, including 
        participants receiving a priority for services under this 
        section, and associated innovative reforms to improve service 
        delivery were achieved as a result of such pilot projects.
    ``(b) General Authority.--
            ``(1) Waivers, pilot project grant amounts, and 
        reservations.--Notwithstanding any other provision of subtitle 
        A or B, except as otherwise provided in this section, during 
        the pilot project period applicable to a pilot project approved 
        for a State pursuant to subsection (d)(3), the Secretary, the 
        Governor of a State participating in such pilot project on 
        behalf of the State as a whole, local area, or consortium of 
        local areas, and a local area or consortium of local areas on 
        whose behalf a Governor is participating in such a pilot 
        project, shall, as applicable, comply with each of the 
        following:
                    ``(A) Waivers.--Subject to paragraph (2), the 
                Secretary shall waive for the State as a whole, or for 
                the local area or the consortium of local areas 
                selected by the State to carry out such pilot project, 
                all the statutory and regulatory requirements of 
                subtitles A and B.
                    ``(B) Pilot project grant amounts.--For each fiscal 
                year applicable to a pilot period, the Secretary shall 
                carry out the following:
                            ``(i) State as a whole.--In a case of a 
                        State approved to carry out a pilot project 
                        under this section on behalf of the State as a 
                        whole, distribute as a consolidated sum to the 
                        State, for purposes of carrying out the 
                        project, the State's total allotment for such 
                        fiscal year under--
                                    ``(I) subsections (b)(1)(C) and (c) 
                                of section 127;
                                    ``(II) paragraphs (1)(B) and (2)(B) 
                                of section 132(b); and
                                    ``(III) section 132(c).
                            ``(ii) Local area.--In a case of a local 
                        area selected by a State and approved to carry 
                        out a pilot project under this section, require 
                        the State to--
                                    ``(I) distribute as a consolidated 
                                sum to the local board for such local 
                                area, for purposes of carrying out the 
                                project, the local area's allocation 
                                for such fiscal year under--
                                            ``(aa) subsections (b) and 
                                        (c) of section 128; and
                                            ``(bb) subsections (b) and 
                                        (c) of section 133; or
                                    ``(II) if the local board of the 
                                local area enters into a written 
                                agreement with the State for the State 
                                to serve as the fiscal agent for the 
                                local board during the pilot project, 
                                use the funds described in subclause 
                                (I) for purposes of carrying out the 
                                project on behalf of the local board.
                            ``(iii) Consortium of local areas.--In a 
                        case of a consortium of local areas selected by 
                        a State and approved to carry out a pilot 
                        project under this section, require the State 
                        to--
                                    ``(I) distribute as a consolidated 
                                sum to the consortium, for purposes of 
                                carrying out the project, the total 
                                amount of the allocations for the local 
                                areas in such consortium for such 
                                fiscal year under--
                                            ``(aa) subsections (b) and 
                                        (c) of section 128; and
                                            ``(bb) subsections (b) and 
                                        (c) of section 133; or
                                    ``(II) if the consortium enters 
                                into a written agreement with the State 
                                for the State to serve as the fiscal 
                                agent for the consortium during the 
                                pilot project, use the funds described 
                                in subclause (I) for purposes of 
                                carrying out the project on behalf of 
                                such consortium.
                    ``(C) State reservation.--The Governor of a State 
                participating in a pilot project on behalf of the State 
                as a whole shall reserve not less than 25 percent of 
                the consolidated sum allotted to the State, as 
                described in subparagraph (B)(i), for the purpose of 
                developing and implementing evidence-based workforce 
                development activities in the State. Such activities--
                            ``(i) shall comply with the priority of 
                        service requirement described in subsection 
                        (e)(3); and
                            ``(ii) may include strategies such as--
                                    ``(I) innovative skills development 
                                programs to improve employment outcomes 
                                for jobseekers, incumbent workers, and 
                                dislocated workers;
                                    ``(II) job training programs and 
                                assistance with removing barriers to 
                                employment for offenders;
                                    ``(III) pre-apprenticeships, 
                                apprenticeships, and evidence-based 
                                workforce development and employment 
                                opportunities, including for youth 
                                (particularly out-of-school youth);
                                    ``(IV) the development and 
                                strengthening of industry or sector 
                                partnerships and training programs 
                                offered under such partnerships;
                                    ``(V) the optimization of 
                                supportive service delivery and the 
                                integration of such services within the 
                                workforce system to promote retention 
                                in and completion of training programs 
                                for participants served under the pilot 
                                project; and
                                    ``(VI) other strategies as may be 
                                appropriate and necessary to achieve 
                                better outcomes for jobseekers, 
                                workers, employers, and taxpayers, as 
                                determined by the Governor.
                    ``(D) Local area and consortium reservation.--A 
                local area or a consortium of local areas for which a 
                pilot project is authorized under this section shall 
                reserve not less than 25 percent of the consolidated 
                sum allotted, as described in clause (ii) or (iii), 
                respectively, of subparagraph (B), to the local area or 
                consortium of local areas, respectively, for the 
                purpose of developing and implementing evidence-based 
                workforce development activities described in 
                subparagraph (C) in the local area or local areas 
                served by the consortium, respectively.
            ``(2) Exceptions.--
                    ``(A) In general.--A State, local area, or 
                consortium of local areas carrying out a pilot project 
                under this section shall comply with statutory or 
                regulatory requirements of this Act relating to--
                            ``(i) performance accountability and 
                        reporting, except as otherwise provided in this 
                        section;
                            ``(ii) the membership of local boards or 
                        State boards in instances where a State 
                        carrying out a pilot project will maintain the 
                        use of such local boards or State boards, 
                        respectively, during the pilot project period;
                            ``(iii) the requirement to set minimum 
                        levels of performance on the criteria described 
                        in section 122(b)(2)(B) for any providers of 
                        training services that will receive funding 
                        under the pilot project;
                            ``(iv) the establishment of the one-stop 
                        delivery system to make the services and 
                        activities carried out under the pilot project 
                        available to individuals in the State, local 
                        area, or consortium of local areas carrying out 
                        the pilot project, except that, of the 
                        requirements in section 121(e), such one-stop 
                        delivery system shall only be required to meet 
                        the requirements of paragraph (2) of that 
                        section and only with respect to the services 
                        and activities of the pilot project;
                            ``(v) the fiscal and management 
                        accountability information systems described in 
                        section 116(j) and, in the case of a pilot 
                        project carried out by a local area or 
                        consortium of local areas, the provisions on 
                        fiscal integrity described in section 106; and
                            ``(vi) the priority of service described in 
                        section 134(c)(3)(E).
                    ``(B) Applicability of defined terms.--In carrying 
                out a pilot project under this section, a State, local 
                area, or consortium of local areas may only use a term 
                defined in section 3 to describe an activity carried 
                out under such pilot project if the State, local area, 
                or consortium of local areas gives such term the same 
                meaning as such term is given under such section.
                    ``(C) Rule of construction.--Nothing in 
                subparagraph (A)(iv) shall be construed to prevent a 
                State, local area, or consortium of local areas 
                carrying out a pilot project under this section from 
                deciding to maintain the one-stop delivery system in 
                effect for the State, local area, or consortium, 
                respectively, prior to the start of the pilot project.
            ``(3) Authority for third-party evaluation.--
                    ``(A) In general.--Not later than 180 days after 
                the first pilot project is approved under this section, 
                the Secretary shall contract with a third-party 
                evaluator to conduct a rigorous evaluation of each 
                pilot project approved under this section. The 
                evaluation shall--
                            ``(i) cover the entire period of each pilot 
                        project;
                            ``(ii) include a description of--
                                    ``(I) the populations served under 
                                the pilot project, including with 
                                respect to individuals with barriers to 
                                employment served under the pilot 
                                project, disaggregated by each 
                                subpopulation of such individuals, and 
                                by race, ethnicity, sex, and age;
                                    ``(II) the services provided 
                                through the pilot project, the 
                                providers of such services, and the 
                                cost of such services, disaggregated by 
                                the type of service provided;
                                    ``(III) if the pilot project is 
                                carried out by a State, the geographic 
                                distribution within the State of the 
                                services provided under the pilot 
                                project; and
                                    ``(IV) the workforce development 
                                systems in the State, local area, or 
                                consortium of local areas that were 
                                affected, and the nature of such 
                                effects, as a result of the pilot 
                                project;
                            ``(iii) compare the employment and earnings 
                        outcomes of participants in activities carried 
                        out under the pilot project to--
                                    ``(I) the outcomes of similarly 
                                situated individuals who do not 
                                participate in such activities and who 
                                are located in such State, such local 
                                area, or a local area in such 
                                consortium, as applicable;
                                    ``(II) the outcomes of similarly 
                                situated participants in similarly 
                                situated States or local areas within 
                                such States, as applicable, that do not 
                                receive authority to carry out a pilot 
                                project under this section; and
                                    ``(III) the outcomes of 
                                participants in activities under 
                                chapter 2 or 3 of subtitle B in the 
                                State, local area, or a local area in 
                                the consortium that was awarded a 
                                waiver prior to the award of such 
                                waiver;
                            ``(iv) conduct a qualitative analysis that 
                        identifies any practices or strategies 
                        (including promising, evidence-based, or 
                        innovative practices and strategies) that--
                                    ``(I) would not have been conducted 
                                without the waiving of statutory or 
                                regulatory provisions through the pilot 
                                project; and
                                    ``(II) led to changes in employment 
                                and earnings outcomes for the 
                                participants, including employment and 
                                earnings outcomes for participants who 
                                are out-of-school youth and individuals 
                                with barriers to employment; and
                            ``(v) compare the outcomes for subclauses 
                        (I), (II), and (III) of clause (iii) with 
                        respect to the subpopulations described in 
                        section 116(d)(2)(B).
                    ``(B) Report.--Not later than 2 years after the 
                final year of a pilot project approved under this 
                section, the Secretary shall submit to the Committee on 
                Education and Workforce of the House of Representatives 
                and the Committee on Health, Education, Labor, and 
                Pensions of the Senate the results of the evaluation 
                conducted under this paragraph.
    ``(c) Pilot Period; Limitations.--
            ``(1) In general.--A pilot project approved under this 
        section for a State, local area, or consortium--
                    ``(A) shall be carried out for a 5-year pilot 
                project period; and
                    ``(B) may be renewed for an additional 4-year pilot 
                project period, if the State, local area, or 
                consortium--
                            ``(i) for each of the final 3 years of the 
                        preceding 5-year pilot project period, meets 
                        its expected levels of performance established 
                        under subsection (f)(1)(C); and
                            ``(ii) for the final year of the preceding 
                        5-year pilot project period, achieves a 
                        performance improvement of not less than an 
                        average of a 5-percent increase across all of 
                        the indicators of performance described in 
                        clauses (i) and (ii) of subsection (f)(1)(A), 
                        compared with--
                                    ``(I) the highest level of 
                                performance for the corresponding 
                                indicators of performance, as described 
                                in subsection (f)(1)(B)(i) with respect 
                                to such State, for the most recent 
                                program year that ended prior to the 
                                beginning of the first year of the 
                                preceding 5-year pilot project period; 
                                or
                                    ``(II) the alternate baseline level 
                                of performance for the corresponding 
                                indicators of performance that is 
                                agreed upon between the State and the 
                                Secretary under subsection 
                                (f)(1)(B)(ii).
            ``(2) Limitations.--
                    ``(A) Pilot period limitations.--For each pilot 
                period (including renewals of such period) the 
                Secretary may not approve--
                            ``(i) more than 10 pilot projects for 
                        States to carry out a pilot project described 
                        in subsection (b)(1)(B)(i), except as provided 
                        in subparagraph (C); and
                            ``(ii) more than 8 pilot projects for local 
                        areas (or consortia of local areas) to carry 
                        out a pilot project described in clause (ii) or 
                        (iii) of subsection (b)(1)(B).
                    ``(B) State limitations.--Not more than 1 pilot 
                project may be approved under this section per State. 
                For purposes of this subparagraph, a pilot project 
                described in clause (ii) or (iii) of subsection 
                (b)(1)(B) approved for a local area or a consortium of 
                local areas, respectively, in a State shall be 
                considered a pilot project approved under this section 
                for the State.
                    ``(C) Subsequent approval.--Notwithstanding 
                subparagraph (A)(i), the Secretary may award authority 
                to carry out a pilot project for a State as a whole 
                under this section to 2 additional States if, at the 
                beginning of the third year of the pilot projects 
                awarded to the 10 States under subparagraph (A)(i), 
                each of such States--
                            ``(i) has met or exceeded expected levels 
                        of performance under the primary indicators of 
                        performance described in section 116(b)(2)(A); 
                        and
                            ``(ii) meets the requirement described in 
                        subsection (e)(4).
    ``(d) Application.--
            ``(1) In general.--To be eligible to carry out a pilot 
        project under this section, a State shall submit to the 
        Secretary an application at such time and in such manner as the 
        Secretary may reasonably require, and containing the 
        information described in paragraph (2).
            ``(2) Content.--Each application submitted by a State under 
        this subsection shall include the following:
                    ``(A) A description of the pilot project to be 
                carried out under this section, including--
                            ``(i) whether the project will be carried 
                        out--
                                    ``(I) by the State as a whole;
                                    ``(II) by a local area, and if so--
                                            ``(aa) an identification 
                                        of--

                                                    ``(AA) such local 
                                                area; and

                                                    ``(BB) whether the 
                                                local area will be the 
                                                fiscal agent for the 
                                                project, or whether the 
                                                local board has entered 
                                                into a written 
                                                agreement with the 
                                                State for the State to 
                                                serve as the fiscal 
                                                agent during the 
                                                project; and

                                            ``(bb) written verification 
                                        from the local board for such 
                                        local area that such local 
                                        board agrees--

                                                    ``(AA) to carry out 
                                                such project; and

                                                    ``(BB) to the 
                                                fiscal agent identified 
                                                in item (aa)(BB); or

                                    ``(III) by a consortium of local 
                                areas in the State, and if so--
                                            ``(aa) an identification 
                                        of--

                                                    ``(AA) each local 
                                                area that comprises the 
                                                consortium; and

                                                    ``(BB) the local 
                                                area that will serve as 
                                                the fiscal agent for 
                                                the consortium during 
                                                the project, or whether 
                                                the consortium has 
                                                entered into a written 
                                                agreement with the 
                                                State for the State to 
                                                serve as the fiscal 
                                                agent; and

                                            ``(bb) written verification 
                                        from each local board of each 
                                        local area identified in item 
                                        (aa)(AA) that such local board 
                                        agrees--

                                                    ``(AA) to carry out 
                                                such project as a 
                                                consortium; and

                                                    ``(BB) to the 
                                                fiscal agent for the 
                                                consortium identified 
                                                in item (aa)(BB);

                            ``(ii) a description of the activities to 
                        be carried out under the project, including--
                                    ``(I) the activities to be carried 
                                out under the reservation required 
                                under subparagraph (C) or (D) of 
                                subsection (b)(1), as applicable;
                                    ``(II) how the activities will 
                                comply with the priority of service 
                                described in subsection (e)(3); and
                                    ``(III) how the activities will be 
                                made available through the one-stop 
                                delivery system described in subsection 
                                (b)(2)(A)(iv);
                            ``(iii) the goals the State, local area, or 
                        consortium intends to achieve through such 
                        activities, which shall be aligned with the 
                        purpose described in subsection (a); and
                            ``(iv) a description of any reforms or 
                        improvements, including any reforms or 
                        improvements that may be evidence-based, to 
                        service delivery to be carried out under the 
                        project.
                    ``(B) A description of the performance outcomes the 
                State, the local area, or consortium expects to achieve 
                for such activities for each year of the pilot project 
                period as described in subsection (f)(1).
                    ``(C) A description of how the State, local area, 
                or consortium consulted with employers, the State 
                board, and the local boards in the State in determining 
                the activities to carry out under the pilot project.
                    ``(D) A description of how the State will make such 
                activities available to jobseekers and employers in 
                each of the local areas in the State or, in a case of a 
                project that will be carried out by a local area or a 
                consortium, a description of how such services will be 
                made available to jobseekers and employers in such 
                local area or each of the local areas in the 
                consortium.
                    ``(E) A description, if appropriate, of how the 
                State, local area, or consortium will integrate the 
                funds received, and the activities carried out, under 
                the pilot project under this section with funds and 
                activities for State workforce development programs and 
                other Federal, State, or local workforce, education, or 
                social service programs (including the programs and 
                activities listed in section 103(a)(2), the program of 
                adult education and literacy activities authorized 
                under title II, and the program authorized under title 
                I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et 
                seq.)).
                    ``(F) An explanation of--
                            ``(i) how the State, local area, or 
                        consortium will ensure that jobseekers and 
                        employers in urban, rural, and suburban areas 
                        are able to participate in the pilot project; 
                        or
                            ``(ii) the factors preventing jobseekers 
                        and employers in such areas from participating.
                    ``(G) An assurance that the State, local area, or 
                consortium will meet the requirements of this section.
            ``(3) Secretarial approval.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) approve an application submitted 
                        under this subsection, and the pilot project 
                        described in such application, not later than 
                        90 days after the date on which such 
                        application is submitted, unless the Secretary 
                        meets the requirements of clause (ii); and
                            ``(ii) have the authority to disapprove 
                        such application only if, by not later than 90 
                        days after the date on which such application 
                        is submitted, the Secretary--
                                    ``(I) determines--
                                            ``(aa) that such 
                                        application is subject to the 
                                        limitations described in 
                                        subsection (c)(2); or
                                            ``(bb) that such 
                                        application fails to meet the 
                                        requirements of this section; 
                                        and
                                    ``(II) in a case which the 
                                Secretary makes the determination 
                                described in subclause (I)(bb), 
                                provides to the State a written 
                                explanation of initial disapproval that 
                                meets the requirements of subparagraph 
                                (B).
                    ``(B) Initial disapproval.--An explanation of 
                initial disapproval provided by the Secretary to a 
                State under subparagraph (A)(ii)(II) shall provide the 
                State with--
                            ``(i) a detailed explanation of why the 
                        application does not meet the requirements of 
                        this section; and
                            ``(ii) if the State is not subject to the 
                        limitations described in subsection (c), an 
                        opportunity to revise and resubmit the State's 
                        application under this section.
                    ``(C) Rule of construction.--Nothing in this 
                paragraph shall be construed to require the Secretary 
                to approve more pilot projects than allowed under the 
                limitations described in subsection (c)(2).
            ``(4) Priority.--In approving pilot projects under this 
        section in the case that more States, on behalf of the State as 
        a whole or on behalf of local areas and consortia of local 
        areas, have submitted applications that meet the requirements 
        of this section than the Secretary is allowed to approve 
        pursuant to the limitations described in subsection (c)(2), the 
        Secretary shall give priority consideration as follows:
                    ``(A) For applications seeking a pilot project for 
                the State as a whole--
                            ``(i) first, to applications submitted by 
                        States with a population of not more than 
                        5,000,000 and not less than 15 workforce 
                        boards, as of the date of enactment of the A 
                        Stronger Workforce for America Act of 2026; and
                            ``(ii) second, to applications submitted by 
                        States that have achieved the State adjusted 
                        levels of performance for the youth program 
                        authorized under chapter 2 of subtitle B and 
                        the adult and dislocated worker programs 
                        authorized under chapter 3 of subtitle B in the 
                        most recent program year for which performance 
                        information is available.
                    ``(B) For applications seeking a pilot project for 
                a local area or consortium of local areas, to 
                applications submitted by local areas or consortia of 
                local areas that have achieved the negotiated local 
                levels of performance for such youth program and such 
                adult and dislocated worker programs in the most recent 
                program year for which performance information is 
                available.
    ``(e) State Pilot Project Requirements.--A State, local area, or 
consortium that has been approved to carry out a pilot project under 
this section shall meet each of the following requirements:
            ``(1) Use of funds.--Use the funds received pursuant to 
        subsection (b)(1)(B) solely to carry out the activities of the 
        pilot project to achieve the goals of the pilot project, as 
        described in subsection (d)(2)(A).
            ``(2) Administrative costs limitation.--Use not more than 
        10 percent of the funds received pursuant to subsection 
        (b)(1)(B) for a fiscal year for the administrative costs of 
        carrying out the pilot project.
            ``(3) Priority for services.--Give priority for services 
        under the project to veterans and their eligible spouses in 
        accordance with the requirements of section 4215 of title 38, 
        United States Code, recipients of public assistance, low-income 
        individuals, individuals who have foundational skill needs, 
        out-of-school youth, and dislocated workers.
            ``(4) Number of participants.--Serve a number of 
        participants under the activities of the pilot project for each 
        year of the pilot project period that--
                    ``(A) is greater than the number of participants 
                served by such State, local area, or consortium, as 
                applicable, under the programs described in 
                subparagraph (A) of section 3(13) for the most recent 
                program year that ended prior to the beginning of the 
                first year of the pilot project period; or
                    ``(B) is not less than the number of participants 
                to be served under the activities of the pilot project 
                that is agreed upon between the State, local area, or 
                consortium, as applicable, and the Secretary--
                            ``(i) prior to the Secretary's approval of 
                        the application submitted under subsection (d); 
                        and
                            ``(ii) after the Secretary takes into 
                        account--
                                    ``(I) the goals the State, local 
                                area, or consortium intends to achieve 
                                through the pilot project; and
                                    ``(II) the participants the State, 
                                local area, or consortium intends to 
                                serve under such project.
            ``(5) Reporting outcomes.--Submit, on an annual basis, to 
        the Secretary a report, with respect to such State, local area, 
        or consortium--
                    ``(A) on participant outcomes for each indicator of 
                performance described in subsection (f)(1)(A) for the 
                activities carried out under the project;
                    ``(B) on the applicable requirements of section 
                116(d)(2), including--
                            ``(i) subparagraph (B) of such section; and
                            ``(ii) subparagraphs (C), (D), (E), (F), 
                        (G), and (J) of such section, as such 
                        subparagraphs are applicable to activities 
                        under the pilot project; and
                    ``(C) containing a description of how the State 
                spent the amounts reserved under subsection (b)(1)(C) 
                or the local area or consortium spent the amounts 
                reserved under subsection (b)(1)(D), as applicable, and 
                any evidence-based practices developed with such 
                amounts.
            ``(6) Compliance with certain existing requirements.--
        Comply with the statutory or regulatory requirements listed in 
        subparagraphs (A) and (B) of subsection (b)(2).
    ``(f) Performance Accountability.--
            ``(1) Establishment of baseline levels for performance.--
                    ``(A) In general.--Each State shall describe in the 
                application submitted under subsection (d), for each 
                year of the pilot project period--
                            ``(i) with respect to participants who are 
                        at least 25 years old, the expected State 
                        levels of performance or expected local levels 
                        of performance, as the case may be, for each of 
                        the indicators of performance under section 
                        116(b)(2)(A)(i) for the activities carried out 
                        under the project under this section, which 
                        shall meet the requirements of subparagraph 
                        (B); and
                            ``(ii) with respect to participants who are 
                        at least 16 years old and not older than 24 
                        years old, the expected State levels of 
                        performance or expected local levels of 
                        performance, as the case may be, for each of 
                        the indicators of performance under section 
                        116(b)(2)(A)(ii) for the activities carried out 
                        under the project under this section, which 
                        shall meet the requirements of subparagraph 
                        (B).
                    ``(B) Fifth year.--Each of the expected levels of 
                performance established pursuant to subparagraph (A) 
                for each of the indicators of performance for the fifth 
                year of the pilot project period shall be higher than--
                            ``(i) the highest State adjusted or 
                        negotiated local level of performance, as 
                        applicable, for the corresponding indicator of 
                        performance for the programs described in 
                        subparagraph (A) of section 3(13), for the most 
                        recent program year for such State that ended 
                        prior to the beginning of the first year of the 
                        pilot project period; or
                            ``(ii) an alternate baseline level of 
                        performance that--
                                    ``(I) shall not be lower than the 
                                most recent State adjusted or 
                                negotiated local level of performance 
                                (including any revisions) for the 
                                corresponding indicator of performance 
                                for the youth program under chapter 2 
                                of subtitle B or the adult or 
                                dislocated worker program under chapter 
                                3 of such subtitle (using the program 
                                determined most applicable by the 
                                Governor of the State submitting the 
                                application), taking into account the 
                                goals the State intends to achieve 
                                through the pilot project and the 
                                participants the State intends to serve 
                                through such project; and
                                    ``(II) is agreed upon between the 
                                State and the Secretary--
                                            ``(aa) prior to the 
                                        Secretary's approval of the 
                                        application submitted under 
                                        subsection (d); and
                                            ``(bb) after the Secretary 
                                        takes into account--

                                                    ``(AA) the goals 
                                                the State intends to 
                                                achieve through the 
                                                pilot project; and

                                                    ``(BB) the 
                                                participants the State 
                                                intends to serve under 
                                                such project.

                    ``(C) Agreed level for performance on expected 
                levels of performance.--Prior to approving an 
                application for a pilot project submitted by a State, 
                and using the expected levels of performance described 
                in such application, the Secretary shall reach an 
                agreement with such State on the expected levels of 
                performance for each of the indicators of performance. 
                In reaching an agreement on such expected levels of 
                performance, the Secretary and the State may consider 
                the factors described in section 116(b)(3)(A)(v).
            ``(2) Sanctions.--
                    ``(A) In general.--The sanctions described in 
                section 116(f)(1)(B) shall apply to a State, local 
                area, or consortium of local areas beginning on the 
                third year of the pilot project period (and, for 
                failures described in clause (ii)(II) of that section, 
                shall first apply for consecutive failures in that 
                third year and the following year) for such State, 
                local area, or consortium, except that the expected 
                levels of performance established under paragraph (1) 
                shall be--
                            ``(i) deemed to be levels of performance 
                        agreed to under section 116(b)(3)(A)(iv), for 
                        purposes of this paragraph; and
                            ``(ii) adjusted at the end of each program 
                        year to reflect the actual characteristics of 
                        participants served and the actual economic 
                        conditions experienced using a statistical 
                        adjustment model similar to the model described 
                        in section 116(b)(3)(A)(viii).
                    ``(B) Ineligibility for renewal.--A State, local 
                area, or consortium that is subject to such sanctions 
                shall be ineligible to renew its pilot project period 
                under subsection (c).
            ``(3) Impact of local or consortium pilot projects on 
        statewide accountability.--With respect to a State with an 
        approved pilot project for a local area or consortium of local 
        areas in the State--
                    ``(A) the performance of such local area or 
                consortium for the programs described in subparagraph 
                (A) of section 3(13) shall not be included in the 
                levels of performance for such State for any of such 
                programs for purposes of section 116 for any program 
                year that is applicable to any year of the pilot 
                project period; and
                    ``(B) with respect to any local areas of the State 
                that are not part of the pilot project, the State shall 
                reach a new agreement with the Secretary, for purposes 
                of section 116(b)(3)(A), on levels of performance for 
                such programs for such program years.
    ``(g) Termination.--Except as provided under subsection (c)(1)(B), 
the Secretary may not approve a pilot project after December 31, 
2031.''.

SEC. 198. GENERAL PROGRAM REQUIREMENTS.

    Section 194 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3254)) is amended by adding at the end the following:
            ``(16)(A) In general.--Each recipient of funds described in 
        section 128(a), section 128(b), or section 133(b) or under 
        subtitle C or D (including a provider described in section 
        122(i) that is awarded such funds by a State or local area) 
        shall provide to the appropriate entity an assurance that the 
        recipient will adhere to the requirements under subsections (a) 
        and (b) of section 181.
    ``(B) Appropriate Entity.--For the purposes of this paragraph, the 
term `appropriate entity' means--
            ``(i) in the case of any funds described in section 128(a), 
        the Governor of the State providing such funds;
            ``(ii) in the case of any funds described in section 128(b) 
        or section 133(b), the local board providing such funds; and
            ``(iii) in the case of any funds under subtitle C or D, the 
        Secretary.
            ``(17) Regarding states with low population density.--
                    ``(A) Low-density workforce area considerations.--
                In the case of a local area located in a `low-density 
                workforce area', section 129(c)(4) shall be applied--
                            ``(i) by substituting `25 percent' for `40 
                        percent'; and
                            ``(ii) by substituting `7 and 1/2 percent' 
                        for `12 and 1/2 percent'.
                    ``(B) Low-density workforce area definition.--In 
                this title, the term `low-density workforce area' means 
                a State with a population density of less than 1.5 
                persons per square mile, as determined by the most 
                recent decennial census of the Bureau of the Census.''.

                 TITLE II--ADULT EDUCATION AND LITERACY

   Subtitle A--Transferring All Functions of the Adult Education and 
             Family Literacy Act to the Department of Labor

SEC. 201. TRANSFER OF FUNCTIONS.

    There are transferred to the Secretary of Labor all functions which 
the Secretary of Education and the Department of Education exercised 
before the effective date of this subtitle (including all related 
functions of any officer or employee of that Department) under title II 
of the Workforce Innovation and Opportunity Act (29 U.S.C. 3271 et 
seq.).

SEC. 202. PERSONNEL DETERMINATIONS BY THE OFFICE OF MANAGEMENT AND 
              BUDGET.

    The Office of Management and Budget shall--
            (1) ensure that this subtitle does not result in any net 
        increase in full-time equivalent employees across all Federal 
        agencies impacted by this subtitle; and
            (2) not later than 1 year after the effective date of this 
        subtitle, certify compliance with this subtitle to the 
        Committee on Education and Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate.

SEC. 203. DELEGATION AND ASSIGNMENT.

    Except where otherwise expressly prohibited by law or otherwise 
provided by this subtitle, the Secretary of Labor may delegate any of 
the functions transferred to the Secretary of Labor by section 201 and 
any function described in section 201 that was transferred or granted 
to such Secretary after the effective date of this subtitle to such 
officers and employees of such Secretary as the Secretary may 
designate, and may authorize successive redelegations of such functions 
described in section 201 as may be necessary or appropriate. No 
delegation of such functions by the Secretary of Labor under this 
section or under any other provision of this subtitle shall relieve 
such Secretary of responsibility for the administration of such 
functions.

SEC. 204. REORGANIZATION; RULES.

    (a) Reorganization.--Except where otherwise expressly prohibited by 
law or otherwise provided by this Act (or the amendments made by this 
Act), the Secretary of Labor is authorized to allocate or reallocate 
any function transferred under section 201 among the officers of the 
Department of Labor, and to consolidate, alter, or discontinue such 
organizational entities in such Department as may be necessary or 
appropriate.
    (b) Rules.--The Secretary of Labor is authorized to prescribe, in 
accordance with the provisions of chapters 5 and 6 of title 5, United 
States Code, such rules and regulations as that the Secretary 
determines necessary or appropriate to administer and manage the 
functions described in section 201 of the Department of Labor.

SEC. 205. TRANSFER AND ALLOCATION OF APPROPRIATIONS AND PERSONNEL.

    Except as otherwise provided in this subtitle, the personnel 
employed in connection with, and the assets, liabilities, contracts, 
property, records, and unexpended balance of appropriations, 
authorizations, allocations, and other funds employed, held, used, 
arising from, available to, or to be made available in connection with 
the functions and offices, or portions thereof transferred by section 
201, subject to section 1531 of title 31, United States Code, shall be 
transferred to the Secretary of Labor. Unexpended funds transferred 
pursuant to this section shall be used only for the purposes for which 
the funds were originally authorized and appropriated.

SEC. 206. INCIDENTAL TRANSFERS.

    The Director of the Office of Management and Budget, at such time 
or times as the Director shall provide, is authorized to make such 
determinations as may be necessary with regard to the functions 
transferred by section 201, and to make such additional incidental 
dispositions of personnel, assets, liabilities, grants, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds held, used, arising from, 
available to, or to be made available in connection with such 
functions, as may be necessary to carry out the provisions of this 
subtitle. The Director of the Office of Management and Budget shall 
provide for the termination of the affairs of all entities terminated 
by this subtitle and for such further measures and dispositions as may 
be necessary to effectuate the purposes of this subtitle, with respect 
to such functions.

SEC. 207. SAVINGS PROVISIONS.

    (a) Continuing Effect of Legal Documents.--All orders, 
determinations, rules, regulations, permits, grants, contracts, 
certificates, licenses, registrations, privileges, and other 
administrative actions--
            (1) which have been issued, made, granted, or allowed to 
        become effective by the President, any Federal department or 
        agency or official thereof, or by a court of competent 
        jurisdiction, in the performance of functions which are 
        transferred under this Act to the Secretary or the Department, 
        and
            (2) which are in effect at the time this Act takes effect,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with the 
law by the President, the Secretary of Labor, or other authorized 
official, a court of competent jurisdiction, or by operation of law.
    (b) Proceedings Not Affected.--The provisions of this subtitle 
shall not affect any proceedings, including notices of proposed 
rulemaking, or any application for any license, permit, certificate, or 
financial assistance pending on the effective date of this subtitle 
before the Department of Education with respect to functions of which 
are transferred by section 201 but such proceedings and applications 
shall be continued. Orders shall be issued in such proceedings, appeals 
shall be taken therefrom, and payments shall be made pursuant to such 
orders, as if this subtitle had not been enacted, and orders issued in 
any such proceedings shall continue in effect until modified, 
terminated, superseded, or revoked by a duly authorized individual, by 
a court of competent jurisdiction, or by operation of law. Nothing in 
this subsection shall be deemed to prohibit the discontinuance or 
modification of any such proceeding under the same terms and conditions 
and to the same extent that such proceeding could have been 
discontinued or modified if this subtitle had not been enacted.
    (c) Suits Not Affected.--Except as provided in subsection (e) the 
provisions of this subtitle shall not affect suits commenced (with 
respect to the functions transferred under section 201) prior to the 
effective date of this subtitle, and in all such suits, proceedings 
shall be had, appeals taken, and judgments rendered in the same manner 
and effect as if this subtitle had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Education (with regard to 
functions transferred under section 201), or by or against any officer 
in the official capacity of such individual as an officer of the 
Department of Education (with regard to functions transferred under 
section 201), shall abate by reason of the enactment of this subtitle.
    (e) Administrative Actions Relating to Promulgation of 
Regulations.--Any administrative action relating to the preparation or 
promulgation of a regulation by the Secretary of Education (with regard 
to functions transferred under section 201) may be continued by the 
Secretary of Labor with the same effect as if this subtitle had not 
been enacted.

SEC. 208. REFERENCES.

    A reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or relating 
to--
            (1) the Secretary of Education (with regard to functions 
        transferred under section 201), shall be deemed to refer to the 
        Secretary of Labor; and
            (2) the Department of Education or Office within the 
        Department (with regard to functions transferred under section 
        201), shall be deemed to refer to the Department of Labor.

SEC. 209. TRANSITION.

    The Secretary of Labor is authorized to utilize--
            (1) the services of such officers, employees, and other 
        personnel of the Department of Education with regard to 
        functions transferred under section 201; and
            (2) funds appropriated to such functions,
for such period of time as may reasonably be needed to facilitate the 
orderly implementation of this subtitle.

SEC. 210. UPDATING REFERENCES.

    (a) WIOA.--Section 203(15) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3272(15)) is amended by striking 
``Education'' and inserting ``Labor''.
    (b) Department of Education Organization Act.--
            (1) Principal officers.--Section 202 of the Department of 
        Education Organization Act (20 U.S.C. 3412) is amended--
                    (A) in subsection (b)(1)(C), by striking ``Career, 
                Technical, and Adult Education'' and inserting ``Career 
                and Technical Education''; and
                    (B) in subsection (h), by striking ``Career, 
                Technical, and Adult Education'' each place it appears 
                and inserting ``Career and Technical Education''.
            (2) Office of career and technical education.--Section 206 
        of the Department of Education Organization Act (20 U.S.C. 
        3416) is amended--
                    (A) in the section header, by striking ``career, 
                technical, and adult education'' and inserting ``career 
                and technical education'';
                    (B) in the first sentence, by striking ``Career, 
                Technical, and Adult Education'' and inserting ``Career 
                and Technical Education''; and
                    (C) in the second sentence, by striking ``career, 
                technical, and adult education'' and inserting ``career 
                and technical education''.

SEC. 211. EFFECTIVE DATE.

    This subtitle shall take effect on the date that is 1 year after 
the date of enactment of this Act.

          Subtitle B--Adult Education and Family Literacy Act

SEC. 221. PURPOSES.

    Section 202 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3271) is amended--
            (1) in paragraph (1), by inserting ``(including digital 
        literacy skills and AI literacy skills)'' before ``necessary'';
            (2) in paragraph (3), by striking ``secondary school 
        diploma'' and inserting ``regular high school diploma or its 
        recognized equivalent''; and
            (3) in paragraph (4), by striking ``English language 
        learners'' and inserting ``English learners''.

SEC. 222. DEFINITIONS.

    Section 203 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3272) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``and speak'' and inserting 
                        ``listen, speak, and comprehend''; and
                            (ii) by striking ``secondary'' and 
                        inserting ``regular high'';
                    (B) in subparagraph (B), by striking ``and'' at the 
                end;
                    (C) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (D) by inserting after subparagraph (B) the 
                following:
                    ``(C) develop and use digital literacy skills; 
                and'';
            (2) by redesignating paragraphs (3) through (14), (15) (as 
        amended by section 210(a)), (16), and (17), as paragraphs (5) 
        through (16), (18), (19), and (20), respectively;
            (3) by inserting after paragraph (2) the following:
            ``(3) AI literacy skills.--The term `AI literacy skills' 
        means a foundational set of competencies, outlined by the AI 
        literacy framework of the Department of Labor, that enable 
        individuals to use and evaluate artificial intelligence 
        technologies responsibly, with a primary focus on generative 
        artificial intelligence.
            ``(4) Digital literacy skills.--The term `digital literacy 
        skills'--
                    ``(A) means the skills associated with using 
                existing and emerging technologies to find, evaluate, 
                organize, create, communicate information, and to 
                complete tasks; and
                    ``(B) includes AI literacy skills.'';
            (4) in paragraph (6)(C) (as so redesignated)--
                    (A) by striking clause (i) and inserting the 
                following:
                            ``(i) has foundational skill needs;'';
                    (B) in clause (ii), by striking ``secondary'' and 
                inserting ``regular high''; and
                    (C) in clause (iii), by striking ``English language 
                learner'' and inserting ``English learner'';
            (5) in paragraph (8) (as so redesignated)--
                    (A) in subparagraph (A), by striking ``English 
                language learners'' and inserting ``English learners''; 
                and
                    (B) in subparagraph (B)(i)(I), by striking 
                ``secondary'' and inserting ``regular high'';
            (6) in paragraph (9) (as so redesignated)--
                    (A) in the paragraph heading, by striking 
                ``language''; and
                    (B) in the matter preceding subparagraph (A), by 
                striking ``English language learner'' and inserting 
                ``English learner'';
            (7) in the matter preceding subparagraph (A) in paragraph 
        (11) (as so redesignated), by inserting ``and educational'' 
        after ``the economic'';
            (8) in paragraph (14) (as so redesignated)--
                    (A) by striking ``English language learners'' and 
                inserting ``English learners''; and
                    (B) by striking ``and may include workforce 
                training.'' and inserting the following: ``and may--
                    ``(A) include skills development, postsecondary 
                preparation activities, digital literacy skills 
                instruction, financial literacy instruction, and 
                workforce training; and
                    ``(B) be provided concurrently with other 
                activities and services, such as adult education.'';
            (9) in paragraph (15) (as so redesignated), by striking 
        ``and speak in English, compute, and solve problems,'' and 
        inserting ``speak, and comprehend in English, compute, solve 
        problems, and have digital literacy skills,''; and
            (10) by inserting after paragraph (16) (as so redesignated) 
        the following:
            ``(17) Postsecondary preparation activities.--The term 
        `postsecondary preparation activities' means academic 
        counseling (which may be provided by a college and career 
        navigator) and services designed to support enrollment and 
        success in postsecondary education that include assisting 
        individuals to--
                    ``(A) identify postsecondary educational options 
                that prepare individuals for unsubsidized employment;
                    ``(B) navigate the transition from adult education 
                to postsecondary education;
                    ``(C) navigate the transition from adult education 
                to workforce development programs and services;
                    ``(D) coenroll in adult education and workforce 
                development programs, if applicable;
                    ``(E) improve academic skills so that individuals 
                are prepared to participate in postsecondary education 
                without need for remediation; or
                    ``(F) learn notetaking, study skills, and other 
                skills that promote student success in postsecondary 
                education.''.

SEC. 223. AUTHORIZATION OF APPROPRIATIONS.

    Section 206 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3275) is amended to read as follows:

``SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$729,167,000 for each of the fiscal years 2027 through 2032.''.

SEC. 224. SPECIAL RULE.

    Section 211 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3291) is amended--
            (1) in subsection (d)(3), by striking ``secondary'' and 
        inserting ``regular high''; and
            (2) in subsection (e)(3), by striking ``period described in 
        section 3(45)'' and inserting ``period described in 
        subparagraph (B) of the definition of `outlying area' in 
        section 3''.

SEC. 225. PERFORMANCE ACCOUNTABILITY SYSTEM.

    Section 212 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3292) is amended to read as follows:

``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

    ``(a) In General.--Programs and activities authorized in this title 
are subject to the performance accountability provisions described in 
section 116, except that the indicator described in subsection 
(b)(2)(A)(i)(VI) of such section shall be applied as if it were the 
percentage of program participants who exited the program during the 
program year and completed an integrated education and training 
program.
    ``(b) Data Collection.--Notwithstanding section 134(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1015c(a)), the Secretary is 
authorized to collect deidentified participant-level data for 
participants in programs and activities funded under this title on the 
information required for State performance reports as described in 
section 116(d) for the sole purpose of administering the performance 
accountability system under section 116.''.

SEC. 226. MATCHING REQUIREMENT.

    Section 222(b) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3302(b)) is amended by adding at the end the following:
            ``(3) Public availability of information on matching 
        funds.--Each eligible agency shall maintain, on a publicly 
        accessible website of such agency and in an easily accessible 
        format, information documenting the non-Federal contributions 
        made available to programs that offer adult education and 
        literacy activities or family literacy activities pursuant to 
        this subsection, including--
                    ``(A) the sources of such contributions, except 
                that in the case of private contributions, names of the 
                individuals or entities providing such contributions 
                may not be disclosed; and
                    ``(B) in the case of funds made available by a 
                State or outlying area, an explanation of how such 
                funds are distributed to eligible providers.''.

SEC. 227. STATE LEADERSHIP ACTIVITIES.

    Section 223(a) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3303(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking 
                ``activities.'' and inserting ``activities and the 
                identification of opportunities to coordinate with 
                activities supported under the Carl D. Perkins Career 
                and Technical Education Act of 2006 (20 U.S.C. 2301 et 
                seq.) to expand integrated education and training 
                programs.'';
                    (B) in subparagraph (C)--
                            (i) in clause (i), by striking ``based on 
                        the most rigorous or scientifically valid 
                        research available and appropriate, in reading, 
                        writing, speaking, mathematics,'' and inserting 
                        ``based on evidence-based practices, in 
                        reading, writing, speaking, English 
                        comprehension, mathematics,'';
                            (ii) in clause (ii), by striking ``and'' at 
                        the end;
                            (iii) in clause (iii), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                            ``(iv) assistance in reporting participant 
                        outcomes for the performance accountability 
                        system described in section 212, including 
                        facilitating partnerships with the appropriate 
                        State entities to conduct matches with State 
                        administrative data (such as wage records) to 
                        determine program performance on the indicators 
                        of performance described in subclauses (I) 
                        through (III) of section 116(b)(2)(A)(i) and 
                        which may include assistance in integrating 
                        with statewide longitudinal data systems, and 
                        making data available in structured, open, 
                        linked, and interoperable formats, as 
                        appropriate.'';
                    (C) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (D) by inserting after subparagraph (C) the 
                following:
                    ``(D) The development, identification, acquisition, 
                and dissemination (which may be done in coordination 
                with other States) of evidence-based instructional 
                materials (to the extent available) that lead to 
                literacy, English language acquisition, a recognized 
                postsecondary credential, or any combination of such 
                results; and--
                            ``(i) are designed to meet the needs of 
                        adult learners, including English learners, and 
                        may be developed for integrated education and 
                        training in an in-demand industry sector or 
                        occupation within the State; and
                            ``(ii) will improve the instruction 
                        provided pursuant to the local activities 
                        required under section 231(b).''; and
            (2) in paragraph (2)--
                    (A) by redesignating subparagraphs (E), (F), (G), 
                (H), (I), (J), (K), (L), and (M), as subparagraphs (F), 
                (G), (H), (I), (J), (K), (L), (M), and (R), 
                respectively;
                    (B) by inserting after subparagraph (D) the 
                following:
                    ``(E) Developing content and models for programs 
                that support family literacy activities.'';
                    (C) in subparagraph (G) (as so redesignated), by 
                inserting before the period the following: ``, 
                including such institutions that offer an eligible 
                program for purposes of the Workforce Pell Grant 
                program under section 401(k) of the Higher Education 
                Act of 1965 (20 U.S.C. 1070a(k)), as added by section 
                83002(a) of Public Law 119-21'';
                    (D) in subparagraph (J)(i) (as so redesignated)--
                            (i) by striking ``mathematics, and 
                        English'' and inserting ``mathematics, 
                        English''; and
                            (ii) by striking ``acquisition;'' and 
                        inserting ``acquisition, and digital literacy 
                        skills;'';
                    (E) by striking subparagraph (K) (as so 
                redesignated) and inserting the following:
                    ``(K) Developing and piloting of strategies for 
                improving adult educator recruitment, quality, and 
                retention, such as--
                            ``(i) the provision of professional 
                        development;
                            ``(ii) the development and maintenance of 
                        policies for awarding recognized postsecondary 
                        credentials to adult educators who demonstrate 
                        effectiveness at improving the achievement of 
                        adult students; and
                            ``(iii) the development and piloting of 
                        work-based learning programs (including 
                        apprenticeship programs) for adult 
                        educators.'';
                    (F) in subparagraph (L) (as so redesignated), by 
                striking ``English language learners'' and inserting 
                ``English learners'';
                    (G) in subparagraph (M) (as so redesignated), by 
                inserting ``, which may include through partnerships 
                with local educational agencies or public agencies to 
                recruit eligible individuals'' after ``employers''; and
                    (H) by inserting after subparagraph (M) (as so 
                redesignated) the following:
                    ``(N) Performance incentive payments to eligible 
                providers, including incentive payments linked to 
                increased use of integrated education and training or 
                other forms of instruction linking adult education with 
                the development of occupational skills for an in-demand 
                industry sector or occupation in the State.
                    ``(O) Strengthening the quality and effectiveness 
                of adult education and programs that support family 
                literacy activities in the State through support for 
                program quality standards and accreditation 
                requirements.
                    ``(P) Raising public awareness (including through 
                public service announcements, such as social media 
                campaigns) about career and technical education 
                programs and community-based organizations, and other 
                endeavors focused on programs that prepare individuals 
                for in-demand industry sectors or occupations.
                    ``(Q) Postsecondary preparation activities.''.

SEC. 228. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
              INSTITUTIONALIZED INDIVIDUALS.

    Section 225 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3305) is amended--
            (1) in subsection (a)--
                    (A) by striking ``From funds'' and inserting the 
                following:
            ``(1) In general.--From funds''; and
                    (B) by adding at the end the following:
            ``(2) Priority.--An eligible agency granting awards from 
        funds authorized under paragraph (1) shall give priority to an 
        eligible entity that proposes to operate an educational program 
        in a correctional institution that is also served by a program 
        authorized under section 172.'';
            (2) in subsection (b)(3), by striking ``secondary school 
        credit'' and inserting ``attainment of a regular high school 
        diploma or its recognized equivalent'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively;
            (4) by inserting after subsection (c) the following:
    ``(d) Coordination.--Each eligible agency that is using assistance 
provided under this section to carry out a program for criminal 
offenders within a correctional institution shall--
            ``(1) coordinate such educational programs with career and 
        technical education activities provided to individuals in State 
        institutions from funds reserved under section 112(a)(2)(A) of 
        the Carl D. Perkins Career and Technical Education Act of 2006 
        (20 U.S.C. 2322(a)(2)(A));
            ``(2) identify opportunities to develop integrated 
        education and training opportunities for such individuals;
            ``(3) coordinate with institutions of higher education 
        operating a prison education program in the State; and
            ``(4) if the correctional institution is also served by a 
        program authorized under section 172, provide a description of 
        how the award funds under this section will be used to carry 
        out the activities described in section 172, in conjunction 
        with the activities described in subsection (b).''; and
            (5) in subsection (f) (as so redesignated), by adding at 
        the end the following:
            ``(3) Prison education program.--The term `prison education 
        program' has the meaning given the term in section 484 of the 
        Higher Education Act of 1965 (20 U.S.C. 1091).''.

SEC. 229. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

    Section 231 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3321) is amended--
            (1) in subsection (a)--
                    (A) by striking ``From grant funds'' and inserting 
                the following:
            ``(1) In general.--From grant funds''; and
                    (B) by adding at the end the following:
            ``(2) Prompt availability of funds.--Each eligible agency 
        shall ensure that funds are available for reimbursement to an 
        eligible provider that is awarded a multiyear grant or contract 
        under paragraph (1) not later than 45 days after the date on 
        which the multiyear grant or contract is awarded.'';
            (2) in subsection (d), by striking ``section 203(4)'' and 
        inserting ``section 203(6)'';
            (3) in subsection (e)--
                    (A) in paragraph (1)(B)(ii), by striking ``English 
                language learners'' and inserting ``English learners'';
                    (B) in paragraph (5)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by adding ``and'' 
                        at the end; and
                            (iii) by adding at the end the following:
                    ``(C) uses instructional materials that are 
                designed to meet the needs of adult learners and 
                English learners and are evidence-based (to the extent 
                practicable), which may include, but shall not be 
                required to include, the instructional materials 
                disseminated by the State under section 
                223(a)(1)(D);'';
                    (C) in paragraph (6), by striking ``speaking, 
                mathematics, and English'' and inserting ``speaking and 
                listening, mathematics, comprehension, and English''; 
                and
                    (A) in paragraph (10), by inserting ``local 
                educational agencies,'' after ``strong links with''; 
                and
            (4) by adding at the end the following:
    ``(f) Cost Analysis.--In determining the amount of funds to be 
awarded in grants or contracts under this section, the eligible agency 
may consider the costs of providing learning in context, including 
integrated education and training and workplace adult education and 
literacy activities, and the extent to which the eligible provider 
intends to serve individuals using such activities, in order to align 
the amount of funds awarded with such costs.''.

SEC. 230. LOCAL APPLICATION.

    Section 232 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3322) is amended--
            (1) in paragraph (4), by inserting ``and coordinate with 
        the appropriate State entity'' after ``data'';
            (2) in paragraph (6), by striking ``; and'' and inserting 
        ``, such as how the eligible provider may provide adult 
        education and literacy activities in a manner that is 
        integrated with postsecondary preparation activities to enable 
        students to prepare for opportunities to attain a recognized 
        postsecondary credential, including opportunities to earn 
        recognized postsecondary credentials that are stackable along a 
        career pathway within an in-demand industry sector or 
        occupation'';
            (3) by redesignating paragraph (7) as paragraph (8); and
            (4) by inserting after paragraph (6) the following:
            ``(7) a description of how the eligible provider will 
        provide learning in context, including through partnerships 
        with employers to offer workplace adult education and literacy 
        activities and integrated education and training; and''.

SEC. 231. LOCAL ADMINISTRATIVE COST LIMITS.

    Section 233(a) of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3323(a)) is amended--
            (1) in paragraph (1), by striking ``95'' and inserting 
        ``85''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) the remaining amount--
                    ``(A) not to exceed 10 percent, may be used for 
                professional development for adult educators (which may 
                include apprenticeship programs for adult educators); 
                and
                    ``(B) not to exceed 5 percent, shall be used for 
                planning, administration (including carrying out the 
                requirements of section 116), professional development 
                of administrative staff, and the activities described 
                in paragraphs (3) and (5) of section 232.''.

SEC. 232. NATIONAL LEADERSHIP ACTIVITIES.

    Section 242 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3332) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``116;'' and 
                inserting ``116, including the dissemination of 
                effective practices used by States to use statewide 
                longitudinal data systems or other sources of 
                administrative data to determine program performance 
                and reduce the data collection and reporting burden on 
                eligible providers;''; and
                    (B) in paragraph (3), by striking ``, including the 
                Institute of Education Sciences''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``English language learners'' and inserting 
                        ``English learners''; and
                            (ii) in subparagraph (C), by inserting 
                        ``skills'' after ``digital literacy''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (C)--
                                    (I) in clause (i), by striking 
                                ``rigorous research'' and inserting 
                                ``evidence-based practices''; and
                                    (II) in clause (vii)--
                                            (aa) in subclause (I), by 
                                        striking ``adults with'' and 
                                        all that follows through the 
                                        semicolon and inserting 
                                        ``adults with disabilities, 
                                        including adults with learning 
                                        disabilities, and with adults 
                                        who are English learners;'';
                                            (bb) in subclause (III), by 
                                        striking ``and'' after the 
                                        semicolon;
                                            (cc) in subclause (IV), by 
                                        inserting ``and'' after the 
                                        semicolon; and
                                            (dd) by adding at the end 
                                        the following:
                                    ``(V) programs that offer family 
                                literacy activities;'';
                            (ii) in subparagraph (F), by striking 
                        ``and'' after the semicolon;
                            (iii) by redesignating subparagraph (G) as 
                        subparagraph (J); and
                            (iv) by inserting after subparagraph (F) 
                        the following:
                    ``(G) developing and rigorously evaluating programs 
                for the preparation of effective adult educators and 
                disseminating the results of such evaluations;
                    ``(H) carrying out initiatives to support the 
                effectiveness and impact of adult education, that 
                States may adopt on a voluntary basis, through--
                            ``(i) the development and dissemination of 
                        staffing models, which may include full-time 
                        staffing models, that prioritize demonstrated 
                        effectiveness and continuous improvement in 
                        supporting the learning of adult students; and
                            ``(ii) the evaluation and improvement of 
                        program quality standards and accreditation 
                        requirements;
                    ``(I) providing technical assistance to eligible 
                agencies regarding effective professional development 
                for programs that offer adult education and literacy 
                activities or family literacy activities; and''.

SEC. 233. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION.

    (a) In General.--Section 243(a) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3333(a)) is amended--
            (1) by striking ``From funds'' and inserting the following:
            ``(1) Each fiscal year.--Subject to paragraph (2), from 
        funds''; and
            (2) by adding at the end the following:
            ``(2) Certain fiscal years.--With respect to fiscal year 
        2027 or a succeeding fiscal year, if amounts made available 
        under section 211(a)(2) for such a fiscal year exceed, by at 
        least 1 percent, grant amounts awarded to States under this 
        section for fiscal year 2026, the Secretary shall, from amounts 
        made available under section 211(a)(2) for such fiscal year 
        after fiscal year 2026--
                    ``(A) reserve 1 percent of the amounts to award 
                grants to outlying areas, in the manner determined 
                appropriate by the Secretary of Labor for such outlying 
                areas to carry out the activities described in 
                paragraph (1); and
                    ``(B) use the amounts remaining after such 
                reservation to award grants to States under this 
                section.''.
    (b) Allotment.--Section 243(b)(1) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3333(b)(1) is amended by amending the matter 
preceding subparagraph (A) as follows: ``Subject to paragraph (2), from 
amounts made available under section 211(a)(2) for a fiscal year, and 
after reserving amounts in accordance with subsection (a)(2), if 
appropriate for such fiscal year, the Secretary shall allocate--''
    (c) English Learners.--Section 243(c)(1) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3333(c)(1)) is amended by 
striking ``English language learners'' and inserting ``English 
learners''.

                  TITLE III--AMENDMENTS TO OTHER LAWS

SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT.

    (a) Definitions.--Section 2(5) of the Wagner-Peyser Act (29 U.S.C. 
49a(5)) is amended by inserting ``the Commonwealth of the Northern 
Mariana Islands, American Samoa,'' after ``Guam,''.
    (b) Unemployment Compensation Law Requirement.--Section 5(b)(1) of 
the Wagner-Peyser Act (29 U.S.C. 49d(b)(1)) is amended by inserting 
``the Commonwealth of the Northern Mariana Islands, or American 
Samoa,'' after ``Guam,''.
    (c) Allotments.--Section 6 of the Wagner-Peyser Act (29 U.S.C. 49e) 
is amended--
            (1) in subsection (a)--
                    (A) by striking ``except for Guam'' and inserting 
                ``except for Guam, the Commonwealth of the Northern 
                Mariana Islands, and American Samoa'';
                    (B) by striking ``first allot to Guam and the 
                Virgin Islands'' and inserting the following: ``first 
                allot--
            ``(1) to Guam and the Virgin Islands'';
                    (C) by striking the period at the end and inserting 
                ``; and''; and
                    (D) by adding at the end the following:
            ``(2) beginning with the first fiscal year for which the 
        total amount available for allotments under this section is 
        greater than the total amount available for allotments under 
        this section for fiscal year 2024, and for each succeeding 
        fiscal year, to each of the Commonwealth of the Northern 
        Mariana Islands and American Samoa, an amount which is equal to 
        one-half of the amount allotted to Guam under paragraph (1) for 
        the corresponding fiscal year.''; and
            (2) in subsection (b)(1), in the matter following 
        subparagraph (B), by inserting ``, the Commonwealth of the 
        Northern Mariana Islands, American Samoa,'' after ``Guam''.
    (d) Use of Funds.--Section 7 of the Wagner-Peyser Act (29 U.S.C. 
49f) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``and referral to 
                employers'' and inserting ``referral to employers, and 
                the services described in section 134(c)(2)(A)(ii) of 
                the Workforce Innovation and Opportunity Act (29 U.S.C. 
                3174(c)(2)(A)(ii)) when provided by the employment 
                service office colocated with the one-stop delivery 
                system'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (F), by striking the 
                        ``and'' at the end;
                            (ii) by moving subparagraph (G) for ems to 
                        the right;
                            (iii) in subparagraph (G), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(H) establishing a talent marketplace (as defined 
                in section 3 of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3102)).''; and
            (2) in subsection (e), by inserting before the period at 
        the end the following: ``and in accordance with the 
        requirements of section 134(c)(2)(A)(i)(I) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 
        3174(c)(2)(A)(i)(I))''.
    (e) Workforce and Labor Market Information System.--Section 15 of 
the Wagner-Peyser Act (29 U.S.C. 49l-2) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``timely manner'' and inserting 
                        ``manner that is as close to real-time as 
                        practicable'';
                            (ii) in clause (i), by striking ``part-
                        time, and seasonal workers'' and inserting 
                        ``part-time, contingent, and seasonal workers, 
                        and workers engaged in alternative employment 
                        arrangements'';
                            (iii) by redesignating clauses (iii) and 
                        (iv) as clauses (iv) and (v), respectively; and
                            (iv) by inserting after clause (ii), the 
                        following:
                            ``(iii) real-time trends in new and 
                        emerging occupational roles, and in new and 
                        emerging skills by occupation and industry, 
                        with particular attention paid to State and 
                        local conditions;'';
                    (B) in subparagraph (B)(i), by inserting 
                ``(including, to the extent practicable, real-time)'' 
                after ``current''; and
                    (C) in subparagraph (G), by striking ``user-
                friendly manner and'' and inserting ``manner that makes 
                the data, information, and analysis available on-demand 
                and is user-friendly,'';
            (2) in subsection (b)(2)(F)--
                    (A) in clause (i), by striking ``; and'' and 
                inserting ``(including, to the extent practicable, 
                provided in real-time);'';
                    (B) by redesignating clause (ii) as clause (iii); 
                and
                    (C) by inserting after clause (i), as so amended, 
                the following:
                            ``(ii) the capabilities of digital 
                        technology and modern data collection 
                        approaches are effectively utilized; and'';
            (3) in subsection (e)(2)(H), by striking ``section 
        116(i)(2) of the Workforce Innovation and Opportunity Act'' and 
        inserting ``section 116(j)(2) of the Workforce Innovation and 
        Opportunity Act''; and
            (4) by amending subsection (g) to read as follows:
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $52,892,000 for each of the 
fiscal years 2027 through 2032.''.

SEC. 302. JOB TRAINING GRANTS.

    Section 414(c) of the American Competitiveness and Workforce 
Improvement Act of 1998 (29 U.S.C. 3224a) is amended to read as 
follows:
    ``(c) Job Training Grants.--
            ``(1) Allotment.--
                    ``(A) In general.--Of the funds available under 
                section 286(s)(2) of the Immigration and Nationality 
                Act (8 U.S.C. 1356(s)(2)), the Secretary of Labor 
                shall, for each fiscal year--
                            ``(i) return permanently 12 percent of such 
                        amounts in each fiscal year to the general fund 
                        of the Treasury;
                            ``(ii) use $65,000,000 of such funds to 
                        carry out the program established under section 
                        173 of the Workforce Innovation and Opportunity 
                        Act; and
                            ``(iii) using the funds remaining after 
                        carrying out clauses (i) and (ii), make 
                        allotments to each State that receives an 
                        allotment under section 132(b) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3172(b)) for the purpose of providing training 
                        services through individual training accounts 
                        for eligible dislocated workers as described in 
                        paragraph (2)(A).
                    ``(B) Reservation; allotment among states.--
                            ``(i) Reservation.--From the amount made 
                        available under subparagraph (A)(iii) for a 
                        fiscal year, the Secretary shall reserve not 
                        more than \1/4\ of 1 percent of such amount to 
                        provide assistance to the outlying areas for 
                        the purpose described in paragraph (2)(A).
                            ``(ii) Allotment among states.--Subject to 
                        clause (iii) of this subparagraph, the 
                        Secretary shall use the remainder of the amount 
                        made available under subparagraph (A)(iii) (in 
                        this subparagraph referred to as the `remainder 
                        amount') for a fiscal year to make allotments 
                        to States described in subparagraph (A)(iii) on 
                        the following basis:
                                    ``(I) 33 and \1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals in 
                                each such State, compared to the total 
                                number of unemployed individuals in all 
                                such States.
                                    ``(II) 33 and \1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of disadvantaged adults 
                                in each such State, compared to the 
                                total number of disadvantaged adults in 
                                all such States.
                                    ``(III) 33 and \1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of individuals in the 
                                civilian labor force in each such 
                                State, compared to the total number in 
                                the civilian labor force in all such 
                                States.
                            ``(iii) Small state minimum.--The Secretary 
                        shall ensure that no State shall receive an 
                        allotment under this subparagraph for a fiscal 
                        year that is less than--
                                    ``(I) in the case of a fiscal year 
                                for which the remainder amount is not 
                                more than $180,000,000, \3/10\ of 1 
                                percent of such remainder amount; and
                                    ``(II) in the case of a fiscal year 
                                for which the remainder amount exceeds 
                                $180,000,000, the total of--
                                            ``(aa) \3/10\ of 1 percent 
                                        of $180,000,000; and
                                            ``(bb) \2/5\ of 1 percent 
                                        of such excess amount.
                            ``(iv) Disadvantaged adult defined.--For 
                        purposes of this subparagraph and subparagraph 
                        (C), the term `disadvantaged adult' has the 
                        meaning given such term in section 
                        132(b)(1)(B)(v)(IV) of the Workforce Innovation 
                        and Opportunity Act (29 U.S.C. 
                        3172(b)(1)(B)(v)(IV)).
                            ``(v) Reallotment.--
                                    ``(I) In general.--The Secretary of 
                                Labor shall, in accordance with this 
                                clause, reallot to eligible States 
                                amounts that are made available to 
                                States from allotments made under this 
                                subparagraph (referred to individually 
                                in this subsection as a `State 
                                allotment') and that are available for 
                                reallotment.
                                    ``(II) Amount.--The amount 
                                available for reallotment for a program 
                                year is equal to the amount by which 
                                the unobligated balance of the State 
                                allotment, at the end of the program 
                                year prior to the program year for 
                                which the determination under this 
                                subclause is made, exceeds 20 percent 
                                of such allotment for the prior program 
                                year.
                                    ``(III) Reallotment.--In making 
                                reallotments to eligible States of 
                                amounts available pursuant to subclause 
                                (II) for a program year, the Secretary 
                                shall allot to each eligible State an 
                                amount based on the relative amount of 
                                the State allotment for the program 
                                year for which the determination is 
                                made, as compared to the total amount 
                                of the State allotments for all 
                                eligible States for such program year.
                                    ``(IV) Eligibility.--For purposes 
                                of this subsection, an `eligible State' 
                                means a State that does not have an 
                                amount available for reallotment under 
                                subclause (II) for the program year for 
                                which the determination under subclause 
                                (II) is made.
                    ``(C) Within state allocations.--
                            ``(i) In general.--The Governor shall 
                        allocate the funds allotted to the State under 
                        subparagraph (B) for a fiscal year to the local 
                        areas in the State on the following basis:
                                    ``(I) 33 and \1/3\ percent of the 
                                funds on the basis described in 
                                subparagraph (B)(ii)(I).
                                    ``(II) 33 and \1/3\ percent of the 
                                funds on the basis described in 
                                subparagraph (B)(ii)(II).
                                    ``(III) 33 and \1/3\ percent of the 
                                funds on the basis described in 
                                subparagraph (B)(ii)(III).
                            ``(ii) Application.--For purposes of 
                        carrying out clause (i)--
                                    ``(I) references in subparagraph 
                                (B)(ii) to a State shall be deemed to 
                                be references to a local area; and
                                    ``(II) references in subparagraph 
                                (B)(ii) to all States shall be deemed 
                                to be references to all local areas in 
                                the State involved.
                            ``(iii) Reallocation among local areas.--
                                    ``(I) In general.--The Governor 
                                may, in accordance with this clause and 
                                after consultation with the State 
                                board, reallocate to eligible local 
                                areas within the State amounts that are 
                                made available to local areas from 
                                allocations made under this 
                                subparagraph (referred to individually 
                                in this subsection as a `local 
                                allocation') and that are available for 
                                reallocation.
                                    ``(II) Amount.--The amount 
                                available for reallocation for a 
                                program year is equal to the amount by 
                                which the unobligated balance of the 
                                local allocation, at the end of the 
                                program year prior to the program year 
                                for which the determination under this 
                                subclause is made, exceeds 20 percent 
                                of such allocation for the prior 
                                program year.
                                    ``(III) Reallocation.--In making 
                                reallocations to eligible local areas 
                                of amounts available pursuant to 
                                subclause (II) for a program year, the 
                                Governor shall allocate to each 
                                eligible local area within the State an 
                                amount based on the relative amount of 
                                the local allocation for the program 
                                year for which the determination is 
                                made, as compared to the total amount 
                                of the local allocations for all 
                                eligible local areas in the State for 
                                such program year.
                                    ``(IV) Eligibility.--For purposes 
                                of this subsection, an eligible local 
                                area means a local area that does not 
                                have an amount available for 
                                reallotment under subclause (II) for 
                                the program year for which the 
                                determination under subclause (II) is 
                                made.
            ``(2) Use of funds.--
                    ``(A) In general.--Funds allocated pursuant to 
                paragraph (1) to a local area shall be used to pay, 
                through the use of an individual training account in 
                accordance with section 134(c)(3)(F)(iii) of the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3174(c)(3)(F)(iii)), an eligible provider of training 
                services from the list of eligible providers of 
                training services described in section 122(d) of such 
                Act (29 U.S.C. 3152(d)) for training services provided 
                to eligible dislocated workers in the local area.
                    ``(B) Requirements for local areas.--As a condition 
                of receipt of funds under paragraph (1), a local area 
                shall agree to each of the following:
                            ``(i) Required notice to workers.--Prior to 
                        an eligible dislocated worker selecting a 
                        program of training services from the list of 
                        eligible providers of training services under 
                        section 122(d) of the Workforce Innovation and 
                        Opportunity Act (29 U.S.C. 3152(d)), the local 
                        area shall inform such dislocated worker of any 
                        opportunities the dislocated worker may have to 
                        participate in on-the-job training or employer-
                        directed skills development funded through such 
                        local area.
                            ``(ii) Amounts available.--Except as 
                        provided in clause (iv)(II), a local area--
                                    ``(I) may not limit the maximum 
                                amount available for an individual 
                                training account for an eligible 
                                dislocated worker under subparagraph 
                                (A) to an amount that is less than 
                                $5,000; and
                                    ``(II) may not pay an amount, 
                                through the use of an individual 
                                training account under subparagraph 
                                (A), for training services provided to 
                                an eligible dislocated worker that 
                                exceeds the costs of such services.
                            ``(iii) WIOA funds.--A local area may not 
                        use funds made available to the local area for 
                        a fiscal year pursuant to section 134(c)(1)(B) 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3174(c)(1)(B)) to make payments 
                        under subparagraph (A) until the funds 
                        allocated to the local area pursuant to 
                        paragraph (1) of this subsection for such 
                        fiscal year have been exhausted.
                            ``(iv) Exhaustion of allocations.--Upon the 
                        exhaustion of the funds allocated to the local 
                        area pursuant to paragraph (1) of this 
                        subsection, for the purpose of paying, through 
                        the use of individual training accounts under 
                        subparagraph (A), the costs of training 
                        services for eligible dislocated workers in the 
                        local area seeking such services, the local 
                        area--
                                    ``(I) shall use any funds made 
                                available to the local area pursuant to 
                                section 134(c)(1)(B) of the Workforce 
                                Innovation and Opportunity Act (29 
                                U.S.C. 3174(c)(1)(B)) to pay for such 
                                costs under subparagraph (A) (other 
                                than any costs that exceed the limit 
                                set by the local area pursuant to 
                                clause (ii) or subclause (II)); and
                                    ``(II) for any eligible dislocated 
                                worker who is not a low-income 
                                individual, may limit the maximum 
                                amount available for the individual 
                                training account under subparagraph (A) 
                                for such worker to an amount that is 
                                less than $5,000.
            ``(3) Eligible dislocated worker.--A dislocated worker 
        shall be an eligible dislocated worker for purposes of this 
        subsection if the dislocated worker--
                    ``(A) meets the requirements under section 
                134(c)(3)(A)(i) of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3174(c)(3)(A)(i)) to be 
                eligible for training services; and
                    ``(B) has not received training services through an 
                individual training account under this subsection or 
                under section 134(c)(3)(F)(iii) of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 
                3174(c)(3)(F)(iii)) during the preceding 5-year period 
                or, if such a worker has received such training 
                services during such period, the worker has been 
                granted an exception by the local area due to an 
                exceptional circumstance, as determined by the local 
                area.
            ``(4) Excess demand.--Upon the exhaustion of the funds 
        allocated to a local area pursuant to paragraph (1) of this 
        subsection and any funds that may be available to such local 
        area pursuant to section 134(c)(1)(B) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3174(c)(1)(B)) for 
        the purpose described in paragraph (2)(A) of this subsection, 
        the local area--
                    ``(A) may request additional funds for such purpose 
                from the Governor under section 134(a)(2)(A)(i)(III) of 
                the Workforce Innovation and Opportunity Act (29 U.S.C. 
                3174(a)(2)(A)(i)(III)); and
                    ``(B) shall not be required to pay for training 
                services or establish an individual training account 
                for an eligible dislocated worker.
            ``(5) Definitions.--Except as otherwise specified, a term 
        used in this subsection shall have the meaning given such term 
        in section 3 of the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3102).
            ``(6) Rule of construction.--Nothing in this subsection 
        shall be construed to provide an individual with an entitlement 
        to a service under this subsection or under title I of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3111 et 
        seq.) or to mandate a State or local area to provide a service 
        if Federal funds are not available for such service.''.

SEC. 303. ACCESS TO NATIONAL DIRECTORY OF NEW HIRES.

    Section 453(j)(8) of the Social Security Act (42 U.S.C. 653(j)(8)) 
is amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``or conducting the reporting and 
                evaluation activities required under section 116 of the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3141)'' after ``State law''; and
                    (B) by striking ``such program'' and inserting 
                ``such programs''; and
            (2) in subparagraph (C)(i), by striking ``purposes of 
        administering a program referred to'' and inserting ``the 
        purposes specified''.

SEC. 304. REFERENCES TO OTHER LAWS.

    (a) References to Provisions of the Workforce Innovation and 
Opportunity Act.--
            (1) Section 8041(g)(2)(C) of the SUPPORT for Patients and 
        Communities Act (29 U.S.C. 3225a(g)(2)(C)) is amended by 
        striking ``section 172(f) of such Act (29 U.S.C. 3227(f))'' and 
        inserting ``section 175(h) of such Act (29 U.S.C. 3227(h))''.
            (2) Section 60302(23) of the Digital Equity Act of 2021 (47 
        U.S.C. 1721(23)) is amended by striking ``section 3(66) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3102(66))'' 
        and inserting ``section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102)''.
    (b) Related Provisions.--
            (1) Section 286(s)(2) of the Immigration and Nationality 
        Act (8 U.S.C. 1356(s)(2)) is amended by striking 
        ``demonstration programs and projects'' and inserting ``the 
        programs, activities, and uses''.
            (2) Section 1154 of title 10, United States Code, is 
        amended--
                    (A) in paragraphs (2)(C) and (3)(D) of subsection 
                (a), by striking ``Job Corps center as defined'' and 
                inserting ``Job Corps campus as described'';
                    (B) in subsection (d)(4)(A)(ii), by striking ``Job 
                Corps centers'' and inserting ``Job Corps campuses''; 
                and
                    (C) in subsection (e)(2)(E), by striking ``Job 
                Corps center'' and inserting ``Job Corps campus''.

           TITLE IV--DEPARTMENT OF LABOR TECHNICAL ASSISTANCE

SEC. 401. TECHNICAL ASSISTANCE FOR TRANSFORMING TO COMPETITIVE 
              INTEGRATED EMPLOYMENT.

    (a) In General.--From the amounts appropriated under subsection 
(c), the Secretary (acting through the Office of Disability Employment 
Policy in partnership with the Employment and Training Administration), 
in partnership with the Administration for Community Living of the 
Department of Health and Human Services and the Office of Special 
Education and Rehabilitative Services of the Department of Education, 
shall establish a Center for Technical Assistance for Transforming to 
Competitive Integrated Employment to--
            (1) provide technical assistance to employers who are 
        transitioning from employing individuals with disabilities 
        using special certificates on such transition, which shall 
        include technical assistance on providing services that result 
        in competitive integrated employment;
            (2) provide technical assistance to State agencies seeking 
        to support such employers described in paragraph (1) on such 
        transition described in paragraph (1) on coordination and 
        alignment of services and funding in support of such 
        transition, including technical assistance on how such services 
        and funding can result in competitive integrated employment;
            (3) in providing the technical assistance describing in 
        paragraphs (1) and (2), coordinate such technical assistance 
        with education materials and opportunities made available 
        through existing technical assistance provided by--
                    (A) the Office of Disability Employment Policy;
                    (B) the Employment and Training Administration;
                    (C) the Administration for Community Living of the 
                Department of Health and Human Services; and
                    (D) the Office of Special Education and 
                Rehabilitative Services of the Department of Education; 
                and
            (4) in providing the technical assistance described in 
        paragraphs (1) and (2), make use of technical assistance that 
        is in existence on the date of enactment of this Act, including 
        the CIE Transformation Hub, the Advancing State Policy 
        Integration for Recovery and Employment Initiative, and the 
        National Expansion of Employment Opportunities Network.
    (b) Definitions.--In this section:
            (1) Competitive integrated employment.--The term 
        ``competitive integrated employment'' has the meaning given the 
        term in section 7(5) of the Rehabilitation Act of 1973 (29 
        U.S.C. 705(5)).
            (2) Disability.--The term ``disability'' includes any 
        intellectual, developmental, mental health, or other 
        disability.
            (3) Individuals with disabilities.--The term ``individuals 
        with disabilities'' means individuals described in section 
        14(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
        214(c)(1)).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (5) Special certificate.--The term ``special certificate'' 
        means a special certificate issued under section 14(c) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)).
            (6) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, and 
        the territory of Guam.

                      TITLE V--GENERAL PROVISIONS

SEC. 501. REPORT ON DATA CAPABILITY AND INTEROPERABILITY OF FEDERAL AND 
              STATE DATABASES AND DATA EXCHANGE AGREEMENTS.

    The Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et 
seq.) is amended by striking section 505 and inserting the following:

``SEC. 505. REPORT ON DATA CAPABILITY AND INTEROPERABILITY OF FEDERAL 
              AND STATE DATABASES AND DATA EXCHANGE AGREEMENTS.

    ``(a) In General.--The Comptroller General of the United States 
shall prepare and submit an interim report and a final report to 
Congress regarding existing Federal and State databases and data 
exchange agreements, as of the date of the report, and the 
interoperability of data in such databases and agreements, that contain 
job training information relevant to the administration of programs 
authorized under this Act (as amended by the A Stronger Workforce for 
America Act of 2026) and the amendments made by this Act (as so 
amended).
    ``(b) Requirements.--The report required under subsection (a) 
shall--
            ``(1) list existing Federal and State databases and data 
        exchange agreements described in subsection (a) and, for each, 
        describe--
                    ``(A) the purposes of the database or agreement;
                    ``(B) the data elements, such as wage and 
                employment outcomes, contained in the database or 
                accessible under the agreement;
                    ``(C) the data elements described in subparagraph 
                (B) that are shared between States;
                    ``(D) the Federal and State workforce training 
                programs from which each Federal and State database 
                derives the data elements described in subparagraph 
                (B);
                    ``(E) the number and type of common data elements 
                across such databases and data exchange agreements;
                    ``(F) the number and type of Federal and State 
                agencies having access to such data;
                    ``(G) the number and type of private research 
                organizations having access to, through grants, 
                contracts, or other agreements, such data;
                    ``(H) whether the database or data exchange 
                agreement provides for opt-out procedures for 
                individuals whose data is shared through the database 
                or data exchange agreement; and
                    ``(I) the volume of data being shared and applied 
                to improve performance accountability and effectiveness 
                of programs under this Act;
            ``(2) study the effects that access by State workforce 
        agencies and the Secretary of Labor to the databases and data 
        exchange agreements described in subsection (a) would have on 
        efforts to carry out this Act and the amendments made by this 
        Act, and on individual privacy;
            ``(3) explore opportunities to enhance--
                    ``(A) the quality, reliability, timeliness, and 
                reporting frequency of the data included in such 
                databases and data exchange agreements; and
                    ``(B) the commonality and interoperability of data 
                elements included in such databases and data exchange 
                agreements;
            ``(4) describe, for each database or data exchange 
        agreement considered by the study described in subsection (a), 
        the number of individuals whose data is contained in each 
        database or accessible through the data agreement, and the 
        specific data elements contained in each that could be used to 
        personally identify an individual;
            ``(5) include the number of data breaches having occurred 
        since 2014 to data systems administered by Federal and State 
        agencies;
            ``(6) include the number of data breaches regarding any 
        type of personal data having occurred since 2014 to private 
        research organizations with whom Federal and State agencies 
        contract for studies;
            ``(7) include a survey of the security protocols used for 
        protecting personal data, including best practices shared 
        amongst States for access to, and administration of, data 
        elements stored and recommendations for improving security 
        protocols for the safe warehousing of data elements;
            ``(8) include an evaluation of the State wage interchange 
        system developed by the Department of Labor and report on the 
        effectiveness of the system in facilitating data exchange 
        between State agencies for the purpose of assessing and 
        reporting on State and local performance for the programs 
        authorized under this Act;
            ``(9) include an assessment of the feasibility, costs, and 
        potential impacts of establishing federally-designated, 
        transparent, interoperable, and nonproprietary data exchange 
        standards using human readable and machine actionable data 
        formats for necessary categories of information that a State 
        agency operating a program under this Act may receive through 
        each database or data exchange agreement described in 
        subsection (a);
            ``(10) include a survey of--
                    ``(A) customer service and outcome management 
                systems utilized by States for programs under each 
                title of this Act;
                    ``(B) the level of interoperability (if any) of 
                such systems;
                    ``(C) whether any State has successfully connected 
                such a system serving a program under a title of this 
                Act with such a system serving a program under another 
                title of this Act; and
                    ``(D) the benefits achieved through any such 
                connection; and
            ``(11) describe the most significant developments and 
        advancements pertaining to Federal and State databases and data 
        exchange agreements described in subsection (a) since the final 
        report was submitted by the Comptroller General to Congress 
        under this section, as in effect on the day before the date of 
        enactment of the A Stronger Workforce for America Act of 2026.
    ``(c) Timing of Reports.--
            ``(1) Interim report.--Not later than 18 months after the 
        date of enactment of the A Stronger Workforce for America Act 
        of 2026, the Comptroller General shall prepare and submit to 
        Congress an interim report regarding the initial findings of 
        the report required under this section.
            ``(2) Final report.--Not later than 2 years after the date 
        of enactment of the A Stronger Workforce for America Act of 
        2026, the Comptroller General shall prepare and submit to 
        Congress the final report required under this section.''.

SEC. 502. EFFECTIVE DATES; TRANSITION AUTHORITY.

    (a) Effective Dates.--
            (1) In general.--This Act, and the amendments made by this 
        Act, shall take effect on the first day of the first full 
        program year after the date of enactment of this Act, except as 
        otherwise provided in this Act.
            (2) Performance accountability system.--The amendments made 
        to section 116 of the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3141) by this Act shall take effect on the first day 
        of the second full program year after the date of enactment of 
        this Act, except that--
                    (A) the amendments to clauses (iii) through (v) of 
                subsection (b)(3)(A) of that section 116 shall take 
                effect on January 1, 2027; and
                    (B) the amendment to paragraph (1) of subsection 
                (d) of that section 116, the amendments to subsections 
                (i) and (j) of that section 116 that are made by 
                section 119(g) of this Act, and the amendment to 
                subsection (k) of that section 116, shall take effect 
                on the day that is 1 year after the date of enactment 
                of this Act.
            (3) One-stop delivery system.--The amendments made to 
        section 121 of the Workforce Innovation and Opportunity Act (29 
        U.S.C. 3151) by this Act shall take effect on the first day of 
        the second full program year after the date of enactment of 
        this Act.
            (4) Youth workforce investment activities.--The amendments 
        made to section 129 of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3164) by this Act shall take effect on the first 
        day of the second full program year after the date of enactment 
        of this Act.
            (5) Adult and dislocated worker activities.--The amendments 
        made to section 134 of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3174) by this Act shall take effect on the first 
        day of the second full program year after the date of enactment 
        of this Act.
            (6) Job corps management information requirements.--The 
        amendments made to section 159 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3209) by this Act shall take effect 
        on the first day of the second full program year after the date 
        of enactment of this Act.
    (b) Transition Authority.--
            (1) In general.--Pursuant to section 503(a) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3343(a)), 
        the Secretary of Labor shall, effective on the date of 
        enactment of this Act, have the authority to take such steps as 
        are necessary to provide for the orderly implementation of the 
        amendments to the Workforce Innovation and Opportunity Act (29 
        U.S.C. 3101 et seq.) by this Act, including addressing cross 
        references to provisions specified in subparagraphs (A) and (B) 
        of subsection (a)(2).
            (2) Termination.--The authority described in paragraph (1) 
        shall terminate on the first day of the second full program 
        year after the date of enactment of this Act.
    (c) Transition Period for Implementation.--
            (1) Eligible providers of training services.--Each Governor 
        and local board shall implement the requirements of section 122 
        of the Workforce Innovation and Opportunity Act (29 U.S.C. 
        3152), as amended by this Act, not later than the first day of 
        the second full program year after the date of enactment of 
        this Act. In order to facilitate early implementation of that 
        section 122, the Governor may establish transition procedures 
        under which eligible providers of training services under 
        chapter 1 of subtitle B of title I of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3151 et seq.), as such chapter 
        was in effect on the day before the date of enactment of this 
        Act, may continue to be eligible to provide such services until 
        December 31, 2027, or until such earlier date as the Governor 
        determines to be appropriate.
            (2) State plans and local plans.--
                    (A) Modification of plans.--Not later than the 
                first day of the second full program year after the 
                date of enactment of this Act--
                            (i) each Governor of a State shall submit 
                        to the Secretary of Labor any modifications to 
                        the State plan in effect for such State that 
                        are necessary for the State plan to comply with 
                        the amendments made by this Act to section 102 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3112); and
                            (ii) each local board shall submit to the 
                        Governor of a State any modifications to the 
                        local plan in effect for the local area served 
                        by the local board that are necessary for the 
                        local plan to comply with the amendments made 
                        by this Act to section 108 of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3123).
                    (B) New plans.--Not later than the first day of the 
                fourth full program year after the date of enactment of 
                this Act--
                            (i) each Governor of a State shall submit 
                        to the Secretary of Labor a new State plan for 
                        such State that complies with the requirements 
                        of section 102 of the Workforce Innovation and 
                        Opportunity Act (29 U.S.C. 3112), as amended by 
                        this Act; and
                            (ii) each local board shall submit to the 
                        Governor of a State a new local plan for the 
                        local area served by the local board that 
                        complies with the requirements of section 108 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3123), as amended by this Act.
            (3) Definitions.--In this subsection, the terms ``local 
        board'', ``local plan'', ``State'', ``State plan'', and 
        ``training services'' have the meanings given the terms in 
        section 3 of the Workforce Innovation and Opportunity Act (29 
        U.S.C. 3102).
    (d) Conforming Amendments.--
            (1) Repeal.--Subsections (a) through (e) of section 503 of 
        the Workforce Innovation and Opportunity Act (29 U.S.C. 3343) 
        are repealed.
            (2) Regulations.--Section 503 of such Act is amended--
                    (A) by redesignating subsections (f) and (g) as 
                subsections (a) and (b), respectively;
                    (B) by amending subsection (a), as so redesignated, 
                to read as follows:
    ``(a) Regulations.--
            ``(1) Proposed regulations.--Not later than 180 days after 
        the date of enactment of the A Stronger Workforce for America 
        Act of 2026, the Secretary shall develop and publish in the 
        Federal Register proposed regulations relating to the 
        transition to, and implementation of, the A Stronger Workforce 
        for America Act of 2026, including the amendments to this Act 
        made by the A Stronger Workforce for America Act of 2026.
            ``(2) Final regulations.--Not later than 12 months after 
        the date of enactment of the A Stronger Workforce for America 
        Act of 2026, the Secretary shall develop and publish in the 
        Federal Register final regulations relating to the transition 
        to, and implementation of, the A Stronger Workforce for America 
        Act of 2026, including the amendments to this Act made by the A 
        Stronger Workforce for America Act of 2026.''; and
                    (C) in subsection (b), as so redesignated, by 
                striking ``subsection (f)'' and inserting ``subsection 
                (a)''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of enactment of this Act.
                                 <all>