[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5055 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5055
To establish a National Workforce Transition Board to support training
and education activities for workers, in response to the adoption of
artificial intelligence and emerging technology, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 21, 2026
Mr. Warner introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To establish a National Workforce Transition Board to support training
and education activities for workers, in response to the adoption of
artificial intelligence and emerging technology, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Workforce Transition Fund
Act of 2026''.
SEC. 2. WORKFORCE TRANSITION.
(a) In General.--The Workforce Innovation and Opportunity Act (29
U.S.C. 3101 et seq.) is amended by striking title III and inserting the
following:
``TITLE III--WORKFORCE TRANSITION
``SEC. 301. PURPOSE.
``The purpose of this title is to assist workers, employers, and
workforce development systems in navigating the labor market
transitions caused by increasing adoption of artificial intelligence
and emerging technology by creating a temporary, targeted National
Workforce Transition Fund (referred to in this title as the `Fund')
that--
``(1) uses a funding mechanism tied to covered artificial
intelligence infrastructure rather than taxing artificial
intelligence usage or innovation directly;
``(2) provides resources for programs that--
``(A)(i) give priority for the activities to
workers experiencing or facing employment loss or labor
market disruption; and
``(ii) support transitions of workers into stable
employment; and
``(B) use administrable eligibility criteria based
on labor market indicators rather than requiring
individual workers to prove that artificial
intelligence or emerging technology was the sole or
primary cause of the employment loss or labor market
disruption involved;
``(3) provides resources for workforce development
activities--
``(A) that support modernization of labor market
information systems, so policymakers can better measure
disruption due to artificial intelligence or emerging
technology, worker outcomes, and job quality;
``(B) that expand access to training services
through individual training accounts;
``(C) that provide limited worker transition
assistance;
``(D) that support sectoral workforce partnerships,
and training and credential pathways that are portable,
tied to labor market demand, and connected to
measurable outcomes; and
``(E) that provide grants to employers for
retention, redeployment, or responsible transitioning
of workers, and condition the grants on workforce
transition plans and compacts that address planning for
worker retention, redeployment, or responsible
transitioning, worker consultation, reporting, and
recovery of misused funds.
``SEC. 302. DEFINITIONS.
``In this title:
``(1) Artificial intelligence.--The term `artificial
intelligence' has the meaning given the term in section 5002 of
the National Artificial Intelligence Initiative Act of 2020 (15
U.S.C. 9401).
``(2) Emerging technology.--The term `emerging technology'
has the meaning given the term in section 6701 of the James M.
Inhofe National Defense Authorization Act of Fiscal Year 2023
(50 U.S.C. 3024 note).
``(3) Secretary.--The term `Secretary', without further
description, means the Secretary of Labor.
``(4) Worker.--The term `worker', without further
description, includes a student.
``(5) Workforce innovation and opportunity act terms.--The
terms `career pathway', `dislocated worker', `in-demand
industry sector or occupation', `institution of higher
education', `local area', `local board', `recognized
postsecondary credential', `region', `State', `State board',
`training services', and `workforce development activities'
have the meanings given the terms in section 3.
``SEC. 303. NATIONAL WORKFORCE TRANSITION BOARD.
``(a) Establishment.--The Secretary of Labor shall establish in the
Department of Labor a National Workforce Transition Board (referred to
in this title as the `National Board') to carry out the functions
described in subsection (c). The National Board shall be headed by the
Secretary of Labor, in consultation with the Secretary of Education and
the Secretary of Commerce.
``(b) Membership.--
``(1) In general.--The National Board shall include--
``(A) the Secretary of Labor, the Secretary of
Education, and the Secretary of Commerce; and
``(B) members appointed by the Secretary of Labor,
in consultation with the Secretary of Education and the
Secretary of Commerce, of which--
``(i) one-third shall be representatives of
businesses or industry, including
representatives of businesses or industry
associations from industry sectors affected by
adoption of artificial intelligence or emerging
technology, such as sectors developing emerging
technology, undergoing occupational and task
restructuring, or making related labor market
transitions;
``(ii) one-third shall be labor
representatives, including representatives of
labor organizations, worker organizations,
groups that have formed worker centers, and
organizations representing workers at risk of
employment loss or labor market disruption due
to the adoption of artificial intelligence or
emerging technology; and
``(iii) one-third shall be representatives
of government, workforce development boards,
and institutions of higher education, which may
include State and local officials, and
representatives of Federal agencies, State
boards and local boards, public or private
institutions of higher education including
community colleges, economic development
agencies, and other public education or
workforce development agencies.
``(2) Terms.--Each member of the National Board shall serve
for a term of 5 years.
``(c) Functions.--The functions of the National Board are to advise
the Secretaries and provide information to the public by--
``(1) developing an annual coordinated national strategy
that--
``(A) contains information, prepared or compiled by
the National Board, that--
``(i) provides a national workforce impact
assessment that evaluates how the development
and adoption of artificial intelligence and
emerging technology is impacting the workforce;
``(ii) identifies occupations, industry
sectors, and geographic areas most likely to
experience change driven by artificial
intelligence or emerging technology;
``(iii) forecasts emerging occupations and
skill requirements related to artificial
intelligence or emerging technology; and
``(iv) evaluates and assesses the
effectiveness of the workforce development
system, including labor market information
efforts, Federal programs, State programs,
programs of institutions of higher education,
and employer-led training initiatives, in
supporting workers most likely to experience
change driven by artificial intelligence and
emerging technology;
``(B) contains the recommendations of the National
Board to the Secretaries--
``(i) for an annual Federal workforce
development plan for activities to be carried
out under section 305 with amounts from the
Fund, including--
``(I) incumbent worker training
programs;
``(II) programs that provide
tuition assistance for students
receiving education or training
services; and
``(III) programs to strengthen
Federal and State labor market
information systems;
``(ii) about strategy, grantmaking
priorities, performance measures, and labor
market trends, and for annual reporting,
relevant to activities described in clause (i);
and
``(iii) the size of the amounts to be used
from the Fund for the activities described in
clause (i); and
``(C) contains the National Board's assessment of
the effectiveness of the activities described in
subparagraph (B); and
``(2) publishing an annual report containing the national
strategy described in paragraph (1) and submitting the report
to the Secretaries.
``(d) Personnel.--
``(1) Compensation of members.--A member of the National
Board who is not an officer or employee of the Federal
Government shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for level
IV of the Executive Schedule under section 5315 of title 5,
United States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties of
the National Board.
``(2) Travel expenses.--The members of the National Board
shall be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the National Board.
``(3) Detail of government employees.--Any Federal
Government employee of the Department of Commerce, Education,
or Labor may be detailed to the National Board without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
``(4) Procurement of temporary and intermittent services of
experts.--
``(A) In general.--The Secretary of Labor, in
consultation with the Secretary of Education and the
Secretary of Commerce, may procure temporary and
intermittent services of experts to advise the National
Board under section 3109(b) of title 5, United States
Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under
section 5316 of such title.
``(B) Types of experts.--Under subparagraph (A),
the Secretary of Labor may procure the temporary and
intermittent services of experts in labor economics,
workforce data, artificial intelligence or emerging
technology, education, training, credentialing,
regional economic development, public sector workforce
needs, or the work of philanthropic entities that
support workforce development.
``(e) Definition.--In this section, the term `Secretaries' means
the Secretary of Labor, the Secretary of Education, and the Secretary
of Commerce.
``SEC. 304. NATIONAL WORKFORCE TRANSITION FUND.
``(a) Establishment.--There is established within the Treasury of
the United States a Fund to be known as the National Workforce
Transition Fund, consisting of amounts transferred to the Fund as
provided in this section or otherwise appropriated to the Fund.
``(b) Transfer.--The Secretary of the Treasury shall make the
transfers of amounts required by section 3(c) of the National Workforce
Transition Fund Act of 2026.
``(c) Fund Administration.--
``(1) Trustee.--The Secretary of the Treasury shall be the
trustee of the Fund.
``(2) Investment.--
``(A) In general.--The Secretary of the Treasury
shall invest the portion of the Fund that is not
required to meet current withdrawals.
``(B) Interest-bearing obligations.--The
investments may be made only in interest-bearing
obligations of the United States that are--
``(i) original issue at the issue price; or
``(ii) outstanding obligations purchased at
market price.
``(C) Alienability.--Any obligation acquired by the
Fund may be sold by the Secretary of the Treasury at
the market price.
``(D) Investment interest.--The interest on and the
proceeds from the sale or redemption of any obligation
held in the Fund shall be credited to the Fund.
``(d) Use of Funds.--Amounts in the Fund shall only be available as
specified in section 305 and to the extent provided for by
appropriation Acts, for making expenditures to carry out the provisions
of section 305.
``SEC. 305. USE OF FUNDS.
``(a) In General.--
``(1) Permissible activities.--The Secretary may use
amounts from the Fund established under section 304 to
support--
``(A) modernization of labor market information
systems under subsection (b);
``(B) activities to assist workers in transitioning
into stable employment under subsection (c);
``(C) activities to assist employers with
retention, redeployment, or transitioning of workers
under subsection (d); and
``(D) pilot programs to further support workers,
improve employment retention, redeployment, and
transitioning outcomes, and modernize labor market
information systems under subsection (e).
``(2) Priority populations.--
``(A) In general.--In carrying out the activities
described in subsections (c) (other than paragraph
(3)), (d), and (e) the Secretary shall give priority to
workers who are experiencing or facing employment loss
or other labor market disruption, need support in
transitioning into stable employment, and are from one
or more priority populations consisting of--
``(i) workers receiving unemployment
compensation;
``(ii) dislocated workers;
``(iii) workers whose hours, earnings, or
employment opportunities have materially
declined;
``(iv) recent graduates from a secondary
school or an institution of higher education,
or entry-level workers facing declining hiring
conditions;
``(v) workers in occupations, industry
sectors, or regions identified by the Secretary
as exposed to technological change, animation,
adoption of artificial intelligence or emerging
technology, occupational restructuring, or
declining labor demand; and
``(vi) workers seeking to transition into
in-demand industry sectors or occupations.
``(B) Eligibility of workers.--
``(i) In general.--In order to receive
support through activities described in
paragraph (1), no worker shall be required to
show that artificial intelligence or emerging
technology was the sole or primary cause for
the labor market disruption affecting the
worker.
``(ii) Priority.--The Secretary shall
determine whether workers meet the requirements
of subparagraph (A) by determining priority
populations using labor market indicators and
related information such as unemployment
insurance claims, wage records, occupational
employment trends, entry-level hiring trends,
employer reports, sectoral disruption, regional
displacement, wage losses, and exposure to
artificial intelligence or emerging technology.
``(b) Workforce Data and Labor Market Information Systems.--
``(1) In general.--The Secretary may use amounts from the
Fund to carry out activities to strengthen Federal and State
labor market information systems to enable Federal and State
policymakers to better identify categories of information,
including--
``(A) where labor market disruption occurs due to
the adoption of systems of artificial intelligence or
emerging technology;
``(B) types of workers who are affected by the
adoption of systems of artificial intelligence or
emerging technology; and
``(C) whether public interventions, related to the
impact of artificial intelligence or emerging
technology, are improving employment, earnings, and job
quality.
``(2) Information systems.--In carrying out this
subsection, the Secretary shall strengthen Federal and State
labor market information systems, including--
``(A) the nationwide workforce and labor market
information system described in section 15 of the
Wagner-Peyser Act (29 U.S.C. 49l-2);
``(B) any labor market information system that the
Bureau of Labor Statistics administers;
``(C) any labor market information system that the
Social Security Administration administers;
``(D) any labor market information system that the
Bureau of the Census administers;
``(E) State labor market information systems,
including any State unemployment insurance wage data
system; and
``(F) any State system covering data from localized
statistical surveys.
``(3) Study.--
``(A) Allocation of funds.--The Secretary shall
allocate and use $3,000,000 from the Fund to support--
``(i) a study that is conducted, and
reports that are prepared and submitted,
directly or indirectly by the Secretary, under
this paragraph; and
``(ii) an implementation plan that is
prepared and submitted by the Secretary under
subparagraph (G).
``(B) Compilation of information.--The study
conducted under subparagraph (A) shall--
``(i) identify gaps in, and make
recommendations for, data collection for labor
market information systems, relating to
information needed to address the adoption of
artificial intelligence or emerging technology,
including information--
``(I) about emerging technology;
``(II) that permits occupational
data restructuring;
``(III) about entry-level hiring
and other hiring trends;
``(IV) about worker displacement;
``(V) about earning outcomes; and
``(VI) about regional labor market
disruption; and
``(ii) evaluate and provide recommendations
for--
``(I) integrating additional
artificial intelligence questions into
labor market surveys;
``(II) continuing the incorporation
of occupational classification systems
into labor market reports;
``(III) linking cross-agency data
measurement to produce comprehensive
labor market reports;
``(IV) partnering with non-public
entities to produce additional public
use labor market statistics; and
``(V) increasing the frequency of
published labor market reports.
``(C) State record modernization.--The study
conducted under subparagraph (A) shall include an
assessment of State efforts to modernize unemployment
insurance wage data systems and other workforce data
infrastructure.
``(D) Recommendations.--As part of the study
conducted under subparagraph (A), the Secretary shall
prepare recommendations--
``(i) to Federal agencies and each State
for modernization of labor market information
systems and related data collection by
incorporating mixed methods of data collecting,
including collection of--
``(I) data from online job
postings;
``(II) private labor market data;
``(III) Federal statistical data;
``(IV) administrative data;
``(V) data from employer surveys;
``(VI) data from worker surveys;
and
``(VII) qualitative regional
workforce information; and
``(ii) about the amount of funds that
should be allocated from the Fund to carry out
activities under paragraph (4).
``(E) Agency coordination.--In conducting the study
under subparagraph (A), the Secretary shall coordinate
activities with--
``(i) all Federal statistical agencies,
including the Bureau of Labor Statistics and
the Bureau of the Census; and
``(ii) the Social Security Administration.
``(F) Reports.--
``(i) Initial report.--Not later than 90
days after the date of enactment of this Act,
the Secretary shall prepare and submit an
initial report containing initial results of
the study and recommendations described in
subparagraph (D) to--
``(I) all members of the National
Board;
``(II) all Federal agencies;
``(III) each State;
``(IV) the Committee on Health,
Education, Labor, and Pensions, the
Committee on Homeland Security and
Governmental Affairs, and the Committee
on Finance, of the Senate; and
``(V) the Committee on Education
and Workforce, the Committee on
Oversight and Government Reform, and
the Committee on Ways and Means, of the
House of Representatives.
``(ii) Interim report.--Not later than 180
days after the date of enactment of this Act,
the Secretary shall prepare and submit to the
parties described in clause (i) an interim
report containing interim results of the study
and recommendations described in subparagraph
(D).
``(G) Implementation plan.--Not later than 12
months after the date of enactment of this Act, the
Secretary shall prepare and submit an implementation
plan to the parties described in subparagraph (F)(i)
that includes a timeline and stated objectives to carry
out this subsection.
``(4) Modernization activities.--
``(A) Funds.--On the date of submission of the
interim report under paragraph (3)(F)(ii), the
Secretary shall allocate from the Fund an amount, based
on the amount that the study findings in that report
recommend, to carry out activities under this
paragraph.
``(B) Activities.--The Secretary may use the amount
to--
``(i) modernize Federal and State labor
market measurement and reporting;
``(ii) promote Federal and State labor
market information system modernization
activities that may include--
``(I) measuring occupational
exposure to artificial intelligence or
emerging technology, including task
automation;
``(II) analyzing changes in entry-
level employment;
``(III) analyzing hiring
requirements;
``(IV) analyzing career pathways;
``(V) tracking worker displacement,
redeployment, reemployment, and earning
outcomes;
``(VI) analyzing regional impacts
of artificial intelligence or emerging
technology; and
``(VII) examining the relationship
between the adoption of artificial
intelligence or emerging technology,
productivity, employment, wages, and
job quality; and
``(iii) create an enhanced wage record
grant program for each State to collect
occupational data for job titles, hours worked,
and job locations, consistent with privacy and
data security laws.
``(c) Worker Transition Assistance and Other Services.--
``(1) In general.--The Secretary may use an amount from the
Fund for a project or services to assist workers in
transitioning into stable employment through access to training
services through individual training accounts as described in
paragraph (2), credential pathways or programs funded through
education and training grants as described in paragraph (3),
sectoral workforce partnership grants as described in paragraph
(4), and supportive services as described in paragraph (5).
``(2) Access to training services through individual
training accounts.--
``(A) Grants to local areas.--
``(i) In general.--The Secretary shall make
grants to local areas, from allocations made
under subparagraph (B), for the provision of
training services through individual training
accounts, as described in section 134(c)(3)(F),
to any worker eligible under section
134(c)(3)(A), subject to subsection (a)(2).
``(ii) Exception.--The eligibility
requirements under sections
134(c)(3)(A)(i)(III) and 134(c)(3)(A)(i)(IV),
respectively, shall not apply to workers under
this paragraph.
``(B) Allocation of funds.--Using the sum the
Secretary receives from the Fund under paragraph (1)
for services under this paragraph for a fiscal year,
the Secretary shall allocate to each local area for
that fiscal year an amount that bears the same
relationship to that sum as the amount the local area
receives under section 133(b) for that fiscal year
bears to the total amount that all local areas so
receive.
``(C) Providers.--
``(i) In general.--The local area shall
enter into agreements with eligible providers
to provide training services under this
paragraph, with funding provided through direct
payments made through individual training
accounts, pursuant to section
134(c)(3)(F)(iii).
``(ii) Eligible providers.--To be eligible
to enter into an agreement under this
paragraph, a provider shall be an eligible
provider of training services under section
122.
``(iii) Application.--To be eligible to
enter into such an agreement, a provider shall
submit an application to the local area at such
time, in such manner, and containing such
information as the local area may require,
including, if the provider proposes to provide
training services, information demonstrating
that the training services to be provided will
meet quality standards related to--
``(I) completion by, employment of,
and earnings of workers;
``(II) if the services lead to a
recognized postsecondary credential,
that recognized postsecondary
credential and portability of such
credential;
``(III) alignment of the services
with regional labor market needs; and
``(IV) cost to the local area and
consumer protection of workers.
``(3) Education and training grants for credentials in in-
demand industry sectors or occupations.--
``(A) Grants to states.--The Secretary shall make
grants to States to enable students or incumbent
workers, notwithstanding subsection (a)(2), to receive
education or training services at an institution of
higher education or from a provider of training
services, and a corresponding associate or
baccalaureate degree, or other recognized postsecondary
credential, in an in-demand industry sector or
occupation.
``(B) Applications.--To be eligible to receive a
grant under this paragraph, a State shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require.
``(C) Transfer to state higher educational
entities.--
``(i) In general.--A State that receives a
grant under subparagraph (A) shall transfer the
grant funds to the appropriate State higher
education agency.
``(ii) Administration.--Upon transfer of
the grant funds under clause (i), the State
higher educational entity shall administer the
grant under this paragraph.
``(iii) Authority.--
``(I) In general.--The State higher
education agency shall carry out the
goals of the grant program described in
subparagraph (A) and shall--
``(aa) require eligible
institutions and providers to
provide data specific to
students or incumbent workers,
as applicable;
``(bb) make final decisions
on any dispute between an
eligible institution or
provider, and a student or
incumbent worker; and
``(cc) undertake periodic
assessments of the overall
success of the grant program
under subparagraph (A) and
recommend modifications,
interventions, and other
actions based on such an
assessment.
``(II) Regulations.--The State
higher education agency may adopt any
regulation for the administration of
the grant program under subparagraph
(A) as the State higher education
agency determines to be necessary.
``(D) Subgrants to institutions of higher education
and providers.--
``(i) In general.--A State higher education
agency that administers a grant under this
paragraph shall use the grant funds to make
subgrants to institutions of higher education
or eligible providers of training services
under section 122.
``(ii) Applications.--To be eligible to
receive a subgrant under this paragraph, an
institution or provider shall submit an
application to the State higher education
agency at such time, in such manner, and
containing such information as the State higher
education agency may require, including, if the
education or training services lead to a
recognized postsecondary credential other than
a degree, information indicating the quality of
the program leading to the credential.
``(E) Funding for students and incumbent workers.--
An institution or provider that receives a subgrant
under this paragraph may use the subgrant funds to pay
for the cost of the education or training services
described in subparagraph (A), except that--
``(i) the institution or provider shall
select students or incumbent workers to
participate;
``(ii) a student or incumbent worker who is
selected and enrolls in the corresponding
education or training services program shall
pay for \1/3\ of the cost of the program on
enrollment; and
``(iii) such a student or incumbent worker
who does not complete the program shall pay for
an additional \1/3\ of that cost.
``(4) Sectoral workforce partnership grants.--
``(A) Grants to states.--
``(i) In general.--The Secretary shall make
grants to States to make subgrants to local
boards under subparagraph (B), to enter into
agreements with eligible entities as described
in subparagraph (C)--
``(I) to create, expand, or
modernize a sectoral workforce
partnership; and
``(II) acting through that
partnership, to assist workers with
career pathways tied to labor market
demand.
``(ii) Applications.--To be eligible to
receive a grant under this paragraph, a State
shall submit an application to the Secretary at
such time, in such manner, and containing such
information as the Secretary may require.
``(B) Subgrants to local boards.--
``(i) In general.--A State that receives a
grant under subparagraph (A) shall use the
grant funds to make subgrants to local boards,
to enable the local boards to enter into
agreements under subparagraph (C).
``(ii) Applications.--To be eligible to
receive a subgrant under this paragraph, a
local board shall submit an application to the
State at such time, in such manner, and
containing such information as the State may
require, including an assurance that the local
board will coordinate activities under the
subgrant with the activities of the local
boards carrying out similar activities under
this paragraph in the States.
``(C) Agreements with eligible entities.--
``(i) In general.--A local board that
receives a subgrant under this paragraph shall
use the subgrant funds to enter into agreements
with eligible entities.
``(ii) Eligible entities.--To be eligible
to enter into an agreement under this
paragraph, an entity shall--
``(I) relate to--
``(aa) an in-demand
industry sector or occupation;
or
``(bb) an industry with
high growth potential, as
determined by the local board;
and
``(II) consist of, or propose to
create, a partnership of at least 3 of
the following organizations--
``(aa) employers;
``(bb) labor organizations
or other worker organizations;
``(cc) State boards;
``(dd) local boards;
``(ee) community colleges
or institutions of higher
education;
``(ff) sponsors of
apprenticeship programs;
``(gg) economic development
agencies; or
``(hh) workforce
intermediaries.
``(iii) Applications.--To be eligible to
enter into an agreement under this paragraph,
an eligible entity shall submit an application
to the local board at such time, in such
manner, and containing such information as the
local board may require, including, if the
career pathway or other program to be provided
leads to an industry-recognized credential,
information indicating the quality of the
pathway or program leading to the credential.
``(iv) Priority.--In determining which
entities to enter into agreements with under
this paragraph, a local board shall give
priority to entities that--
``(I) serve workers experiencing or
facing employment loss or labor market
disruption;
``(II) provide portable industry-
recognized credentials;
``(III) propose a program with
employer commitments to interview,
hire, retain, redeploy, or advance
individuals who complete the program;
``(IV) propose a program that
includes labor organization or worker
organization participation; or
``(V) propose a program that
supports jobs that provide wages
sufficient for economic security or a
credible pathway to such wages.
``(v) Use of funds.--An entity that enters
into an agreement under this paragraph may use
the funds provided through the agreement--
``(I) to assist workers in pursuing
career pathways that are tied to real
labor market demand and in--
``(aa) in-demand industry
sectors and occupations that
are important to regional or
national economic resilience,
including in-demand industry
sectors and occupations that
face persistent shortages of
workers; or
``(bb) industry sectors and
occupations where wages, on the
date of the application of the
entity, are low, if funding for
the pathways or program is tied
to measurable improvements in
wages, benefits, career
advancement, retention, or job
quality, for workers; or
``(II) to carry out a limited
portable artificial intelligence or
emerging technology skills credential
pilot program--
``(aa) to develop and
provide training relating to
common baseline artificial
intelligence or emerging
technology skill standards with
related credentials, to provide
career pathways in in-demand
industry sectors and
occupations described in item
(aa) or (bb) of subclause (I);
and
``(bb) to assess whether
the standards would improve
worker mobility, reduce
duplicative employer training,
and make such credentials more
transparent and useful across
businesses, occupations, and
industry sectors.
``(5) Provision of supportive services.--The Secretary
shall, in consultation with the National Board, develop
supportive services to directly support workers participating
in an activity under this subsection or subsection (e), and
provide the services, which may include--
``(A) housing;
``(B) child care;
``(C) transportation;
``(D) health benefits; and
``(E) any other service the Secretary determines to
be necessary to support such workers during the
transition period.
``(6) State higher education agency.--As used in this
subsection, the term `State higher education agency' has the
meaning given the term in section 103 of the Higher Education
Act of 1965 (20 U.S.C. 1003).
``(d) Employer Retention, Redeployment, or Transitioning Grants.--
``(1) In general.--The Secretary may use an amount from the
Fund for a project that supports employers in retaining,
redeploying, or responsibly transitioning covered workers,
through workforce transition plans that promote accountability,
worker consultation, reporting requirements, and recovery of
misused funds.
``(2) Grants to states and local boards.--
``(A) In general.--The Secretary, in carrying out
the project described in paragraph (1), shall make
grants to States and local boards to make subgrants to
employers under this subsection.
``(B) Applications.--To be eligible to receive a
grant under this subsection, a State or local board
shall submit an application to the Secretary at such
time, in such manner, and containing such information
as the Secretary may require.
``(3) Subgrants to employers.--
``(A) In general.--A State or local board that
receives a grant under this subsection shall use the
grant funds to make subgrants to employers to support
the employers in carrying out initiatives to assist
covered workers as described in paragraph (1).
``(B) Workforce transition plans.--To be eligible
to receive a subgrant under this paragraph from a State
or local board, an employer shall submit a workforce
transition plan to the State or local board,
respectively, at such time, in such manner, and
containing such information as the State or local board
may require, including--
``(i) the artificial intelligence or
emerging technology workforce transition
compact, described in subparagraph (C), that
the employer has entered into with the
Secretary;
``(ii) information identifying the cohort
of covered workers to be served under the
initiative;
``(iii) information describing how
artificial intelligence or emerging technology
is changing job design or staffing needs for
covered workers in that cohort;
``(iv) information identifying how the
employer will prioritize retention,
redeployment, or responsible transitioning,
over layoffs, for covered workers in that
cohort;
``(v) an explanation of how the employer
will use the subgrant funds through the
initiative to support paid training, internal
redeployment, career navigation services,
credentialing, placement support, wage support,
or supportive services, for covered workers in
that cohort; and
``(vi) if the initiative to be provided
leads to an industry-recognized credential,
information indicating the quality of the
initiative leading to the credential.
``(C) Workforce transition compact.--
``(i) In general.--An employer seeking a
subgrant under this subsection shall enter into
a workforce transition compact with the
Secretary.
``(ii) Provisions.--The compact shall
include provisions relating to the initiative
that--
``(I) specify retention,
redeployment, or responsible
transitioning targets for the employer;
``(II) establish procedures for
notice to and consultation with the
covered workers served under the
subgrant;
``(III) establish wage and benefit
standards for redeployed covered
workers;
``(IV) establish procedures for
reporting on the outcomes of the
covered workers served through the
initiative, and the job changes,
related to adoption of artificial
intelligence or emerging technology, of
the covered workers; and
``(V) establish procedures for
recovery of subgrant funds if the
employer fails to satisfy the
requirements of this subparagraph or
subparagraph (B), respectively.
``(4) Covered worker.--In this subsection, the term
`covered worker' means (subject to subsection (a)(2)) a worker
whose job is expected by the employer to be materially affected
by adoption of artificial intelligence or emerging technology,
or by a related significant task redesign.
``(e) Pilot Programs.--
``(1) In general.--The Secretary shall, in consultation
with the National Board, use an amount from the Fund to carry
out a limited pilot program, to make grants to eligible
entities for projects of the activities described in subsection
(b), (c), or (d).
``(2) Eligible entities.--To be eligible to receive such a
grant, the entity involved shall demonstrate that the grant
funding will support the development and carrying out of--
``(A) projects that directly support workers, which
may include projects that provide--
``(i) wage insurance;
``(ii) unemployment benefits;
``(iii) portable benefits;
``(iv) technology training and education;
``(v) job licensing;
``(vi) apprenticeships; or
``(vii) any other activity the Secretary
determines to be necessary to support workers
during the period in which the workers are
transitioning into stable employment;
``(B) projects that improve employment transition
outcomes for the workers; or
``(C) projects that modernize labor market
information systems and related workforce data.
``(f) Supplement Not Supplant.--Amounts made available from the
Fund to carry out this shall supplement and not supplant other Federal,
State, local, or private workforce investments, including employer
labor market investments, expended to carry out the activities
described in subsection (a)(1).
``(g) Evaluation and Reporting.--
``(1) Performance measures for activities.--
``(A) Establishment.--The Secretary, coordinating
activities with the Secretary of Education, the
Secretary of Commerce, and the National Board, shall
establish performance measures, with indicators and
levels of performance, for the activities carried out
under subsections (c), (d), and (e). The performance
measures shall indicate results of the activities
(including worker outcomes) relating to employment,
reemployment, retention, redeployment, earnings,
credential completion, job quality, employer
participation, regional impacts, and outcomes for
priority populations.
``(B) Data collection.--Recipients of grants under
subsection (c) or (e) and employers who are recipients
of subgrants under subsection (d) shall collect data
from the grant or subgrant activities on the
performance measures, prepare reports summarizing the
data, and submit the reports to the Secretary.
``(2) Study and report by secretary.--
``(A) Study.--The Secretary shall conduct a study
on the amount of transfers into and expenditures from
the Fund, on grants awarded under this title, and on
the impact of the activities carried out under this
title relating to workers served, levels of employer
participation and compliance, workforce outcomes, and
labor market trends.
``(B) Sources.--In conducting the study, the
Secretary shall consider data from reports on
performance measures under paragraph (1)(B), from the
Federal labor market information system, from
unemployment insurance wage data systems and wage
records, information on industry sector trends, and
analysis by researchers from institutions of higher
education that are not involved in the activities
carried out under this section.
``(C) Report.--The Secretary shall prepare and
submit to Congress a report containing the results of
the study, and recommendations for carrying out further
activities to address the adoption of artificial
intelligence or emerging technology. In presenting data
in the report, or any other report prepared under this
title, the Secretary shall present aggregate data
without personally identifiable information, shall
protect confidential business information and trade
secrets, and shall protect worker privacy.
``(3) Review and report by comptroller general.--
``(A) Review.--The Comptroller General of the
United States shall, not later than 3 years after the
date of enactment of the National Workforce Transition
Fund Act of 2026, carry out a review of the activities
carried out under this title. In carrying out the
review, the Comptroller shall assess program
effectiveness, employer reporting, requirements for
recovery of misused funds, data modernization,
distribution of benefits, and opportunities for
improvement.
``(B) Report.--The Comptroller General shall
prepare a report containing the results of the review
and submit the report to the President, the Committee
on Health, Education, Labor, and Pensions of the
Senate, and the Committee on Education and Workforce of
the House of Representatives.
``SEC. 306. CONSIDERATION OF EXTENSION, MODIFICATION, AND TERMINATION.
``(a) Review.--The Secretary of Labor, after consultation with the
National Board, the Secretary of the Treasury, the Comptroller General
of the United States, and the heads of other relevant Federal agencies,
shall conduct a review assessing whether--
``(1) labor market conditions warrant extending, modifying,
or terminating the provisions of this title and section 3, and
the amendments made by section 3, of the National Workforce
Transition Fund of 2024; and
``(2) revenue from the Fund should continue to be dedicated
to carry out, in response to the adoption of artificial
intelligence and emerging technology--
``(A) modernization of labor market information
systems;
``(B) activities to assist workers to transition
into employment; or
``(C) activities to assist employers with
retention, redeployment, or transitioning of workers.
``(b) Report.--
``(1) Contents.--Not earlier than 4 years or later than 5
years after the date of enactment of the National Workforce
Transition Fund Act of 2026, the Secretary shall prepare a
report containing--
``(A) the results of the review; and
``(B) recommendations about that extension,
modification, or termination, including whether any
such extension should be based on labor market
indicators, and, if so, which labor market indicators
Congress should consider.
``(2) Submission.--The Secretary shall submit the report to
the appropriate committees of Congress and the President.
``(3) Definition.--In this subsection, the term
`appropriate committees of Congress' means--
``(A) the Committee on Ways and Means and the
Committee on Education and Workforce of the House of
Representatives; and
``(B) the Committee on Finance and the Committee on
Health, Education, Labor, and Pensions of the
Senate.''.
(b) Table of Contents.--The table of contents in section 1(b) of
the Workforce Innovation and Opportunity Act is amended by striking the
items relating to title III and inserting the following:
``TITLE III--WORKFORCE TRANSITION
``Sec. 301. Purpose.
``Sec. 302. Definitions.
``Sec. 303. National Workforce Transition Board.
``Sec. 304. National Workforce Transition Fund.
``Sec. 305. Use of funds.
``Sec. 306. Consideration of extension, modification, and
termination.''.
SEC. 3. EXEMPTING AI DATA CENTERS FROM BONUS DEPRECIATION.
(a) In General.--Section 168(k) of the Internal Revenue Code of
1986 is amended--
(1) in paragraph (9)--
(A) in subparagraph (A), by striking ``or'' at the
end,
(B) in subparagraph (B), by striking the period at
the end and inserting ``, or'', and
(C) by adding at the end the following new
subparagraph:
``(C) any property used in an AI data center.'',
and
(2) by adding at the end the following new paragraph:
``(11) AI data center.--
``(A) In general.--For purposes of paragraph
(9)(C), the term `AI data center' means a permanent or
semipermanent structure, or group of such structures,
which--
``(i) are dedicated to--
``(I) the centralized
accommodation, interconnection, and
operation of information technology and
network telecommunications equipment
(including not less than 1 graphics
processing unit), and
``(II) providing data storage,
processing, and transport services, and
``(ii) at least 20 percent of which is used
for developing or operating artificial
intelligence.
``(B) Definitions.--For purposes of subparagraph
(A)--
``(i) Graphics processing unit.--For
purposes of subparagraph (A), the term `graphic
processing unit' means a specialized electronic
circuit designed to accelerate image rendering,
graphics processing, and parallel computation
tasks.
``(ii) Artificial intelligence.--The term
`artificial intelligence' has the meaning given
such term in section 5002 of the National
Artificial Intelligence Initiative Act of 2020
(15 U.S.C. 9401).''.
(b) Application of Leased Property Rules to AI Data Centers.--
Section 168 of the Internal Revenue Code of 1986 is amended by adding
at the end the following new subsection:
``(o) Application of Leased Property Rules to AI Data Centers.--In
the case of any AI data center (as defined in subsection (k)(11)) which
is subject to a lease, the depreciation deduction provided by section
167(a) shall be determined pursuant to the rules under section
1.167(a)-11(e)(3)(iii) of title 26, Code of Federal Regulations (as in
effect on the date of enactment of this subsection).''.
(c) Transfer to National Workforce Transition Fund.--
(1) In general.--The Secretary of the Treasury (or the
Secretary's delegate) shall, on an annual basis, transfer to
the National Workforce Transition Fund (as established under
section 304 of the Workforce Innovation and Opportunity Act),
from amounts in the general fund of the Treasury of the United
States, an amount determined by the Secretary of the Treasury
(or the Secretary's delegate) to be equal to the increase in
revenue for the preceding 12-month period by reason of the
amendments made by subsections (a) and (b).
(2) Termination.--Paragraph (1) shall not apply after the
date which is 5 years after the date of enactment of this Act.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of enactment of this
Act.
SEC. 4. TERMINATION.
(a) Bonus Depreciation.--The authority provided by section 3
terminates on the day that is 5 years after the date of enactment of
this Act.
(b) Workforce Development Activities.--The authority provided by
this Act (other than section 3) and the amendments made by section 2
terminates on the day that is 5 years after the date of enactment of
this Act.
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