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<dc:title>119 S5055 IS: National Workforce Transition Fund Act of 2026</dc:title>
<dc:publisher>U.S. Senate</dc:publisher>
<dc:date>2026-07-21</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">II</distribution-code><congress>119th CONGRESS</congress><session>2d Session</session><legis-num>S. 5055</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20260721">July 21, 2026</action-date><action-desc><sponsor name-id="S327">Mr. Warner</sponsor> introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSFI00">Committee on Finance</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title>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.</official-title></form><legis-body><section id="S1" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>National Workforce Transition Fund Act of 2026</short-title></quote>.</text></section><section section-type="subsequent-section" commented="no" display-inline="no-display-inline" id="id1b58b90e16ce4c4ca4f4595e72ac5bc1"><enum>2.</enum><header>Workforce Transition</header><subsection commented="no" display-inline="no-display-inline" id="id3dbfd5104a8f4c72ad711d599e489b36"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Workforce Innovation and Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/29/3101">29 U.S.C. 3101 et seq.</external-xref>) is amended by striking title III and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id351458f132bb422a9590a865c8f95d42"><title id="idd9ef06b9d0bc458e9399e3eabb195721" style="OLC"><enum>III</enum><header>Workforce transition</header><section section-type="subsequent-section" commented="no" display-inline="no-display-inline" id="ide2cd4726366644efa851fca5a59340db"><enum>301.</enum><header>Purpose</header><text display-inline="no-display-inline">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 <quote>Fund</quote>) that—</text><paragraph commented="no" display-inline="no-display-inline" id="id478686ffd13c46ac8f6446e20c2c18dc"><enum>(1)</enum><text>uses a funding mechanism tied to covered artificial intelligence infrastructure rather than taxing artificial intelligence usage or innovation directly;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide93b453a86d24deba83affa59cda09b6"><enum>(2)</enum><text display-inline="yes-display-inline">provides resources for programs that—</text><subparagraph commented="no" display-inline="no-display-inline" id="id00cbb986890d41e497d1ad35cbe697dd"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id7f82e6029203461eb69924854fde1e55"><enum>(i)</enum><text display-inline="yes-display-inline">give priority for the activities to workers experiencing or facing employment loss or labor market disruption; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id5358f32aee02468b94ab1066bed3267c" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">support transitions of workers into stable employment; and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ida166cfce61d2466380c9a82f5a0d53dc"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5f7f8dfd7b4346eaa4235722ebf7e5c8"><enum>(3)</enum><text>provides resources for workforce development activities—</text><subparagraph commented="no" display-inline="no-display-inline" id="id66f38c97f3e24d16ae8a1ba94adf96f8"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text></subparagraph><subparagraph id="ida7c021b380114b00a6931d49e7478948"><enum>(B)</enum><text>that expand access to training services through individual training accounts;</text></subparagraph><subparagraph id="id8f18e8dd7917446fb1c0c56d7990c172"><enum>(C)</enum><text>that provide limited worker transition assistance;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id34729877b34e41d5a1f94905424bf366"><enum>(D)</enum><text display-inline="yes-display-inline">that support sectoral workforce partnerships, and training and credential pathways that are portable, tied to labor market demand, and connected to measurable outcomes; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0584479735a243ebbf3cd333bff6376e"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="id7295f5ef01b3456e84cfac417ce4a502"><enum>302.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text><paragraph commented="no" display-inline="no-display-inline" id="idbff84dda450e4e389ade1f2c423c37fd"><enum>(1)</enum><header>Artificial intelligence</header><text>The term <term>artificial intelligence</term> has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/15/9401">15 U.S.C. 9401</external-xref>).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id70e998ada13c49bc8ce6199079ea3ba2"><enum>(2)</enum><header>Emerging technology</header><text display-inline="yes-display-inline">The term <term>emerging technology</term> has the meaning given the term in section 6701 of the James M. Inhofe National Defense Authorization Act of Fiscal Year 2023 (<external-xref legal-doc="usc" parsable-cite="usc/50/3024">50 U.S.C. 3024</external-xref> note).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id847c148b27e0496085f354bd9a1fe8d2"><enum>(3)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term>, without further description, means the Secretary of Labor.</text></paragraph><paragraph id="idb26a92f6b3e042279165e81b9b89c78b"><enum>(4)</enum><header>Worker</header><text>The term <term>worker</term>, without further description, includes a student.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idaa41d799975447bba75f30455f18a617"><enum>(5)</enum><header>Workforce Innovation and Opportunity Act terms</header><text display-inline="yes-display-inline">The terms <term>career pathway</term>, <term>dislocated worker</term>, <term>in-demand industry sector or occupation</term>, <term>institution of higher education</term>, <term>local area</term>, <term>local board</term>, <term>recognized postsecondary credential</term>, <term>region</term>, <term>State</term>, <term>State board</term>, <term>training services</term>, and <term>workforce development activities</term> have the meanings given the terms in section 3.</text></paragraph></section><section id="id4472c3e9480d48caa30b311c4d863533"><enum>303.</enum><header>National Workforce Transition Board</header><subsection commented="no" display-inline="no-display-inline" id="id84b5f3ccb10e40a79b7178bd79d415b3"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">The Secretary of Labor shall establish in the Department of Labor a National Workforce Transition Board (referred to in this title as the <quote>National Board</quote>) 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.</text></subsection><subsection id="id3f2ac9ca083a4f549b976827eaad7612"><enum>(b)</enum><header>Membership</header><paragraph id="PF6DADDC047388883707863A4C654DE3" commented="no" display-inline="no-display-inline"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The National Board shall include—</text><subparagraph id="P20D7F41D4A310C59314B088A37C9053" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text>the Secretary of Labor, the Secretary of Education, and the Secretary of Commerce; and</text></subparagraph><subparagraph id="PF4B3345F40B9C035628B05A4FDBEEFF" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>members appointed by the Secretary of Labor, in consultation with the Secretary of Education and the Secretary of Commerce, of which—</text><clause id="PE98EA4564CDCC620BF29209BABB1153"><enum>(i)</enum><text>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;</text></clause><clause id="P333C7453484D43D8878C1D93742DE14"><enum>(ii)</enum><text>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</text></clause><clause id="P80DB6ECD46ECA525188A11BD78ECC90"><enum>(iii)</enum><text>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.</text></clause></subparagraph></paragraph><paragraph id="ide62c776d73b846c8b437a5866dc50281"><enum>(2)</enum><header>Terms</header><text>Each member of the National Board shall serve for a term of 5 years.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4d869ea69d5c4ff6b1d67268eceda593"><enum>(c)</enum><header>Functions</header><text>The functions of the National Board are to advise the Secretaries and provide information to the public by—</text><paragraph id="idd9ac5b17a184430f92da3100d3e1d36f"><enum>(1)</enum><text>developing an annual coordinated national strategy that—</text><subparagraph commented="no" display-inline="no-display-inline" id="id365e3f0726804926a5b46fce476b114a"><enum>(A)</enum><text display-inline="yes-display-inline">contains information, prepared or compiled by the National Board, that—</text><clause id="id50fd09bfd31a4cde8799a7d3ed3fe7e2"><enum>(i)</enum><text>provides a national workforce impact assessment that evaluates how the development and adoption of artificial intelligence and emerging technology is impacting the workforce;</text></clause><clause id="ide441364f4c38496784eef1737a64f77f"><enum>(ii)</enum><text>identifies occupations, industry sectors, and geographic areas most likely to experience change driven by artificial intelligence or emerging technology;</text></clause><clause id="idae7264f2b8d74f33b59c5fe700c9cf40"><enum>(iii)</enum><text>forecasts emerging occupations and skill requirements related to artificial intelligence or emerging technology; and</text></clause><clause id="id974802fa2ac24025a6cc69085cbc2160"><enum>(iv)</enum><text>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;</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2a3d4a677a17492cab0fdd22ac027372"><enum>(B)</enum><text>contains the recommendations of the National Board to the Secretaries—</text><clause commented="no" display-inline="no-display-inline" id="id3ca364a70bcf4af387adeee2eb3975bb"><enum>(i)</enum><text display-inline="yes-display-inline">for an annual Federal workforce development plan for activities to be carried out under section 305 with amounts from the Fund, including—</text><subclause commented="no" display-inline="no-display-inline" id="ide84fc55901a640b29cc7486978903fb4"><enum>(I)</enum><text display-inline="yes-display-inline">incumbent worker training programs;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id4823ef57cd2c464f9f299d1ce5235a94"><enum>(II)</enum><text display-inline="yes-display-inline">programs that provide tuition assistance for students receiving education or training services; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id3f54f100ea9a4cb880d84bebbd94bcc1"><enum>(III)</enum><text display-inline="yes-display-inline">programs to strengthen Federal and State labor market information systems;</text></subclause></clause><clause id="id9fe4b2cb6f1a4c13af5e7180ef0c52f3"><enum>(ii)</enum><text>about strategy, grantmaking priorities, performance measures, and labor market trends, and for annual reporting, relevant to activities described in clause (i); and</text></clause><clause commented="no" display-inline="no-display-inline" id="id21253e6e723b44529fa703f227a56b7c"><enum>(iii)</enum><text display-inline="yes-display-inline">the size of the amounts to be used from the Fund for the activities described in clause (i); and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id41caf6ff971449519808aac3d187d3ec"><enum>(C)</enum><text display-inline="yes-display-inline">contains the National Board's assessment of the effectiveness of the activities described in subparagraph (B); and</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide8f0062e6c684a1cae72d4db3afefd6b"><enum>(2)</enum><text>publishing an annual report containing the national strategy described in paragraph (1) and submitting the report to the Secretaries.</text></paragraph></subsection><subsection id="id0a64f8b44a1b488f82a66ef60fcc2057"><enum>(d)</enum><header>Personnel</header><paragraph id="IDF9E4CF3EA6AC4F01B81923D97C022F5A"><enum>(1)</enum><header>Compensation of members</header><text>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.</text></paragraph><paragraph id="ID727E11A29415415D888DBF1631255C36"><enum>(2)</enum><header>Travel expenses</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> 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.</text></paragraph><paragraph id="id826d2dfcc13b49c1974f38e1a15de780"><enum>(3)</enum><header>Detail of government employees</header><text>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.</text></paragraph><paragraph id="ID224BF59C89074FDFA9356D4C2171EA56"><enum>(4)</enum><header>Procurement of temporary and intermittent services of experts</header><subparagraph commented="no" display-inline="no-display-inline" id="idf079a33a2ad44ae2ba8b2482eb16c1ef"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idcb5710135030467d99216bc09a3fe8a8"><enum>(B)</enum><header>Types of experts</header><text>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.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idaf40e9ea82b14af980810060f09604af"><enum>(e)</enum><header>Definition</header><text display-inline="yes-display-inline">In this section, the term <term>Secretaries</term> means the Secretary of Labor, the Secretary of Education, and the Secretary of Commerce.</text></subsection></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="id68cdc949bebb4acd921c9a74831cadc5"><enum>304.</enum><header>National Workforce Transition Fund</header><subsection id="ID120242264545491A9D210B15B2EC36B7"><enum>(a)</enum><header>Establishment</header><text>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.</text></subsection><subsection id="IDC7C865982EC545509355634A9AAAFB80"><enum>(b)</enum><header>Transfer</header><text>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.</text></subsection><subsection id="ID82FCCE0280E146749445140A7C87FD84"><enum>(c)</enum><header>Fund administration</header><paragraph id="ID51E28CD794104FA5824D010BBFE357B6"><enum>(1)</enum><header>Trustee</header><text>The Secretary of the Treasury shall be the trustee of the Fund.</text></paragraph><paragraph id="ID09E1EB8D0CA44BD5B97800A2D53419D4"><enum>(2)</enum><header>Investment</header><subparagraph id="ID3F47946B971A44B3B5B1D8C350C58662"><enum>(A)</enum><header>In general</header><text>The Secretary of the Treasury shall invest the portion of the Fund that is not required to meet current withdrawals.</text></subparagraph><subparagraph id="ID923870CF7C58457186B9946B61ADA4F1"><enum>(B)</enum><header>Interest-bearing obligations</header><text>The investments may be made only in interest-bearing obligations of the United States that are—</text><clause id="IDC42B432489C043F2800CB3F3469A1CA9"><enum>(i)</enum><text>original issue at the issue price; or</text></clause><clause id="ID566310BC74CE4078904EA9B04077B2EE"><enum>(ii)</enum><text>outstanding obligations purchased at market price.</text></clause></subparagraph><subparagraph id="ID7E843E76CB9A4A4A97AAA7BD587AB2FD"><enum>(C)</enum><header>Alienability</header><text>Any obligation acquired by the Fund may be sold by the Secretary of the Treasury at the market price.</text></subparagraph><subparagraph id="IDBB59BD93E2B3435597AC183009C50078"><enum>(D)</enum><header>Investment interest</header><text>The interest on and the proceeds from the sale or redemption of any obligation held in the Fund shall be credited to the Fund.</text></subparagraph></paragraph></subsection><subsection id="ID2B531AB2692D4ED78DF00AF0A9D0CE3B"><enum>(d)</enum><header>Use of funds</header><text>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.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id5e3dc7a511cf47999432a8bab82a59e2"><enum>305.</enum><header>Use of funds</header><subsection id="idfa4a50741c484809bef16ad15452225d"><enum>(a)</enum><header>In general</header><paragraph commented="no" display-inline="no-display-inline" id="id18b01fd569a642daa38cb9885770a188"><enum>(1)</enum><header>Permissible activities</header><text display-inline="yes-display-inline">The Secretary may use amounts from the Fund established under section 304 to support—</text><subparagraph commented="no" display-inline="no-display-inline" id="id8bdc02d992c84c9488e68e2a1e17b99c"><enum>(A)</enum><text display-inline="yes-display-inline">modernization of labor market information systems under subsection (b);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id40f8fffecb4a45fc94ee90df682f40d5"><enum>(B)</enum><text>activities to assist workers in transitioning into stable employment under subsection (c);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idd8b39bffa4ce47ecb51046292b2fef5c"><enum>(C)</enum><text>activities to assist employers with retention, redeployment, or transitioning of workers under subsection (d); and</text></subparagraph><subparagraph id="id61891c8014ae4fa89f3cf783bd09749d"><enum>(D)</enum><text>pilot programs to further support workers, improve employment retention, redeployment, and transitioning outcomes, and modernize labor market information systems under subsection (e).</text></subparagraph></paragraph><paragraph id="id5e164f4f150846468e424842d4be3b16"><enum>(2)</enum><header>Priority populations</header><subparagraph commented="no" display-inline="no-display-inline" id="id4956fff7bfb1459abd943f7cb85dd590"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text><clause commented="no" display-inline="no-display-inline" id="idbb3d9d1afe9a4fafa0dc82b53286d915"><enum>(i)</enum><text display-inline="yes-display-inline">workers receiving unemployment compensation;</text></clause><clause commented="no" display-inline="no-display-inline" id="id11cbf9861bd5434b938c3bda38b0b325"><enum>(ii)</enum><text>dislocated workers;</text></clause><clause commented="no" display-inline="no-display-inline" id="id8604854d96ad485a9848ebfab5b30b61"><enum>(iii)</enum><text display-inline="yes-display-inline">workers whose hours, earnings, or employment opportunities have materially declined;</text></clause><clause commented="no" display-inline="no-display-inline" id="idd639ba84f0cd4a2d80461a2fb6033705"><enum>(iv)</enum><text>recent graduates from a secondary school or an institution of higher education, or entry-level workers facing declining hiring conditions;</text></clause><clause commented="no" display-inline="no-display-inline" id="id09a7b08074704537983414ac92c4b1ac"><enum>(v)</enum><text display-inline="yes-display-inline">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</text></clause><clause commented="no" display-inline="no-display-inline" id="id4db710715d6f47fb9c01de5769cc84bb"><enum>(vi)</enum><text display-inline="yes-display-inline">workers seeking to transition into in-demand industry sectors or occupations.</text></clause></subparagraph><subparagraph id="idcfa5482cf29e4c5a8dc9670368a970c2" commented="no" display-inline="no-display-inline"><enum>(B)</enum><header>Eligibility of workers</header><clause commented="no" display-inline="no-display-inline" id="id50786082628f4a0ca346167ca657dd51"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></clause><clause commented="no" display-inline="no-display-inline" id="id7d416e50375f44dfab371550fda6f945"><enum>(ii)</enum><header>Priority</header><text display-inline="yes-display-inline">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.</text></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ida8de9c5f6c42434c92bc7849462e1f07"><enum>(b)</enum><header>Workforce Data and Labor Market Information Systems</header><paragraph commented="no" display-inline="no-display-inline" id="id39acc8b17663447e9f66d4527bad290e"><enum>(1)</enum><header>In general</header><text>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—</text><subparagraph commented="no" display-inline="no-display-inline" id="id6b44445672ea4ada9ab94382d5f9763d"><enum>(A)</enum><text display-inline="yes-display-inline">where labor market disruption occurs due to the adoption of systems of artificial intelligence or emerging technology;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3edfd6bc99064f36acaf92096f8a96c2"><enum>(B)</enum><text display-inline="yes-display-inline">types of workers who are affected by the adoption of systems of artificial intelligence or emerging technology; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id853f870ec9eb42ce8d02311fc9126f40"><enum>(C)</enum><text display-inline="yes-display-inline">whether public interventions, related to the impact of artificial intelligence or emerging technology, are improving employment, earnings, and job quality.</text></subparagraph></paragraph><paragraph id="idc0d50526f1344d6b824d4d2c7ef1d28f"><enum>(2)</enum><header>Information systems</header><text>In carrying out this subsection, the Secretary shall strengthen Federal and State labor market information systems, including—</text><subparagraph commented="no" display-inline="no-display-inline" id="idfcec6ca132b846119b89892931056d78"> <enum>(A)</enum> <text display-inline="yes-display-inline">the nationwide workforce and labor market information system described in section 15 of the Wagner-Peyser Act (<external-xref legal-doc="usc" parsable-cite="usc/29/49l-2">29 U.S.C. 49l–2</external-xref>);</text>
 </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8e09fb00e4214f758ac886b45f12c33f"><enum>(B)</enum><text>any labor market information system that the Bureau of Labor Statistics administers;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9333850589be4c03b71b2e0970815612"><enum>(C)</enum><text>any labor market information system that the Social Security Administration administers;</text></subparagraph><subparagraph id="ide0e1c1cff52d498ab1b2241071ba1cab"><enum>(D)</enum><text>any labor market information system that the Bureau of the Census administers;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3f87bbd3e3184dd18de3eafa1b8d3836"><enum>(E)</enum><text>State labor market information systems, including any State unemployment insurance wage data system; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2c30681d022b4e4b9203b974d255846b"><enum>(F)</enum><text>any State system covering data from localized statistical surveys.</text></subparagraph></paragraph><paragraph id="iddc3ef9f76c384beebd9a941e27cff015"><enum>(3)</enum><header>Study</header><subparagraph id="idf2073c75d02b4f7ea325281841982cb9"><enum>(A)</enum><header>Allocation of Funds</header><text>The Secretary shall allocate and use $3,000,000 from the Fund to support—</text><clause commented="no" display-inline="no-display-inline" id="idf007aa90b7aa403584c7b114496ba02b"><enum>(i)</enum><text display-inline="yes-display-inline">a study that is conducted, and reports that are prepared and submitted, directly or indirectly by the Secretary, under this paragraph; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id624d5d789c3b47b183148e7a08e5f4ba"><enum>(ii)</enum><text>an implementation plan that is prepared and submitted by the Secretary under subparagraph (G).</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7b437427e9c044a99afd02bcde44532e"><enum>(B)</enum><header>Compilation of information</header><text>The study conducted under subparagraph (A) shall—</text><clause commented="no" display-inline="no-display-inline" id="id46fcc666edc4451db39b77bbea5b764f"><enum>(i)</enum><text display-inline="yes-display-inline">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—</text><subclause commented="no" display-inline="no-display-inline" id="id23f7a0f606c94d9e9b1f10857abf7ac2"><enum>(I)</enum><text>about emerging technology;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id3f214bafcaaa4e8dba142607d7dcb502"><enum>(II)</enum><text>that permits occupational data restructuring;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id6ef997c589704be484048353c6876ff5"><enum>(III)</enum><text>about entry-level hiring and other hiring trends;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idabd771b09f6740efbe99e710ed882226"><enum>(IV)</enum><text>about worker displacement;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id143c88782e3c4c759548b7fc89c534b9"><enum>(V)</enum><text>about earning outcomes; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id2b6e33010e7841bcbf0d09604ecdf326"><enum>(VI)</enum><text>about regional labor market disruption; and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id2e923e21447a47b38d5e227c697958e4"><enum>(ii)</enum><text>evaluate and provide recommendations for—</text><subclause commented="no" display-inline="no-display-inline" id="id7a2a128465d64dd0a217bbcdb7a16b0b"><enum>(I)</enum><text display-inline="yes-display-inline">integrating additional artificial intelligence questions into labor market surveys;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id8a14c7b1c1b342a782f870954060fced"><enum>(II)</enum><text display-inline="yes-display-inline">continuing the incorporation of occupational classification systems into labor market reports;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idc9016c0af5ec41eebd23e6d21511743f"><enum>(III)</enum><text display-inline="yes-display-inline">linking cross-agency data measurement to produce comprehensive labor market reports;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idfeb806fd254a4c18a3c1522ff72c0555"><enum>(IV)</enum><text display-inline="yes-display-inline">partnering with non-public entities to produce additional public use labor market statistics; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="ideff03c1a884e4ababdb1ec3d8e58b38f"><enum>(V)</enum><text display-inline="yes-display-inline">increasing the frequency of published labor market reports.</text></subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id96d48987d7984f77bb5f146d23e1d144"><enum>(C)</enum><header>State record modernization</header><text>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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ida218b88e642443d096040d14cf04a037"><enum>(D)</enum><header>Recommendations</header><text>As part of the study conducted under subparagraph (A), the Secretary shall prepare recommendations—</text><clause commented="no" display-inline="no-display-inline" id="id36045c5db0d44f769c967592e22b9975"><enum>(i)</enum><text display-inline="yes-display-inline">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—</text><subclause commented="no" display-inline="no-display-inline" id="id5fc2af2f535c47279e608eaa37a452d4"><enum>(I)</enum><text display-inline="yes-display-inline">data from online job postings;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id1c1408f662c74049af91b2907c9a859c"><enum>(II)</enum><text>private labor market data;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id5fa3021eea04483baf6b968854cb0b6c"><enum>(III)</enum><text>Federal statistical data;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idfa76fd5f9e784d37999ce00bf734997f"><enum>(IV)</enum><text>administrative data;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id3c4715f740bc4a9690ad94ca9c78f46f"><enum>(V)</enum><text>data from employer surveys;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id1637a33f9af44a2f83615805674fec14"><enum>(VI)</enum><text>data from worker surveys; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="ida320999ac5894b0a958d34d9d9d5bdfc"><enum>(VII)</enum><text>qualitative regional workforce information; and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id76b0e82f26c04b4a8b578e3e0562aa9d"><enum>(ii)</enum><text>about the amount of funds that should be allocated from the Fund to carry out activities under paragraph (4).</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id126cf2179b3e4a41891adddc94cf5efe"><enum>(E)</enum><header>Agency coordination</header><text>In conducting the study under subparagraph (A), the Secretary shall coordinate activities with—</text><clause commented="no" display-inline="no-display-inline" id="id0806a4f00cfe484697a05df9bd2376fc"><enum>(i)</enum><text display-inline="yes-display-inline">all Federal statistical agencies, including the Bureau of Labor Statistics and the Bureau of the Census; and</text></clause><clause commented="no" display-inline="no-display-inline" id="idd0da069b91994d0388c7688cce5a4d15"><enum>(ii)</enum><text display-inline="yes-display-inline">the Social Security Administration.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idda7bdf5e22a74956a4134f8cd09aaac2"><enum>(F)</enum><header>Reports</header><clause commented="no" display-inline="no-display-inline" id="id1a4fb44cfbea4a3090e0be5f9ee58b4f"><enum>(i)</enum><header display-inline="yes-display-inline">Initial report</header><text>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—</text><subclause commented="no" display-inline="no-display-inline" id="id706fb868934d48ae9d2243c0243f0294"><enum>(I)</enum><text display-inline="yes-display-inline">all members of the National Board;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id3c8b01345d2c48c6bacb3a2903d5548f"><enum>(II)</enum><text display-inline="yes-display-inline">all Federal agencies;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="ida207388864194666a941f82d09b0040f"><enum>(III)</enum><text display-inline="yes-display-inline">each State;</text></subclause><subclause id="id75851fe6a1ba4aacac56c0ae4c7d1196"><enum>(IV)</enum><text>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</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id68eeec06cf9c42a6b8d09d72253cc0c1"><enum>(V)</enum><text>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.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id1b7d1339ee9f4f1dbe5ea64593092105"><enum>(ii)</enum><header>Interim report</header><text display-inline="yes-display-inline">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).</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id42bac1c691b24c50b40c860ffb7361aa"><enum>(G)</enum><header>Implementation plan</header><text>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.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idb502bdc8ed11481e8210ec40dd2763cb"><enum>(4)</enum><header>Modernization Activities</header><subparagraph commented="no" display-inline="no-display-inline" id="idd42bc8c8fc134ba5a3849cbb976dec32"><enum>(A)</enum><header display-inline="yes-display-inline">Funds</header><text display-inline="yes-display-inline">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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4fc6c19163d94f999cd8934609197e8c"><enum>(B)</enum><header>Activities</header><text>The Secretary may use the amount to—</text><clause commented="no" display-inline="no-display-inline" id="id268deb2da8c14f5cbb4b7c316291cf5e"><enum>(i)</enum><text display-inline="yes-display-inline">modernize Federal and State labor market measurement and reporting;</text></clause><clause commented="no" display-inline="no-display-inline" id="idfaf3383b27ec4f2184d4071ce4620f08"><enum>(ii)</enum><text>promote Federal and State labor market information system modernization activities that may include—</text><subclause commented="no" display-inline="no-display-inline" id="idcb808f5f15f146a5bd31007cd789dfaf"><enum>(I)</enum><text>measuring occupational exposure to artificial intelligence or emerging technology, including task automation;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id478dce3ee6b54b49b0a1e48c5629fa7c"><enum>(II)</enum><text>analyzing changes in entry-level employment;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id96fa715e385848f78c640267f4fa4606"><enum>(III)</enum><text>analyzing hiring requirements;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idc5f8acfef49a4c098dcf32eedf0de14d"><enum>(IV)</enum><text>analyzing career pathways;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id1038aabd19054b77b91302981e141b58"><enum>(V)</enum><text>tracking worker displacement, redeployment, reemployment, and earning outcomes;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idfcf49756ef0b45dea76e6c894ef7fdf2"><enum>(VI)</enum><text>analyzing regional impacts of artificial intelligence or emerging technology; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id3ddf20419248463eb7afe2c37fffe4b2"><enum>(VII)</enum><text>examining the relationship between the adoption of artificial intelligence or emerging technology, productivity, employment, wages, and job quality; and</text></subclause></clause><clause id="id35aeab7bd6464690ad89ac8bddd97cd3" commented="no" display-inline="no-display-inline"><enum>(iii)</enum><text>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.</text></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id09ff39d390ee40b8bf8895519b508425"><enum>(c)</enum><header>Worker transition assistance and other services</header><paragraph id="id58f8fec878cd4bc58426177f48e1fd71"><enum>(1)</enum><header>In general</header><text>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).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idac77dc3c3beb4d519eba1b3af4b15e2b"><enum>(2)</enum><header>Access to training services through individual training accounts</header><subparagraph commented="no" display-inline="no-display-inline" id="id871c4e18272040a89086cae13c284fcc"><enum>(A)</enum><header display-inline="yes-display-inline">Grants to local areas</header><clause commented="no" display-inline="no-display-inline" id="id4d30268084b84f85b3798f2acc39d800"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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).</text></clause><clause commented="no" display-inline="no-display-inline" id="id70fe2ca1016141c8a507b6665044aac7"><enum>(ii)</enum><header>Exception</header><text display-inline="yes-display-inline">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.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idf9d833b7d4bc4dfa8f5c6c687d3d7acc"><enum>(B)</enum><header>Allocation of funds</header><text>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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idf5b3b07953074a9d922e8162d4e1f081"><enum>(C)</enum><header>Providers</header><clause commented="no" display-inline="no-display-inline" id="id6d37c2708f6b451b861ebdde5fa0afd0"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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).</text></clause><clause commented="no" display-inline="no-display-inline" id="idffd3ce148e564711b536c4f7d8120576"><enum>(ii)</enum><header>Eligible providers</header><text>To be eligible to enter into an agreement under this paragraph, a provider shall be an eligible provider of training services under section 122.</text></clause><clause commented="no" display-inline="no-display-inline" id="id176e98acef054f1c935da7e0af5b4b55"><enum>(iii)</enum><header>Application</header><text>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—</text><subclause commented="no" display-inline="no-display-inline" id="ide9d77271ec0e4a6c96c37c96fcd7f1d9"><enum>(I)</enum><text display-inline="yes-display-inline">completion by, employment of, and earnings of workers;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id28aa3ab640fa4f8f8d853ca95bc0a0db"> <enum>(II)</enum> <text display-inline="yes-display-inline">if the services lead to a recognized postsecondary credential, that recognized postsecondary credential and portability of such credential;</text>
 </subclause><subclause commented="no" display-inline="no-display-inline" id="iddc5b72d728d54b0aa5bff789378e9b1f"><enum>(III)</enum><text display-inline="yes-display-inline">alignment of the services with regional labor market needs; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id48d16a0395304546b8e17c0d9039e559"><enum>(IV)</enum><text display-inline="yes-display-inline">cost to the local area and consumer protection of workers.</text></subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5b3f3bff280c4f469f50f7427cc6caf9"><enum>(3)</enum><header display-inline="yes-display-inline">Education and training grants for credentials in in-demand industry sectors or occupations</header><subparagraph commented="no" display-inline="no-display-inline" id="id127ed059f26f40f9a518e5fd6465d966"><enum>(A)</enum><header display-inline="yes-display-inline">Grants to States</header><text>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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idadfa8ed26b4942fcbb9782d1db04df01"><enum>(B)</enum><header>Applications</header><text>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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2c6df8d89ec84d70b5bfda075ca381a8"><enum>(C)</enum><header>Transfer to State higher educational entities</header><clause commented="no" display-inline="no-display-inline" id="id6fe76ffe7a0f45ac92c9362a5b2fc2f6"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text>A State that receives a grant under subparagraph (A) shall transfer the grant funds to the appropriate State higher education agency.</text></clause><clause commented="no" display-inline="no-display-inline" id="ide9b93f9ad6cb44b682e5e86161c5ee71"><enum>(ii)</enum><header>Administration</header><text>Upon transfer of the grant funds under clause (i), the State higher educational entity shall administer the grant under this paragraph.</text></clause><clause commented="no" display-inline="no-display-inline" id="id21d803a0a9584db18b0107690caef5ab"><enum>(iii)</enum><header>Authority</header><subclause commented="no" display-inline="no-display-inline" id="ide47e339840814498a1b35707fdc8eeec"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">The State higher education agency shall carry out the goals of the grant program described in subparagraph (A) and shall—</text><item commented="no" display-inline="no-display-inline" id="idcf57c386f8b349df9293dc4bbf954ba3"><enum>(aa)</enum><text display-inline="yes-display-inline">require eligible institutions and providers to provide data specific to students or incumbent workers, as applicable;</text></item><item commented="no" display-inline="no-display-inline" id="id6752d6e8fa2d4f6390d9a04a82303a99"><enum>(bb)</enum><text display-inline="yes-display-inline">make final decisions on any dispute between an eligible institution or provider, and a student or incumbent worker; and</text></item><item id="id636ac6e1c44047018f53303a02906ec4" commented="no" display-inline="no-display-inline"><enum>(cc)</enum><text>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.</text></item></subclause><subclause commented="no" display-inline="no-display-inline" id="ide79091099b604aacbe083d00778b50d7"><enum>(II)</enum><header>Regulations</header><text>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.</text></subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0fa93daf89304953bc1841728575393e"><enum>(D)</enum><header display-inline="yes-display-inline">Subgrants to institutions of higher education and providers</header><clause commented="no" display-inline="no-display-inline" id="id6b177ef191a743e7a3a9b8c33696bb74"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></clause><clause commented="no" display-inline="no-display-inline" id="ide96419d3750c4680971f91765b98c790"><enum>(ii)</enum><header>Applications</header><text display-inline="yes-display-inline">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.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id576980327d824db6ade02fb96ef927d7"><enum>(E)</enum><header>Funding for students and incumbent workers</header><text>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—</text><clause commented="no" display-inline="no-display-inline" id="ide6941f7260c34da899c5f101ce775fdf"><enum>(i)</enum><text display-inline="yes-display-inline">the institution or provider shall select students or incumbent workers to participate;</text></clause><clause commented="no" display-inline="no-display-inline" id="id7a8c60a580b54d6d8efcc4d4c89e885f"><enum>(ii)</enum><text>a student or incumbent worker who is selected and enrolls in the corresponding education or training services program shall pay for <fraction>1/3</fraction> of the cost of the program on enrollment; and</text></clause><clause commented="no" display-inline="no-display-inline" id="idd1fab077efa9440e88793300cd7df55b"><enum>(iii)</enum><text>such a student or incumbent worker who does not complete the program shall pay for an additional <fraction>1/3</fraction> of that cost.</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id23a319be71404210889b1b47eaa37eb5"><enum>(4)</enum><header>Sectoral workforce partnership grants</header><subparagraph commented="no" display-inline="no-display-inline" id="idfb68fa4f9f8e4a09bc9b8f3d28f36794"><enum>(A)</enum><header>Grants to States</header><clause commented="no" display-inline="no-display-inline" id="id9b70a7f21e2b448b8e0f2edfd0103b1f"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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)—</text><subclause commented="no" display-inline="no-display-inline" id="idc81899f2d4ae4e26b3d7e1fafc5f8f89"><enum>(I)</enum><text display-inline="yes-display-inline">to create, expand, or modernize a sectoral workforce partnership; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="ida1140979c3db4dafb0c77044c2e79c99"><enum>(II)</enum><text display-inline="yes-display-inline">acting through that partnership, to assist workers with career pathways tied to labor market demand.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="idb7d8600ed5ed4135ba072a8a97279e4e"><enum>(ii)</enum><header>Applications</header><text>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.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc850b79c5a2142bdb51150eae6523bce"><enum>(B)</enum><header>Subgrants to local boards</header><clause commented="no" display-inline="no-display-inline" id="id5bfc26b35a894e45ab36640a3848449a"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text>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).</text></clause><clause commented="no" display-inline="no-display-inline" id="idddbc6a95f981424bbb734a45a935bc9b"><enum>(ii)</enum><header>Applications</header><text>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.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc63c1f8afd1b4dee8201b10e001ee55e"><enum>(C)</enum><header>Agreements with eligible entities</header><clause commented="no" display-inline="no-display-inline" id="idad8a7b3e2ce948299480edb36efffb04"><enum>(i)</enum><header>In general</header><text>A local board that receives a subgrant under this paragraph shall use the subgrant funds to enter into agreements with eligible entities.</text></clause><clause commented="no" display-inline="no-display-inline" id="idd3b7cda641da43c086433c00790a7366"><enum>(ii)</enum><header display-inline="yes-display-inline">Eligible entities</header><text display-inline="yes-display-inline">To be eligible to enter into an agreement under this paragraph, an entity shall—</text><subclause commented="no" display-inline="no-display-inline" id="id70b1f9d8c1c243d180b75f44a9584a29"><enum>(I)</enum><text display-inline="yes-display-inline">relate to—</text><item commented="no" display-inline="no-display-inline" id="id0c694671cc7e47ac8500afcf53cbc1cd"><enum>(aa)</enum><text display-inline="yes-display-inline">an in-demand industry sector or occupation; or</text></item><item commented="no" display-inline="no-display-inline" id="id61d01f76903d42fd8c0f571f0691ee79"><enum>(bb)</enum><text display-inline="yes-display-inline">an industry with high growth potential, as determined by the local board; and</text></item></subclause><subclause commented="no" display-inline="no-display-inline" id="id8a43d658828a4f9fa9478c825a537460"><enum>(II)</enum><text display-inline="yes-display-inline">consist of, or propose to create, a partnership of at least 3 of the following organizations—</text><item commented="no" display-inline="no-display-inline" id="id99d59eb3104a4b9690ad5df1962be19b"><enum>(aa)</enum><text>employers;</text></item><item commented="no" display-inline="no-display-inline" id="id2a07ef3f687041fdaff804ad0fa2958f"><enum>(bb)</enum><text>labor organizations or other worker organizations;</text></item><item commented="no" display-inline="no-display-inline" id="idcb876c9dc0b04abeb46f1b742a7b23eb"><enum>(cc)</enum><text>State boards;</text></item><item commented="no" display-inline="no-display-inline" id="idcf63c83c8e694ead91f5f8eb796eae76"><enum>(dd)</enum><text>local boards;</text></item><item commented="no" display-inline="no-display-inline" id="id08cb40725be34df7900d8301bb6bcf15"><enum>(ee)</enum><text>community colleges or institutions of higher education;</text></item><item commented="no" display-inline="no-display-inline" id="id9061fcdec53147c4bb401da258d32520"><enum>(ff)</enum><text>sponsors of apprenticeship programs;</text></item><item commented="no" display-inline="no-display-inline" id="idd423e6aa98a14fc7a6a157c707dc38b0"><enum>(gg)</enum><text>economic development agencies; or</text></item><item commented="no" display-inline="no-display-inline" id="id0e60e8d70af142219edefec982b66e75"><enum>(hh)</enum><text>workforce intermediaries.</text></item></subclause></clause><clause id="id83393bec1f1a4d3d81a56aead9f5ee6a"><enum>(iii)</enum><header>Applications</header><text>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.</text></clause><clause commented="no" display-inline="no-display-inline" id="id689dadb5206f49038b6decd343ffa932"><enum>(iv)</enum><header>Priority</header><text display-inline="yes-display-inline">In determining which entities to enter into agreements with under this paragraph, a local board shall give priority to entities that—</text><subclause commented="no" display-inline="no-display-inline" id="id3f42f2fddf27479dae21bfff67d4d9db"><enum>(I)</enum><text display-inline="yes-display-inline">serve workers experiencing or facing employment loss or labor market disruption;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id2b5b401eb9374534a59a71e9d973c402"><enum>(II)</enum><text display-inline="yes-display-inline">provide portable industry-recognized credentials;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="ida379e90e6dfe4f2f91f1e93aea264a4d"><enum>(III)</enum><text display-inline="yes-display-inline">propose a program with employer commitments to interview, hire, retain, redeploy, or advance individuals who complete the program;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id5f87bac3a6f642e8b10dbfb7e7c78589"><enum>(IV)</enum><text display-inline="yes-display-inline">propose a program that includes labor organization or worker organization participation; or</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id215eb660851c44319eb1de897dbb7835"><enum>(V)</enum><text>propose a program that supports jobs that provide wages sufficient for economic security or a credible pathway to such wages.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id7e675c49e3f64429a95f2009284b0dad"><enum>(v)</enum><header>Use of funds</header><text display-inline="yes-display-inline">An entity that enters into an agreement under this paragraph may use the funds provided through the agreement—</text><subclause commented="no" display-inline="no-display-inline" id="idcb43cb31b7de47eba88a754ec94d0e8f"><enum>(I)</enum><text display-inline="yes-display-inline">to assist workers in pursuing career pathways that are tied to real labor market demand and in—</text><item commented="no" display-inline="no-display-inline" id="idf3b8489d93614199a06f811a92a04359"><enum>(aa)</enum><text display-inline="yes-display-inline">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</text></item><item commented="no" display-inline="no-display-inline" id="id2ababaf6ef2a4212a007c243b0b53e89"><enum>(bb)</enum><text>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</text></item></subclause><subclause commented="no" display-inline="no-display-inline" id="ida55000f59ec04d6ba37f6d32f95ad7d3"><enum>(II)</enum><text display-inline="yes-display-inline">to carry out a limited portable artificial intelligence or emerging technology skills credential pilot program—</text><item commented="no" display-inline="no-display-inline" id="id8fddddc316184660965a789bc592575c"><enum>(aa)</enum><text display-inline="yes-display-inline">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</text></item><item commented="no" display-inline="no-display-inline" id="id4941c9b6c8064b64bfe435de48e39f9c"><enum>(bb)</enum><text display-inline="yes-display-inline">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.</text></item></subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idfc5dee18a9004bc1bcbaa7d4d756000f"><enum>(5)</enum><header display-inline="yes-display-inline">Provision of supportive services</header><text>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—</text><subparagraph commented="no" display-inline="no-display-inline" id="idc254b364e0c342e888d8e1ea9caa6cd4"><enum>(A)</enum><text>housing;</text></subparagraph><subparagraph id="id0db8f2adee744cef969e9949416eb27a"><enum>(B)</enum><text>child care;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2ab32d32e21e43f88cfc9b4ad2facedd"><enum>(C)</enum><text>transportation;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idffa3602b259e4063837e18129d2846a5"><enum>(D)</enum><text>health benefits; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1fbba4bdb77a46488b46282d41959852"><enum>(E)</enum><text>any other service the Secretary determines to be necessary to support such workers during the transition period.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd4a5c5f3e81848bc88be98493a8bb11e"><enum>(6)</enum><header>State higher education agency</header><text>As used in this subsection, the term <term>State higher education agency</term> has the meaning given the term in section 103 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1003">20 U.S.C. 1003</external-xref>).</text></paragraph></subsection><subsection id="id956ad3ed9a8d4428a3ecfc4658d7dfd9"><enum>(d)</enum><header>Employer retention, redeployment, or transitioning grants</header><paragraph commented="no" display-inline="no-display-inline" id="idd9048ce453fb45a7bd03a38e449661b2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text>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.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8ea853bdc7514fd2b839b0bd9d4cee48"><enum>(2)</enum><header>Grants to States and local boards</header><subparagraph commented="no" display-inline="no-display-inline" id="id03a3bdb3182647fa9d9ee007f3f70ab4"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="iddeb632f1dab3425d876a56df9bdaa609"><enum>(B)</enum><header>Applications</header><text>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.</text></subparagraph></paragraph><paragraph id="id60416f13e65c4ee89136e9ff9722dfe7"><enum>(3)</enum><header>Subgrants to employers</header><subparagraph commented="no" display-inline="no-display-inline" id="id1b5fb4f02b544215836ac38afe2019ba"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>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).</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id28b5da1909234381ba8d457aec729c6d"><enum>(B)</enum><header>Workforce transition plans</header><text>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—</text><clause commented="no" display-inline="no-display-inline" id="idc91f42e905714673a1caa3eecd5390af"><enum>(i)</enum><text display-inline="yes-display-inline">the artificial intelligence or emerging technology workforce transition compact, described in subparagraph (C), that the employer has entered into with the Secretary;</text></clause><clause commented="no" display-inline="no-display-inline" id="id5313f5aed3194e549d11083687625fd0"><enum>(ii)</enum><text>information identifying the cohort of covered workers to be served under the initiative;</text></clause><clause commented="no" display-inline="no-display-inline" id="id28bc9d5e257d4c2594e34fc315c5a4c0"><enum>(iii)</enum><text>information describing how artificial intelligence or emerging technology is changing job design or staffing needs for covered workers in that cohort;</text></clause><clause commented="no" display-inline="no-display-inline" id="id43151623709b4137b6b871b393291c0c"><enum>(iv)</enum><text display-inline="yes-display-inline">information identifying how the employer will prioritize retention, redeployment, or responsible transitioning, over layoffs, for covered workers in that cohort;</text></clause><clause commented="no" display-inline="no-display-inline" id="id15fe2bdb76a34406919a5d5a3c99d320"><enum>(v)</enum><text>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</text></clause><clause commented="no" display-inline="no-display-inline" id="id3a6ba48f32ba4ca2a5c3047d4358f192"><enum>(vi)</enum><text>if the initiative to be provided leads to an industry-recognized credential, information indicating the quality of the initiative leading to the credential.</text></clause></subparagraph><subparagraph id="id8edb7eb7a72c4aeea566e104d6910cda"><enum>(C)</enum><header>Workforce transition compact</header><clause commented="no" display-inline="no-display-inline" id="idc4259d77c29c4070abeb63a502f9307c"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">An employer seeking a subgrant under this subsection shall enter into a workforce transition compact with the Secretary.</text></clause><clause commented="no" display-inline="no-display-inline" id="ida353f907fe2047d78566b3cef52a43f5"><enum>(ii)</enum><header>Provisions</header><text display-inline="yes-display-inline">The compact shall include provisions relating to the initiative that—</text><subclause commented="no" display-inline="no-display-inline" id="idf5e35cf8c176400c96771846bd668a91"><enum>(I)</enum><text display-inline="yes-display-inline">specify retention, redeployment, or responsible transitioning targets for the employer;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idfb1fcb2a3b51444caf8e1f3efc02868a"><enum>(II)</enum><text display-inline="yes-display-inline">establish procedures for notice to and consultation with the covered workers served under the subgrant;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idc72378e1527d44c4a1d4536abfbaf728"><enum>(III)</enum><text display-inline="yes-display-inline">establish wage and benefit standards for redeployed covered workers;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id1cebefacd9b24bdebb2af32efc45c339"><enum>(IV)</enum><text>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</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id8d8fb4d814994c6db7db360b7851a74c"><enum>(V)</enum><text>establish procedures for recovery of subgrant funds if the employer fails to satisfy the requirements of this subparagraph or subparagraph (B), respectively.</text></subclause></clause></subparagraph></paragraph><paragraph id="id4362133d7c53495ca0bc06542d3b686f" commented="no" display-inline="no-display-inline"><enum>(4)</enum><header>Covered worker</header><text>In this subsection, the term <term>covered worker</term> 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.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id28aded49e04b4cbc81c6d722bb95377b"><enum>(e)</enum><header>Pilot Programs</header><paragraph commented="no" display-inline="no-display-inline" id="id78550fe6ff364bddaf77f3790b4de389"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idce0cdf8372454d8e9ec07da8d8ef5f48"><enum>(2)</enum><header>Eligible entities</header><text display-inline="yes-display-inline">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—</text><subparagraph commented="no" display-inline="no-display-inline" id="id4a94ae3baa9d463e9989996999f498da"><enum>(A)</enum><text display-inline="yes-display-inline">projects that directly support workers, which may include projects that provide—</text><clause commented="no" display-inline="no-display-inline" id="ide744ace810db4091930d4567a97c6cd5"><enum>(i)</enum><text display-inline="yes-display-inline">wage insurance;</text></clause><clause commented="no" display-inline="no-display-inline" id="id129c8982f9b94627bbc8601a6f26bae5"><enum>(ii)</enum><text>unemployment benefits;</text></clause><clause commented="no" display-inline="no-display-inline" id="id956a0302b9894beba5a35dc31defd7b9"><enum>(iii)</enum><text>portable benefits;</text></clause><clause commented="no" display-inline="no-display-inline" id="id0767dad7ef774f2f880d955d5cfb9338"><enum>(iv)</enum><text>technology training and education;</text></clause><clause commented="no" display-inline="no-display-inline" id="id98291417d4504836916365122f43ebcf"><enum>(v)</enum><text>job licensing;</text></clause><clause commented="no" display-inline="no-display-inline" id="idd5a76567f1ef4a55ab5621bac4eb889b"><enum>(vi)</enum><text>apprenticeships; or</text></clause><clause commented="no" display-inline="no-display-inline" id="iddafb2f6c9062498d8e1904554b812083"><enum>(vii)</enum><text>any other activity the Secretary determines to be necessary to support workers during the period in which the workers are transitioning into stable employment;</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5bd4278eefc64c89b9972a07dd7014b5"><enum>(B)</enum><text>projects that improve employment transition outcomes for the workers; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1658005b378342a1abeef396d85aef7b"><enum>(C)</enum><text>projects that modernize labor market information systems and related workforce data.</text></subparagraph></paragraph></subsection><subsection id="idc8966145ef2c4c24b2ad5cbfc68375d5"><enum>(f)</enum><header>Supplement not supplant</header><text>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).</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id6fc3906bd3574870ad37c085e8ff48f5"><enum>(g)</enum><header>Evaluation and reporting</header><paragraph commented="no" display-inline="no-display-inline" id="id8714b15a621240a7980666788f691622"><enum>(1)</enum><header>Performance measures for activities</header><subparagraph commented="no" display-inline="no-display-inline" id="idba44b21ee51c40c684d50e656a251078"><enum>(A)</enum><header>Establishment</header><text display-inline="yes-display-inline">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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5d621eaa8ce84a58a53a523ff1049b0d"><enum>(B)</enum><header>Data collection</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd459b84b6c054e999eec9f5bdd3b7321"><enum>(2)</enum><header>Study and report by Secretary</header><subparagraph commented="no" display-inline="no-display-inline" id="id72de26b452f84da2bd6955f0339336dd"><enum>(A)</enum><header>Study</header><text display-inline="yes-display-inline">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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5ea8b1b084134086bc04225094bbd0f5"><enum>(B)</enum><header>Sources</header><text>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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id56da601eee1f4290990b0c93a3f7968d"><enum>(C)</enum><header>Report</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ida7bd25affacb45078e94aba81bf87bb6"><enum>(3)</enum><header>Review and report by Comptroller General</header><subparagraph commented="no" display-inline="no-display-inline" id="id22db78876a24428484b644eb3e1a694a"><enum>(A)</enum><header>Review</header><text display-inline="yes-display-inline">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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id997e02a41d2e452da9e385e5a509fb7e"><enum>(B)</enum><header>Report</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph></subsection></section><section id="id574e3208f81a414abfb1e36e0fc86837"><enum>306.</enum><header>Consideration of extension, modification, and termination</header><subsection commented="no" display-inline="no-display-inline" id="id15e013d5558849ac946b7518354b7f80"><enum>(a)</enum><header>Review</header><text>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—</text><paragraph commented="no" display-inline="no-display-inline" id="idd4a2807fbacd4f648af7823ba4e1d07d"><enum>(1)</enum><text display-inline="yes-display-inline">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</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id89fe44aa38404b4fb584b98298bcd8d0"><enum>(2)</enum><text display-inline="yes-display-inline">revenue from the Fund should continue to be dedicated to carry out, in response to the adoption of artificial intelligence and emerging technology—</text><subparagraph commented="no" display-inline="no-display-inline" id="idc557a536c7db414f97e20e0633145046"><enum>(A)</enum><text display-inline="yes-display-inline">modernization of labor market information systems;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id993d6181cd334fdf9214bcbbb0af5972"><enum>(B)</enum><text display-inline="yes-display-inline">activities to assist workers to transition into employment; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6dd225f5cc8d42ac88c15449396d7649"><enum>(C)</enum><text display-inline="yes-display-inline">activities to assist employers with retention, redeployment, or transitioning of workers.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ida32f888c29014053bfec68a11aa3d64e"><enum>(b)</enum><header>Report</header><paragraph commented="no" display-inline="no-display-inline" id="id85b3eba1a36547998f491035f5c45fa2"><enum>(1)</enum><header>Contents</header><text display-inline="yes-display-inline">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—</text><subparagraph commented="no" display-inline="no-display-inline" id="id3a11aca777e54b8e8078245ce2fed71b"><enum>(A)</enum><text display-inline="yes-display-inline">the results of the review; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9e3ce49bfca446f3b84c517d9794b57e"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd76301844c4643a9b0e39f4a6e7fdc2f"><enum>(2)</enum><header>Submission</header><text>The Secretary shall submit the report to the appropriate committees of Congress and the President.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idf3e08036128947b8808af6b5cc7ce501"><enum>(3)</enum><header>Definition</header><text>In this subsection, the term <quote>appropriate committees of Congress</quote> means—</text><subparagraph commented="no" display-inline="no-display-inline" id="id201e54fb249e48ca86be5e26a469779b"><enum>(A)</enum><text>the Committee on Ways and Means and the Committee on Education and Workforce of the House of Representatives; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3948c5aa6fe44612b3ff5047086eb720"><enum>(B)</enum><text>the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate.</text></subparagraph></paragraph></subsection></section></title><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id2B74D4B769284D32BF1FB2D7C7224CFF"><enum>(b)</enum><header>Table of contents</header><text display-inline="yes-display-inline">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:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ida93624b92a534ce1a011829de4372ce3"><toc><toc-entry level="title">TITLE III—WORKFORCE TRANSITION</toc-entry><toc-entry bold="off" level="section">Sec. 301. Purpose.</toc-entry><toc-entry bold="off" level="section">Sec. 302. Definitions.</toc-entry><toc-entry bold="off" level="section">Sec. 303. National Workforce Transition Board.</toc-entry><toc-entry bold="off" level="section">Sec. 304. National Workforce Transition Fund.</toc-entry><toc-entry bold="off" level="section">Sec. 305. Use of funds.</toc-entry><toc-entry bold="off" level="section">Sec. 306. Consideration of extension, modification, and termination.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section commented="no" display-inline="no-display-inline" id="id2e6d3755c4094ab78e0bb228188c29c6"><enum>3.</enum><header>Exempting AI data centers from bonus depreciation</header><subsection commented="no" display-inline="no-display-inline" id="id979871a2681c488faa141e8401e12243"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(k)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id84551990251742a3a97c0eeef62ac0c3"><enum>(1)</enum><text>in paragraph (9)—</text><subparagraph commented="no" display-inline="no-display-inline" id="idf5e66a57138d4bca8fc033559d2a3005"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking <quote>or</quote> at the end,</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idf45f775452414895803af789c0b428d9"><enum>(B)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>, or</quote>, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idebdf44f6074d4fdca939f0647d52670f"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idc2f6dc9c8b924298be578f0ae39977d4"><subparagraph commented="no" display-inline="no-display-inline" id="idbfd62c3090274dbbb40dfea2c753d41a"><enum>(C)</enum><text>any property used in an AI data center.</text></subparagraph> <after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id98956d584b5f4bc8ac306581ae5224bc"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3990bd9f8d2a4603a21aba13f73de986"><paragraph commented="no" display-inline="no-display-inline" id="idd905079c5f084c40a8db3ee008e2b899"><enum>(11)</enum><header>AI data center</header><subparagraph commented="no" display-inline="no-display-inline" id="id3e580f5dff9f431a89b862ebf115c1c5"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of paragraph (9)(C), the term <term>AI data center</term> means a permanent or semipermanent structure, or group of such structures, which—</text><clause commented="no" display-inline="no-display-inline" id="id582a5fe6737f4050a9a59eb3085d37a6"><enum>(i)</enum><text display-inline="yes-display-inline">are dedicated to—</text><subclause commented="no" display-inline="no-display-inline" id="idf65b4a2940fa466caba9a4b9ee6e00e6"><enum>(I)</enum><text display-inline="yes-display-inline">the centralized accommodation, interconnection, and operation of information technology and network telecommunications equipment (including not less than 1 graphics processing unit), and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id117934829f224464abe4600bec5075cd"><enum>(II)</enum><text display-inline="yes-display-inline">providing data storage, processing, and transport services, and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id601f7e2128794e8aa992e61ea56a8c26"><enum>(ii)</enum><text>at least 20 percent of which is used for developing or operating artificial intelligence.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id03e3500865e349e4bff9e198e89221c5"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of subparagraph (A)—</text><clause commented="no" display-inline="no-display-inline" id="id2cb29f46f4114bcb895e6af696b2ba6c"><enum>(i)</enum><header>Graphics processing unit</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <term>graphic processing unit</term> means a specialized electronic circuit designed to accelerate image rendering, graphics processing, and parallel computation tasks.</text></clause><clause commented="no" display-inline="no-display-inline" id="id0d1fa361b73d4e01ae1135fbb6dfd9f9"><enum>(ii)</enum><header>Artificial intelligence</header><text display-inline="yes-display-inline">The term <term>artificial intelligence</term> has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/15/9401">15 U.S.C. 9401</external-xref>).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id240a2a5f1edb4888b92a7d72e342c050"><enum>(b)</enum><header>Application of leased property rules to AI data centers</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id37014a4300b64f3b8306b661009ee151"><subsection commented="no" display-inline="no-display-inline" id="id43c8764713944ae2801bf3b877281f8b"><enum>(o)</enum><header>Application of leased property rules to AI data centers</header><text>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).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id238c1b006dca423184b0afc1d1843f9f"><enum>(c)</enum><header display-inline="yes-display-inline">Transfer to National Workforce Transition Fund</header><paragraph commented="no" display-inline="no-display-inline" id="id958c841a4be64b158b9be4a823df6f7c"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide30304fbebf14b7c8265716dd4c4dae8"><enum>(2)</enum><header>Termination</header><text>Paragraph (1) shall not apply after the date which is 5 years after the date of enactment of this Act.</text></paragraph></subsection><subsection id="id7710553597b74796ab87be85b120330a" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of enactment of this Act.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id5c990ad86a92423d915c88cb1bc78947"><enum>4.</enum><header>Termination</header><subsection commented="no" display-inline="no-display-inline" id="id0d3fd797d2514d37969fb22d56f1d8e6"><enum>(a)</enum><header display-inline="yes-display-inline">Bonus depreciation</header><text display-inline="yes-display-inline">The authority provided by section 3 terminates on the day that is 5 years after the date of enactment of this Act.</text></subsection><subsection id="id5b979e26976545e5a7d060ddc6837c4a" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header display-inline="yes-display-inline">Workforce development activities</header><text display-inline="yes-display-inline">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.</text></subsection></section></legis-body></bill>

