[Congressional Record Volume 149, Number 96 (Thursday, June 26, 2003)]
[Senate]
[Pages S8735-S8738]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. CANTWELL:
  S. 1348. A bill to amend the Higher Education Act of 1965 to modify 
the computation of eligibility for certain Federal Pell Grants, and for 
other purposes; to the Committee on Health, Education, Labor, and 
Pensions.
  Ms. CANTWELL. Mr. President, I come to the floor today to discuss a 
topic that I believe is critical to our Nation's economic growth and 
future competitiveness--the training of our workforce.
  We are living in tough economic times. The economy of the State of 
Washington and the Nation at large are suffering through a recession 
where jobs are scarce and workers are scrambling to pay the bills. The 
most recent employment data available from the Bureau of Labor 
Statistics have offered little comfort in Washington where the 
unemployment rate is 7.3 percent. Washington, along with the other 
Pacific Northwest States of Oregon and Alaska, continues to have among 
the highest unemployment rates in the nation.
  Just a month ago, the Senate moved quickly to extend the temporary 
extension of unemployment compensation program, so that approximately 
four million workers across this country will not lose their Federal 
extended unemployment benefits. I am proud that the Senate acted 
quickly to extend this important program. This means that over 100,000 
unemployed workers in Washington State will receive 26 weeks of Federal 
extended benefits. I am disappointed, however, that we were not able to 
pass coverage for the estimated 1.1 million unemployed workers who have 
entirely exhausted their State and Federal benefits. Therefore, I am 
fighting to pass a bill that would extend coverage to the long-term 
unemployed, so that help is available to the hardest hit workers in 
this weak economy.
  Nonetheless, our efforts should not stop with an unemployment 
insurance extension. We must continue to pursue long-term strategies 
for a sustained economic recovery. The fundamental strength of our 
economy lies in the working men and women of this Nation whose 
innovation and hard work propelled the massive economic expansion of 
the past decade.
  The competitive edge that will keep our workers ahead in this 
changing global economy is their skills. Our economy is global, linked 
by international markets and communications networks. The sustained 
success of U.S. companies depends on adaptability and innovation, which 
means that workers themselves need to remain flexible and continually 
update job skills.
  Even in this time of high unemployment, businesses throughout the 
country cannot find workers with the skills they need. According to a 
study completed by Heldrich Work Trends Survey, American employers are 
finding it difficult to hire qualified workers. Nearly half, 46 
percent, of American businesses say they have had trouble finding 
workers with the necessary skills. At the same time, over three million 
workers are laid off each year, but well under 500,000 receive any sort 
of training to learn the skills demanded by those businesses that face 
worker shortages. Job training is an answer to meeting those skill 
demands and bridging the skills gaps that persist. However, it will not 
occur widely without a strong financial commitment from the Federal 
Government to ensure access to job training programs, and ongoing 
efforts to maximize the effectiveness of those funds that we already 
invest.
  Investment in job training must be our first priority not our last--
the decisions we make today to invest in our workers will pay off many 
times over in the form of stronger local economies, healthier 
communities, and improved quality of life.
  But the reality is that we are delivering a trickle of funding while 
faced with a tidal wave of need. I have traveled across my state, from 
Olympia to Kelso, Vancouver to Bellingham, the Tri-cities to Spokane 
and received a great deal of feedback from Washingtonians who are 
seeking training, are providing it, or are serving as employers who 
need to hire skilled workers. And I heard similar concerns repeated in 
each of these areas: first, as our economy continues to evolve, the 
demand for new skills has grown; second, the enormous increase in 
demand for skills training by individual workers who are upgrading 
skills or changing jobs is a trend that appears to be widespread 
throughout the Nation; but third, far too many of those workers seeking 
access to training cannot get the training they need due to limited 
space at training institutions and the limited tuition assistance.
  Last year, my office released a study of this apparent shortfall in 
capacity of training systems in my State, and the results of that study 
were staggering to me. There are over 110,000 dislocated workers in my 
state, the majority of whom want to upgrade their skills but cannot do 
so because of budgetary limitations that prevent institutions from 
offering enough courses, and the limited numbers of available training 
vouchers.
  To make things worse, this year, the State of Washington received 
approximately 40 percent less in Workforce Investment Act, WIA, formula 
funding compared to last year. This drastic cut in WIA funding means 
that services will be cut back at a time when the demand is at an all 
time high. It is imperative that during this time of State deficits, 
States receive additional help from the Federal Government for 
important services such as education and job training.
  As my colleagues know, the Workforce Investment Act is up for 
reauthorization this year. The WIA system is clearly the centerpiece of 
the Federal job training programs. It provides a one-stop delivery 
system designed to meet a broad range of worker needs, and it emerged 
from years of bipartisan work by Congress to consolidate over 33 
Federal programs into one system for delivering employment and training 
services.
  Today, I am introducing three bills that are designed to build upon 
the existing workforce structure to expand opportunities for training 
and improve its effectiveness.
  The first piece of legislation would change the Pell Grant program to 
make certain that student financial aid is available to recently laid 
off workers. Under current law, the standard practice in the 
determination of Pell Grant eligibility for student aid is to base 
grant awards upon the applicant's income during the previous year. The 
use of tax forms for this purpose, in many cases, is the most 
appropriate and easiest administrative method of obtaining a clear and 
official statement of financial need. But, as a result, many recently 
laid-off workers are not eligible for critical financial assistance at 
a time when the workers' families are experiencing a dramatic decrease 
in income. My legislation would explicitly provide the authority for 
educational institutions, after taking sufficient precautions to 
prevent fraud, to consider current-year income levels for applicants 
seeking training through Pell Grant-eligible programs. It does this in 
a very narrow way, by only allowing institutions in States with high 
unemployment rates to consider current year financial circumstances 
rather than previous year income.
  The second bill addresses issues of distance-learning and delivery of 
training to hard to reach areas in a comprehensive manner. While many 
distance-learning technologies have been developed in recent years, 
those technologies have not necessarily reached many of those who are 
most in need of training. Many workers in need of

[[Page S8736]]

training may not be aware of online distance learning opportunities and 
may not be able to take advantage of them even if they do know about 
them. I believe, it is not enough to create a distance learning 
curriculum and passively provide it through an educational institution 
website. Rather, comprehensive solutions need to be developed that 
integrate curriculum innovations, technological access, and the 
promotion and linkage of workers in need of training with such 
opportunities, especially to help workers in rural areas. That's why my 
bill encourages the local workforce development boards to plan a 
comprehensive approach to improve access to and delivery of employment 
training services by using technology and online resources to connect 
workers with the information and tools they need to upgrade their 
skills.
  The third bill that I am introducing today is designed to help local 
workforce development boards better understand regional labor market 
dynamics and improve system performance by identifying emerging sectors 
and industries with chronic worker shortages. My legislation encourages 
local workforce development boards to target employment and training 
resources so that workers can get training in occupations where 
employers need workers.
  My legislation provides new resources to the state level so that 
states can direct funding down to the local workforce development 
boards to form partnerships with employers, unions, service providers 
and other key players in order to develop a strategic plan for 
addressing regional industry and workforce needs.
  I want to make clear that this legislation is not intended to 
reinvent the wheel for areas that are already developing sectoral 
approaches within existing workforce development systems. In fact, 
Washington State is a leader in sector approaches: in 2000, the 
Washington State Legislature enacted legislation to support industry 
skills panels known as the ``Skills Initiative.'' The Skills Initiative 
provides grants to local workforce development councils to engage 
business and industry in strategies to close the skill gaps in my 
State. My legislation emphasizes this work by providing funding to 
support these partnerships.
  This is a first step on a long journey as we work to improve Federal 
job training systems, and it is critical, now more than ever, that 
Congress increase funding for the job training programs under the 
Workforce Investment Act. By providing the necessary resources, we send 
a strong message to the American public that our government must invest 
in our greatest resource--the American worker. Each of these bills is 
an important component of that broader strategy, and I look forward to 
working with my colleagues as we begin to look at the reauthorization 
of WIA and the Higher Education Act this year and next.
  Mr. President, I ask unanimous consent that the text of each bill be 
printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                S. 1346

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Sectoral Market Assessment 
     for Regional Training Enhancement and Revitalization Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) More than \1/3\ of the Nation's current workforce lacks 
     the basic skills necessary to succeed in today's labor 
     market.
       (2) Globalization of the economy is leading to losses of 
     jobs in key domestic industries, as well as challenges to 
     competitiveness and productivity in other domestic 
     industries.
       (3) To remain economically vital and competitive, the 
     Nation must invest in generating jobs and train a workforce 
     skilled enough to contribute productively to the United 
     States economy.
       (4) Strategic planning that links workforce development and 
     economic development, and the targeting of resources to 
     industries that can build strong regional economies and 
     create jobs with living wages for workers, need to be 
     priorities for the workforce investment system.
       (5) States and local workforce investment boards can play 
     lead roles in guiding a more strategic process for achieving 
     economic growth through workforce development.

     SEC. 3. SKILLS GAP CAPACITY ENHANCEMENT GRANTS.

       Subtitle B of title I of the Workforce Investment Act of 
     1998 (29 U.S.C. 2811 et seq.) is amended--
       (1) by redesignating section 137 as section 138; and
       (2) by inserting after section 136 the following:

     ``SEC. 137. SKILLS GAP CAPACITY ENHANCEMENT GRANTS.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to assist States and local boards in better focusing 
     funds provided under this subtitle on activities and programs 
     that address labor shortages and meet the emerging demand for 
     skills in high-quality jobs in area industries;
       ``(2) to enhance the efficiency of the one-stop delivery 
     systems and providers of training services;
       ``(3) to establish and improve partnerships between local 
     boards, industry sectors, economic development agencies, 
     providers of training services (including secondary schools, 
     postsecondary educational institutions, community-based 
     organizations, business associations, and providers of joint 
     labor-management programs), providers of supportive services, 
     and other related public and private entities;
       ``(4) to strengthen integration of workforce development 
     strategies and economic development strategies in States, 
     local areas, and labor markets;
       ``(5) to retain vital industries in the local areas and 
     regions involved, avoid dislocation of workers, and 
     strengthen the competitiveness of key industries; and
       ``(6) to encourage the development of career ladders and 
     advancement efforts in local industries.
       ``(b) Definitions.--In this section:
       ``(1) Consortium.--The term `consortium' means a consortium 
     of local boards, established as described in subsection 
     (d)(3).
       ``(2) Region.--The term `region' means 2 or more local 
     areas that comprise a common labor market for an industry 
     sector or group of related occupations.
       ``(3) Training services.--The term `training services' 
     means services described in section 134(d)(4).
       ``(c) Grants to States.--
       ``(1) In general.--The Secretary shall make grants to 
     States, to enable the States to assist local boards and 
     consortia in carrying out the activities described in 
     subsection (e).
       ``(2) Formula.--
       ``(A) In general.--The Secretary shall make the grants in 
     accordance with the formula used to make grants to States 
     under section 132(b)(1)(B) (other than clause (iv)), subject 
     to subparagraph (B).
       ``(B) Small state minimum allotment.--The Secretary shall 
     ensure that no State shall receive an allotment under this 
     paragraph for a fiscal year that is less than \1/2\ of 1 
     percent of the funds made available to carry out this section 
     for that fiscal year.
       ``(d) Grants to Local Boards.--
       ``(1) In general.--A State that receives a grant under 
     subsection (c)--
       ``(A) shall use the funds made available through the grant 
     to make grants to local boards and consortia to carry out the 
     activities described in subsection (e); and
       ``(B) may use not more than 15 percent of the funds made 
     available through the grant, at the election of the State, to 
     prepare strategic sectoral skills gap assessments, as 
     described in subsection (e)(2), in the local areas or regions 
     involved, or to provide technical assistance to local boards, 
     consortia, or partnerships described in subsection (e)(3).
       ``(2) Consideration.--In making the grants, the State may 
     take into account the size of the workforce in each local 
     area or region.
       ``(3) Consortia.--States shall encourage local boards to 
     aggregate, to the maximum extent practicable, into consortia 
     representing regions, for purposes of carrying out activities 
     described in subsection (e). Nothing in this paragraph shall 
     be construed to require local boards to aggregate into such 
     consortia.
       ``(4) Applications.--To be eligible to receive a grant 
     under this section, a local board or consortium shall submit 
     an application to the State, at such time and in such manner 
     as the State may require, containing--
       ``(A) information identifying the members of the 
     partnership described in subsection (e)(3) that will carry 
     out the activities described in subsection (e); and
       ``(B) an assurance that the board or consortium will use, 
     or ensure that the partnership uses, the funds to carry out 
     the activities described in subsection (e).
       ``(e) Use of Funds.--
       ``(1) In general.--A local board or consortium that 
     receives a grant under this section--
       ``(A) shall ensure that the partnership described in 
     paragraph (3) uses the funds made available through the grant 
     to--
       ``(i) prepare a strategic sectoral skills gap assessment, 
     as described in paragraph (2), unless the State elects to 
     prepare the assessment;
       ``(ii) develop a strategic skills gap action plan, as 
     described in paragraph (4); and
       ``(iii) provide strategic training capacity enhancement 
     seed grants to providers of training services specified in 
     subsection (a)(3), one-stop operators, and other appropriate 
     intermediaries, as described in paragraph (5); and
       ``(B) may use funds made available through the grant to 
     ensure that activities carried

[[Page S8737]]

     out under this subtitle are carried out in accordance with 
     the strategic skills gap action plan.
       ``(2) Strategic sectoral skills gap assessment.--
       ``(A) In general.--Except as provided in subparagraph (E), 
     the local board or consortium (or, at the election of the 
     State, that State) shall prepare a strategic sectoral skills 
     gap assessment, which shall--
       ``(i) identify areas of current and expected demand for 
     labor and skills in a specific industry sector or group of 
     related occupations that is--

       ``(I) producing high-quality jobs in the local area or 
     region involved;
       ``(II) developing emerging jobs in that area or region; or
       ``(III) suffering chronic worker shortages;

       ``(ii) identify the current and expected supply of labor 
     and skills in that sector or group in the local area or 
     region; and
       ``(iii) identify gaps between the current and expected 
     demand and supply of labor and skills in that sector or group 
     in the local area or region.
       ``(B) Specific contents.--The assessment shall contain data 
     regarding--
       ``(i)(I) specific high-quality employment opportunities 
     offered by industries in the local area or region; and
       ``(II) specific skills desired for such opportunities;
       ``(ii)(I) occupations and positions in the local area or 
     region that are difficult to fill; and
       ``(II) specific skills desired for such occupations and 
     positions;
       ``(iii)(I) areas of growth and decline among industries and 
     occupations in the local area or region; and
       ``(II) specific skills desired for such growth areas; and
       ``(iv) specific inventories of skills of unemployed or 
     underemployed individuals in the local area or region.
       ``(C) Information.--The assessment shall contain current 
     (as of the date of preparation of the assessment) information 
     including specific information from multiple employers in the 
     sector or group described in subparagraph (A)(i), labor 
     organizations, and others connected to the businesses and 
     workers in that sector or group, to illuminate local needs of 
     both employers and workers. To the maximum extent possible, 
     the information shall be regularly updated information.
       ``(D) Survey.--The assessment shall contain the results of 
     a survey or focus group interviews of employers and labor 
     organizations and other relevant individuals and 
     organizations in the local area or region.
       ``(E) Exception.--
       ``(i) State.--A State shall not be required to use the 
     funds made available through a grant received under this 
     section, to prepare an assessment described in this 
     paragraph.
       ``(ii) Local board or consortium.--A local board or 
     consortium shall not be required to use the funds 
     made available through a grant received under this 
     section, to prepare an assessment described in this 
     paragraph, if the local board or consortium demonstrates 
     that, within the 2 years prior to receiving the grant, an 
     assessment that meets the requirements of this paragraph 
     has been prepared for the local area or region involved.
       ``(3) Skills partnership.--In carrying out this section, 
     local boards and consortia shall enter into partnerships that 
     include--
       ``(A) representatives of the local boards for the local 
     area or region involved;
       ``(B) representatives of multiple employers for a specific 
     industry sector or group of related occupations, and related 
     sectors or occupations, identified through the assessment 
     described in paragraph (2) as having identified gaps between 
     the current and expected demand and supply of labor and 
     skills in the industry sector or group of related occupations 
     in the local area or region involved;
       ``(C) representatives of economic development agencies for 
     the local area or region;
       ``(D) representatives of providers of training services 
     described in subsection (a)(3) in the local area or region;
       ``(E) representatives nominated by State labor federations 
     or local labor federations; and
       ``(F) other entities that can provide needed supportive 
     services tailored to the needs of workers in the sector or 
     group.
       ``(4) Strategic skills gap action plan.--The partnership 
     shall develop a strategic skills gap action plan, based on 
     the assessment, that--
       ``(A)(i) identifies specific barriers to adequate supply of 
     labor and skills in demand in a specific industry sector or 
     group of related occupations that is producing high-quality 
     jobs in the local area or region involved; and
       ``(ii) identifies activities (which may include the 
     provision of needed supportive services) that will remove or 
     alleviate the barriers described in clause (i) that could be 
     undertaken by one-stop operators and providers of training 
     services described in subsection (a)(3);
       ``(B) specifies how the local board (or consortium) and 
     economic development agencies in the partnership will 
     integrate the board's or consortium's workforce development 
     strategies with local or regional economic development 
     strategies in that sector or group; and
       ``(C) identifies resources and strategies that will be used 
     in the local area or region to address the skill gaps for 
     both unemployed and incumbent workers in that sector or 
     group.
       ``(5) Strategic training capacity enhancement seed 
     grants.--
       ``(A) In general.--The local board or consortium, after 
     consultation with the partnership, shall make grants to 
     providers of training services described in subsection 
     (a)(3), one-stop operators, and other appropriate 
     intermediaries to pay for the Federal share of the cost of--
       ``(i) developing curricula to meet needs identified in the 
     assessment described in paragraph (2) and to overcome 
     barriers identified in the plan described in paragraph (4);
       ``(ii) modifying the programs of training services offered 
     by the providers in order to meet those needs and overcome 
     those barriers;
       ``(iii) operating pilot training efforts that demonstrate 
     new curricula, or modifications to curricula, described in 
     clause (i);
       ``(iv) expanding capacity of providers of training services 
     in sectors or groups described in paragraph (2)(A)(i);
       ``(v) reorganizing service delivery systems to better serve 
     the needs of employers and workers in the sectors or groups; 
     or
       ``(vi) developing business services to ensure retention and 
     greater competitiveness of the sectors or groups.
       ``(B) Federal share.--
       ``(i) In general.--The Federal share of the cost described 
     in subparagraph (A) shall be 75 percent.
       ``(ii) Non-federal share.--The non-Federal share of the 
     cost may be provided in cash or in kind, fairly evaluated, 
     including plant, equipment, or services.''.

     SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

       Section 138 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2872), as redesignated by section 3(1), is amended by 
     adding at the end the following:
       ``(d) Skills Gap Capacity Enhancement Grants.--In addition 
     to any amounts authorized to be appropriated under subsection 
     (a), (b), or (c), there are authorized to be appropriated to 
     carry out section 137 such sums as may be necessary for 
     fiscal years 2004 through 2007.''.

     SEC. 5. CONFORMING AMENDMENTS.

       (a) Table of Contents.--The table of contents in section 
     1(b) of the Workforce Investment Act of 1998 is amended by 
     striking the item relating to section 137 and inserting the 
     following:

``Sec. 137. Skills gap capacity enhancement grants.
``Sec. 138. Authorization of appropriations.''.

       (b) References to Authorization of Appropriations.--
       (1) Youth activities.--Subsections (a) and (b)(1) of 
     section 127 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2852) are amended by striking ``section 137(a)'' each 
     place it appears and inserting ``section 138(a)''.
       (2) Adult employment and training activities.--Section 
     132(a)(1) of the Workforce Investment Act of 1998 (29 U.S.C. 
     2862(a)(1)) is amended by striking ``section 137(b)'' and 
     inserting ``section 138(b)''.
       (3) Dislocated worker employment and training activities.--
     Subsections (a)(2) and (b)(2)(A)(i) of section 132 of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2862) are amended 
     by striking ``section 137(c)'' each place it appears and 
     inserting ``section 138(c)''.

                                S. 1347

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

     SECTION 1. TRAINING SERVICE AND DELIVERY INNOVATION PROJECTS.

       Section 171(b)(1)(D) of the Workforce Investment Act of 
     1998 (29 U.S.C. 2916(b)(1)(D)) is amended to read as follows:
       ``(D) targeted innovation projects that improve access to 
     and delivery of employment and training services, with 
     emphasis given to projects that incorporate advanced 
     technologies to facilitate the connection of individuals to 
     the information and tools they need to upgrade skills, 
     including projects that link individuals in need of training 
     to opportunities for self-guided learning, and with priority 
     given to projects that--
       ``(i) actively promote sources of information about 
     training opportunities and training content by providing 
     technology directly to eligible training recipients;
       ``(ii) provide for the conduct of online eligibility 
     determinations for Federal and State training programs, and 
     direct individuals to the appropriate programs in the area; 
     and
       ``(iii) integrate high-quality employment and training 
     services information with the delivery of information 
     regarding other social services and health care programs;''.

                                S. 1348

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Pell Grant 
     Eligibility Clarification Act of 2003''.

     SEC. 2. CONSIDERATION OF CURRENT YEAR CIRCUMSTANCES.

       Section 480(a) of the Higher Education Act of 1965 (20 
     U.S.C. 1087vv(a)) is amended--
       (1) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)''; and
       (2) by adding at the end the following:
       ``(3) Consideration of current year circumstances for 
     certain pell grant awards.--
       ``(A) In general.--If a student is a resident of a State 
     that is in an extended benefit period (within the meaning of 
     section 203 of the

[[Page S8738]]

     Temporary Extended Unemployment Compensation Act of 2002 
     (Public Law 107-147)), then for purposes of calculating total 
     income under paragraph (1) for a student seeking assistance 
     under subpart 1 of part A, the Secretary shall reduce the 
     student's total income by an amount by which--
       ``(i) the adjusted gross income plus untaxed income and 
     benefits for the preceding tax year minus excludable income 
     (as defined in subsection (e)), exceeds
       ``(ii) the projected gross income plus untaxed income and 
     benefits for the current tax year minus the projected 
     excludable income (as defined in subsection (e)).
       ``(B) Anti-fraud procedures.--The Secretary shall establish 
     procedures to ensure that computations made pursuant to 
     subparagraph (A) are not fraudulent.''.
                                 ______