Consolidating Veteran Employment Services for Improved Performance Act

This Act may be cited as the Consolidating Veteran Employment Services for Improved Performance Act.

Effective October 1, 2027, there shall be transferred to the Secretary of Veterans Affairs all functions performed under the following programs of the Department of Labor, and all personnel, assets, and liabilities pertaining to such programs, immediately before such transfer occurs:

(A) Job counseling, training, and placement services for veterans under chapter 41 of title 38, United States Code.

(B) Federal Government employment services by the Secretary of Labor under section 4214 of such title.

(C) Administration of employment and reemployment rights of members of the uniformed services under chapter 43 of such title.

(D) Homeless veterans reintegration programs under chapter 20 of such title.

The Secretary of Veterans Affairs shall enter into memorandums of agreement with the Secretary of Labor and with States (as defined in section 4101(6) of title 38, United States Code), as the Secretary of Veterans Affairs determines necessary, to implement the transition of the programs specified under paragraph (1).

Nothing in this Act may be construed to affect the role and responsibility of the Secretary of Labor with respect to programs not administered by the Assistant Secretary of Labor for Veterans' Employment and Training Service as of the day before the date of the enactment of this Act that are specified under paragraph (1).

Under section 1105 of title 31, United States Code, the President shall include in the President’s budget request for the Department of Veterans Affairs for fiscal year 2028, and for each subsequent fiscal year, funding requested for the functions referred to in subsection (a)(1).

Any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or pertaining to a department or office from which a function is transferred by this Act—

(1) to the head of such department or office is deemed to refer to the head of the department or office to which such function is transferred; or

(2) to such department or office is deemed to refer to the department or office to which such function is transferred.

Except as otherwise provided by law, a Federal official to whom a function is transferred by this Act may, for purposes of performing the function, exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date of the transfer of the function under this Act.

All orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges—

(A) that have been issued, made, granted, or allowed to become effective by the President, the Secretary of Labor, the Secretary of Veterans Affairs, any officer or employee of any office transferred by this Act, or any other Government official, or by a court of competent jurisdiction, in the performance of any function that is transferred by this Act, and

(B) that are in effect on the effective date of such transfer (or become effective after such date pursuant to their terms as in effect on such effective date),

shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, any other authorized official, a court of competent jurisdiction, or operation of law.

This Act shall not affect any proceedings or any application for any benefits, service, license, permit, certificate, or financial assistance pending on the date of the enactment of this Act before an office transferred by this Act, but such proceedings and applications shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this Act had not been enacted, and orders issued in any such proceeding shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this subsection shall be considered to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this Act had not been enacted.

This Act shall not affect suits commenced before the date of the enactment of this Act, and in all such suits, proceeding shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this Act had not been enacted.

No suit, action, or other proceeding commenced by or against the Department of Labor or the Secretary of Labor, or by or against any individual in the official capacity of such individual as an officer or employee of an office transferred by this Act, shall abate by reason of the enactment of this Act.

If any Government officer in the official capacity of such officer is party to a suit with respect to a function of the officer, and under this Act such function is transferred to any other officer or office, then such suit shall be continued with the other officer or the head of such other office, as applicable, substituted or added as a party.

Except as otherwise provided by this Act, any statutory requirements relating to notice, hearings, action upon the record, or administrative or judicial review that apply to any function transferred by this Act shall apply to the exercise of such function by the head of the Federal agency, and other officers of the agency, to which such function is transferred by this Act.

Except as otherwise provided in this Act, so much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with a function transferred to an official or agency by this Act shall be available to the official or the head of that agency, respectively, at such time or times as the Director of the Office of Management and Budget directs for use in connection with the functions transferred.

Except as otherwise expressly prohibited by law or otherwise provided in this Act, an official to whom functions are transferred under this Act (including the head of any office to which functions are transferred under this Act) may delegate any of the functions so transferred to such officers and employees of the office of the official as the official may designate, and may authorize successive redelegations of such functions as may be necessary or appropriate. No delegation of functions under this section or under any other provision of this Act shall relieve the official to whom a function is transferred under this Act of responsibility for the administration of the function.

If necessary, the Director of Management and Budget shall make any determination of the functions that are transferred under this Act.

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

For purposes of this Act, the vesting of a function in a department or office pursuant to reestablishment of an office shall be considered to be the transfer of the function.

Existing appropriations and funds available for the performance of functions, programs, and activities terminated pursuant to this Act shall remain available, for the duration of their period of availability, for necessary expenses in connection with the termination and resolution of such functions, programs, and activities.

For purposes of this Act—

(1) the term function includes any duty, obligation, power, authority, responsibility, right, privilege, activity, or program; and

(2) the term office includes any office, administration, agency, bureau, institute, council, unit, organizational entity, or component thereof.

Subsection (a) of section 4102A of title 38, United States Code, is amended to read as follows:

There is established within the Department a Deputy Under Secretary for Veterans Economic Opportunity and Transition, who shall formulate and implement all departmental policies and procedures to carry out the purposes of this chapter, chapter 20, and chapter 43 of this title.

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Chapter 41 of title 38, United States Code, is amended as follows:

(1) The section heading of section 4102A of such title is amended to read as follows:

(1) .

(2) The item relating to such section in the table of sections at the beginning of such chapter is amended to read as follows:

(2) .

The amendments made by this section shall take effect on October 1, 2027.

Section 4104 of title 38, United States Code, is amended to read as follows:

(1) Subject to approval by the Secretary, a State shall employ and assign such full- or part-time veteran employment specialists in an agency of the State as the State determines appropriate and efficient to carry out the following:

(A) Employment, training, and placement services under this chapter.

(B) Intensive services under this chapter to meet the employment needs of eligible veterans with the following priority in the provision of services:

(i) Special disabled veterans.

(ii) Other disabled veterans.

(iii) Other eligible veterans in accordance with priorities determined by the Secretary taking into account applicable rates of unemployment and the employment emphases set forth in chapter 42 of this title.

(2) In the provision of services in accordance with this subsection, maximum emphasis in meeting the employment and training needs of veterans shall be placed on assisting economically or educationally disadvantaged veterans.

As principal duties, veteran employment specialists shall—

(1) conduct outreach to employers in the area to assist veterans and disabled veterans in gaining employment, including conducting seminars for employers and, in conjunction with employers, conducting job search workshops and establishing job search groups; and

(2) facilitate employment, training, and placement services furnished to veterans and disabled veterans in a State under the applicable State employment service delivery systems.

(1) Except as provided by paragraph (2), a State shall, to the maximum extent practicable, employ qualified veterans to carry out the services referred to in subsection (a). Preference shall be given in the appointment of such specialists to qualified disabled veterans. Preference shall be accorded in the following order:

(A) To qualified service-connected disabled veterans.

(B) If no veteran described in subparagraph (A) is available, to qualified eligible veterans.

(C) If no veteran described in subparagraph (A) or (B) is available, then to qualified eligible persons.

(2) During any period in which more than 10 percent of the individuals employed to carry out the services referred to in subsection (a) are non-veterans, the preference accorded under paragraph (1) shall be as follows:

(A) To qualified service-connected disabled veterans.

(B) If no veteran described in subparagraph (A) is available, to qualified eligible veterans.

(A) Each State that employs a veteran employment specialist under this section shall submit to the Secretary an annual report on the qualifications used by the State in making hiring determinations for such specialists and the salary structure under which such specialists are compensated.

(B) The Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives an annual report summarizing the reports submitted under subparagraph (A).

(C) The first report submitted by the Secretary under subparagraph (B) shall include an evaluation of whether the pay for veteran employment specialists should be scheduled on a standard basis for each State and include locality pay.

A part-time veteran employment specialist shall perform the functions of a veteran employment specialist under this section on a halftime basis.

Each veteran employment specialist shall be administratively responsible to the manager of the employment service delivery system and shall provide reports, not less frequently than quarterly, to the manager of such office and to the Director for Veterans’ Employment and Training for the State regarding compliance with Federal law and regulations with respect to special services and priorities for eligible veterans and eligible persons.

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The table of sections at the beginning of such chapter is amended by striking the item relating to section 4104 and inserting the following new item:

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The Secretary of Veterans Affairs shall ensure that an individual who is a veteran employment specialist under section 4104 of title 38, United States Code, as amended by paragraph (1), is properly trained to carry out the duties of such position.

Such title is further amended—

(1) by striking section 4103A and by striking the item relating to such section in the table of sections at the beginning of chapter 41 of such title;

(2) in section 4102A—

(A) in subsection (b)—

(i) in paragraph (5)—

(I) by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B);

(II) by amending subparagraph (A) to read as follows:

(A) veteran employment specialists appointed under section 4104(a) of this title; and

(II) ; and

(III) in subparagraph (B), as so redesignated, by striking such specialists and representatives described in subparagraphs (A) and (B) and inserting such representatives described in subparagraph (A);

(ii) in paragraph (7), by striking disabled veterans’ outreach program specialists and through local veterans’ employment representatives and inserting veteran employment specialists;

(B) in subsection (c)—

(i) in paragraph (1)—

(I) by striking sections 4103A(a) and and inserting section; and

(II) by striking section 4103A or;

(ii) in paragraph (2)(A)—

(I) in clause (i)(I)—

(aa) by striking disabled veterans’ outreach program specialists and local veterans’ employment representatives and inserting veteran employment specialists; and

(bb) by striking sections 4103A and 4104 and inserting section 4104;

(II) in clause (iii), by striking disabled veterans’ outreach program specialist or a local veterans’ employment representative and inserting veteran employment specialist;

(iii) in paragraph (4), by striking 4103A or;

(iv) in paragraph (5), by striking disabled veterans’ outreach program specialist and local veterans’ employment representative and inserting veteran employment specialist;

(v) in paragraph (7), by striking 4103A or; and

(vi) in paragraph (8)(A)—

(I) by striking 4103A or; and

(II) by striking disabled veterans’ outreach program specialist or a local veterans’ employment representative and inserting veteran employment specialist; and

(C) in subsection (f)(1), by striking disabled veterans’ outreach program specialists and local veterans’ employment representatives and inserting veteran employment specialists;

(3) in section 4109(a), by striking disabled veterans’ outreach program specialists, local veterans’ employment representatives and inserting veteran employment specialists;

(4) in section 4112(d)—

(A) in paragraph (1), by striking disabled veterans’ outreach program specialist and inserting veteran employment specialist; and

(B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and

(5) in section 3672(d)(1), by striking disabled veterans’ outreach program specialists under section 4103A and inserting veteran employment specialists appointed under section 4104(a).

The amendments made by this section shall take effect on October 1, 2027.

Chapter 41 of title 38, United States Code, as amended by this Act, is further amended as follows:

(1) By striking Assistant Secretary of Labor for Veterans’ Employment and Training each place it appears and inserting Deputy Under Secretary for Veterans Economic Opportunity and Transition.

(2) By striking Department of Labor each place it appears and inserting Department.

(3) By striking Secretary of Labor each place it appears and inserting Secretary.

(4) In section 4101, by striking paragraph (8).

(5) In section 4102A(b)—

(A) in paragraph (1), by striking such Assistant Secretary and inserting such Deputy Under Secretary; and

(B) in paragraph (3), by striking and consulting with the Secretary of Veterans Affairs.

(6) In section 4105(b), by striking and the Secretary of Veterans Affairs both places it appears.

(7) In section 4106(a), by striking chapters 42 and and inserting chapter.

(8) By striking section 4108.

(9) In the table of sections at the beginning of such chapter, by striking the item relating to section 4108.

(10) In section 4110(d), by striking paragraph (1) and redesignating paragraphs (2) through (6) as paragraphs (1) through (5), respectively.

(11) In section 4110A(b), by striking Congress and inserting the Committees on Veterans’ Affairs of the Senate and House of Representatives.

(12) In subsections (b) through (h) of section 4114, by striking Assistant Secretary each place it appears and inserting Deputy Under Secretary.

Chapter 42 of title 38, United States Code, is amended as follows:

(1) In section 4212(c), by striking include as part and inserting shall transmit to the Secretary of Veterans Affairs for inclusion as part.

(2) In section 4215(d)(1)—

(A) by striking In the and inserting For inclusion as part of the; and

(B) by striking shall evaluate and inserting shall transmit to the Secretary of Veterans Affairs an evaluation of.

Chapter 43 of title 38, United States Code, is amended as follows:

(1) In section 4303, by striking paragraph (11).

(2) By striking Secretary of Veterans Affairs each place it appears and inserting Secretary.

(3) In section 4321, by striking (through the Veterans’ Employment and Training Service).

(4) In section 4332(a)(1), by striking of Labor.

(5) In section 4333, by striking, the Secretary of Defense, and the Secretary of Veterans Affairs and inserting and the Secretary of Defense.

Chapter 20 of title 38, United States Code, is amended as follows:

(1) In section 2003(a)(4), by striking of the Department of Labor.

(2) In section 2011(g)(2), by striking the Department of Labor,.

(3) In section 2021—

(A) by striking Secretary of Labor each place it appears and inserting Secretary;

(B) in subsection (e)—

(i) by striking the subsection heading and inserting the following:

(i) ; and

(ii) by striking Assistant Secretary of Labor for Veterans’ Employment and Training and inserting Deputy Under Secretary for Veterans Economic Opportunity and Transition.

(4) In section 2021A—

(A) by striking Secretary of Labor each place it appears and inserting Secretary;

(B) in subsection (d)—

(i) by striking the subsection heading and inserting the following:

(i) ; and

(ii) by striking Assistant Secretary of Labor for Veterans’ Employment and Training and inserting Deputy Under Secretary for Veterans Economic Opportunity and Transition.

(5) In section 2023—

(A) in subsection (a), by striking and the Secretary of Labor (hereinafter in this section referred to as the Secretaries); and

(B) by striking Secretaries each place it appears and inserting Secretary.

(6) In section 2065(b)(5), by striking subparagraph (E) and redesignating subparagraphs (F) through (H) as subparagraphs (E) through (G), respectively.

(7) In section 2066(a)(3), by striking subparagraph (A) and redesignating subparagraphs (B) through (G) as subparagraphs (A) through (F), respectively.

Title 38, United States Code, is further amended as follows:

(1) In section 542(a)(2)(B), by striking clause (i) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively.

(2) In section 544(a)(2)(B), by striking clause (i) and redesignating clauses (ii) through (vi) as clauses (i) through (v), respectively.

(3) In section 3118(b), by striking and the Assistant Secretary for Veterans’ Employment in the Department of Labor.

(4) In section 3119(c), by striking Education, the Assistant Secretary for Veterans’ Employment in the Department of Labor,.

(5) In section 3121(a)(3)—

(A) by striking, (B) and inserting and (B); and

(B) by striking, and (C) one representative of the Assistant Secretary of Labor for Veterans’ Employment and Training of the Department of Labor. (b) The Secretary shall, on a regular basis, consult with and seek the advice of the Committee with respect to the administration of veterans’ rehabilitation programs under this title.

(6) In section 3692(a), by striking and the Assistant Secretary of Labor for Veterans’ Employment and Training shall be ex officio members and inserting an ex officio member.

(7) In section 6306—

(A) in subsection (a), by striking shall arrange with the Secretary of Labor for the State employment service to match and inserting shall ensure that the State employment service matches; and

(B) in subsection (b), by striking, in consultation with the Secretary of Labor,.

The amendments made by this section shall take effect on October 1, 2027.

The Secretary of Veterans Affairs and the Secretary of Labor shall jointly conduct a study on implementing—

(1) the transfer of functions under section 2; and

(2) the amendments made by this Act.

Such study shall include the following:

(1) A comprehensive discussion of the improvements to services for veterans made by the transfer of functions under section 2.

(2) An analysis of the personnel, assets, and liabilities of the Department of Labor and the Department of Veterans Affairs that would be involved in such transfer.

(3) An analysis of the Deputy Under Secretary for Veterans Economic Opportunity and Transition established under section 4102A(a) of title 38, United States Code, as amended by this Act, including—

(A) an explanation of where such position would exist within the organization chart of the Department;

(B) an identification of to whom such position would report; and

(C) the functions that would be carried out by such a position.

(4) A detailed estimate of the cost to the Federal Government to implement such transfer, including any costs or savings resulting from—

(A) carrying out such implementation; and

(B) the Secretary of Veterans Affairs carrying out the functions so transferred.

(5) A plan to implement such transfer, including—

(A) a detailed time line of such implementation;

(B) a list of the rules, regulations, and laws in effect on the date of the commencement of such study that would need to be revised for such implementation;

(C) a list of the memorandums of agreement entered into with Federal or State departments or agencies that would need to be revised for such implementation;

(D) a detailed description of how to effectively enforce the administration of employment and reemployment rights of members of the uniformed services under chapter 43 of title 38, United States Code, during such implementation; and

(E) how the transfer of employees will be implemented, including—

(i) options available to employees who do not want to be transferred;

(ii) the locations of where former Department of Labor employees will be assigned in the Department of Veterans Affairs; and

(iii) any organizational changes required in the Department of Veterans Affairs to accommodate such former Department of Labor employees.

(6) A detailed plan to train employees who carry out activities under section 4104 of title 38, United States Code, to carry out the functions so transferred, including—

(A) how training manuals in effect as of the date of the commencement of such study would need to be revised;

(B) whether the Secretary of Veterans Affairs or the Secretary of Labor would have responsibility for any such revision; and

(C) where such employees would be located.

(7) Any other issues the Secretaries consider appropriate.

Not later than one year after the date of the enactment of this Act, the Secretaries shall jointly submit to the Committees on Veterans’ Affairs of the House of Representatives and the Senate a report on such study, including—

(1) the recommendation of each Secretary as to how to best implement the transfer of functions described in such study;

(2) the advantages and disadvantages of such transfer;

(3) a list of regulatory and statutory actions required to implement such transfer that are not included under this Act;

(4) the amount of time each Secretary determines necessary to carry out such transfer;

(5) whether, to carry out such transfer, any interoperability capabilities will need to be developed to electronically exchange information between the Department of Veterans Affairs and employees who were formerly under the Department of Labor before such transfer;

(6) whether each Secretary plans to continue collaborating with the other Secretary after such transfer is completed, including an explanation of any such planned collaboration;

(7) an estimate of the training required to carry out the functions so transferred, including the number of employees requiring training and for which programs; and

(8) any other matters the Secretaries consider appropriate.