A Stronger Workforce for America Act of 2026

This Act may be cited as the A Stronger Workforce for America Act of 2026.

The table of contents for this Act is as follows:

Section 2 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3101) is amended—

(1) in paragraph (1), by striking support services and inserting supportive services;

(2) in paragraph (2), by inserting, for youth and adults, after economic development systems;

(3) in paragraph (6), by striking of the workforce, reduce welfare dependency, and inserting of the workforce, provide economic mobility, reduce dependency on public assistance programs,; and

(4) by adding at the end the following:

(7) To prepare a globally competitive workforce by developing robust education and skills development programs for youth to access career pathways that will lead such youth into in-demand industry sectors and occupations.

(4) .

Section 3(5) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(5)) is amended to read as follows:

The term foundational skill needs means, with respect to an individual who is a youth or adult, that the individual—

(A) has English reading, writing, or computing skills at or below the 8th grade level on a generally accepted standardized test; or

(B) is unable to compute or solve problems, is unable to read, write, or speak English, or does not possess digital literacy skills, at a level necessary to function in the individual's education or occupation, in the individual’s family, or in society.

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Section 3(7)(F) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(7)(F)) is amended by striking secondary school diploma and inserting regular high school diploma.

Section 3(14) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(14)) is amended to read as follows:

The term employer-directed skills development means skills development provided through a program—

(A) that is selected or designed to meet the specific skill demands of an employer (including a group of employers, such as an industry or trade association or an industry or sector partnership);

(B) that is conducted pursuant to the terms and conditions established under an employer-directed skills agreement described in section 134(c)(3)(I), including a commitment by the employer to employ an individual upon successful completion of the program; and

(C) for which the employer pays a portion of the cost of the program, as determined by the local board involved, which shall not be less than—

(i) 10 percent of the cost, in the case of an employer with 50 or fewer employees;

(ii) 25 percent of the cost, in the case of an employer with more than 50 but not more than 100 employees; and

(iii) 50 percent of the cost, in the case of an employer with more than 100 employees.

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Section 3(15)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(15)(B)) is amended—

(1) in clause (i), by inserting, including such a closure or layoff due to advances in automation technology before the semicolon; and

(2) in clause (iii), by striking section 134(c)(2)(A)(xii) and inserting section 134(c)(2)(B)(vii).

Section 3(16) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(16)) is amended, in the matter preceding subparagraph (A), by striking family members and inserting a family member.

Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) is further amended—

(1) in paragraph (21)—

(A) in the heading, by striking language; and

(B) by striking language; and

(2) in paragraph (24)(I), by striking language.

Section 3(24) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(24)) is amended—

(1) in subparagraph (G), by striking (42 U.S.C. 14043e-2(6))) and inserting (34 U.S.C. 12473(6)));

(2) by redesignating subparagraphs (I) through (N) as subparagraphs (J) through (O), respectively;

(3) by inserting after subparagraph (H) the following:

(I) Out of school youth.

(3) ; and

(4) in subparagraph (K), as so redesignated, by striking section 167(i) and inserting 167(j).

Section 3(26) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(26)) is amended—

(1) in subparagraph (A)(ii), by striking or another labor representative, as appropriate; and inserting and, to the extent practicable, another labor representative;; and

(2) in subparagraph (B)—

(A) by redesignating clauses (vi) through (xi) as clauses (viii) through (xiii), respectively; and

(B) by striking clause (v) and inserting the following:

(v) State educational agencies or local educational agencies;

(vi) State higher education agencies, as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003), or State systems of higher education;

(vii) other State or local agencies;

(B) .

Section 3(32) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(32)) is amended by striking sections 106(c)(3)(A) and inserting sections 106(c)(4)(A).

Section 3(34) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(34)) is amended to read as follows:

The terms local educational agency and State educational agency have the meanings given the terms in section 8101 of the Elementary and Secondary Education Act of 1965.

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Section 3(35) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(32)) is amended by striking section 106(c)(3)(B) and inserting section 106(c)(4)(B).

Section 3(36)(A)(iii) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(36)(A)(iii)) is amended by striking (42 U.S.C. 14043e-2(6))) and inserting (34 U.S.C. 12473(6))).

Section 3(47) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(47)) is amended to read as follows:

The term pay-for-performance contract strategy means a performance-based contract strategy that uses pay-for-performance contracts in the provision of services described in paragraph (2) or (3) of section 134(c) or activities described in section 129(c)(2), and includes—

(A) contracts, each of which—

(i) shall specify a fixed amount that will be paid to an eligible service provider (which may include a local or national community-based organization or intermediary, community college, or other provider) based on the achievement of specified levels of performance on the primary indicators of performance described in section 116(b)(2)(A) for target populations as identified by the local board and which shall identify a specific target for the number or percentage of individuals to be served that will be individuals with barriers to employment, within a defined timetable; and

(ii) may provide for bonus payments to such service provider to expand capacity to provide effective training and other services, including bonus payments for exceeding the identified target for serving individuals with barriers to employment;

(B) a strategy for validating the achievement of the performance described in subparagraph (A); and

(C) a description of how the State or local area will reallocate funds not paid to a provider because the achievement of the performance described in subparagraph (A) did not occur, for further activities related to such a contract strategy, subject to section 189(g)(2)(D).

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Section 3(51) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(51)) is amended—

(1) in the matter preceding subparagraph (A), by inserting, through a rapid response unit after designated by a State;

(2) in subparagraph (B), by inserting before the semicolon at the end the following:, including access through individual training accounts for eligible dislocated workers under section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (29 U.S.C. 3224a);

(3) in subparagraph (D), by striking and at the end;

(4) by redesignating subparagraph (E) as subparagraph (F);

(5) by inserting after subparagraph (D) the following new subparagraph:

(E) assistance in identifying workers eligible for assistance, including workers who work a majority of their time offsite or remotely;

(5) ;

(6) in subparagraph (F), as so redesignated, by striking the period at the end and inserting; and; and

(7) by adding at the end the following:

(G) the provision of business engagement or layoff aversion strategies and other activities designed to prevent or minimize the duration of unemployment, such as—

(i) connecting employers to short-term compensation or other programs designed to prevent layoffs;

(ii) conducting worker skill assessment, and programs to match workers to different occupations;

(iii) establishing incumbent worker training or other upskilling approaches, including through incumbent worker upskilling accounts described in section 134(d)(4)(E);

(iv) facilitating business support activities, such as connecting employers to programs that offer access to credit, financial support, and business consulting; and

(v) partnering or contracting with business-focused organizations to assess risks to companies, and to propose, implement, and measure the impact of strategies and services to address such risks.

(7) .

Section 3(54) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(54)) is amended by striking secondary school diploma and inserting regular high school diploma.

Section 3(59) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(59)) is amended by striking housing, and inserting assistive technology, housing, food assistance,.

Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) is further amended by adding at the end the following:

The term co-enrollment means simultaneous enrollment in more than one of the programs or activities carried out by a one-stop partner specified in section 121(b)(1)(B).

The term digital literacy skills has the meaning given the term in section 203.

The term evidence-based, when used with respect to an activity, service, strategy, or intervention, or content of materials, means an activity, service, strategy, or intervention, or content of materials that—

(A) demonstrates a statistically significant effect on improving participant outcomes or other relevant outcomes based on—

(i) strong evidence from at least 1 well-designed and well-implemented experimental study;

(ii) moderate evidence from at least 1 well-designed and well-implemented quasi-experimental study; or

(iii) promising evidence from at least 1 well-designed and well-implemented correlational study with statistical controls for selection bias; or

(i) demonstrates a rationale based on high-quality research findings or positive evaluation that such activity, service, strategy, or intervention is likely to improve student outcomes or other relevant outcomes; and

(ii) includes ongoing efforts to examine the effects of such activity, service, strategy, or intervention.

The term labor organization means a labor organization, as defined in section 2(5) of the National Labor Relations Act (29 U.S.C. 152(5)), and an organization representing public sector employees.

The term regular high school diploma has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

The term work-based learning has the meaning given the term in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302).

The term talent marketplace means an array of publicly- and privately-owned platforms supported by interconnected and, where relevant, interoperable and based on open standards, technologies (which may include artificial intelligence) that—

(i) is made available to the public;

(ii) is used to match individuals with employment and learning opportunities in a State (or a consortium of States) using information provided by users, including—

(I) education and training providers;

(II) employers;

(III) jobseekers;

(IV) students; and

(V) any other individual; and

(iii) incorporates and allows users access to—

(I) the learning and employment records of users of such marketplace;

(II) a credential registry; and

(III) a skills profile generator.

The term credential registry means a process through which a digital portal or repository may be used by education and training providers to make publicly available, and, where relevant, interoperable and based on open standards, a description, using standardized terminology, of the skills, competencies and learning outcomes associated with credentials, including recognized postsecondary credentials.

The term learning and employment record means a digital, machine-readable record of an individual’s educational and employment history that—

(i) contains information that may be self attested and is verified by the employers, persons for whom the individual performed services, and education and training providers of such individual;

(ii) allows the individual to control such information and use any such information for the purpose of matching such individual with employment and learning opportunities as described in subparagraph (A)(ii); and

(iii) uses standardized terminology.

The term skills profile generator means a digital tool that can be used to create a skill profile that, using standardized terminology, describes skills gained through, or necessary for—

(i) employment;

(ii) hiring; or

(iii) education.

The term standardized terminology means, in relation to a learning employment record, credential registry, or skills profile generator made available through a talent marketplace, a limited set of terms that is provided through a publicly available, and, where relevant, interoperable and based on open standards, skills framework and used to describe skills, competencies, or learning outcomes in a manner that—

(i) provides a definition of such skill, competency, or outcome, and identifies the skills framework used for such definition;

(ii) ensures that identical terms are used to describe substantially similar skills, competencies, or outcomes across such records, registries, and generators in such marketplace; and

(iii) permits such terms to be effectively used for the purpose of matching individuals with employment and learning opportunities as described in subparagraph (A)(ii).

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Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) is further amended by reordering paragraphs (1) through (71), as amended by this section, and the paragraphs added by subsection (q) of this section in alphabetical order, and renumbering such paragraphs as so reordered.

The table of contents in section 1(b) of the Workforce Innovation and Opportunity Act is amended—

(1) by redesignating the item relating to section 172 as section 175;

(2) by inserting after the item relating to section 171, the following:

(2) ; and

(3) by striking the item relating to section 190 and inserting the following:

(3) .

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

Section 102 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3112) is amended—

(1) in subsection (b)—

(A) in paragraph (1)—

(i) by redesignating subparagraphs (C) through (E) as subparagraphs (D) through (F), respectively;

(ii) by inserting the following after subparagraph (B):

(C) a description of—

(i) how the State will use real-time labor market information to continually assess the economic conditions and workforce trends described in subparagraphs (A) and (B); and

(ii) how the State will communicate changes in such conditions or trends to the workforce system in the State;

(ii) ;

(iii) in subparagraph (D), as so redesignated, by inserting the extent to which such activities are evidence-based, after of such activities,;

(iv) in subparagraph (E), as so redesignated—

(I) by striking and for meeting the skilled workforce needs of employers and inserting and for preparing workers to meet the skilled workforce needs of employers and to enter and remain in unsubsidized employment; and

(II) by striking and at the end;

(v) in subparagraph (F), as so redesignated, by striking the period at the end and inserting a semicolon; and

(vi) by adding at the end the following:

(G) a description of activities the State is conducting to expand economic opportunity for individuals and reduce barriers to labor market entry by—

(i) developing, in cooperation with employers, education and training providers, and other stakeholders, statewide skills-based initiatives that promote the use of demonstrated skills and competencies as an alternative to the exclusive use of degree attainment as a requirement for employment or advancement in a career; and

(ii) evaluating the existing occupational licensing policies in the State and identifying potential changes to recommend to the appropriate State entity to—

(I) remove or streamline licensing requirements, as appropriate; and

(II) improve the reciprocity of licensing, including through participating in interstate licensing compacts;

(H) an analysis of the out-of-school youth population in the State, including the estimated number of out-of-school youth and any gaps in services provided to such population by other existing workforce development activities, as identified under subparagraph (D);

(I) a description of the availability of apprenticeship and pre-apprenticeship programs in the State and the providers of such programs, including any that serve youth; and

(J) a description of any strategies the State will use to prioritize the funding of evidence-based programs through the funds available for statewide workforce development activities described in section 128(a).

(vi) ; and

(B) in paragraph (2)—

(i) in subparagraph (B), by striking including a description and inserting which may include a description;

(ii) in subparagraph (C)(viii), by striking necessary for effective State operating systems and policies and inserting useful to States to be included in the State plan, on an optional basis;

(iii) in subparagraph (D)(i)—

(I) in subclause (II), by striking any; and

(II) in subclause (IV), by striking section 121(h)(2)(E) and inserting section 121(h)(1)(E); and

(iv) in subparagraph (E)—

(I) in clause (iv), by striking 116(i) and inserting 116(j); and

(II) in clause (x), by striking necessary for the administration of the core programs and inserting useful to States to be included in the State plan, on an optional basis; and

(2) in subsection (c)(3)—

(A) in subparagraph (A), by striking shall the second place it appears and inserting may; and

(B) in subparagraph (B)—

(i) by striking required; and

(ii) by inserting, except that communicating changes in economic conditions and workforce trends to the workforce system in the State as described in subsection (b)(1)(C) shall not be considered modifications subject to approval under this paragraph before the period at the end.

Section 106(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(a)) is amended by adding at the end the following:

Before the second full program year after the date of enactment of the A Stronger Workforce for America Act of 2026, in order for a State to receive an allotment under section 127(b) or 132(b) and as part of the process for developing the State plan, a State shall—

(A) review each region in the State identified under this subsection (as such subsection was in effect on the day before the date of enactment of the A Stronger Workforce for America Act of 2026); and

(B) after consultation with the local boards and chief elected officials in the local areas and consistent with the considerations described in subsection (b)(1)(B)—

(i) revise such region and any other region impacted by such revision; or

(ii) make a determination to maintain such region with no revision.

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Section 106(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(b)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (A), by striking subsection (d), and consistent with paragraphs (2) and (3), and inserting subsection (d); and

(B) in subparagraph (B), by striking (except for those local areas described in paragraphs (2) and (3)); and

(2) by striking paragraphs (2) through (7), and inserting the following:

Except as provided in paragraph (5) of this subsection and subsection (d), in order to receive an allotment under section 127(b) or 132(b), the Governor shall maintain the designations of local areas in the State under this subsection (as in effect on the day before the date of enactment of the A Stronger Workforce for America Act of 2026) until the end of the third full program year after the date of enactment of the A Stronger Workforce for America Act of 2026.

Prior to the third full program year after the date of enactment of the A Stronger Workforce for America Act of 2026, the Governor shall—

(i) review the designations of local areas in the State (as in effect on the day before the date of enactment of the A Stronger Workforce for America Act of 2026); and

(I) based on the considerations described in paragraph (1)(B), issue proposed redesignations of local areas in the State through the process described in paragraph (1)(A), which shall—

(aa) include an explanation of the strategic goals and objectives that the State intends to achieve through such redesignations; and

(bb) be subject to the approval of the chief elected officials of the local areas in the State in accordance with the process described in subparagraph (C); or

(II) with respect to a State described in subsection (d)(2)(B), if the Governor determines that such State should be designated as a single State local area, conduct a process in accordance with the requirements of subsection (d)(2).

A redesignation of local areas in a State that is approved by a majority of the chief elected officials of the local areas in the State through the process described in subparagraph (C) shall take effect on the first day of the 4th full program year after the date of enactment of the A Stronger Workforce for America Act of 2026.

To approve a designation of local areas in the State, the chief elected officials of the local areas in the State shall comply with the following:

Not later than 60 days after the Governor issues proposed redesignations under subparagraph (A), the chief elected official of each local area shall review the proposed redesignations and submit a vote to the Governor either approving or rejecting the proposed redesignations.

If a majority of the chief elected officials of the local areas in the State vote under clause (i)—

(I) to approve such proposed redesignations, such redesignations shall take effect in accordance with subparagraph (B); or

(II) to disapprove such proposed redesignations, the chief elected officials of the local areas in the State shall comply with the requirements of clause (iii).

In the case of the disapproval described in clause (ii)(II), not later than 120 days after the Governor issues proposed redesignations under subparagraph (A), the chief elected officials of the local areas in the State shall—

(I) select 2 alternate redesignations of local areas—

(aa) one of which aligns with the regional economic development areas in the State; and

(bb) one of which aligns with the regions described in subparagraph (A) or (B) of subsection (a)(2); and

(II) conduct a vote to approve, by majority vote, 1 of the 2 alternate redesignations described in subclause (I).

The alternate redesignations approved pursuant to clause (iii)(II) shall take effect in accordance with subparagraph (B).

On the date that is the first day of the 12th full program year after the date of enactment of the A Stronger Workforce for America Act of 2026, and every 8 years thereafter, the Governor shall—

(A) review the designation of local areas; and

(B) carry out the requirements of paragraph (3)(A)(ii), except that any redesignation of local areas in a State that is approved by a majority of the chief elected officials of the local areas in the State through the process described in paragraph (3)(C) shall take effect on the first day of the next full program year after the Governor’s review pursuant to this paragraph.

At any time, and notwithstanding the requirements of paragraphs (2), (3), and (4), the Governor, upon receipt of a request for a redesignation of a local area described in clause (ii), may approve such request.

The following requests may be approved pursuant to clause (i) upon request:

(I) A request from multiple local areas to be redesignated as a single local area.

(II) A request from multiple local areas for a revision to the designations of such local areas, which would not impact the designations of local areas that have not made such request.

(III) A request for designation as a local area from an area described in section 107(c)(1)(C).

Other than the redesignations described in subparagraph (A), the Governor may only redesignate a local area outside of the process described in paragraphs (3) and (4), if the local area that will be subject to such redesignation has not—

(i) performed successfully;

(ii) sustained fiscal integrity; or

(iii) in the case of a local area in any planning region described in subparagraph (B) or (C) of subsection (a)(2), met the requirements described in subsection (c)(1).

Any redesignation of a local area approved by the Governor under subparagraph (A) or (B) shall take effect on the first date of the first full program year after such date of approval.

The chief elected official of a local area that is subject to a redesignation of such local area under paragraph (3), (4), or (5) may submit an appeal to maintain its existing designation to the State board under an appeal process established in the State plan as specified in section 102(b)(2)(D)(i)(III).

The State board shall grant an appeal to maintain an existing designation of a local area described in subparagraph (A) only if the local board of the local area can demonstrate that the process for redesignation of such local area under paragraph (3), (4), or (5), as applicable, has not been followed.

If a request to maintain an existing designation as a local area is not granted as a result of such appeal, the Secretary, after receiving a request for review from the local board of such local area and determining that the local board was not accorded procedural rights under the appeals process referred to in subparagraph (A), shall—

(i) review the process for the redesignation of the local area under paragraph (3), (4), or (5), as applicable; and

(ii) upon determining that the applicable process has not been followed, require that the local area’s existing designation be maintained.

The State may provide funding from funds made available under sections 128(a)(1) and 133(a)(1) to provide payments to incentivize—

(A) groups of local areas to request to be redesignated as a single local area under paragraph (5)(A); or

(B) multiple local boards in a planning region to develop an agreement to operate as a regional consortium under subsection (c)(3).

(2) .

Section 106(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(c)) is amended—

(1) in paragraph (1)—

(A) by redesignating subparagraphs (F) through (H) as subparagraphs (G) through (I), respectively; and

(B) by inserting the following after subparagraph (E):

(F) the establishment of cost arrangements for services described in subsections (c) and (d) of section 134, including the pooling of funds for such services, as appropriate, for the region;

(B) ;

(2) in paragraph (2), by inserting, including to assist with establishing administrative costs arrangements or cost arrangements for services under subparagraphs (F) and (G) of such paragraph after delivery efforts;

(3) by redesignating paragraph (3) as paragraph (4); and

(4) by inserting after paragraph (2), as so amended, the following:

The local boards and chief elected officials of any local area in any planning region described in subparagraph (B) or (C) of subsection (a)(2) may develop an agreement to receive funding under section 128(b) and section 133(b) as a single consortium for the planning region.

If the local boards and chief elected officials develop such an agreement—

(i) one of the chief elected officials in the planning region shall designate the fiscal agent for the consortium;

(ii) the local boards shall develop a memorandum of understanding to jointly administer the activities for the consortium; and

(iii) the required activities for local areas under this Act (including the required functions of the local boards described in section 107(d)) shall apply to such a consortium as a whole and may not be applied separately or differently to the local areas or local boards within such consortium.

(4) .

Section 106(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(d)) is amended—

(1) by redesignating paragraph (2) as paragraph (3); and

(2) by inserting after paragraph (1), the following:

If, upon a review described in paragraph (3)(A) or (4)(B) of subsection (b) of a State described in subparagraph (B)of this paragraph, the Governor of such State determines, after consultation with the State board, that such State should be designated as a single State local area—

(i) the Governor shall propose to the legislature of the State to designate such State as a single State local area;

(ii) in a case in which the majority of the legislature of the State consents to the Governor’s proposed designation—

(I) such designation shall take effect in accordance with subparagraph (C); and

(II) the Governor shall identify the State as a local area in the State plan; and

(iii) in a case in which in which the majority of the legislature of the State does not so consent to the Governor’s proposed designation, the designations of the local areas in the State shall be maintained and shall be subject to the requirements of subsection (b)(4).

A State described in this subparagraph is a State that—

(i) has not been designated as a single State local area under paragraph (1); and

(I) has a population of less than 5,100,000, as determined by the last decennial census preceding such designation; or

(II) contains 5 or fewer local areas.

Notwithstanding subsection (b)(2), a designation described in paragraph (A) shall take effect on the later of—

(i) the first day of the third full program year after the date of enactment of the A Stronger Workforce for America Act of 2026; or

(ii) the first day of the first full program year following the date on which the Governor so designates the State as a single State local area.

At the end of the 5-year period beginning on the date on which a State is designated as a single State local area under subparagraph (A), the Secretary shall notify the Governor of such State if, during such 5-year period, the average of the overall State program scores (as referred to in section 116(f)(2)) across the adult and dislocated worker programs and youth programs authorized under chapters 2 and 3 of subtitle B are lower than the average of the State overall program scores across such programs during the 5-year period for such period ending on the date prior the date on which such State was so designated.

If, after receiving the notice described in clause (i) with respect to a State, the Governor determines—

(aa) that the designation of the State as a single State local area should be maintained, the Governor shall comply with subclause (II) or (III), as appropriate; or

(bb) that such designation should not be so maintained, the Governor shall reestablish the local areas that comprised the State prior to the designation of the State as a single State local area under subparagraph (A), and such reestablishment shall take effect on the first day of the first full program year after the Governor receives such notice.

A designation described in subclause (I)(aa) with respect to a State may only be so maintained if the Governor—

(aa) not later than 180 days after the date on which Governor receives the notice described in clause (i), issues a public notice of the determination by the Governor that the designation of such State as a single State local area should be maintained; and

(bb) not later than 1 year after the date on which the Governor issues such public notice, the Governor receives the consent of a majority of the legislature of the State to so maintain the designation.

If the Governor fails to comply with each of the requirements of subclause (II) with respect to a State—

(aa) a designation described in subclause (I)(aa) for such State may not be so maintained; and

(bb) the Governor shall reestablish the local areas that comprised the State prior to the designation of the State as a single State local area under subparagraph (A), and such reestablishment shall take effect on the first full program year after the date that is 1 year after the date on which the Governor issues the public notice described in subclause (II)(aa) with respect to the State.

(2) .

Section 106(e)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(e)) is amended to read as follows:

The term performed successfully, used with respect to a local area, means the local area is not subject to corrective action as described in section 116(g)(2) on the local performance accountability measures for the most recent year for which data are available preceding the determination of performance under this paragraph.

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Section 107(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3122(b)) is amended—

(1) in paragraph (2)—

(A) in subparagraph (B), by striking 20 and inserting 30; and

(B) in subparagraph (C)—

(i) in clause (i), by inserting after title II the following: (such as corrections education programs under such title);

(ii) in clause (ii), by inserting after community colleges the following: and, as applicable, other institutions of higher education; and

(iii) by adding at the end the following:

(iv) may include faculty and staff members working directly with students in providing workforce investment activities through education or training programs that support an industry cluster.

(iii) ; and

(2) in paragraph (4)(A)—

(A) in clause (ii), by striking include and all that follows through the period at the end and inserting the following:

(A) include—

(I) representatives from community-based organizations and other representatives with professional expertise in youth workforce development programs and with a demonstrated record of success in serving eligible youth;

(II) out-of-school youth, including youth who are individuals with disabilities;

(III) at least 1 representative of a public or nonprofit agency that serves youth, including juvenile justice and child welfare agencies, and at least 1 representative of a local public housing authority;

(IV) for a local area in which a Job Corps campus (as such term is defined in section 142) is located, at least 1 representative of that campus; and

(V) for a local area in which a YouthBuild program (as such term is defined in section 171(b)) is carried out, at least 1 representative of such program.

(A) ; and

(B) by adding at the end the following:

(iv) A standing committee to provide information and to assist with planning, operational, and other issues relating to the engagement of representatives of the workforce in the local area, which—

(I) shall include at least 1 representative of local labor organizations or joint labor-management organizations, including at least 1 representative of either of such organizations with special interest or expertise in youth workforce readiness or apprenticeship and pre-apprenticeship programs that serve youth; and

(II) may include, in a local area with a significant number of dislocated workers (as determined by the local board), at least 1 representative with special interest or expertise in providing supports for finding education, training, and employment opportunities for dislocated workers.

(v) A standing committee to provide information and to assist with planning, operational, and other issues relating to the engagement of educational entities in the local area, which shall include, at a minimum—

(I) at least 1 representative of a local educational agency that serves students residing in such local area;

(II) at least 1 representative of institutions of higher education in the local area, including community colleges in the local area; and

(III) at least 1 representative of entities administering education and training activities, including career and technical education programs or after- school and summer learning programs, in the local area.

(vi) A standing committee to provide information and to assist with planning, operational, and other issues relating to the provision of services to offenders, including pre-release education, training, and career services for such individuals, which shall include—

(I) at least 1 offender; and

(II) representatives from community-based organizations with special interest or expertise in reentry services for incarcerated individuals and ex-offenders, including at least 1 representative of an organization that is a recipient of a grant under section 172.

(B) .

Section 107(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3122(d)) is amended—

(1) in paragraph (2)(A), by striking section 108(b)(1)(D) and inserting 108(b)(1)(E);

(2) in paragraph (3), by inserting, including, to the extent practicable, local representatives of the core programs and the programs described in section 121(b)(1)(B), after system stakeholders;

(3) in paragraph (4)—

(A) in subparagraph (B), by inserting and industry and sector partnerships after intermediaries;

(B) in subparagraph (C), by inserting, local educational agencies, community colleges and other institutions of higher education after economic development entities; and

(C) in subparagraph (D)—

(i) by striking proven and inserting evidence-based;

(ii) by inserting individual after needs of; and

(iii) by inserting from a variety of industries and occupations after and employers;

(4) in paragraph (5), by inserting and which, to the extent practicable, shall be aligned with career and technical education programs of study (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302(3)) offered within the local area before the period at the end;

(5) in paragraph (6)—

(A) in the heading, by striking PROVEN and inserting EVIDENCE–BASED;

(B) in subparagraph (A)—

(i) by striking proven and inserting evidence-based;

(ii) by inserting and covered veterans (as defined in section 4212(a)(3)(A) of title 38, United States Code) after employment; and

(iii) by inserting, and give priority to covered persons in accordance with section 4215 of title 38, United States Code after delivery system; and

(C) in subparagraph (B), by striking proven and inserting evidence-based;

(6) in paragraph (10)(C)—

(A) by inserting, on the State eligible training provider list, after identify; and

(B) by inserting that operate in or are accessible to individuals after training services; and

(7) in paragraph (12)(A), by striking activities and inserting funds allocated to the local area under section 128(b) and section 133(b) for the youth workforce development activities described in section 129 and local employment and training activities described in section 134(b), and the activities.

Section 107(g)(1)(D) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3122(g)(1)(D)) is amended by striking needed or and inserting the following:, that the local board is failing to meet the requirements for eligible providers of training services under section 122, or.

Section 108 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3123) is amended—

(1) in subsection (a)—

(A) by striking section 102(b)(1)(E) and inserting section 102(b)(1)(F); and

(B) by striking shall prepare and inserting may prepare; and

(2) in subsection (b)—

(A) in paragraph (1)—

(i) by redesignating subparagraphs (D), (E), and (F) as subparagraphs (E), (F), and (H), respectively;

(ii) by inserting the following after subparagraph (C):

(D) a description of—

(i) how the local board will use real-time labor market information to continually assess the economic conditions and workforce trends described in subparagraphs (A), (B), and (C); and

(ii) how changes in such conditions or trends will be communicated to jobseekers, education and training providers, and employers in the local area;

(ii) ;

(iii) in subparagraph (F), as so redesignated, by striking and at the end; and

(iv) by inserting after subparagraph (F), as so redesignated, the following:

(G) an analysis, which may be conducted in coordination with the State, of the out-of-school youth population in the local area including the estimated number of such youth and any gaps in services for such population from other existing workforce development activities, as identified under paragraph (9), and a description of how the local board will address any such gaps in services identified in such analysis; and

(iv) ;

(B) in paragraph (2), by striking section 102(b)(1)(E) and inserting “section 102(b)(1)(F);

(C) in paragraph (4)—

(i) in subparagraph (A)—

(I) by striking and at the end of clause (iii); and

(II) by adding at the end the following:

(v) carry out any statewide skills-based initiatives identified in the State plan that promote the use of demonstrated skills and competencies as an alternative to the exclusive use of degree attainment as a requirement for employment or advancement in a career; and

(II) ; and

(ii) in subparagraph (B), by striking customized training and inserting employer-directed skills development;

(D) in paragraph (6)(B), by inserting, such as the use of affiliated sites after means;

(E) in paragraph (9)—

(i) by striking including activities and inserting the following:

(i) including—

(A) the availability of community based organizations that serve youth primarily during nonschool time hours to carry out activities under section 129;

(B) activities

(i) ;

(ii) in subparagraph (B), as so redesignated—

(I) by inserting or evidence-based after successful; and

(II) by adding and at the end; and

(iii) by adding at the end the following:

(C) the availability of preapprenticeship and apprenticeship programs serving youth;

(iii) ;

(F) in paragraph (12), by inserting including as described in section 134(c)(2), after system,; and

(G) in paragraph (13), by inserting before the semicolon at the end the following:, and encourage eligible youth who are enrolled in adult education and literacy activities under title II to co-enroll in youth workforce investment activities carried out by the local board, as appropriate.

Section 116(b)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(2)(A)) is amended—

(A) in clause (i)—

(i) in subclause (II)—

(I) by striking fourth and inserting second; and

(II) by inserting and remain in unsubsidized employment during the fourth quarter after exit from the program after the program;

(ii) in subclause (IV), by striking secondary school diploma and inserting regular high school diploma;

(iii) in subclause (V)—

(I) by striking, during a program year,;

(II) by striking are in and inserting enter into; and

(III) by inserting before the semicolon at the end the following: within 12 months after the quarter in which the participant enters into the education and training program; and

(iv) by amending subclause (VI) to read as follows:

(VI) of the program participants who received training services during a program year, the percentage of such program participants who participated in on-the-job training, employer-directed skills development, incumbent worker training, or an apprenticeship.

(iv) ;

(B) in clause (ii)—

(i) in subclause (II)—

(I) by striking fourth and inserting second;

(II) by inserting, and who remain either in such activities or unsubsidized employment during the fourth quarter after exit from the program after the program; and

(III) by striking and at the end;

(ii) in subclause (III)—

(I) by striking (VI) and inserting (V); and

(II) by striking the period at the end and inserting; and; and

(iii) by adding at the end the following:

(IV) of the program participants who exited the program during a program year, the percentage of such program participants who completed, prior to such exit, a work experience as described in section 129(c)(2)(C).

(iii) ; and

(C) in clause (iii), by striking secondary school diploma and inserting regular high school diploma; and

(D) by striking clause (iv).

Section 116(b)(3)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(3)(A)) is amended—

(A) by amending clause (iii) to read as follows:

For each State submitting a State plan, the Secretary of Labor shall, not later than January 15 of the year in which such State plan is submitted, for the first 2 program years covered by the State plan, and not later than January 15 of the second program year covered by the State plan, for the third and fourth program years covered by the State plan—

(aa) propose to the State expected levels of performance, for each of the corresponding primary indicators of performance for each of the programs described in clause (ii) for such State, which shall—

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

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

(bb) publish, on a public website of the Department of Labor, the statistical model developed under clause (viii) and the methodology used to develop each such expected level of performance.

Each State shall—

(aa) evaluate each of the expected levels of performance proposed under subclause (I) with respect to such State;

(bb) based on such evaluation of each such expected level of performance—

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

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

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

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

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

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

(A) ;

(B) in clause (iv)—

(i) in subclause (I)—

(I) in the second sentence, by striking the levels identified in the State plan under clause (iii) and the factors described in clause (v) and inserting the factors described in clause (v) and any counterproposal, and the analysis provided by the State with such counterproposal, described in clause (iii)(II)(bb)(BB); and

(II) in the third sentence, by striking incorporated into the State plan and inserting included in the State plan, as described in clause (iii)(II)(cc),; and

(ii) in subclause (II)—

(I) in the second sentence, by striking the factors described in clause (v) and inserting the factors described in clause (v) and any counterproposal, and the analysis provided by the State with such counterproposal, described in clause (iii)(II)(bb)(BB); and

(II) in the third sentence, by striking incorporated into the State plan and inserting included in the State plan, as described in clause (iii)(II)(cc),; and

(C) in clause (v)(II)—

(i) in the matter preceding item (aa), by striking based on and inserting based on each consideration that is found to be predictive of performance on an indicator for a program and consists of; and

(ii) in item (bb)—

(I) by striking including and inserting such as; and

(II) by striking and welfare dependency and inserting school status, education level, highest grade level completed, low-income status, and receipt of public assistance.

Section 116(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(d)) is amended—

(1) by amending paragraph (1) to read as follows:

Not later than 24 months after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary of Labor shall develop, or review and modify, as appropriate, to comply with the requirements of this subsection, the templates for performance reports that shall be used by States (including by States on behalf of eligible providers of training services under section 122) and local areas to produce a report on outcomes achieved by the core programs. In developing, or reviewing and modifying, such templates, the Secretary of Labor shall take into account the need to maximize the value of the templates for workers, jobseekers, employers, local elected officials, State officials, Federal policymakers, and other key stakeholders.

In developing, or reviewing and modifying, the templates under subparagraph (A), the Secretary of Labor shall ensure that States and local areas, in producing performance reports for core programs and eligible providers of training services, collect and report information on common data elements—

(i) in a comparable and uniform format; and

(ii) using terms that are assigned identical meanings across all such reports.

The Secretary of Labor—

(i) in addition to the information on the common data elements, may require additional information with respect to any core program as necessary for effective reporting; and

(ii) shall periodically review any such requirement for additional information to ensure the requirement is necessary and does not impose an undue reporting burden.

The Secretary of Labor shall ensure subparagraph (B) is carried out in a manner that protects and promotes individual privacy and data security, in accordance with applicable Federal privacy laws.

A State may facilitate for a local area that meets the requirements of clause (ii), for the sole purpose of fulfilling the reporting requirements under this subsection, access to the quarterly wage records (excluding such records made available by any other State) of program participants in the local area.

To receive access to such quarterly wage records, the local area shall have demonstrated to the State the ability to comply, and agree to comply, with all applicable Federal and State requirements relating to the access and use of such quarterly wage records, including requirements relating to data privacy and cybersecurity.

(1) ;

(2) in paragraph (2)—

(A) in subparagraph (B), by inserting, and aggregated to compare those levels of performance for all individuals with barriers to employment with those levels of performance for all other individuals before the semicolon at the end;

(B) in subparagraphs (D) and (F), by striking career and training services, respectively and inserting career services, training services, and supportive services, respectively;

(C) by redesignating subparagraphs (J) through (L) as subparagraphs (K) through (M), respectively and inserting after subparagraph (I) the following:

(J) the median earnings gain of participants who received training services, calculated as the median value of the difference between—

(i) participant earnings in unsubsidized employment during the 4 quarters after program exit; and

(ii) participant earnings in the 4 quarters prior to entering the program;

(C) ; and

(D) in subparagraph (L), as so redesignated—

(i) by striking clause (ii); and

(ii) by striking strategies for programs and all that follows through the performance, and inserting strategies for programs, the performance;

(3) in paragraph (3)—

(A) in subparagraph (A), by striking (L) and inserting (M);

(B) in subparagraph (B), by striking and at the end;

(C) by redesignating subparagraph (C) as subparagraph (F); and

(D) by inserting after subparagraph (B) the following:

(C) the percentage of the local area’s allocation under section 133(b) that the local area spent on services paid for through an individual training account described in section 134(c)(3)(F)(iii) or a training contract described in section 134(c)(3)(G)(ii);

(D) the percentage of the local area’s allocation under section 133(b) that the local area spent on supportive services;

(E) the percentage of the local area’s allocation under section 133(b), if any, that is spent on incumbent worker training, disaggregated by whether the amount so spent was spent on the provision of incumbent worker training through contracts or through incumbent worker upskilling accounts described in section 134(d)(4)(E); and

(D) ;

(4) by amending paragraph (4) to read as follows:

The State shall use the information submitted by the eligible providers of training services under section 122 and administrative records, including quarterly wage records, of the participants of the programs offered by the providers to produce a performance report on the eligible providers of training services in the State, which shall include, subject to paragraph (6)(C)—

(i) with respect to each program of study (or the equivalent) of a provider on the list described in section 122(d)—

(I) information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) with respect to all individuals engaging in the program of study (or the equivalent); and

(II) the total number of individuals exiting from the program of study (or the equivalent), disaggregated by whether such individuals completed the program of study (or equivalent); and

(ii) with respect to all eligible providers of training services under section 122—

(I) the total number of participants who received training services through each adult and dislocated worker program authorized under chapter 3 of subtitle B, disaggregated by the type of entity that provided the training services, during the most recent program year and the 3 preceding program years;

(II) the total number of participants who exited from training services, disaggregated by the type of entity that provided the training services, and by whether such participants completed the training services, during the most recent program year and the 3 preceding program years;

(III) the average cost per participant for the participants who received training services, disaggregated by the type of entity that provided the training, during the most recent program year and the 3 preceding program years;

(IV) the average of the per-program ratios of median earnings increase for a participant to the total cost of the provider's program, as described in section 122(b)(5)(B)(i)(III) for the participant; and

(V) the number of individuals with barriers to employment served by each adult and dislocated worker program authorized under chapter 3 of subtitle B, disaggregated by each subpopulation of such individuals, and by race, ethnicity, sex, and age; and

(iii) to the extent practicable, with respect to each recognized postsecondary credential on the list of credentials awarded by eligible providers in the State described in section 122(d)(2)—

(I) information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) for all participants in the State receiving such credential; and

(II) information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) for participants in the State receiving such credential who are individuals with barriers to employment, disaggregated by each subpopulation of such individuals, and by race, ethnicity, sex, and age.

(4) ; and

(5) in paragraph (6)—

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

The Secretary of Labor shall annually make available the performance reports for States containing the information described in paragraph (2), which shall include making such reports available—

(i) digitally using transparent, linked, open, machine readable, and interoperable data formats that are human readable and machine actionable such that the data from these reports—

(I) are easily understandable; and

(II) can be easily included in web-based tools and services supporting search, discovery, comparison, analysis, navigation, and guidance;

(ii) in a printable format; and

(iii) in multiple languages, to the extent practicable.

(A) ;

(B) in subparagraph (B)—

(i) by striking (including by electronic means), in an easily understandable format,; and

(ii) by adding at the end the following: The Secretary of Labor shall include, on the website where the State performance reports are required under subparagraph (A) to be made available, a link to local area performance reports and the eligible provider of training services report for each State. Such reports shall be made available in each of the formats described in subparagraph (A).; and

(C) by adding at the end the following:

Nothing in this subsection shall be construed to require the retroactive collection of information, from program years prior to the effective date described in section 502(a)(1) of the A Stronger Workforce for America Act of 2026, that was not required under this subsection prior to that effective date.

(C) .

Section 116(e) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(e)) is amended—

(1) in paragraph (1)—

(A) in the first sentence, by striking shall conduct ongoing and inserting shall use data to conduct analyses and ongoing; and

(B) in the second sentence, by striking conduct the and inserting conduct such analyses and; and

(2) in paragraph (2), by adding A State may use various forms of analysis, such as machine learning or other advanced analytics, to improve program operations and outcomes and to identify areas for further evaluation. at the end.

Section 116(f) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(f)) is amended to read as follows:

If a State fails to meet 80 percent of the State adjusted level of performance for an indicator described in subsection (b)(2)(A) (referred to in the regulations carrying out this section as an individual indicator score) for a core program for any program year, the Secretary of Labor shall provide technical assistance.

If the State fails in the manner described in subclause (I) or (II) of clause (ii) with respect to the program year specified in that subclause, the percentage of each amount that could (in the absence of this subsection) be reserved by the Governor under section 128(a)(1) for the immediately succeeding program year shall be reduced by 5 percent and an amount equivalent to the amount reduced shall be returned to the Secretary of Labor until such date as the Secretary of Labor determines that the State meets the State adjusted level of performance, in the case of a failure described in clause (ii)(II), or has submitted the reports for the appropriate program years, in the case of a failure described in clause (ii)(I).

A State shall be subject to clause (i)—

(I) if (except in the case of exceptional circumstances as determined by the Secretary of Labor), such State fails to submit a report under subsection (d) for any program year; or

(II) for a failure under subparagraph (A) that has continued for a second consecutive program year.

If a State fails to meet an average of 90 percent of the State adjusted levels of performance for a single core program across all indicators of performance (referred to in the regulations carrying out this section as an overall State program score) for any program year, or if a State fails to meet an average of 90 percent of the State adjusted levels of performance for a single indicator of performance across all core programs (referred to in the regulations carrying out this section as an overall State indicator score) for any program year, the Secretary of Labor shall provide technical assistance, as described and authorized under section 168(b), including assistance in the development of a comprehensive performance improvement plan.

If such failure under subparagraph (A) continues for a second consecutive program year, the percentage of each amount that could (in the absence of this subsection) be reserved by the Governor under section 128(a)(1) for the immediately succeeding program year shall be reduced by 8 percent and an amount equivalent to the amount reduced shall be returned to the Secretary of Labor until such date as the Secretary of Labor determines that the State meets such State adjusted levels of performance.

The total reduction under this subsection to the percentage of each amount that could (in the absence of this subsection) be reserved by the Governor under section 128(a)(1) may not exceed 10 percent for a program year.

The amounts available for reallotment for a program year shall be reallotted to a State (in this paragraph referred to as an eligible State) that—

(i) was not subject to a reduction of funds under paragraph (1)(B) or paragraph (2)(B) of this subsection for such program year;

(ii) in the case of amounts available under section 127(b)(1)(C), was 1 of the 5 States that achieved, in the most recent program year, the greatest increase from the prior year to the average of the State's adjusted levels of performance across all indicators of performance for the youth program under chapter 2 of subtitle B;

(iii) in the case of amounts available under section 132(b)(1)(B), was 1 of the 5 States that achieved, in the most recent program year, the greatest increase from the prior year to the average of the State's adjusted levels of performance across all indicators of performance for the adult program under chapter 3 of subtitle B; and

(iv) in the case of amounts available under section 132(b)(2)(B), was 1 of the 5 States that achieved, in the most recent program year, the greatest increase from the prior year to the average of the State's adjusted levels of performance across all indicators of performance for the dislocated worker program under chapter 3 of subtitle B.

In this paragraph, the term amounts available for reallotment for a program year means the amounts available under section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 132(b) for such program year which could (in the absence of the requirements to return funds of paragraph (1)(B) or paragraph (2)(B) of this subsection) have otherwise been reserved under section 128(a)(1) by a Governor of a State for such program year.

In making reallotments under subparagraph (A) for a program year to eligible States, the Secretary shall allot to each eligible State—

(i) in the case of amounts available under section 127(b)(1)(C), an amount based on the relative amount of the allotment made (before the reallotments under this paragraph are made) to such eligible State under section 127(b)(1)(C) for such program year, compared to the total allotments made (before the reallotments under this paragraph are made) to all eligible States under section 127(b)(1)(C) for such program year;

(ii) in the case of amounts available under paragraph (1)(B) of section 132(b), an amount based on the relative amount of the allotment made (before the reallotments under this paragraph are made) to such eligible State under paragraph (1)(B) of section 132(b) for such program year, compared to the total allotments made (before the reallotments under this paragraph are made) to all eligible States under paragraph (1)(B) of section 132(b) for such program year; and

(iii) in the case of amounts available under paragraph (2)(B) of section 132(b), an amount based on the relative amount of the allotment made (before the reallotments under this paragraph are made) to such eligible State under paragraph (2)(B) of section 132(b) for such program year, compared to the total allotments made (before the reallotments under this paragraph are made) to all eligible States under paragraph (2)(B) of section 132(b) for such program year.

.

Section 116(g) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(g)) is amended—

(1) in paragraph (1)—

(A) by inserting 80 percent of the before local performance; and

(B) by striking local performance accountability measures established under subsection (c) and inserting local level of performance established under subsection (c) for an indicator of performance described in subsection (b)(2)(A) for a single program, an average of 90 percent of the local levels of performance across all such indicators for a single program, or an average of 90 percent of the local levels of performance for a single such indicator across all programs,; and

(2) in paragraph (2)—

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

If such failure continues, the Governor shall take corrective actions, which shall include—

(i) in the case of such failure, as described in paragraph (1), for a second consecutive year, on any single indicator, across indicators for a single program, or on a single indicator across programs, a 5-percent reduction in the amount that would (in the absence of this clause) be allocated to the local area for the immediately succeeding program year under chapter 2 or 3 of subtitle B for the program subject to the performance failure;

(ii) in the case of such failure, as described in paragraph (1), for a third consecutive year, the development of a reorganization plan through which the Governor shall—

(I) require the appointment and certification of a new local board, consistent with the criteria established under section 107(b);

(II) prohibit the use of one-stop delivery system contractors or service providers identified as achieving a poor level of performance; and

(III) redesignate a local area (which may include merging a local area with another local area), if the Governor determines that the likely cause of such continued performance failure of a local area is due to such local area’s designation being granted without the appropriate consideration of parameters described under section 106(b)(1)(B); or

(iii) taking another significant action determined appropriate by the Governor.

(A) ;

(B) in subparagraph (B)(i), by inserting (ii) after subparagraph (A); and

(C) by adding at the end the following:

With respect to any amounts available to carry out section 128(b), paragraph (2)(A) or (3) of section 133(b), and section 133(b)(2)(B) to a Governor for a program year which would (in the absence of subparagraph (A)(i)) have otherwise been allocated by such Governor to a local area (referred to individually in this subparagraph as an unallocated amount) for such program year—

(i) 10 percent of those 3 unallocated amounts shall be reserved by the Governor to provide technical assistance to local areas within the State that were subject to a reduction of allocation amounts pursuant to subparagraph (A)(i) for such program year; and

(ii) the amounts remaining after the reservations under clause (i) shall be reallocated by the Governor, to the local areas within the State that were not subject to a reduction of allocation amounts pursuant to subparagraph (A)(i) for such program year, in a manner determined by the Governor, which may take into consideration the extent to which local areas serve a significant number, as determined by the Governor, of individuals with barriers to employment.

(C) .

Section 116(h) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(h)) is amended by striking non-Federal funds and inserting not more than 5 percent of the funds reserved under section 128(a)(1).

Section 116 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141) is amended—

(1) by redesignating subsection (i) as subsection (j); and

(2) by inserting after subsection (h) the following:

Beginning not later than 12 months after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary of Labor shall hold meetings with each State board and State agency that administers a core program, and that requests such a meeting, to provide information and technical assistance concerning the performance accountability measures established in accordance with subsection (b), and related requirements for States under this section.

(2) .

Section 116(j) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(j)), as so redesignated, is amended—

(1) in the first sentence of paragraph (2), by inserting, and may use information provided from the National Directory of New Hires in accordance with section 453(j)(8) of the Social Security Act (42 U.S.C. 653(j)(8)) after State law;

(2) by redesignating paragraph (3) as paragraph (4); and

(3) by inserting after paragraph (2) the following:

The Governor shall designate a State agency (or appropriate State entity) to assist in carrying out the performance reporting requirements of this section for core programs and eligible providers of training services. The designated State agency (or appropriate State entity) shall be responsible for—

(A) facilitating data matches using quarterly wage record information, including wage record information made available by other States, to measure employment and earnings outcomes;

(B) notifying State agencies that administer core programs and eligible providers of training services of the State's procedures for data validation and reliability, as described in subsection (d)(5); and

(C) protection against disaggregation that would violate applicable privacy standards, as described in subsection (d)(6)(C).

(3) .

Section 116 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141) is amended by adding at the end the following:

Not later than 24 months after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary of Labor shall fully implement the requirements of this section for programs described in subsection (b)(3)(A)(iv), including—

(1) developing and disseminating the objective statistical adjustment model framework described in subsection (b)(3)(A)(viii) and using the model as described in subsection (b)(3)(A)(viii) for each program; and

(2) notifying the State agencies carrying out such programs of the performance accountability measures established under this section, of the reporting and evaluation requirements for such programs, and of the sanctions requirements for programs that fail to meet State adjusted levels of performance under subsection (b)(3)(A)(iv).

.

Section 121(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(b)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (B)—

(i) in clause (xi), by inserting and at the end;

(ii) by striking clause (xii); and

(iii) by redesignating clause (xiii) as clause (xii); and

(B) in subparagraph (C), by striking subparagraph (B)(xiii) and inserting subparagraph (B)(xii); and

(2) in paragraph (2)—

(A) in subparagraph (A), by striking With and inserting At the direction of the Governor or with; and

(B) in subparagraph (B)—

(i) in clause (vi), by striking and at the end;

(ii) by redesignating clause (vii) as clause (viii);

(iii) by inserting after clause (vi) the following:

(vii) any applicable economic development and workforce development programs carried out in the State—

(I) by the Economic Development Administration;

(II) under Public Law 117–167 (commonly known as the CHIPS and Science Act of 2022);

(III) under the Infrastructure Investment and Jobs Act (Public Law 117–58); or

(IV) under Public Law 117–168 (commonly known as the Inflation Reduction Act of 2022); and

(iii) ; and

(iv) in clause (viii), as so redesignated—

(I) by inserting out-of-school youth services, after education,; and

(II) by inserting, by community-based organizations, after libraries.

Section 121(c)(2)(A)(iv) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(c)(2)(A)(iv)) is amended by striking access to services, including access to technology and materials, made and inserting access or referral to services, including access or referral to technology, materials, and other supportive services, made.

Section 121(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(d)) is amended—

(1) in paragraph (1), by striking paragraphs (2) and (3) and inserting paragraphs (2) and (5);

(2) in paragraph (2)(B)—

(A) in the matter preceding clause (i), by inserting (including effectiveness in serving individuals with barriers to employment) after demonstrated effectiveness;

(B) in clause (i), by inserting after education the following: or an area career and technical education school;

(C) in clause (v), by striking and;

(D) by redesignating clause (vi) as clause (viii);

(E) by inserting after clause (v) the following:

(vi) a public library;

(vii) a local board that meets the requirements of paragraph (4); and

(E) ; and

(F) in clause (viii), as so redesignated, by inserting after labor organization the following: or joint labor-management organization;

(3) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively; and

(4) by inserting after paragraph (2) the following:

In operating a one-stop delivery system referred to in subsection (e), a one-stop operator—

(i) shall—

(I) manage operations of the one-stop delivery system in the local area;

(II) facilitate coordination among the one-stop partners in such one-stop delivery system; and

(III) take the necessary steps to ensure efficient and effective service delivery for individuals served by the one-stop delivery system, including individuals with barriers to employment; and

(ii) may, subject to the requirements under subparagraph (B), directly provide services to job seekers and employers.

In a case in which a one-stop operator seeks to operate as a service provider pursuant to subparagraph (A)(ii), the local board shall establish internal controls (which shall include written policies and procedures)—

(i) with respect to the competition in which the one-stop operator will compete to be selected as such service provider, and the subsequent oversight, monitoring, and evaluation of the performance of such one-stop operator as such service provider; and

(ii) which require compliance with—

(I) relevant Office of Management and Budget circulars relating to conflicts of interest; and

(II) any applicable State conflict of interest policy.

Subject to approval from the chief elected official and Governor and in accordance with any other eligibility criteria established by the State, a local board may serve as a one-stop operator, if the local board—

(A) enters into a written agreement with the chief elected official that clarifies how the local board will carry out the functions and responsibilities as a one-stop operator in a manner that complies with the appropriate internal controls to prevent any conflicts of interest, which shall include how the local board, while serving as a one-stop operator, will—

(i) comply with the relevant Office of Management and Budget circulars relating to conflicts of interest; and

(ii) any applicable State conflict of interest policy; and

(B) complies with the other applicable requirements of this subsection.

(4) .

Section 121(e) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(e)) is amended—

(1) in paragraph (2)—

(A) in subparagraph (A), to read as follows:

(A) shall make each of the programs, services (meaning a referral in the case of supportive services, for the purposes of this paragraph), and activities described in paragraph (1) available—

(i) at not less than 1 physical or virtual center for each local area of the State, except that local areas may share—

(I) a virtual center, if the local area complies with subparagraph (E); or

(II) a physical center, if such center is located in a location that promotes accessibility to services for individuals residing in all such local areas served by the center; and

(ii) in a manner that is designed to promote efficiency, coordination, quality, and accessibility for individuals with barriers to employment, as determined by the local board, in the delivery of such programs, services, and activities;

(A) ;

(B) in subparagraph (B)(i), by inserting after affiliated sites the following: (such as a site of any of the entities described in subsection (d)(2)(B));

(C) in subparagraph (C)—

(i) by inserting after centers the following: (which may be virtual or physical centers); and

(ii) by striking and at the end;

(D) in subparagraph (D)—

(i) by striking as applicable and practicable, shall and inserting in the case of a one-stop delivery system that is making each of the programs, services, and activities described in paragraph (1) accessible at not less than 1 physical center, as described in subparagraph (A)(i), shall, in accordance with the regulations issued pursuant to paragraph (5),; and

(ii) by striking the period at the end and inserting, and local areas that share at least 1 common border may coordinate in making such programs, services, and activities accessible through electronic means through such a one-stop delivery system; and; and

(E) by inserting after subparagraph (D) the following:

(E) in the case of a one-stop delivery system that is making each of the programs, services, and activities accessible through electronic means, as described in subparagraph (A)(i), shall—

(i) have not fewer than 2 affiliated sites (not fewer than 1 of which will have not fewer than 1 professional staff member) with a physical location where individuals can access, virtually, each of the programs, services, and activities described in paragraph (1) that are virtually accessible; and

(ii) comply with the regulations issued pursuant to paragraph (5).

(E) ;

(2) in paragraph (4), by inserting after the first sentence the following: The system identifier shall be prominently and visibly displayed at each comprehensive and specialized one-stop center operated by the one-stop delivery system, including physical and virtual centers identified in paragraph (2)(A), and the sites and centers described in subparagraphs (B) through (E) of paragraph (2).; and

(3) by adding at the end the following:

The Secretary shall issue regulations to establish minimum digital functionality requirements with respect to the one-stop delivery system.

(3) .

Section 121(g)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(g)(2)(A)) is amended by striking under subsections (h)(1) and inserting under subsections (h)(1)(C).

Section 121(h) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(h)) is amended—

(1) by striking paragraph (1);

(2) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively;

(3) in paragraph (1), as so redesignated—

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

Subject to subparagraph (D), the covered portions of funding for a fiscal year shall be provided to the Governor from the programs described in subsection (b)(1) to pay the costs of infrastructure of one-stop centers in local areas of the State.

(A) ;

(B) in subparagraph (C)(i)—

(i) by striking for funding pursuant to clause (i)(II) or (ii) of paragraph (1)(A) by each partner,; and

(ii) by striking the third sentence; and

(C) in subparagraph (D)—

(i) in clause (ii), by striking For local areas in a State that are not covered by paragraph (1)(A)(i)(I), the and inserting The;

(ii) in clause (ii)—

(I) in subclause (I)—

(aa) by striking Wia in the header and inserting Wioa; and

(bb) by striking 3 percent and inserting 5 percent; and

(II) by striking subclause (III) and inserting the following:

Notwithstanding subclauses (I) and (II), an entity administering a program described in subsection (b)(1)(B)(iii) shall not be required to provide from that program, under this paragraph, a portion that exceeds 1.5 percent of the amount of Federal funds provided to carry out such program in the State for a program year.

(II) ; and

(iii) in clause (iii), by striking For local areas in a State that are not covered by paragraph (1)(A)(i)(I), an and inserting An;

(4) in paragraph (2), as so redesignated—

(A) in subparagraph (A), by striking purposes of assisting in and inserting purpose of; and

(B) in subparagraph (B)—

(i) in the first sentence, by striking not funding costs of infrastructure under the option described in paragraph (1)(A)(i)(I); and

(ii) in the second sentence, by inserting after local area, the following: the intensity of services provided by such centers, the number and types of one-stop partners engaged by or providing services through such centers;

(5) by inserting after paragraph (2), as so redesignated, the following:

For any fiscal year in which the allocation received by a local area under paragraph (2) is insufficient to cover the total costs of infrastructure of one-stop centers in such local area, the local board, the chief elected official, and the one-stop partners that have entered into the local memorandum of understanding with the local board under subsection (c) may agree to fund, using Federal or other funds, the remainder of any such costs using a method described in such memorandum.

(5) ; and

(6) in paragraph (4), by inserting after operation of the one-stop center the following: (whether for in-person or virtual service delivery).

Section 121(i)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(i)(2)) is amended by striking intake, and all that follows through skills, and inserting intake, case management, assessment of needs, appraisal of foundational skill needs,.

Section 122 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152) is amended—

(1) by redesignating subsections (f) through (i) as subsections (g) through (j), respectively;

(2) by striking the section heading and all that follows through subsection (e) and inserting the following:

Except as provided in subsection (i), the Governor, after consultation with the State board and considering the State’s adjusted levels of performance described in section 116(b)(3)(A)(iv), shall establish—

(A) procedures regarding the eligibility of providers of training services to receive funds provided under section 133(b) for the provision of training services through programs with eligibility under this section (in this section referred to as eligible programs) in local areas in the State; and

(B) the minimum levels of performance on the criteria for a program to receive such eligibility.

Subject to the provisions of this section, to be eligible to receive those funds for the provision of training services, the provider shall be—

(A) an institution of higher education that provides a program that leads to a recognized postsecondary credential;

(B) an entity that carries out programs registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); or

(C) another public or private provider of a program of training services, which may include joint labor-management organizations, providers of entrepreneurial skills development programs, industry or sector partnerships, groups of employers, trade or professional associations, and eligible providers of adult education and literacy activities under title II (if such activities are provided in combination with occupational skills training or integrated education and training programs).

A provider described in subparagraph (A) or (C) of paragraph (2) (other than a provider described in subparagraph (B)(ii) of this paragraph) shall comply with the criteria, information requirements, and procedures established under this section to be included on the list of eligible providers of training services described in subsection (d).

A provider described in paragraph (2)(B) shall be included and maintained on the list of eligible providers of training services described in subsection (d) for so long as the corresponding program of the provider remains registered as described in paragraph (2)(B).

With respect to a provider described in paragraph (2)(A) that provides an eligible program for purposes of the Workforce Pell Grant program under section 401(k) of the Higher Education Act of 1965 (20 U.S.C. 1070a(k)), as added by section 83002(a) of Public Law 119–21, such provider shall be included and maintained on the list of eligible providers of training services described in subsection (d) for so long as the provider provides such eligible program.

Each provider shall demonstrate to the Governor that the program for which the provider is seeking eligibility under this section—

(A) prepares participants to meet the hiring requirements of potential employers in the State, or a local area within the State, for employment that—

(i) is high-skill and high-wage; or

(ii) is in an in-demand industry sector or occupation;

(B) leads to a recognized postsecondary credential;

(C) has been offered by the provider for not less than 1 year; and

(D) meets the performance requirements for eligibility described in paragraph (2).

The Governor shall—

(i) establish and publicize minimum levels of performance for each of the criteria listed in subparagraph (B) that a program offered by a provider of training services shall achieve, for all participants in the program (including participants for whom the provider receives payments under this title) for the program to receive and maintain eligibility under this section;

(ii) verify the performance achieved by such a program with respect to each such criterion to determine whether the program meets the corresponding minimum level of performance established under clause (i)—

(I) in the case of the criteria described in (ii) through (iv) of subparagraph (B), using State administrative data (such as quarterly wage records); and

(II) in the case of the criteria described in subparagraph (B)(i), using any applicable method for such verification; and

(iii) in verifying the performance achievement of a program to make such determination, verify that such program included a sufficient number of program participants to protect participants’ personally identifiable information, and to provide information that is a reliable indicator of performance achievement.

The performance criteria to receive and maintain eligibility for a program under this section are each of the following:

(i) The credential attainment rate of program participants (calculated as the percentage of program participants who obtain the recognized postsecondary credential that the program prepares participants to earn within 6 months after exit from the program).

(ii) The job placement rate of program participants (calculated as the percentage of program participants in unsubsidized employment during the second quarter after exit from the program).

(iii) The median earnings of program participants who are in unsubsidized employment during the second quarter after exit from the program.

(iv) The ratio of median earnings increase to the total cost of program, calculated as the ratio of—

(I) the median value of the difference between—

(aa) participant wages from unsubsidized employment during the second quarter after program exit; and

(bb) participant wages during the quarter prior to entering the program; to

(II) the total cost of the program (as described in paragraph (5)(B)(i)(III)).

With respect to any program receiving eligibility under this section from a Governor, a local board in the State may require higher levels of performance than the minimum levels of performance established by the Governor under this paragraph for the program to be an eligible program in the corresponding local area, but may not—

(i) require any information or application from the provider that is not required for such eligibility; or

(ii) establish a performance requirement with respect to any criterion not listed in subparagraph (B).

The Governor shall establish procedures and criteria for a provider to demonstrate that a program meets, in applying for an employer-sponsored designation for a program that has received eligibility under this subsection, which shall include demonstrating a commitment from an employer or an industry or sector partnership to—

(i) pay to the provider, on behalf of each participant enrolled in such program under this Act, not less than 25 percent of the total cost of the program (as described in paragraph (5)(B)(i)(III)), which shall be provided in lieu of 25 percent of the amount that the provider would have otherwise received under section 133(b) for the provision of training services by such program to such participant; and

(ii) guarantee an interview and meaningful consideration for a job with the employer, or in the case of an industry or sector partnership, an employer within such partnership, for each such participant that successfully completes the program.

A provider of a program receiving an employer-sponsored designation under this paragraph may not—

(i) have an ownership stake in the employer or industry or sector partnership making a commitment described in subparagraph (A); or

(ii) enter into an arrangement to reimburse an employer or partnership for the costs of a participant paid by such employer or partnership under this paragraph.

If the Governor determines that a program offered by an eligible provider meets the minimum levels of performance described in subparagraph (B) to receive a Workforce Innovation Leader (or WIL) designation, which designates the program as a WIL program, the Governor shall grant the program designation as a WIL program and inform the provider of such program of their ability to display the WIL seal, as described in subparagraph (C), in marketing materials.

A eligible program shall meet the levels of performance to receive a WIL designation if such program has achieved—

(i) a credential attainment rate of program participants (calculated as the percentage of program participants who obtain the recognized postsecondary credential that the program prepares participants to earn within 6 months after exit from the program) of not less than 80 percent;

(ii) a job placement rate of program participants (calculated as the percentage of program participants in unsubsidized employment during the second quarter after exit from the program) of not less than 70 percent;

(iii) median earnings of program participants who are in unsubsidized employment during the second quarter after exit from the program that are not less than 25 percent greater than the State-level median earnings of individuals ages 25 through 34 in the labor force who have only a regular high school diploma or its recognized equivalent; and

(iv) a ratio of greater than 1.5 of median earnings increase to the total cost of program, calculated as the ratio of—

(I) the median value of the difference between—

(aa) participant wages from unsubsidized employment during the second quarter after program exit; and

(bb) participant wages during the quarter prior to entering the program; to

(II) the total cost of the program (as described in paragraph (5)(B)(i)(III)).

Not later than 2 years after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary shall design a seal signifying that a program has achieved a WIL designation, for the Governor of each State to provide to any programs in their State that achieve the performance necessary to receive a WIL designation.

If, during the annual review of eligibility described in subsection (c)(3), the Governor determines that a WIL program no longer meets the levels described in subparagraph (B) or otherwise has eligibility under this section revoked or terminated, or the provider of the program has eligibility terminated under subsection (g)(1)(A), the Governor shall revoke the program’s WIL designation and inform the provider of such program that such provider may no longer display the WIL seal in marketing materials or otherwise.

A provider that seeks to establish eligibility under this section, and an eligible provider, shall submit appropriate, accurate, and timely information to the Governor, to enable the Governor to carry out subsection (d), with respect to all participants in each eligible program (including participants for whom the provider receives payments under this title) offered by the provider, which information shall—

(A) be made available by the State in a common, linked, open, and interoperable data format; and

(B) consist of—

(i) information on—

(I) in the case of an eligible provider offering a program who is seeking to maintain eligibility, the performance of the program with respect to the indicators described in section 116(b)(2)(A) for participants in the program;

(II) the recognized postsecondary credentials received by such participants, including, in relation to each such credential, the issuing entity, any third-party endorsements, the occupations for which the credential prepares individuals, the competencies achieved by the individuals, the level of mastery of such competencies (including how mastery is assessed) achieved by the individuals, and any transfer value or stackability;

(III) the total cost of the program, including the costs of the published tuition and fees, supplies, and books, and any other costs required by the provider, for a participant in the program;

(IV) the percentage of such participants that complete the program within the expected time to completion; and

(V) the program’s level of performance on the criteria described in paragraph (2) and not otherwise included in clause (I) of this clause; and

(ii) with respect to employment and earnings measures described in subclauses (I) through (III) of section 116(b)(2)(A)(i) and the performance criteria described in subsection (b)(2) for such participants—

(I) the necessary information for the State to develop program performance data using State administrative data (such as quarterly wage records); and

(II) the necessary information to determine the percentage of such participants who entered unsubsidized employment in an occupation related to the program, to the extent practicable.

In this section, other than subsection (i), a provider of an eligible program under this section shall be considered to be identified as an eligible provider of training services.

The procedures established under subsection (a) shall identify the application process for a provider of training services (for a program offered by the provider) to become eligible to receive funds provided under section 133(b) for the provision of training services. That process shall be implemented in a manner that minimizes the financial and administrative burden on the provider and shall not require the submission of information in excess of the information required to determine a program’s eligibility under paragraphs (1), (2), and (5) of subsection (b). The procedures shall identify the respective roles of the State and local areas in receiving and reviewing the applications and in making determinations of such eligibility based on the criteria, information requirements, and procedures established under this section. The procedures shall also establish a process, for a provider of training services to appeal a denial or revocation or termination of eligibility under this section, that includes an opportunity for a hearing and prescribes appropriate time limits to ensure prompt resolution of the appeal.

A Governor shall make a determination of such eligibility with respect to a program for which the provider is seeking eligibility under this section not later than 30 days after receipt of an application submitted by such provider consistent with the procedures in paragraph (1).

The procedures established by the Governor shall also provide for annual review and renewal of eligibility under this section for a program of training services that continues to meet the requirements under paragraphs (1), (2), and (5) of subsection (b).

The procedures established under subsection (a) shall adhere to the following requirements for revocation of eligibility by the Governor:

With respect to a provider of training services that is eligible under this section for a program year with respect to an eligible program, but that does not provide the information described in subsection (b)(5) with respect to such program for such program year (including information on performance necessary to determine if the program meets the minimum levels of performance on the performance criteria to maintain eligibility), the provider shall be ineligible under this section with respect to such program for the program year after the program year for which the provider fails to provide such information.

The provider of an eligible program that has received eligibility under subsection (c)(2) for a program year but fails to meet the minimum levels of performance on the performance criteria described in subsection (b)(2) for the most recent program year for which performance data on such criteria are available shall be notified of such failure by the Governor.

A program that fails to meet the minimum levels of performance for a second consecutive program year shall be ineligible under this section with respect to such program for the program year following such second consecutive program year and until the program meets the minimum levels of performance.

A provider that loses eligibility under this subparagraph with respect to a program may reapply to receive eligibility for the program according to the procedures described in this subparagraph if the program meets the minimum levels of performance described in clause (i), for the most recent program year for which performance data on the performance criteria are available.

A program for which the Governor revokes eligibility under subparagraph (A) or (B)—

(i) 2 times shall be determined ineligible under this section by the Governor for a period of at least 2 years;

(ii) 3 times shall be determined ineligible under the section by the Governor for a period of at least 5 years; and

(iii) more than 3 times shall be determined ineligible under this section by the Governor for a period of at least 10 years.

A provider of a program for which the Governor revokes eligibility under paragraph (4) shall—

(A) be prohibited from enrolling any new participants whose participation would be funded under section 133(b) in the program and from receiving any payments from funds provided under section 133(b) for any participants not already enrolled in the program on the date of revocation or termination until and unless the Governor determines that the provider has demonstrated that the program offered by the provider has met the requirements for the provider to gain the opportunity to reapply for eligibility under the procedure described in paragraph (4)(B)(iii); and

(B) enable each participant currently enrolled in the program, on the date of the revocation or termination, to complete such program.

The local board serving participants whose participation is funded under section 133(b) in a program for which eligibility is revoked by the Governor under this subsection shall notify such participants that such program no longer meets the State’s requirements for eligible providers of training services under this Act and that the participant has the opportunity to continue receiving training services from such program, in order to complete the program.

The procedures established under subsection (a) shall specify the process for any provider of training services offering a program that is eligible under this section in a first State to establish eligibility under this section in an additional State, which shall, to the extent practicable, minimize financial and administrative burdens on any such provider by authorizing the provider to submit the same application materials and information to the Governor of the additional State that was accepted by the Governor granting the provider’s eligibility in the first State, as long as the program meets the applicable State requirements for such eligibility established under subsection (b).

The procedures established under subsection (a) shall apply to a provider that delivers training services exclusively online. If a participant chooses a provider that delivers training services exclusively online and is not located in the State of the local area that approved such training services for the participant in accordance with section 133(c)(3)(A)(i), such provider shall be ineligible to receive payment for such participant from funds allotted to such State under section 132 unless such provider is on the list of eligible providers of training services described in subsection (d) for such State with respect to the program involved.

In order to facilitate and assist participants in choosing employment and training activities and in choosing providers of training services, the Governor shall ensure that an appropriate list of providers determined to be eligible under this section to offer a program in the State (and, as appropriate, in a local area), accompanied by information identifying the recognized postsecondary credential offered by the provider and other appropriate information, is prepared. The list shall be provided to the local boards in the State, and made available to such participants and to members of the public through the one-stop delivery system in the State in accordance with paragraph (4).

The Governor may establish (or develop in partnership with other States) a talent marketplace.

The accompanying information referred to in paragraph (1) shall consist of—

(A) with respect to providers described in subparagraphs (A) and (C) of subsection (a)(2) (other than providers described in subsection (a)(3)(B)(ii)), information provided by such providers (disaggregated by local areas served, as applicable) in accordance with subsection (b);

(B) with respect to a program described in subsection (b)(3) that is offered by a provider, information promoting the program as having an employer-sponsored designation and identifying the employer or partnership sponsoring the program; and

(C) with respect to a program described in subsection (b)(4) that is offered by a provider, information promoting the program as being a WIL program and displaying the seal described in subsection (b)(4)(C).

The list (including the talent marketplace if one has been established by the State), and the accompanying information shall be made available to such participants and to members of the public through the one-stop delivery system in the State—

(A) on a publicly accessible website that—

(i) is consumer-tested; and

(ii) is searchable, easily understandable, and navigable, and allows for the comparison of eligible programs through the use of common, linked, open-data descriptive language, including interoperable skills and competency data; and

(B) in a manner that does not reveal personally identifiable information about an individual participant.

The Secretary shall—

(A) upon request, provide technical assistance to a State on establishing a website that meets the requirements of paragraph (4); and

(B) disseminate to each State effective practices or resources from States and private sector entities related to establishing a website that is consumer-tested to ensure that the website is easily understood, searchable, and navigable.

In carrying out the requirements of this subsection, no personally identifiable information regarding a student, including a Social Security number, student identification number, or other identifier, may be disclosed without the prior written consent of the student or student’s parent in compliance with section 444 of the General Education Provisions Act (20 U.S.C. 1232g).

In establishing, under this section, criteria, procedures, and the list of eligible providers described in subsection (d), the Governor shall provide an opportunity for interested members of the public to make recommendations and submit comments regarding such criteria, procedures, and list.

The Governor shall establish a system of performance incentive payments to be awarded to eligible providers in addition to the amount paid under section 133(b) to such providers for the provision of training services to participants of eligible programs. Such system of performance incentive payments may be established to award the payments to providers of eligible programs that—

(A) achieve levels of performance above the minimum levels established by the Governor under subsection (b)(2);

(B) serve a significantly higher number of individuals with barriers to employment compared to training providers offering similar training services; or

(C) achieve other performance successes, including those related to jobs that provide economic stability and upward mobility (such as jobs with high wages and family sustainable benefits) as determined by the State or the local board.

Incentive payments to providers established under paragraph (1) shall be awarded to eligible providers from funds reserved by the Governor under section 128(a)(1), except that not more than 5 percent of the funds reserved by the Governor under section 128(a)(1) may be used for such payments.

(2) ;

(3) by striking subsections (i) and (j) and inserting the following:

Providers of on-the-job training, employer-directed skills development, incumbent worker training, internships, paid or unpaid work experience opportunities, or transitional employment shall not be subject to the requirements of subsections (a) through (f).

A one-stop operator in a local area shall collect the minimum amount of information from providers of on-the-job training, employer-directed skills development, incumbent worker training, internships, paid or unpaid work experience opportunities, or transitional employment as necessary to enable the use of State administrative data to generate such performance information as the Governor may require, and use the information to determine whether the providers meet such performance criteria as the Governor may require. The one-stop operator shall disseminate information identifying such providers that meet the criteria as eligible providers, and the performance information, through the one-stop delivery system. Providers determined to meet the criteria shall be considered to be identified as eligible providers of training services.

The Governor may apply to the Secretary for technical assistance, as described in section 168(c), for purposes of carrying out the requirements of the amendments made by the A Stronger Workforce for America Act of 2026 to this section, and the Secretary shall provide such technical assistance in a timely manner.

(3) .

Not later than 4 years after the date of enactment of this Act, the Secretary of Labor shall submit a report to the Committee on Education and Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate on eligible providers of training services under section 122 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152), as amended by this Act, in each State that shall include—

(1) the minimum levels of performance established by the Governor of each State with respect to the performance criteria under subsection (b)(2) of that section 122 for such eligible providers of training services in the State;

(2) the number of such eligible providers of training services in the State in each program year that begins after the date of enactment of this Act, compared with the number of such providers in the State in the program year that began immediately preceding that date of enactment; and

(3) the average length of time that such eligible providers of training services in the State maintain eligibility, disaggregated by the type of entity that provided the training services.

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

Section 128(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3163(a)) is amended—

(1) in paragraph (2), by striking reserved amounts in each place and inserting reserved amounts required under paragraph (1); and

(2) by adding at the end the following:

In addition to the reservations required under paragraph (1) and section 133(a)(2), and subject to subparagraph (B), the Governor may reserve not more than 10 percent of each of the amounts allotted to the State under section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 132(b) for a fiscal year to establish and administer any one, or both, of the following:

(i) A critical industry skills fund described in section 134(a)(4).

(ii) An industry or sector partnership and career pathways development fund described in section 134(a)(5).

The amount of funds reserved by a Governor under subparagraph (A) for a fiscal year may not exceed the amount of funds that such Governor commits to using from any of the funds listed in clause (ii) of this subparagraph for the purposes of establishing and administering the funds described in clauses (i) and (ii) of subparagraph (A) for such fiscal year.

The funds listed in this clause are as follows:

(I) Funds reserved by the Governor under paragraph (1) of this subsection.

(II) Other Federal funds not described in subclause (I).

(III) State funds.

(2) .

Section 128(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is amended—

(1) in paragraph (1), by inserting the following before the period at the end: as performance-based incentive payments; and

(2) in paragraph (4)—

(A) by striking that does not and inserting the following:

(A) that—

(A) does not

(A) ;

(B) by striking the period at the end and inserting a semicolon; and

(C) by adding at the end the following:

(B) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the youth program authorized under this chapter for the most recent program year for which performance data is available; and

(C) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made.

(C) .

Subparagraph (A) of section 129(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1)) is amended to read as follows:

To be eligible to participate in activities carried out under this chapter during any program year, an individual shall, at the time the eligibility determination is made, be an out-of-school youth or an in-school youth.

If a one-stop operator or eligible provider of youth workforce activities carrying out activities under this chapter reasonably believes that an individual is eligible to participate in such activities, the operator or provider may allow such individual to participate in such activities for not more than a 40-day period during which the operator or provider shall obtain the necessary information to make an eligibility determination with respect to such individual (which may involve working with such individual and other entities in the local area, and using available sources of administrative data, to obtain the necessary information).

With respect to an individual who is determined to be ineligible for activities under this chapter by a one-stop operator or an eligible provider of youth workforce activities during the period described in clause (ii) and who does not qualify for an exception under paragraph (3)(A)(ii) applicable to the local area involved, such operator or service provider—

(I) may—

(aa) continue serving such individual using non-Federal funds; or

(bb) end the participation of such individual in activities under this chapter and refer the individual to other services that may be available in the local area for which the individual may be eligible; and

(II) shall be paid for any services provided to such individual under this chapter during the period described in clause (ii) by the local area involved using funds allocated to such area under section 128(b).

In determining whether an individual is eligible to participate in activities carried out under this chapter on the basis of being an individual who is a homeless youth, or a youth in foster care, as described in subparagraph (B)(iii)(V), the one-stop operator or service provider involved may—

(I) if determining whether the individual is a homeless youth, use a process that is in compliance with the requirements of subsection (a) of section 479D of the Higher Education Act of 1965 (20 U.S.C. 1087uu–2) for financial aid administrators; and

(II) if determining whether the individual is a youth in foster care, use a process that is in compliance with the requirements of subsection (b) of section 479D of the Higher Education Act of 1965 (20 U.S.C. 1087uu–2) for financial aid administrators.

.

Subparagraph (B) of section 129(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1)) is amended—

(i) in clause (i), by inserting, except that an individual described in subparagraph (IV) or (V) of clause (iii) may be attending school (as defined under State law) after (as defined under State law);

(ii) in clause (ii), by inserting before the semicolon at the end, the following :, except that an individual described in subparagraph (IV) or (V) of clause (iii) may be not younger than age 14 or older than age 24; and

(iii) in clause (iii)—

(I) in subclause (III)—

(aa) in the matter preceding item (aa)—

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

(BB) by striking and is and inserting and;

(bb) in item (aa), by striking basic skills deficient; and inserting has foundational skill needs;; and

(cc) in item (bb), by striking an English language learner and inserting is an English learner; and

(II) in subclause (V), by striking (42 U.S.C. 14043e-2(6)) and inserting (34 U.S.C. 12473(6)).

Clause (iv) of section 129(a)(1)(C) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1)(C)) is amended—

(i) in subclause (I), by striking Basic skills deficient. and inserting An individual who has foundational skill needs.;

(ii) in subclause (II), by striking language;

(iii) by striking subclauses (III) and (IV); and

(iv) by redesignating subclauses (V), (VI), and (VII) as subclauses (III), (IV), and (V), respectively.

Section 129(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1)) is amended by adding at the end the following:

An out-of-school youth described in subclause (IV) or (V) of subparagraph (B)(iii) who is attending any school (as defined under State law) shall be eligible to participate in any activity for in-school youth carried out under this chapter.

.

Section 129(a)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(3)) is amended—

(A) in subparagraph (A)(ii), by striking 5 and inserting 10; and

(B) in subparagraph (B)—

(i) by striking 5 and inserting 10; and

(ii) by striking paragraph (1)(C)(iv)(VII) and inserting paragraph (1)(C)(iv)(V).

Section 129(a)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(4)) is amended—

(A) in subparagraph (A)—

(i) by striking 75 each place it appears and inserting 70;

(ii) by inserting the total amount of before funds available; and

(iii) by inserting in the State after subsection (c);

(B) in subparagraph (B)(i), by striking 75 and inserting 70;

(C) by redesignating subparagraph (B), as so amended, as subparagraph (C); and

(D) by inserting after subparagraph (A) the following:

The local board, the chief elected official, and the Governor shall negotiate and reach agreement on the minimum amount of funds provided to a local area under subsection (c) that shall be used to provide youth workforce investment activities for out-of-school youth based on the needs of the youth in the local area, which—

(i) may not be an amount that is less than 45 percent of the funds provided to such local area under subsection (c); and

(ii) shall be the amount that is necessary for the State to meet the requirements of subparagraph (A) with respect to the total amount of funds available for local areas under subsection (c).

(D) .

Section 129(b)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(b)(1)) is amended—

(1) in the matter preceding subparagraph (A), by striking sections 128(a) and inserting sections 128(a)(1);

(2) in subparagraph (B), by inserting through a website that is consumer-tested to ensure that the website is easily understood, searchable, and navigable and allows for comparison of eligible providers based on the program elements offered by such providers and the performance of such providers on the primary indicators of performance for the youth program as described in section 116(b)(2)(A)(ii) after under section 123; and

(3) in subparagraph (D), by striking section 116(i) and inserting section 116(j).

Section 129(b)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(b)(2)) is amended—

(1) in the matter preceding subparagraph (A), by striking sections 128(a) and inserting sections 128(a)(1);

(2) in subparagraph (C), by inserting, which may include providing guidance on career options in in-demand industry sectors or occupations after in the State;

(3) in subparagraph (D)—

(A) in clause (iv), by striking and at the end; and

(B) by inserting after clause (v) the following:

(vi) supporting the ability to understand relevant tax information and obligations;

(B) ;

(4) in subparagraph (E), by striking the period at the end and inserting a semicolon; and

(5) by adding at the end the following:

(F) establishing, supporting, and expanding work-based learning opportunities (including transitional jobs and work-based learning opportunities designed for youth to develop and gain experience using emerging technologies, including artificial intelligence, in the workplace) that are aligned with career pathways;

(G) raising public awareness (including through public service announcements, such as social media campaigns and elementary and secondary school showcases and school visits) about career and technical education programs and community-based and youth services organizations, and other endeavors focused on programs that prepare students for in-demand industry sectors or occupations;

(H) developing partnerships between educational institutions (including area career and technical schools and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce (including the skills needed to use emerging technology tools and systems in the workplace) and the employment needs of employers in the regions or local areas of the State, as determined based on the most recent analysis conducted under subparagraphs (B) and (C) of section 102(b)(1);

(I) coordinating activities with providers of a pre-apprenticeship program or apprenticeship program for youth in the State to establish, support, or expand the program described in this subparagraph, including any such program in the State receiving assistance under section 173;

(J) coordinating activities with entities implementing reentry projects in the State focused on establishing or improving workforce development programs for juvenile offenders, including any such reentry projects in the State receiving assistance under section 172; and

(K) coordinating activities with agencies implementing corrections education and other education programs in the State focused on providing incarcerated youth with education and skills development programs, including any such programs in the State receiving assistance under section 225.

(5) .

Section 129(c)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(1)) is amended—

(A) in subparagraph (A), by striking basic skills and inserting foundational skill needs;

(B) in subparagraph (B), by inserting (which, in the case of a participant 18 years or older, may include co-enrollment in any employment or training activity provided under section 134 for adults) after services for the participant;

(C) in subparagraph (C)—

(i) in clause (i), by striking secondary school diploma or its recognized equivalent and inserting regular high school diploma or its recognized equivalent; and

(ii) in clause (v), by inserting high-skill, high-wage, or after small employers, in; and

(D) in subparagraph (D), by striking 10 and inserting 30.

Section 129(c)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(2)) is amended—

(A) in the matter preceding subparagraph (A), by striking secondary school diploma or its recognized equivalent and inserting regular high school diploma or its recognized equivalent;

(B) in subparagraph (A), by striking secondary school diploma or its recognized equivalent and inserting regular high school diploma or its recognized equivalent;

(C) in subparagraph (C)—

(i) in clause (i)—

(I) by striking other and inserting year-round; and

(II) by inserting that meet the requirements of paragraph (10) after school year;

(ii) in clause (ii), by inserting and apprenticeship programs that serve youth after programs;

(iii) by amending clause (iii) to read as follows:

(iii) internships that—

(I) are paid internships or are unpaid internships for which academic credit may be awarded;

(II) are, to the extent practicable, aligned with in-demand industry sectors or occupations in the State or local area; and

(III) for which participants shall be paid (by the entity providing the internship, through funds allocated to the local area pursuant to paragraph (1) for the program, or by another entity) if such internships are longer than—

(aa) 4 weeks in the summer or 8 weeks during the school year for in-school youth and out-of-school youth who are enrolled in school; or

(bb) 8 weeks for out-of-school youth who are not enrolled in school;

(iii) ;

(iv) by redesignating clause (iv) as clause (v);

(v) by inserting after clause (iii), as so amended, the following:

(iv) job shadowing;

(v) ;

(vi) in clause (v), as so redesignated, by inserting and at the end; and

(vii) by adding at the end the following:

(vi) work-based learning;

(vii) ;

(D) in subparagraph (H), by striking adult mentoring and inserting coaching and adult mentoring services;

(E) in subparagraph (I), by inserting (including case management) after services;

(F) in subparagraph (M)—

(i) by inserting high-skill, high-wage, or before in-demand industry; and

(ii) by striking the and at the end;

(G) in subparagraph (N), by striking the period at the end and inserting; and; and

(H) by adding at the end the following:

(O) activities to develop fundamental workforce readiness, which may include creativity, collaboration, critical thinking, digital literacy, persistence, and other relevant skills.

(H) .

Section 129(c)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(4)) is amended to read as follows:

Not less than 40 percent of the funds allocated to the local area as described in paragraph (1) shall be used to provide in-school youth and out-of-school youth with activities under paragraph (2)(C).

Not less than 12 and 1⁄2 percent of the funds used for the purposes described in subparagraph (A) shall be used to provide in-school youth and out-of-school youth with activities under paragraph (2)(C)(ii).

.

Section 129(c)(5) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(5)) is amended by inserting or local area after youth services.

Section 129(c)(7) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(7)) is amended by inserting, secondary schools, and area career and technical schools after agencies.

Section 129(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)) is amended by adding at the end the following:

Subject to subparagraph (B), funds allocated pursuant to paragraph (1) to a local area may be used to pay, through an individual training account, an eligible provider of training services described in section 122(d) for training services described in section 134(c)(3) provided to in-school youth who are not younger than age 16 and not older than age 21 and out-of-school youth, in the same manner that an individual training account is used to pay an eligible provider of training services under section 134(c)(3)(F)(iii) for training services provided to an adult or dislocated worker.

To use an individual training account to pay for a program of training services that will take place during regular school hours for an in-school youth who is younger than the age 18, the local area shall receive written approval from the secondary school at which the in-school youth is enrolled prior to the start of the program of training services.

.

Section 129(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)) is further amended by adding at the end the following:

A summer employment opportunity or a year-round employment opportunity referred to in paragraph (2)(C)(i) shall be a program that matches eligible youth participating in such program with an appropriate employer (based on factors including the needs of the employer and the age, skill, and informed aspirations of the eligible youth) that—

(i) shall include—

(I) a component of occupational skills education; and

(II) not less than 2 of the activities described in subparagraphs (G), (H), (I), (K), (M), and (O) of paragraph (2);

(ii) may not use funds allocated under this chapter to subsidize more than 50 percent of the wages of each eligible youth participant in such program;

(iii) in the case of a summer employment opportunity, complies with the requirements of subparagraph (B); and

(iv) in the case of a year-round employment opportunity, complies with the requirements of subparagraph (C).

In addition to the applicable requirements described in subparagraph (A), a summer employment opportunity—

(i) may not be less than 4 weeks; and

(ii) may not pay less than the highest applicable wage required by the applicable Federal, State, or local minimum wage law.

In addition to the applicable requirements described in subparagraph (A), a year-round employment opportunity—

(i) may not be shorter than 180 days or longer than 1 year;

(ii) may not pay less than the highest applicable wage required by the applicable Federal, State, or local minimum wage law; and

(iii) may not employ the eligible youth for less than 20 hours per week, except in instances when the eligible youth are under the age of 18 or enrolled in school.

In selecting summer employment opportunities or year-round employment opportunities for purposes of paragraph (2)(C)(i), a local area shall give priority to such opportunities that meet the requirements of this paragraph and that are in existing or emerging high-skill, high-wage, or in-demand industry sectors or occupations.

.

Section 129(c)(3)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(3)(B)) is amended by striking basic skills and inserting foundational skill needs.

Section 132(a)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3172(a)(2)(A)) is amended by—

(1) striking, 169(c) (relating to dislocated worker projects),; and

(2) by inserting, and under subsections (c) (related to dislocated worker projects) and (d) (related to workforce data quality initiatives) of section 169 before; and

Section 133(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(a)) is amended—

(1) in paragraph (1), by striking section 128(a) and inserting section 128(a)(1); and

(2) by adding at the end the following:

In addition to the reservations required under paragraphs (1) and (2), the Governor may make the reservation authorized under section 128(a)(3).

(2) .

Section 133(b)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(b)) is amended—

(1) in subparagraph (A), by striking subsection (a)(1) and inserting paragraph (1) or (3) of subsection (a); and

(2) in subparagraph (B), by striking paragraph (1) or (2) of subsection (a) and inserting paragraph (1), (2), or (3) of subsection (a).

Section 133(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is amended—

(1) in paragraph (1), by inserting before the period at the end, the following: as performance-based incentive payments;

(2) in paragraph (4)—

(A) in subparagraph (A)—

(i) by striking that does not and inserting the following:

(i) that—

(i) does not

(i) ;

(ii) by striking; and and inserting a semicolon; and

(iii) by adding at the end the following:

(ii) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the adult program authorized under this chapter for the most recent program year for which performance data is available; and

(iii) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made; and

(iii) ; and

(B) in subparagraph (B)—

(i) by striking that does not and inserting the following:

(i) that—

(i) does not

(i) ;

(ii) by striking the period at the end and inserting a semicolon; and

(iii) by adding at the end the following:

(ii) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the dislocated worker program authorized under this chapter for the most recent program year for which performance data is available; and

(iii) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made; and

(iii) ; and

(3) by adding at the end the following:

Any amounts provided to a local area as a performance incentive payment under this subsection shall not be subject to the requirements described in section 134(c)(1)(B).

(3) .

Section 134(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(1))—

(A) in subparagraph (A), by striking and at the end;

(B) in subparagraph (B)—

(i) in the matter preceding clause (i), by striking 128(a) and inserting 128(a)(1); and

(ii) by amending clause (ii) to read as follows:

(ii) may be used to carry out any of the statewide employment and training activities described in paragraph (3) (including establishing and administering any one, or both, of the funds referred to in subparagraph (C));

(ii) ; and

(C) by inserting before the flush left text at the end the following:

(C) as described in section 128(a)(3), shall be used to establish and administer any one, or both, of the following:

(i) a critical industry skills fund described in paragraph (4); or

(ii) an industry or sector partnership and career pathways development fund described in paragraph (5),

(C) .

Section 134(a)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(2)(A)) is amended—

(i) in clause (i)—

(I) in subclause (I)—

(aa) by striking working and inserting as a rapid response unit working; and

(bb) by striking and at the end;

(II) in subclause (II), by striking the period at the end and inserting; and; and

(III) by adding at the end the following:

(III) provision of additional assistance to any local area that has excess demand for individual training accounts for dislocated workers in such local area and requests such additional assistance under this subclause in accordance with paragraph (4) of section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (29 U.S.C. 3224a(5)), upon a determination by the State that, in using funds allocated to such local area pursuant to paragraph (1) of such section 414(c) and in using funds as required under subsection (c)(1)(B) of this section for the purpose described in paragraph (2)(A) of such section 414(c)), the local area is in compliance with the requirements of such section 414(c).

(III) ; and

(ii) by adding at the end the following:

If a State determines that a local area with excess demand as described in clause (i)(III) has met the compliance requirements described in such clause, but the State does not have sufficient funds reserved under section 133(a)(2) to meet such excess demand, the State—

(I) shall notify the Secretary of such excess demand; and

(II) if eligible, may apply for a national dislocated worker grant under section 170 of this Act.

(ii) .

Section 134(a)(2)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(2)(B) is amended—

(i) in clause (i)—

(I) in subclause (III), by striking and at the end;

(II) by amending subclause (IV) to read as follows:

(IV) local areas, one-stop operators, one-stop partners, and eligible providers, including the development and training of staff, which may include—

(aa) the development and training of staff to provide information about wage levels and available benefits across in-demand industry sectors or occupations, and information about opportunities for individuals with barriers to employment to enter in-demand industry sectors or occupations and nontraditional occupations;

(bb) providing capacity building and technical assistance to State board and local board members on the development of exemplary program activities;

(cc) the development and education of staff to increase expertise in providing opportunities for covered veterans (as defined in section 4212(a)(3)(A) of title 38, United States Code) to enter in-demand industry sectors or occupations and nontraditional occupations: and

(dd) the provision of technical assistance to local areas that fail to meet local performance accountability measures described in section 116(c); and

(II) ; and

(III) by adding at the end the following:

(V) local boards and eligible providers of training services in carrying out the performance reporting required under section 116(d), including facilitating data matches for program participants—

(aa) using quarterly wage record information (including the wage records made available by any other State and information provided from the National Directory of New Hires in accordance with section 453(j)(8) of the Social Security Act (42 U.S.C. 653(j)(8))); and

(bb) other sources of information, as necessary to measure the performance of programs and activities conducted under this chapter or chapter 2 of this subtitle;

(III) ;

(ii) in clause (ii), by striking section 106(b)(7) and inserting section 106(b)(6);

(iii) in clause (iii), by striking section 116(i) and inserting section 116(j); and

(iv) in clause (v)—

(I) in subclause (II)—

(aa) by striking customized training and inserting employer-directed skills development; and

(bb) by striking transitional jobs and inserting transitional jobs, or sponsors of apprenticeships and pre-apprenticeships;

(II) in subclause (III), by inserting, including business engaged in joint labor-management partnerships before the semicolon;

(III) by redesignating subclauses (V) and (VI) as subclauses (VI) and (VII), respectively;

(IV) by inserting after subclause (IV) the following:

(V) information on effective coordination of supportive services for workers and jobseekers;

(IV) ;

(V) in subclause (VI), as so redesignated—

(aa) by striking subsections (d) and (h) of section 122 and inserting subsections (d) and (i) of section 122; and

(bb) by striking and at the end; and

(VI) by adding at the end the following:

(VIII) information to participants on understanding and accessing State-administered programs and services available to jobseekers;

(VI) ;

(v) by redesignating clause (vi) as clause (vii);

(vi) by inserting after clause (v) the following:

(vi) notifying participants of an eligible program of training services whose participation is funded under this Act, if such program’s status as an eligible program of training services is revoked under section 122(c)(4);

(vi) ;

(vii) in clause (vii), as so redesignated, by striking the period at the end and inserting a semicolon; and

(viii) by adding at the end the following:

(viii) coordinating (which may be done in partnership with other States) with industry organizations, employers (including small and mid-sized employers), industry or sector partnerships, training providers, local boards, and institutions of higher education to identify or develop competency-based assessments that are a valid and reliable method of collecting information with respect to, and measuring, the prior knowledge, skills, and abilities of individuals who are adults or dislocated workers for the purpose of—

(I) awarding, based on the knowledge, skills, and abilities of such an individual validated by such assessments—

(aa) a recognized postsecondary credential that is used by employers in the State for recruitment, hiring, retention, or advancement purposes;

(bb) postsecondary credit toward a recognized postsecondary credential aligned with in-demand industry sectors and occupations in the State for the purpose of accelerating attainment of such credential; and

(cc) postsecondary credit for progress along a career pathway developed by the State or a local area within the State;

(II) developing individual employment plans under subsection (c)(2)(B)(vii)(II) that incorporate the knowledge, skills, and abilities of such an individual to identify—

(aa) in-demand industry sectors or occupations that require similar knowledge, skills, and abilities; and

(bb) any upskilling needed for the individual to secure employment in such a sector or occupation; and

(III) helping such an individual communicate such knowledge, skills, and abilities to prospective employers through a skills-based resume, profile, or portfolio; and

(ix) disseminating to local areas and employers information relating to the competency-based assessments identified or developed pursuant to clause (viii), including—

(I) any credential or credit awarded pursuant to items (aa) through (cc) of clause (viii)(I);

(II) the industry organizations, employers, training providers, and institutions of higher education located within the State that recognize the knowledge, skills, and abilities of an individual validated by such assessments;

(III) how such assessments may be provided to, and accessed by, individuals through the one-stop delivery system; and

(IV) information on the extent to which such assessments are being used by employers and local areas in the State.

(viii) .

Section 134(a)(3)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(3)(A))—

(A) in clause (i)—

(i) by inserting or evidence-based after innovative;

(ii) by inserting local communities and after needs of;

(iii) by striking customized training and inserting employer-directed skills development;

(iv) by inserting and partnerships with after utilization of;

(v) by inserting and labor-management partnerships after business intermediaries; and

(vi) by inserting and medium-sized before employers) in the State, and;

(B) in clause (ii)—

(i) by inserting, or bringing evidence-based strategies to scale, after strategies; and

(ii) by inserting supporting such individuals in achieving economic self-sufficiency and mobility, and after employment and;

(C) in clause (iii)—

(i) by striking and prior learning assessment to and inserting, prior learning assessment, or a competency-based assessment identified or developed by the State under paragraph (2)(B)(viii), to; and

(ii) by striking stackable and inserting permit articulation into higher level degree or other credential programs;

(D) in clause (iv), by inserting, which may include on-the job training, employer-directed skills development, transitional jobs, industry or sector partnerships, apprenticeships, and other programs after employment;

(E) in clause (viii)—

(i) in subclause (I), by inserting, including such activities funded through other Federal and State laws after development activities; and

(ii) in subclause (II)—

(I) in item (cc), by inserting activities carried out by comprehensive transition and postsecondary programs for students with intellectual disabilities established under section 767 of the Higher Education Act of 1965 (20 U.S.C. 1140g), after developmental disabilities,;

(II) in item (dd), by striking activities, including those and inserting activities and services to promote digital literacy skills, including activities and services;

(III) by adding at the end the following:

(gg) programs under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.) that support employment and economic security; and

(III) ;

(F) in clause (xi), by inserting that exceed the local levels of performance after local areas;

(G) in clause (xiii), by striking and at the end;

(H) in clause (xiv)—

(i) by inserting conducting feasibility studies for the effectiveness of such strategies in meeting the employment and skills development needs of target populations in the local areas that are using such feasibility studies, after data collection,; and

(ii) by striking the period at the end and inserting a semicolon; and

(I) by adding at the end the following:

(xv) supporting employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments (including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(viii)), and support in the creation of skills-based job descriptions;

(xvi) developing partnerships between educational institutions (including area career and technical education schools, local educational agencies, and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce and the employment needs of employers in regions of the State, as determined by the most recent analysis conducted under subparagraphs (A), (B), and (D) of section 102(b)(1);

(xvii) identifying and making available to residents of the State, free or reduced cost access to online skills development programs that are aligned with in-demand industries or occupations in the State and lead to attainment of a recognized postsecondary credential valued by employers in such industries or occupations;

(xviii) establishing and administering a critical industry skills fund described in paragraph (4); and

(xix) establishing and administering an industry or sector partnership and career pathways development fund described in paragraph (5).

(I) .

Section 134(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)), as amended, is further amended by adding at the end the following:

In addition to the funds described in paragraph (3)(A), a State may use any funds reserved under paragraph (3)(A) of section 128(a) to establish and administer a critical industry skills fund to award performance-based payments on a per-worker basis to eligible entities that provide, to prospective workers or incumbent workers (which may include youth age 18 through age 24), eligible skills development programs that are in any of the industries and occupations identified by the Governor (in consultation with the State board) for purposes of this paragraph, and that will result in employment or retention with an employer in such an industry or occupation (in this paragraph referred to as a participating employer).

The Governor (in consultation with the State board) may select the industries and occupations identified under subparagraph (A) that should be prioritized under this paragraph.

To be eligible to receive a payment under the critical industry skills fund established under this paragraph by a State, an eligible entity shall submit to the Governor, a proposal describing the eligible skills development program to be provided by the eligible entity under this paragraph, in such form, at such time, and containing such information, as the Governor may reasonably require.

With respect to each eligible entity whose proposal under subparagraph (C) has been approved by the Governor, the Governor shall make payments (in an amount determined by the Governor and subject to the requirements of subclause (II) of this clause, subparagraph (E), and any other limitations determined necessary by the State) from the critical industry skills fund established under this paragraph to such eligible entity for each participant of the eligible skills development program described in such proposal and with respect to whom the eligible entity meets the requirements of clause (ii).

In making payments to an eligible entity under subclause (I) with respect to a participant—

(aa) a portion of the total payment shall be made after the participant successfully completes the eligible skills development program offered by the eligible entity; and

(bb) the remainder of such total payment shall be made after the participant has been employed by the participating employer of the eligible entity for the 6-month period after successful completion of the program.

To be eligible to receive the payments described in clause (i) with respect to a participant, an eligible entity shall submit such documentation as the Governor determines necessary to verify whether the participant meets the requirements of items (aa) and (bb) of clause (i)(II), and to comply with the performance reporting described in subparagraph (F).

An eligible entity may not receive funds under subparagraph (D) with respect to a participant of the eligible skills development program offered by the eligible entity in excess of the following costs of such program with respect to such participant:

(I) In the case of a participating employer of such eligible entity with 25 or fewer employees, 90 percent of the costs.

(II) In the case of a participating employer of such eligible entity with more than 25 employees, but fewer than 100 employees, 75 percent of the costs.

(III) In the case of a participating employer of such eligible entity with 100 or more employees, 50 percent of the costs.

Any costs of the eligible skills development program offered to a participant by such eligible entity that are not covered by the funds received under subparagraph (D) shall be the non-Federal share provided by the eligible entity (in cash or in-kind).

If the eligible skills development program is being provided on-the-job, the non-Federal share provided by an eligible entity may include the amount of the wages paid by the participating employer of the eligible entity to a participant while such participant is receiving the training.

Using the participant information provided by eligible entities under subparagraph (D)(ii), the State shall submit to the Secretary a report, on an annual basis, with respect to all participants for which the eligible entities received funds under this paragraph for the most recent program year, which shall include—

(i) the number of individuals who participated in eligible skills development programs provided by such eligible entities through the critical industry skills fund under this paragraph; and

(ii) the performance of such participants on the primary indicators of performance described in subclauses (I) through (III) of section 116(b)(2)(A)(i).

In this paragraph:

The term eligible entity means—

(I) a participating employer or a group of participating employers;

(II) an industry or sector partnership that includes a participating employer; or

(III) another entity serving as an intermediary (such as a local board) that is in partnership with a participating employer.

The term eligible skills development program, when used with respect to an eligible entity—

(I) means a program with respect to which a State may set a maximum and minimum length (in weeks);

(II) includes work-based education or related occupational skills instruction that—

(aa) develops the specific technical skills necessary for successful performance of the occupations in which participants are to be employed upon completion; and

(bb) may be provided—

(AA) by the eligible entity; or

(BB) by any training provider that is selected by the eligible entity and without regard to whether such provider is on a list of eligible providers of training services described in section 122(d); and

(III) does not include employee onboarding, orientation, or professional development generally provided to employees.

.

Section 134(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)), as amended, is further amended by adding at the end the following:

The purpose of this paragraph is to establish new or expand existing industry or sector partnerships and career pathway programs to encourage regional economic growth and competitiveness, and improve worker training, retention, and advancement.

In addition to the funds described in paragraph (3)(A), a State may use any funds reserved under paragraph (3)(A) of section 128(a) to establish and administer an industry or sector partnership and career pathways development fund to award grants to eligible partnerships to establish or expand industry or sector partnerships that include employers in a high-growth or high-wage industry of the State in order to meet the following objectives:

(i) Build capacity among such partnerships to prepare jobseekers and incumbent workers participating in such partnerships for careers in such a high-growth or high-wage industry.

(ii) Leverage the capacity of such partnerships to develop, improve, expand, or implement education, employment, and training opportunities for individuals with barriers to employment.

(iii) Strengthen coordination between such industry or sector partnerships and one-stop partners for the local areas involved that are described in paragraphs (1) and (2) of section 121(b).

(iv) Develop or expand a career pathway program that utilizes integrated education and training strategies and supports multiple points of entry and exit for working learners.

Each grant awarded under this paragraph shall be for a period of not more than 2 years.

The Governor shall award grants under this paragraph in a manner that ensures geographic diversity in the areas in the State in which activities will be carried out under the grants.

In awarding grants under this paragraph, the Governor shall give priority consideration to eligible partnerships that—

(I) include (or will include) as a partner in the industry or sector partnership to be established or expanded under this paragraph, a 2-year public institution of higher education;

(II) demonstrate long-term sustainability of such industry or sector partnership; and

(III) demonstrate the ability of such industry or sector partnership to serve individuals who—

(aa) are individuals with a barrier to employment, including individuals with disabilities;

(bb) are facing significant worker dislocation due to a disruption or change in the regional or State economy or labor market;

(cc) have traditionally been underserved by regional economic development and sector partnership activities (including rural areas in the State); or

(dd) are—

(AA) out-of-school youth, disadvantaged youth, or disadvantaged adults; or

(BB) unemployed individuals, within the meaning of section 6(b)(1)(B) of the Wagner-Peyser Act (29 U.S.C. 49e(b)(1)(B)).

In awarding grants under this paragraph, in addition to the priority consideration required under clause (ii), the Governor may give priority consideration to eligible partnerships that include, or will include, as a partner in the industry or sector partnership to be established or expanded under this section—

(I) a 4-year public institution of higher education at which the highest degree that is predominantly awarded to students is an associate degree; or

(II) a 2-year Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)).

An eligible partnership seeking a grant under this paragraph shall submit an application to the Governor at such time, in such manner, and containing such information as the Governor may reasonably require, including the contents described in clause (ii).

An eligible partnership seeking a grant under this paragraph shall submit an application to the Governor under clause (i) containing, at minimum—

(I) a description of the eligible partnership, and the industry or sector partnership that will be established or expanded with such grant;

(II) the expected participation and responsibilities of each of the partners that will be included in such industry or sector partnership;

(III) a description of the high-growth or high-wage industry sector to be served by such industry or sector partnership, and a description of how such industry sector was identified;

(IV) a description of the workers and other individuals who will be targeted or recruited by such industry or sector partnership, including the number of workers and other individuals who will be served by the partnership;

(V) an analysis of the existing labor market to be served by such industry or sector partnership, which includes—

(aa) a description of potential barriers to employment for the targeted workers and other individuals;

(bb) the estimated share of such workers and other individuals who are individuals with a barrier to employment; and

(cc) a description of strategies that will be developed to help such workers and other individuals overcome such barriers;

(VI) a description of the Federal and non-Federal resources, available under provisions of law other than this paragraph, that will be leveraged in support of such industry or sector partnership and the activities carried out by the partnership under this paragraph;

(VII) a description, using common, linked, open-data descriptive language, of the recognized postsecondary credential that will be provided to individuals who successfully complete the education and training program provided through an education provider in such industry or sector partnership;

(VIII) an assurance that any eligible provider of training services in such industry or sector partnership is on a list of eligible providers of training services described in section 122(d); and

(IX) a commitment from a participating employer in such industry or sector partnership to employ each participant of such education and training program (which may be a career pathway program) for not less than a 1-year period, in accordance with the employment policies of such employer, after successful completion of the training portion of the education and training program operated by such participating employer.

An eligible partnership awarded a grant under this paragraph shall use such grant funds to establish a new industry or sector partnership or expand the industry or sector partnership of the eligible partnership to meet the objectives listed in subparagraph (B)—

(I) by engaging businesses in accordance with clause (iii); and

(II) by carrying out an education and training program that—

(aa) leads to the recognized postsecondary credential described in the eligible partnership’s application in subparagraph (E)(ii)(VII);

(bb) includes an apprenticeship, work-based learning, or on-the-job training program that leads to an employment commitment described in subparagraph (E)(ii)(IX) with a participating employer of the industry or sector partnership;

(cc) may include the development or expansion of a new or existing career pathway program as described in clause (iv); and

(dd) may include the provision of supportive services as described in clause (v).

An eligible partnership receiving a grant under this paragraph may use not more than 20 percent of the grant funds to carry out planning activities during the first year of the grant period that are necessary to establish a new industry or sector partnership or expand the industry or sector partnership of the eligible partnership, which may include—

(I) recruiting key stakeholders in the high-growth or high-wage industry to be served by such industry or sector partnership;

(II) conducting outreach to local businesses, employers, labor organizations, local boards, education and training providers, and business and employer associations;

(III) identifying, through an evaluation, the training needs of multiple businesses in the high-growth or high-wage industry, including identifying any needs for—

(aa) skills critical to competitiveness and innovation in the high-growth or high-wage industry;

(bb) an education and training program, including any apprenticeship program or other work-based learning program supported by the grant; and

(cc) the usage of career pathways to align education and training with job openings in the high-growth or high-wage industry; and

(IV) recruiting individuals with barriers to employment to participate in the education and training program.

An industry or sector partnership established or expanded with a grant under this paragraph shall use the grant funds to engage businesses (including small and medium-sized businesses that are in the high-growth or high-wage industry and that may be a participating employer of the partnership) in the establishment and implementation of an apprenticeship, work-based learning, or on-the-job training program offered through the education and training program of the partnership, and which may include—

(I) the navigation of the registration process for a sponsor of such an apprenticeship program;

(II) the connection of the business with an education provider in the industry or sector partnership to develop classroom instruction to complement learning through such an apprenticeship, work-based learning, or on-the-job training program;

(III) the development of such a work-based learning program;

(IV) the provision of career awareness activities for participants of such an apprenticeship, work-based learning, or on-the-job training program, such as career guidance and academic counseling;

(V) the recruitment of individuals with barriers to employment to participate in such an apprenticeship, work-based learning, or on-the-job training program; and

(VI) other evidence-based approaches to connecting businesses with workers and establishing pathways to unsubsidized employment for individuals participating in the education and training program and other programs funded under this title.

An industry or sector partnership established or expanded with a grant under this paragraph may use such grant funds for the development or expansion of a new or existing career pathway program that utilizes integrated education and training strategies and supports multiple entry and exit points for working students and other working participants, which may include—

(aa) dual-enrollment approaches for participants, including youth, seeking to participate in a career pathway program; and

(bb) strategies that help working students and other nontraditional and adult student populations access skills and the recognized postsecondary credentials described in subparagraph (E)(ii)(VII) of the eligible partnership’s application.

In establishing or expanding such new or existing career pathway program, the industry or sector partnership may use a grant under this paragraph for—

(aa) the provision of evidence-based professional development for faculty and other staff of an education provider in the industry or sector partnership;

(bb) the acquisition of equipment necessary to support the delivery of the career pathway program; and

(cc) any other evidence-based activities to support the development or implementation of the career pathway program.

In accordance with section 181(h), an industry or sector partnership established or expanded with a grant under this paragraph may use such grant funds to provide supportive services to support the success of individuals, including individuals with barriers to employment, who are participating in training services, as described in subsection (c)(3)(D), which are offered through such partnership.

An eligible partnership receiving a grant under this paragraph shall designate an entity of the eligible partnership as the fiscal agent for the receipt, management, and expenditure of the grant funds.

An industry or sector partnership established or expanded with a grant under this paragraph may not receive such grant funds for purposes of funding the education and training program offered through such partnership in excess of the following costs of establishing, operating, and sustaining such program:

(I) In the case in which the participating employers in such eligible partnership employ 25 or fewer employees, 70 percent of the costs.

(II) In the case in which the participating employers in such eligible partnership employ more than 25 employees, but fewer than 100 employees, 55 percent of the costs.

(III) In the case in which the participating employers in such eligible partnership employ 100 or more employees, 40 percent of the costs.

Any costs of establishing, operating, and sustaining such program that are not covered by the grant received under this paragraph shall be the non-Federal share provided by the industry or sector partnership.

Not later than 2 years after the first award of funds under this paragraph is made by the Governor and on an annual basis thereafter, the Governor shall prepare and submit to the Secretary a report with respect to the participants served by each eligible partnership receiving funds under this paragraph in the most recent program year, which report shall include—

(i) levels of performance achieved by the eligible partnership, with respect to the primary indicators of performance under clause (i) or (ii) of section 116(b)(2)(A), as applicable, for all individuals served by the eligible partnership, disaggregated by race, ethnicity, sex, disability status, and age; and

(ii) levels of performance achieved by the eligible partnership with respect to the primary indicators of performance under clause (i) or (ii) of section 116(b)(2)(A), as applicable, for individuals with barriers to employment served by the eligible partnership, disaggregated by race, ethnicity, sex, disability status, and age.

The report submitted by eligible partnerships under subparagraph (I) shall—

(i) be made digitally available by the Secretary using linked, open, and interoperable data; and

(ii) include the number of individuals who were served by each such eligible partnership.

An eligible partnership receiving a grant under this paragraph may not use more than 10 percent of the grant funds for administrative costs.

In this paragraph:

The term eligible partnership means—

(I) an industry or sector partnership that—

(aa) includes a participating employer; and

(bb) is seeking to further implement or expand such industry or sector partnership; or

(II) a workforce collaborative that is seeking to become an industry or sector partnership that includes a participating employer.

The term high-growth or high-wage industry, when used with respect to an eligible partnership, means an industry that—

(I) has, or is expected to have, a high rate of growth and an unmet demand for skilled workers, as determined by the Governor of the State in which the eligible partnership is located;

(II) has been designated by the Governor as an in-demand industry experiencing high growth in such State; and

(III) includes occupations determined by the Governor—

(aa) with wages that are significantly higher than an occupation of similar level of skill or needed skill development; or

(bb) that are aligned with career pathways into higher wage occupations.

The term participating employer, when used with respect to an eligible partnership, means an employer in a high-growth or high-wage industry that is (or will be) part of the industry or sector partnership that will be expanded (or established) by the eligible partnership under this paragraph.

.

Section 134(c)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(1)) is amended—

(A) in subparagraph (A)(iv), by striking to and inserting to provide business services described in paragraph (4) and;

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

(C) by inserting after subparagraph (A), as so amended, the following:

Subject to clause (ii), not less than 50 percent of the funds described in subparagraph (A) shall be used by the local area—

(I) for the payment of training services—

(aa) provided to adults under paragraph (3)(F)(iii); and

(bb) provided to adults and dislocated workers under paragraph (3)(G)(ii); and

(II) for the payment of training services under paragraph (2)(A) of section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (29 U.S.C. 3224a(c)) after funds allocated to such local area under paragraph (1) of such section 414(c) have been exhausted.

With respect to a local area that uses any funds described in subparagraph (A) to provide supportive services, in accordance with subsection (d)(2) of this section, for adults and dislocated workers who are participating in training services, or individualized career services described in clauses (iii) and (vii) of paragraph (2)(B) that enable participation in training services, each percentage of such funds so used shall reduce, by one percentage point, the percentage of such funds required to be used by such local area in accordance with clause (i), except that such percentage of funds may not be reduced by more than 10 percentage points pursuant to this clause.

(C) ; and

(D) in subparagraph (C), as so redesignated, by striking and (ii) and inserting, (ii), and (iv).

Section 134(c)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(2)) is amended—

(A) by redesignating subparagraphs (A) through (C) as subparagraphs (B) through (D), respectively;

(B) by inserting before subparagraph (B), as so redesignated, the following:

The one-stop delivery system—

(I) shall coordinate with the Employment Service office colocated with the one-stop delivery system for such Employment Service office to provide, using the funds allotted to the State under section 6 of the Wagner-Peyser Act (29 U.S.C. 49e), basic career services, which—

(aa) shall—

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

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

(bb) may include access to talent marketplaces; and

(II) may use funds allocated under paragraph (1), as necessary, to supplement the services that are provided pursuant to subclause (I) to individuals who are adults or dislocated workers.

The basic career services provided pursuant to clause (i) shall include—

(I) provision of workforce and labor market employment statistics information, including the provision of accurate (and, to the extent practicable, real-time) information relating to local, regional, and national labor market areas, including—

(aa) job vacancy listings in such labor market areas;

(bb) information on job skills necessary to obtain the jobs included on such listings; and

(cc) information relating to local occupations in demand (which may include entrepreneurship opportunities), and the earnings, skill requirements, and opportunities for advancement for such occupations;

(II) labor exchange services, including job search and placement assistance and, in appropriate cases, career counseling, including—

(aa) provision of information on in-demand industry sectors and occupations;

(bb) provision of information on nontraditional employment; and

(cc) provision of information on entrepreneurship, as appropriate;

(aa) provision of information, in formats that are usable by and understandable to one-stop center customers, relating to the availability of supportive services or assistance, including child care, child support, medical or child health assistance under title XIX or XXI of the Social Security Act (42 U.S.C. 1396 et seq. and 1397aa et seq.), benefits under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), assistance through the earned income tax credit under section 32 of the Internal Revenue Code of 1986, and assistance under a State program for temporary assistance for needy families funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and other supportive services and transportation provided through funds made available under such part, available in the local area; and

(bb) referral to the services or assistance described in item (aa), as appropriate;

(IV) provision of information and assistance regarding filing claims for unemployment compensation; and

(V) assistance in establishing eligibility for programs of financial aid assistance for training and education programs that are not funded under this Act.

(B) ;

(C) in subparagraph (B), as so redesignated—

(i) in the heading, by striking the heading and inserting Individualized career;

(ii) in the matter preceding clause (i)—

(I) by inserting individualized before career services; and

(II) by inserting shall, to the extent practicable, be evidence-based, before and shall;

(iii) in clause (iii), by inserting, and a determination (considering factors including prior work experience, military service, education, and the in-demand industry sectors and occupations in the local area) of whether such an individual would benefit from a competency-based assessment developed or identified by the State pursuant to subsection (a)(2)(B)(viii) to accelerate the time to obtaining employment that leads to economic self-sufficiency or career advancement before the semi-colon at the end;

(iv) by striking clauses (iv), (vi), (ix), (x), and (xi);

(v) by redesignating clauses (v), (vii), (viii), (xii), and (xiii) as clauses (iv), (v), (vi), (vii), and (viii), respectively;

(vi) in clause (v), as so redesignated, by inserting and credential after by program;

(vii) in clause (vi), as so redesignated, by inserting and in multiple languages, to the extent practicable, after customers,; and

(viii) in clause (vii), as so redesignated—

(I) in subclause (I)(aa), as so redesignated, by inserting, including a competency-based assessment developed or identified by the State pursuant to subsection (a)(2)(B)(viii) after tools;

(II) in subclause (VI), by inserting digital literacy skills, after learning skills,;

(III) in subclause (X), by striking or at the end;

(IV) in subclause (XI)—

(aa) by striking language; and

(bb) by striking and at the end and inserting or;

(V) by adding at the end the following:

(XII) review or creation of a resume or similar document showcasing the skills, experience, relevant credentials, and education of the individual; and

(V) .

(D) by amending subparagraph (C), as so redesignated, to read as follows:

A one-stop operator or one-stop partner shall not be required to conduct a new interview, evaluation, or assessment of a participant under subparagraph (B)(vii) if the one-stop operator or one-stop partner determines that—

(i) it is appropriate to use a recent interview, evaluation, or assessment of the participant conducted pursuant to another education or training program; and

(ii) using such recent interview, evaluation, or assessment will accelerate an eligibility determination.

(D) ; and

(E) in subparagraph (D), as so redesignated—

(i) in the matter preceding clause (i)—

(I) by inserting individualized before career; and

(II) by striking subparagraph (A) and inserting subparagraph (B); and

(ii) in clause (ii), by inserting, libraries, and community-based organizations after nonprofit service providers.

Section 134(c)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)) is amended—

(A) in subparagraph (A)—

(i) in clause (i), in the matter preceding subclause (I), by striking clause (ii) and inserting clause (ii) or (iii);

(ii) by amending clause (i)(II) to read as follows:

(II) who select programs of training services that are directly linked to the employment opportunities—

(aa) in the local area or the planning region;

(bb) in another area to which the adults or dislocated workers are willing to commute or relocate; or

(cc) that may be performed remotely;

(ii) .

(iii) by redesignating clause (iii) as clause (iv);

(iv) by inserting after clause (ii) the following:

A one-stop operator or one-stop partner shall not be required to conduct an interview, evaluation, or assessment of an individual under clause (i) if such individual—

(aa) is referred by an employer to receive on-the-job training or employer-directed skills development in connection with that employer; and

(bb) has been certified by the employer as being an individual who is in need of training services to obtain unsubsidized employment with such employer and who has the skills and qualifications to successfully participate in the selected program of training services.

A one-stop operator or one-stop partner shall follow the priority system in effect under subparagraph (E) to determine whether an individual who meets the requirements of subclause (I) of this clause is eligible to receive training services.

(iv) ; and

(v) by adding at the end the following:

In the case of an individual who, after an interview, evaluation, or assessment under clause (i)(I), is determined to not have the skills and qualifications to successfully participate in the selected program of training services under clause (i)(I)(cc), the one-stop operator or one-stop partner shall refer such individual to adult education and literacy activities under title II, including for co-enrollment in such activities, as appropriate.

(v) ;

(B) in subparagraph (B)—

(i) in clause (i)—

(I) in subclause (I), by striking other grant assistance for such services, including and inserting assistance for such services under; and

(II) by striking under other grant assistance programs, including and inserting under; and

(ii) by adding at the end the following:

An individual may participate in a program of training services during the period during which such individual’s eligibility for training services under subparagraph (A)(i) is being determined, except that the provider of such a program shall receive reimbursement under this Act for the individual’s participation during such period only if such individual is determined to be eligible under subparagraph (A)(i).

(ii) ;

(C) in subparagraph (D)(xi), by striking customized training and inserting employer-directed skills development;

(D) in subparagraph (E)—

(i) by striking are basic skills deficient and inserting have foundational skill needs; and

(ii) by striking paragraph (2)(A)(xii) and inserting paragraph (2)(B)(vii);

(E) in subparagraph (F)(ii), by inserting and the levels of performance for such providers on the performance criteria described in section 122(b) for the 2 most recent program years after in section 122(d);

(F) in subparagraph (G)(ii)—

(i) in subclause (II), by striking customized training and inserting employer-directed skills development; and

(ii) in subclause (IV)—

(I) by striking is a and inserting is an evidence-based; and

(II) by inserting and to support such individuals in gaining requisite skills for in-demand industry sectors or occupations in the local area, obtaining recognized postsecondary credentials, and entering unsubsidized employment after employment;

(G) in subparagraph (H)—

(i) in clause (i), in the matter preceding subclause (I), by striking reimbursement described in section 3(44) and inserting reimbursement described in section 3(48); and

(ii) in clause (ii)—

(I) in subclause (I), by inserting, such as the extent to which participants are individuals with barriers to employment after participants; and

(II) in subclause (III), by inserting in an occupation or industry sector, including whether the skills a participant will obtain are transferable to other employers, occupations, or industries in the local area or the State after opportunities; and

(H) by adding at the end the following:

An employer may receive a contract from a local board to provide employer-directed skills development to a participant or group of participants if the employer submits to the local board an agreement that establishes—

(i) the provider of the skills development program, which may be the employer;

(ii) the length of the skills development program;

(iii) the recognized postsecondary credentials that will be awarded to, or the occupational skills that will be gained by, program participants;

(iv) the cost of the skills development program;

(v) the estimated earnings of program participants upon successful completion of the program;

(vi) the amount of such cost that will be paid by the employer, which shall not be less than the amount specified in subparagraph (C) of section 3(19); and

(vii) a commitment by the employer to employ the participating individual or individuals upon successful completion of the program.

(H) .

Section 134(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)) is further amended by adding at the end the following:

Funds described in paragraph (1) shall be used to provide appropriate recruitment and other business services and strategies on behalf of employers, including small employers and mid-sized employers, that meet the workforce investment needs of area employers, as determined by the local board and consistent with the local plan under section 108, which services—

(A) may be provided—

(i) through effective business intermediaries working in conjunction with the local board;

(ii) on a fee-for-service basis; or

(iii) through the leveraging of economic development, philanthropic, and other public and private resources in a manner determined appropriate by the local board; and

(B) may include one or more of the following:

(i) Developing and implementing industry sector strategies (including strategies involving industry partnerships, regional skills alliances, industry skill panels, and sectoral skills partnerships).

(ii) Developing and delivering innovative workforce investment services and strategies for area employers, which may include career pathways, skills upgrading, skill standard development and certification for recognized postsecondary credential or other employer use, apprenticeship, developing and offering industry-recognized credential (including short-term industry-recognized credential) programs, including those that support individuals with foundational skill needs, and other effective initiatives for meeting the workforce investment needs of area employers and workers.

(iii) Assistance to area employers in managing reductions in force in coordination with rapid response activities provided under subsection (a)(2)(A) and developing strategies for the aversion of layoffs, which strategies may include early identification of firms at risk of layoffs, use of feasibility studies to assess the needs of and options for at-risk firms, and the delivery of employment and training activities to address risk factors.

(iv) The marketing of business services offered under this title to appropriate area employers, including small and mid-sized employers.

(v) Technical assistance or other support to employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments, including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(viii), and support in the creation of skills-based job descriptions.

(vi) Other services described in this subsection, including providing information and referral to microenterprise services, as appropriate, and specialized business services not traditionally offered through the one-stop delivery system.

.

Section 134(d)(1)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(1)(A)) is amended—

(A) in clause (iii), by striking 10 percent and inserting 30 percent;

(B) in clause (v), by inserting case management, after assessments,;

(C) in clause (vi)—

(i) in subclause (III), by striking and at the end;

(ii) by redesignating subclause (IV) as subclause (VI); and

(iii) by inserting after subclause (III) the following:

(IV) employment and training activities under subsections (d) and (o) of section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015);

(V) programs under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.) that support employment and economic security; and

(iii) ;

(D) in clause (vii)—

(i) in subclause (II)—

(I) by inserting and providers of supportive services, after small employers,; and

(II) by striking and at the end;

(ii) in subclause (III), by inserting and at the end; and

(iii) by adding at the end the following:

(IV) to strengthen, through professional development activities, the knowledge and capacity of one-stop staff to use the latest digital technologies, tools, and strategies to deliver high quality services and outcomes for jobseekers, workers, and employers;

(iii) ;

(E) by striking clause (ix);

(F) by redesignating clauses (x) through (xii) as clauses (ix) through (xi), respectively;

(G) in clause (x), as so redesignated, by striking and at the end;

(H) in clause (xi), as so redesignated, by striking the period at the end and inserting a semicolon; and

(I) by adding at the end the following:

(xii) training programs for individuals who are dislocated workers as a result of advances in automation technology;

(xiii) the use of competency-based assessments for individuals upon initial assessment of skills (pursuant to subsection (c)(2)(A)(iii)) or completion of training services or other learning experiences;

(xiv) the development of partnerships between educational institutions (including area career and technical education schools, local educational agencies, and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce and the employment needs of employers in a region, as determined based on the most recent analysis conducted by the local board under section 107(d)(2); and

(xv) assistance to one or more public libraries located in the local area that has demonstrated success in leveraging additional resources (such as staff, facilities, computers, and learning materials) to provide free and open access to individualized career services, in order to promote and expand access to such services.

(I) .

Section 134(d)(2)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(2)(B)) is amended, by inserting, including through programs of one-stop partners, who are after programs.

Section 134(d)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(3)) is amended—

(A) in subparagraph (A), by inserting or for financial assistance through a program carried out by a one-stop partner after compensation; and

(B) in subparagraph (B), by inserting or financial assistance through a program carried out by a one-stop partner after compensation

Section 134(d)(4)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(4)(A)) is amended—

(i) in clause (i), by striking 20 and inserting 30;

(ii) by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and

(iii) by inserting after clause (i) the following:

Notwithstanding clause (i)—

(I) with respect to a local area that had a rate of unemployment of not more than 3 percent for not less than 6 months during the preceding program year, clause (i) shall be applied by substituting 40 percent for 30 percent; or

(II) with respect to a local area that meets the requirement in subclause (I) and is located in a State that had a labor force participation rate of not less than 69 percent for not less than 6 months during the preceding program year, clause (i) shall be applied by substituting 45 percent for 30 percent.

(iii) .

Section 134(d)(4)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(4)(B)) is amended—

(i) by striking The training, and inserting the following:

The training

(i) ; and

(ii) by striking delivering training and inserting delivering training, such as industry or sector partnerships.

Section 134(d)(4)(D)(ii)(III) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(4)(D)(ii)(III)) is amended by striking 50 and inserting 55.

Section 134(d)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(4)) is further amended by adding at the end the following:

To establish incumbent worker upskilling accounts through which an eligible provider of training services under section 122 may be paid for the program of training services provided to an incumbent worker, a local board—

(aa) may use, from the funds reserved by the local area under subparagraph (A)(i), an amount that does not exceed 5 percent of the funds allocated to such local area under section 133(b); or

(bb) if the local area reserved funds under subparagraph (A)(ii), may use, from the funds reserved by the local area under subparagraph (A)(ii), an amount that does not exceed 10 percent of the funds allocated to such local area under section 133(b); and

(II) may use funds reserved under section 134(a)(2)(A) for statewide rapid response activities and provided by the State to local area to establish such accounts.

Subject to subclause (II), a local board that seeks to establish incumbent worker upskilling accounts under clause (i) shall establish criteria for determining the eligibility of an incumbent worker to receive such an account, which shall take into account factors of—

(aa) the wages of the incumbent worker as of the date of determining such worker’s eligibility under this clause;

(bb) the career advancement opportunities for the incumbent worker in the occupation of such worker as of such date; and

(cc) the ability of the incumbent worker to, upon completion of the program of training services selected by such worker, secure employment in an in-demand industry or occupation in the local area that will lead to economic self-sufficiency and wages higher than the current wages of the incumbent worker.

An incumbent worker described in item (bb) shall be ineligible to receive an incumbent worker upskilling account under this subparagraph.

Item (aa) shall apply to an incumbent worker—

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

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

With respect to an incumbent worker who is determined to be eligible to receive an incumbent worker upskilling account and who is not a low-income individual—

(I) such incumbent worker shall pay not less than 25 percent of the cost of the program of training services selected by such worker; and

(II) funds provided through the incumbent worker upskilling account established for such worker shall cover the remaining 75 percent of the cost of the program.

.

Section 134(d)(5) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(5)) is amended by striking 10 and inserting 15.

Section 134 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174) is further amended by adding at the end the following:

Nothing in this section shall be construed to abrogate a collective bargaining agreement that covers employees of an entity providing a program of training services, including an incumbent worker training program.

.

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

There are authorized to be appropriated to carry out the activities described in section 127(a) $948,130,000 for each of the fiscal years 2027 through 2032.

There are authorized to be appropriated to carry out the activities described in section 132(a)(1) $875,649,000 for each of the fiscal years 2027 through 2032.

There are authorized to be appropriated to carry out the activities described in section 132(a)(2) $1,331,412,000 for each of the fiscal years 2027 through 2032.

.

Section 141 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3191) is amended—

(1) by striking centers each place it appears and inserting campuses; and

(2) in paragraph (1)(A)—

(A) by striking secondary school diplomas and inserting regular high school diplomas or their recognized equivalents;

(B) in clause (i), by striking or at the end;

(C) in clause (ii), by striking, including an apprenticeship program; and and inserting; or; and

(D) by adding at the end the following:

(iii) enrollment in an apprenticeship program; and

(D) .

Section 142 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3192) is amended—

(1) in paragraphs (1), (7), (8), and (10), by striking center each place it appears and inserting campus;

(2) in paragraph (1)(B), by inserting the community in which the Job Corps campus is located or the after serves;

(3) in paragraph (5)—

(A) by striking secondary school diploma or and inserting regular high school diploma or its;

(B) by striking that prepares and inserting

(B) that—

(A) prepares

(B) ;

(C) in subparagraph (A), as so redesignated, by striking the period at the end and inserting; and; and

(D) by adding at the end the following:

(B) may lead to the attainment of a recognized postsecondary credential.

(D) ; and

(4) in paragraph (7), by striking center in the heading and inserting campus.

Section 144 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3194) is amended—

(1) in subsection (a)—

(A) in paragraph (1)—

(i) by striking 21 and inserting 24;

(ii) by inserting or, if the date of enrollment is not greater than 60 days after the date of application, the date of application, after enrollment,;

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

(A) an individual who is age 16 or 17 shall be eligible only upon an individual determination by the director of a Job Corps campus that such individual meets the criteria described in subparagraph (A) or (B) of section 145(b)(1); and

(iii) ; and

(iv) in subparagraph (B), by striking either;

(B) in paragraph (2), by inserting after individual the following: or a resident of a qualified opportunity zone as defined in section 1400Z–1(a) of the Internal Revenue Code of 1986; and

(C) in paragraph (3)—

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

(A) Has foundational skill needs.

(i) ; and

(ii) in subparagraph (C), by striking (42 U.S.C. 14043e-2(6))) and inserting (34 U.S.C. 12473(6))).

(2) in subsection (b)—

(A) in the heading, by inserting and certain other Armed Forces members after veterans; and

(B) by inserting or a member of the Armed Forces eligible for preseparation counseling of the Transition Assistance Program under section 1142 of title 10, United States Code, after a veteran; and

(3) by inserting at the end the following:

In determining whether an individual is eligible to enroll for services under this subtitle on the basis of being a homeless youth, or a youth in foster care, as described in subsection (a)(3)(C), staff shall—

(1) if determining whether the individual is a homeless youth, use a process that is in compliance with the requirements of subsection (a) of section 479D of the Higher Education Act of 1965 (20 U.S.C. 1087uu–2) for financial aid administrators; and

(2) if determining whether the individual is a youth in foster care, use a process that is in compliance with the requirements of subsection (b) of such section 479D of the Higher Education Act of 1965 (20 U.S.C. 1087uu–2) for financial aid administrators.

(3) .

Section 145 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3195) is amended—

(1) in subsection (a)(2)—

(A) in subparagraph (A), by striking 45 and inserting 55;

(B) in subparagraph (D), by striking and;

(C) in subparagraph (E), by striking the period and inserting; and; and

(D) by adding at the end the following:

(F) assist applicable one-stop centers and other entities identified in paragraph (3) in developing joint applications for Job Corps, YouthBuild, and the youth activities described in section 129.

(D) ; and

(2) in subsections (b), (c), and (d)—

(A) by striking center each place it appears and inserting campus; and

(B) by striking centers each place it appears and inserting campuses.

Section 147 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3197) is amended—

(1) in the heading, by striking centers and inserting campuses;

(2) in subsection (a)—

(A) in paragraph (1)—

(i) by striking center each place it appears and inserting campus; and

(ii) in subparagraph (A), by inserting after area career and technical education school, the following: an institution of higher education,;

(B) in paragraph (2)—

(i) in subparagraph (A)—

(I) by striking center each place it appears and inserting campus; and

(II) by inserting after United States Code, the following: and section 159(f)(2)(B)(i)(III),; and

(ii) in subparagraph (B)—

(I) in clause (i)—

(aa) by striking operate a Job Corps center and inserting operate a Job Corps campus;

(bb) by striking subclause (IV);

(cc) by redesignating subclauses (I), (II), (III), and (V), as subclauses (III), (IV), (V), and (VI), respectively;

(dd) by inserting before subclause (III), as so redesignated, the following:

(aa) in the case of an entity that has previously operated a Job Corps campus, a numeric metric of the past achievement on the primary indicators of performance for eligible youth described in section 116(b)(2)(A)(ii); or

(bb) in the case of an entity that has not previously operated a Job Corps campus, a comparable alternative numeric metric on the past effectiveness of the entity in successfully assisting at-risk youth to connect to the labor force, based on such primary indicators of performance for eligible youth;

(II) in the case of an entity that has previously operated a Job Corps campus, any information regarding the entity included in any report developed by the Office of Inspector General of the Department of Labor;

(dd) ;

(ee) in subclause (III), as so redesignated, by striking center and inserting campus;

(ff) by amending subclause (IV), as so redesignated, to read as follows:

(IV) the ability of the entity to offer career and technical education and training that has been proposed by the workforce council under section 154(c), including—

(aa) the degree to which such education and training reflects employment opportunities in the local areas in which enrollees at the campus intend to seek employment; and

(bb) the degree to which such education and training leads to a recognized postsecondary credential, or postsecondary credit, that permits articulation into a higher level or other degree or credential program;

(ff) ;

(gg) in subclause (V), as so redesignated, by striking center is located; and inserting campus is located, including agreements to provide off-campus work-based learning opportunities aligned with the career and technical education provided to enrollees; and; and

(hh) by amending subclause (VI), as so redesignated, to read as follows:

(VI) the ability of the entity to implement an effective behavior management plan, as described in section 152(a), and maintain a safe and secure learning environment for enrollees.

(hh) ; and

(II) in clause (ii), by striking center and inserting campus; and

(C) in paragraph (3)—

(i) by striking center each place it appears and inserting campus;

(ii) in subparagraph (B), by inserting or postsecondary credit, which credit shall permit articulation into a credential program after program;

(iii) in subparagraph (D), by inserting after is located the following:, including agreements to provide off-campus work-based learning opportunities aligned with the career and technical education provided to enrollees;

(iv) by redesignating subparagraphs (E), (F), (G), (H), (I), (J), and (K) as subparagraphs (F), (G), (H), (I), (J), (K), and (L), respectively; and

(v) by inserting after subparagraph (D) the following:

(E) A description of the policies that will be implemented at the campus regarding security and access to campus facilities, including procedures to report on and respond to violations of the disciplinary policy described in section 152(b) and other emergencies occurring on campus.

(v) ;

(3) in subsection (b)—

(A) in the heading, by striking centers and inserting campuses;

(B) by striking center each place it appears and inserting campus;

(C) by striking centers each place it appears and inserting campuses;

(D) in paragraph (2)(A), by striking 20 percent and inserting 25 percent; and

(E) in paragraph (3)(A)(iv), by striking secondary school diplomas and inserting regular high school diplomas;

(4) in subsection (c)—

(A) by striking centers and inserting campuses; and

(B) by striking 20 percent and inserting 30 percent;

(5) in subsection (d)—

(A) in the first sentence, by striking centers and inserting campuses; and

(B) in the second sentence, by striking centers and inserting Centers;

(6) in subsection (e)—

(A) in paragraph (1), by striking centers and inserting campuses; and

(B) in paragraph (2), by striking 450b) and inserting 5304);

(7) in subsection (f), by striking 2-year period and inserting 3-year period; and

(8) in subsection (g)—

(A) by striking center each place it appears and inserting campus;

(B) in paragraph (1), by striking subparagraphs (A) and (B) and inserting the following:

(A) failed to achieve an average of 80 percent or higher of the expected level of performance under section 159(c)(1) across all of the primary indicators of performance for eligible youth described in section 116(b)(2)(A)(ii); or

(B) failed to—

(i) take reasonable measures to achieve an average of 80 percent of the planned average onboard strength that was agreed to in the agreement described in subsection (a)(1)(A); or

(ii) achieve an average of 60 percent of the planned average onboard strength that was agreed to in the agreement described in subsection (a)(1)(A).

(B) ;

(C) in paragraph (2)(B), by inserting or onboard strength or enrollment after performance;

(D) in paragraph (3), by striking shall provide and inserting shall provide, at least 30 days prior to renewing the agreement; and

(E) in paragraph (4)—

(i) in subparagraph (C), by striking and after the semicolon;

(ii) by redesignating subparagraph (D) as subparagraph (E); and

(iii) by inserting after subparagraph (C) the following:

(D) has maintained a safe and secure campus environment; and

(iii) .

Section 148 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3198) is amended—

(1) by striking center each place it appears and inserting campus;

(2) by striking centers each place it appears and inserting campuses;

(3) in subsection (a)—

(A) in the subsection heading, by striking CENTERS and inserting CAMPUSES; and

(B) in paragraph (1)—

(i) by inserting before the period at the end the following:, and productive activities, such as tutoring or other skills development opportunities, for enrollees to participate in outside of regular class time and work hours; and

(ii) by striking clauses (i) through (xi) of section 134(c)(2)(A) and inserting subclauses (I) through (V) of section 134(c)(2)(A)(ii) or in clauses (i) through (viii) of section 134(c)(2)(B);

(4) in subsection (b), by striking career and technical educational institutions and inserting area career and technical education schools;

(5) in subsection (c)(1)—

(A) by striking the eligible providers and inserting any eligible provider; and

(B) by inserting after under section 122 the following: that is aligned with the career and technical education an enrollee has completed; and

(6) in subsection (d), by inserting, in coordination with the operator of the Job Corps program in which a graduate was enrolled, after Secretary.

Section 149(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3199(b)) is amended—

(1) by inserting, in coordination with the operator of a Job Corps campus, after The Secretary;

(2) by inserting assigned to such campus after for enrollees; and

(3) by inserting, in coordination with the operator, after, the Secretary.

Section 150 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3200) is amended—

(1) in subsection (a), by striking centers and inserting campuses; and

(2) by adding at the end the following:

Notwithstanding the requirements of section 146(b), a Job Corps graduate may remain an enrollee and a resident of a Job Corps campus for not more than one month after graduation as such graduate transitions into independent living and employment if such graduate receives written approval from the director of the Job Corps campus to remain such a resident.

(2) .

Section 151 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3201) is amended—

(1) by striking center each place it appears and inserting campus; and

(2) by adding at the end the following:

Subject to the limitations of the budget approved by the Secretary for a Job Corps campus, the operator of a Job Corps campus shall have the authority, without prior approval from the Secretary, to—

(A) hire staff and provide staff professional development;

(B) set terms and enter into agreements with Federal, State, or local educational partners, such as secondary schools, institutions of higher education, child development centers, units of Junior Reserve Officers’ Training Corps programs established under section 2031 of title 10, United States Code, or employers; and

(C) engage with and educate stakeholders (including eligible applicants for the Job Corps) about Job Corps operations, selection procedures, and activities.

Notwithstanding section 6702 of title 41, United States Code, or any other provision of law, chapter 67 of such title shall not apply to any agreement described in paragraph (1)(B) for the purpose of providing child care to enrollees between an entity described in such paragraph and an operator of a Job Corps campus, if the operator is not using amounts made available under this subtitle to pay for such child care services.

Prior to making a change to the agreement described in section 147(a) or an operating plan described in this section, the Secretary shall solicit from the operators of the Job Corps campuses information on any operational costs the operators expect to result from such change.

(2) .

Section 152 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3202) is amended—

(1) by striking centers each place it appears and inserting campuses;

(2) in subsection (a), by inserting As part of the operating plan required under section 151(a), the director of each Job Corps campus shall develop and implement a behavior management plan consistent with the standards of conduct and subject to the approval of the Secretary. at the end;

(3) in subsection (b)(2)—

(A) in subparagraph (A), by striking or disruptive; and

(B) in subparagraph (C)(ii), by inserting, subject to the appeal process described in subsection (c) after subparagraph (A); and

(4) by amending subsection (c) to read as follows:

A disciplinary measure taken by a director under this section shall be subject to expeditious appeal in accordance with procedures established by the Secretary.

Not later than 1 year after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary shall establish an appeals process under which the director of a Job Corps campus may submit a request that an enrollee who has engaged in an activity which is a violation of the guidelines established pursuant to subsection (b)(2)(A) remain enrolled in the program, but be subject to other disciplinary actions in lieu of automatic separation from the program.

A request under subparagraph (A) shall include—

(i) a signed certification from the director attesting that, to the belief of the director, the continued enrollment of such enrollee would not impact the safety or learning environment of the campus; and

(ii) the behavioral records of such enrollee.

The Secretary shall review such appeal within 30 days of receiving such appeal and either approve or deny the appeal. An appeal shall be considered approved if the Secretary has not denied such appeal after 30 days.

(4) .

Section 153 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3203) is amended—

(1) by striking center each place it appears and inserting campus;

(2) in subsection (a), by striking centers and inserting campuses;

(3) in subsection (b)(1)(C)—

(A) in clause (iii), by striking and at the end; and

(B) by adding at the end the following:

(v) industry or sector partnerships, where applicable; and

(B) ; and

(4) in subsection (c), in the heading, by striking Centers and inserting Campuses.

Section 154 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3204) is amended—

(1) by striking center each place it appears and inserting campus;

(2) in subsection (b)(1)—

(A) in subparagraph (B), by striking and at the end;

(B) by redesignating subparagraph (C) as subparagraph (D); and

(C) by inserting the following after subparagraph (B):

(C) representatives of community-based organizations; and

(C) ;

(3) in subsection (c)(2)(C), by inserting, recognized postsecondary credentials, after skills; and

(4) in subsection (d), in the heading, by striking New centers and inserting New campuses.

Section 155 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3205) is amended—

(1) by striking The Secretary and inserting (a) In general.—The Secretary;

(2) by striking centers and inserting campuses;

(3) by striking center and inserting campus; and

(4) by adding at the end the following:

Not later than one year after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary shall establish an advisory committee to provide recommendations on effective or evidence-based strategies to improve—

(1) safety, security, and learning conditions on Job Corps campuses;

(2) the standards for campus safety established under section 159(c)(4);

(3) the levels of performance established under section 159(c)(1), including recommendations to improve the effectiveness and rigor of such levels of performance and recommendations to ensure such levels promote continuous performance improvement; and

(4) the effectiveness of performance improvement plans and other measures to continuously improve the performance of the Job Corps program.

(4) .

Section 156 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3206) is amended—

(1) by striking center and inserting campus;

(2) by striking centers and inserting campuses; and

(3) in subsection (b)—

(A) by striking 1/4 of 1 percent to provide and inserting 1.25 percent to provide; and

(B) in paragraph (1), by striking and at the end of subparagraph (C) and by adding at the end the following:

(D) in the development and implementation of a behavior management plan under section 152(a); and

(E) in complying with the campus and student safety standards described in section 159(c)(4); and

(B) .

Section 158 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3208) is amended—

(1) by striking center each place it appears and inserting campus; and

(2) in subsection (f)—

(A) by striking may accept on behalf of the Job Corps or individual Job Corps campuses charitable donations of cash and inserting (or the Secretary of Agriculture, as appropriate), on behalf of the Job Corps, or a Job Corps campus operator, on behalf of such campus, may accept grants, charitable donations of cash,; and

(B) by inserting at the end the following: Notwithstanding sections 501(b) and 522 of title 40, United States Code, any property acquired by a Job Corps campus shall be directly transferred, on a nonreimbursable basis, to the Secretary..

Section 159 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3209) is amended—

(1) by striking center each place it appears and inserting campus;

(2) in subsection (c)—

(A) in paragraph (1)—

(i) by striking The Secretary and inserting the following:

The Secretary

(i) ;

(ii) by inserting that are ambitious yet achievable and after program; and

(iii) by adding at the end the following new subparagraphs:

In establishing the expected levels of performance under subparagraph (A) for a Job Corps campus, the Secretary may take into account factors including—

(i) how the levels involved compare with the recent performance of such campus and the performance of other campuses within the same State or geographic region;

(ii) the levels of performance set for the primary indicators of performance described in section 116(b)(2)(A)(ii) for the youth programs authorized under chapter 2 of subtitle B for the State in which the campus is located;

(iii) the extent to which the levels involved promote continuous improvement in performance on the primary indicators of performance by such campus and ensure optimal return on the use of Federal funds; and

(iv) any other considerations identified by the Secretary after reviewing the recommendations of the advisory group described in section 155(b).

The Secretary shall ensure the expected levels of performance are established in the relevant contract or agreement.

In the event of a significant economic downturn, the Secretary shall adjust the applicable levels of performance for each of the campuses for a program year to reflect the actual economic conditions during such program year.

Prior to implementing the adjustments described in clause (i), the Secretary shall submit to the Committee on Education and Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report explaining the reason for such adjustments.

The Office of Inspector General of the Department of Labor shall, every 5 years, submit to the Committee on Education and Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate, and publish in the Federal Register and on a publicly available website of the Department, a report containing—

(i) a quadrennial review of the expected levels of performance; and

(ii) an evaluation of whether—

(I) the Secretary is establishing such expected levels of performance in accordance with this Act; and

(II) such expected levels have led to continued improvement of the Job Corps program.

(iii) ;

(B) in paragraph (2)(B), by striking (L), and (M) and inserting (M), and (N);

(C) in paragraph (3)(B), by striking (J), and (K) and inserting (K), and (L);

(D) by redesignating paragraph (4) as paragraph (5);

(E) by inserting after paragraph (3) the following:

The Secretary shall establish campus and student safety standards. The Secretary shall provide technical assistance and develop a safety improvement plan for a Job Corps campus that fails to achieve such standards.

In establishing the campus and student safety standards under subparagraph (A), the Secretary shall take into account—

(i) incidents related to safety that are reported to the Secretary;

(ii) survey data from enrollees, faculty, staff, and community members; and

(iii) any other considerations identified by the Secretary after reviewing the recommendations of the advisory group described in section 155(b).

(E) ;

(F) in paragraph (5), as so redesignated—

(i) in subparagraph (A), by striking and at the end;

(ii) in subparagraph (B), by striking the period at the end and inserting a semicolon; and

(iii) by adding at the end the following:

(C) the number of contracts that were awarded a renewal compared to those eligible for a renewal;

(D) the number of campuses where the contract was awarded to a new operator; and

(E) the number of campuses that were required to receive performance improvement, as described under subsection (f)(2).

(iii) ; and

(G) by adding at the end the following:

The Secretary shall make arrangements with a State or other appropriate entity to facilitate the use of State wage records to evaluate the performance of Job Corps campuses on the employment and earnings indicators described in clause (i)(III) of subparagraph (A) of section 116(b)(2) and subclauses (I) and (II) of clause (ii) of such subparagraph for the purposes of the report required under paragraph (5).

(G) ;

(3) in subsection (d)(1)—

(A) by inserting and make available on the website of the Department pertaining to the Job Corps program in a manner that is consumer-tested to ensure it is easily understood, searchable, and navigable, after subsection (c)(4),;

(B) in subparagraph (B), by striking gender and inserting sex;

(C) in subparagraph (F), by striking regular secondary school diploma and inserting regular high school diploma;

(D) in subparagraph (G), by striking regular secondary school diploma and inserting regular high school diploma;

(E) by redesignating subparagraphs (J) through (O) as subparagraphs (K) through (P), respectively; and

(F) by inserting the following after subparagraph (I):

(J) the number of appeals under section 152(c) and a description of each appeal that was approved;

(F) ;

(4) in subsection (e), by striking 116(i)(2) and inserting 116(j)(2); and

(5) in subsection (g)(2), by striking comply and inserting attest to compliance.

Section 159(f) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3209) is amended to read as follows:

The Secretary shall conduct an annual assessment of the performance of each Job Corps campus on the primary indicators of performance described in section 116(b)(2)(A)(ii), where each indicator shall be given equal weight in determining the overall performance of the campus. Based on the assessment, the Secretary shall take measures to continuously improve the performance of the Job Corps program.

With respect to a Job Corps campus that, for a program year, performs as described in clause (ii) and is not already subject to a performance improvement plan under this paragraph for such program year or the succeeding program year, the Secretary shall develop and implement, for a comprehensive improvement period beginning with the succeeding program year, a performance improvement plan that meets the requirements of clause (iii).

A Job Corps campus performs as described in this clause if, for a program year, such campus—

(I) fails to meet an average of 90 percent on the expected levels of performance across all the primary indicators of performance specified in subsection (c)(1); and

(II) is ranked among the lowest 20 percent of all Job Corps campuses.

A performance improvement plan, with respect to a Job Corps campus, shall require the Secretary to take substantial action during a 3 consecutive program year period (in this paragraph, referred to as a comprehensive improvement period) to improve the performance of such campus, which shall include—

(I) providing technical assistance to the campus;

(II) changing the management staff of the campus;

(III) changing the career and technical education and training offered at the campus;

(IV) replacing the operator of the campus; or

(V) reducing the capacity of the campus.

With respect to a Job Corps campus that, for the two consecutive program years immediately following a comprehensive improvement period and regardless of whether such campus is subject to a subsequent comprehensive improvement period, fails to meet an average of 85 percent on the expected levels of performance across all the primary indicators and is ranked among the lowest 15 percent of all Job Corps campuses, the Secretary shall take further substantial action to improve the performance of such campus, which shall include—

(I) relocating the campus;

(II) closing the campus; or

(III) notifying the State in which the campus is located of such failure and, if such State submits a written plan to operate a residential campus in the current location, the Secretary—

(aa) shall enter into a memorandum of understanding with the State for the purpose of so operating a residential campus and award funding directly to the State for such purpose;

(bb) may encourage innovation in such memorandum of understanding by waiving any statutory or regulatory requirement of this subtitle except for those related to participant eligibility under section 144, program activities under section 148, counseling and job placement under section 149, standards of conduct under section 152, and performance reporting and accountability under this section; and

(cc) if a State chooses to award funds received under this clause to an entity that is not a State agency or other State entity, require that such State develop award criteria that will give priority consideration for the primary contract or grant for operation of the campus to any applicant that is a non-profit organization with expertise in serving out-of-school youth and that otherwise meets such award criteria.

In the case of a Job Corps campus described in clause (i) that is located on an Indian reservation, subclause (III) of such clause shall be applied by—

(aa) by substituting Indian Tribe for State in each place it appears; and

(bb) in item (cc), by substituting Tribal organization for State agency or other State entity.

In this paragraph, the terms Indian Tribe and Tribal organization have the meanings given such terms in subsections (e) and (l), respectively, of section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304).

In addition to the performance improvement plans required under paragraph (2), the Secretary may develop and implement additional performance improvement plans for a Job Corps campus that fails to meet criteria established by the Secretary other than the expected levels of performance described in subsection (c)(1).

With respect to a Civilian Conservation Center that, for 3 consecutive program years, fails to meet an average of 90 percent of the expected levels of performance across all the primary indicators of performance specified in subsection (c)(1) and is ranked among the lowest 15 percent of campuses, the Secretary of Labor or, if appropriate, the Secretary of Agriculture shall select, on a competitive basis, an entity to operate part or all of the Civilian Conservation Center in accordance with the requirements of section 147.

.

Section 159 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3209) is further amended—

(1) in subsection (a)(3), by striking centers and inserting campuses;

(2) in subsection (g)(1), in the heading, by striking Center and inserting Campus; and

(3) in subsection (j), in the heading, by striking Center and inserting Campus.

Section 161 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3211) is amended—

(1) in subsection (c)—

(A) in the heading, by striking Center and inserting Campus; and

(B) by striking center and inserting campus;

(2) by redesignating subsection (d) as subsection (e); and

(3) by inserting after subsection (c) the following new subsection:

The Secretary shall, on an annual basis, prepare and submit to the applicable committees a report regarding the implementation of all outstanding recommendations regarding the Job Corps program from the Office of Inspector General of the Department of Labor or the Government Accountability Office.

(3) .

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

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

.

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

Section 166 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3221) is amended—

(1) in subsection (a)(2), by striking (25 U.S.C. 450 et seq.) and inserting (25 U.S.C. 5301 et seq.);

(2) in subsection (b)—

(A) in paragraph (2), by striking (25 U.S.C. 450b) and inserting (25 U.S.C. 5304); and

(B) in paragraph (3), by inserting (20 U.S.C. 7517) before the period at the end;

(3) in subsection (d)(1)—

(A) in subparagraph (A), by striking and;

(B) in subparagraph (B)—

(i) by striking leading and inserting or self-employment that leads; and

(ii) by striking the period at the end and inserting; and; and

(C) by adding at the end the following:

(C) are evidence-based, to the extent practicable.

(C) ;

(4) in subsection (d)(2), by striking subparagraph (B) and inserting the following:

Not more than 15 percent of the funds made available to an entity under subsection (c) may be used for the administrative costs of the activities and services described in subparagraph (A).

Notwithstanding any other provision of this section, individuals who were eligible to participate in programs under section 401 of the Job Training Partnership Act (as such section was in effect on the day before the date of enactment of the Workforce Investment Act of 1998) shall be eligible to participate in an activity assisted under this section.

An entity receiving funds under subsection (c) may transfer such funds that are unobligated for an award year to the following award year for activities described in subparagraph (A)(i) in that following award year.

(4) ;

(5) in subsection (e)(3), by inserting or to develop skills necessary for successful self-employment before the semicolon at the end;

(6) in subsection (h)—

(A) in paragraph (1)—

(i) in the heading, by striking the heading and inserting Performance standards;

(ii) by striking subparagraph (A) and inserting the following:

The Secretary, in consultation with the Native American Employment and Training Council, shall develop performance standards on the primary indicators of performance described in section 116(b)(2)(A) that shall be applicable to programs under this section.

(ii) ; and

(iii) in subparagraph (B), in the matter preceding clause (i), by striking indicators and;

(B) in paragraph (2), by striking section 116(b)(2)(A) and all that follows through the period at the end of the paragraph and inserting the following:

(B) section 116(b)(2)(A)—

(A) taking into consideration—

(i) economic conditions;

(ii) characteristics and needs of the individuals and groups served, including the differences in needs among such groups in various geographic service areas; and

(iii) other appropriate factors, including the economic circumstances of the communities served; and

(B) using, to the extent practicable, the statistical adjustment model under section 116(b)(3)(A)(viii).

(B) ; and

(C) by adding at the end the following:

The levels agreed to under paragraph (2) shall be the adjusted levels of performance and shall be incorporated in the program plan.

The Secretary shall make arrangements with any State or other appropriate entity to facilitate the use of State wage records to evaluate the performance of entities funded under this section on the employment and earnings indicators described in subclauses (I) through (III) of section 116(b)(2)(A)(i) for the purposes of the report required under paragraph (5).

For any individual working in Indian country (as defined in section 1151 of title 18, United States Code) whose wages are not submitted to a relevant State as an unemployment insurance wage record, the Indian tribe with jurisdiction over that Indian country may submit other forms of documentation of the wages of such individual to the State for purposes of the report required under paragraph (5).

For each program year, the Secretary shall make available on a publicly accessible website of the Department of Labor a report on the performance, during such program year, of entities funded under this section on—

(A) the primary indicators of performance described in section 116(b)(2)(A); and

(B) the adjusted levels of performance for such entities as described in paragraph (2).

(C) ; and

(7) in subsection (i)—

(A) in paragraph (4)—

(i) in subparagraph (A)—

(I) by striking Using and inserting the following:

Using

(I) ; and

(II) by adding at the end the following:

The Secretary shall meet, on not less than an annual basis, with the Council to consider recommendations from the Council on the operation and administration of the programs assisted under this section.

(II) ;

(ii) in subparagraph (B)—

(I) by striking The Council and inserting the following:

The Council

(I) ; and

(II) by inserting at the end the following:

An individual appointed to fill a vacancy on the Council occurring before the expiration of the term for which the predecessor of such individual was appointed shall be appointed only for the remainder of that term. Such an individual may serve on the Council after the expiration of such term until a successor is appointed.

(II) ; and

(iii) in subparagraph (F), by inserting, virtually or in person before the period at the end; and

(B) in paragraph (6)—

(i) by striking more than one State and inserting a State;

(ii) by inserting or provided by another grantee that receives funds awarded under subtitle B from any State for adult, youth, or dislocated worker programs after this title;

(iii) by striking Governors of the affected States and inserting Governor of any affected State; and

(iv) by striking the States and inserting the State or other grantee.

Section 167 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3222) is amended—

(1) in subsection (b)—

(A) by striking To be and inserting the following:

To be

(A) ; and

(B) by adding at the end the following:

In determining eligibility under paragraph (1), the Secretary may not place limitations on the geographic location of the entity or on the intended area to be served.

(B) ;

(2) in subsection (c), by adding at the end the following:

The Secretary shall make arrangements with a State or other appropriate entity to facilitate the use of State wage records to evaluate the performance of entities funded under this section on the employment and earnings indicators described in subclauses (I) through (III) of section 116(b)(2)(A)(i) for the purposes of the report required under paragraph (6).

For each program year, the Secretary shall make available on a publicly accessible website of the Department a report on the performance, during such program year, of entities funded under this section on—

(A) the primary indicators of performance described in section 116(b)(2)(A); and

(B) the adjusted levels of performance for such entities as described in paragraph (3).

(2) ;

(3) in subsection (d)(1), by inserting development of digital literacy skills, after literacy instruction,;

(4) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively;

(5) by inserting after subsection (d) the following:

Not more than 10 percent of the funds provided to an entity under this section may be used for the administrative costs of the activities and services carried out under subsection (d).

(5) ; and

(6) in subsection (i), as so redesignated—

(A) in the heading, by striking Allocation and inserting allocation; funding obligation;

(B) by striking From and inserting the following:

From

(B) ; and

(C) by adding at the end the following:

Funds appropriated and made available to carry out this section for any fiscal year may be obligated by the Secretary during the period beginning on April 1 of the calendar year that begins during such fiscal year and ending on June 30 of the following calendar year to be made available to an entity described in subsection (b).

(C) .

Section 168(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3223(a)(1)) is amended—

(1) by striking appropriate training, technical assistance, staff development and inserting appropriate education, technical assistance, professional development for staff;

(2) in subparagraphs (B), (C), and (D), by striking training each place it appears and inserting professional development;

(3) by redesignating subparagraphs (G) and (H) as subparagraphs (J) and (K), respectively; and

(4) by inserting after subparagraph (F) the following:

(G) assistance to the one-stop delivery system and the Employment Service established under the Wagner-Peyser Act for the integration of basic career service activities pursuant to section 134(c)(2)(A);

(H) assistance to States with maintaining, and making accessible to jobseekers and employers, the lists of eligible providers of training services required under section 122;

(I) assistance to States that apply for such assistance under section 122(j) for the purposes described in such subsection;

(4) .

Section 168(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3223(b)) is amended—

(1) in the header, by striking Dislocated worker and inserting Performance accountability; and

(2) in paragraph (1)—

(A) in the first sentence—

(i) by inserting, pursuant to paragraphs (1) and (2) of section 116(f), after technical assistance; and

(ii) by striking with respect to employment and training activities for dislocated workers and inserting with respect to the core programs; and

(B) in the second sentence—

(i) by striking assistance to dislocated workers and inserting assistance to individuals served by a core program; and

(ii) by striking provided to dislocated workers and inserting provided to such individuals.

Section 168 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3223) is further amended by adding at the end the following:

The Secretary shall, as part of the activities described in subsection (c)(2), evaluate and disseminate to States and local areas information regarding evidence-based and promising practices for addressing the economic workforce impacts associated with high rates of substance use disorders, which information shall—

(1) be updated annually to reflect the most recent and available research; and

(2) include information—

(A) shared by States and local areas regarding effective practices for addressing such impacts; and

(B) on how to apply for any funding that may be available under section 170(b)(1)(E).

.

Section 169 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3224) is amended—

(1) in subsection (a)—

(A) in paragraph (2)—

(i) by redesignating subparagraph (G) as subparagraph (H);

(ii) in subparagraph (F)—

(I) by striking; and at the end; and

(II) by inserting, including individuals with barriers to employment after demographic groups; and

(iii) by inserting the following after subparagraph (F):

(G) the extent to which such programs or activities are using emerging technology to—

(i) collect, analyze, use, and disseminate accurate and transparent local and State level labor market information;

(ii) integrate administrative data, in accordance with Federal and State privacy laws, to more comprehensively understand and improve education and workforce outcomes; and

(iii) identify and address deficiencies in existing Federal, State, and local workforce data infrastructure and related source systems; and

(iii) ;

(B) in paragraph (3)—

(i) by striking The Secretary and inserting the following:

The Secretary

(i) ; and

(ii) by adding at the end the following new subparagraph:

The Secretary may not use the authority described in subparagraph (A) if the evaluations required under paragraph (1) have not been initiated or completed in the time period required.

(ii) ; and

(C) in paragraph (4), in the second sentence—

(i) by striking The Secretary and inserting Beginning after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary; and

(ii) by striking 2019 and inserting 2028; and

(2) in subsection (b)—

(A) by amending paragraph (4) to read as follows:

The Secretary, in coordination with other heads of Federal agencies, as appropriate, may conduct a study examining the nature of participants’ unsubsidized employment after exit from programs carried out under this Act—

(i) including with respect to factors such as the availability of paid time off in the employment, health and retirement benefits provided through the employment, workplace safety standards at the place of employment, the predictability and stability of the work schedule for the employment, the ability to obtain through the employment credentials that may permit articulation into a higher level or other degree or credential program, and advancement opportunities in the employment; and

(ii) that includes a description of the feasibility of Congress establishing, through future legislation, an indicator of performance under section 116 related to such factors.

The Secretary of Labor, in coordination with the Secretary of Health and Human Services, may conduct studies that analyze the access to services by individuals with disabilities, including whether an individual who is unable to receive services under title IV due to a wait list for such services is able to receive services under titles I through III.

The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026, conduct a study that—

(i) compares the effectiveness of the pay-for-performance strategies used under sections 129, 134, and 172 after such date of enactment to the awarding of grants and contracts under such sections as in effect on the day before the date of enactment of such Act; and

(ii) examines, with respect to grants under sections 129, 134, and 172 after such date of enactment—

(I) the competition structure of pay-for-performance grants and contracts under such sections;

(II) the quality of applications received for grants and contracts under such sections; and

(III) whether individuals with barriers to employment were effectively served under the pay-for-performance strategies for grants and contracts under such sections.

The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026, conduct a study that compares the usage of individual training accounts for dislocated workers after such date of enactment to the usage of such accounts prior to such date of enactment, including a comparison of—

(i) the types of training services and occupations targeted by dislocated workers when using their individual training accounts; and

(ii) the effectiveness of the skills development funded through individual training accounts in helping such individuals attain credentials and secure unsubsidized employment.

The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026, conduct a study that will review the usage of statewide critical industry skills funds established by States under section 134(a)(4) and identify, for purposes of measuring the overall effectiveness of the program—

(i) the industries targeted by the funds under section 134(a)(4);

(ii) the occupations for which workers are being upskilled;

(iii) how frequently skills development is provided to prospective workers and incumbent workers, and

(iv) the reported performance outcomes.

The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026, conduct a study that will review the usage of industry or sector partnership and career pathways development funds established by States under section 134(a)(5) and identify, for purposes of measuring the overall effectiveness of the program—

(i) the industries targeted by the funds under section 134(a)(5) and the growth in employment opportunities in such industries over the period of the study;

(ii) the occupations workers are receiving skills development for and how frequently such skills development is occurring through the funds under section 134(a)(5);

(iii) the States where such funds were used to establish new industry or sector partnerships, the States where such funds were used to expand existing industry or sector partnerships, and an overview of the types of partners participating in such partnerships; and

(iv) the reported performance outcomes.

The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026, conduct a study that measures the effectiveness of on-the-job training, employer-directed skills training, apprenticeship, and incumbent worker training under this title in preparing jobseekers and workers, including those with barriers to employment, for unsubsidized employment. Such study shall include the cost per participant and wage and employment outcomes, as compared to other methods of training.

The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026, conduct a study that—

(i) measures the effectiveness of emerging technology (including artificial intelligence and machine learning) and other advanced computational methods, in improving State workforce development system service delivery, labor market data system performance, data collection and integration to understand participant and program outcomes, and end-user tools for facilitating career exploration or related data insights;

(ii) measures the extent to which States have adopted and implemented such technology and methods in their workforce development systems, including by describing how the technology or method is being used, analyzing the accuracy of such technology or method, and identifying any exhibited bias by any such technology or method; and

(iii) includes an analysis of the consequences of advances in automation technology on employment opportunities, skills development, including digital literacy skills development, and worker dislocation.

The Secretary of Labor, shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026, conduct a study on the alignment of workforce development programs under this Act with elementary and secondary education and postsecondary education. The study shall examine—

(i) State efforts to integrate data related to career and technical education programs, dual enrollment programs, pre-apprenticeships and apprenticeships, and other work-based learning programs to inform decisionmaking and improve educational opportunities and outcomes;

(ii) challenges related to and strategies that promote such alignment to facilitate student participation in high-quality college and career pathways; and

(iii) governance structures and funding sources to promote such alignment.

The Secretary of Labor shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026, conduct an evaluation that—

(i) uses the most rigorous available methods that are appropriate and feasible to evaluate program effectiveness;

(ii) measures the effect of the Job Corps program on participating individuals on outcomes related to the purposes described in section 141(1), including educational attainment, employment, earnings, and other related outcomes, compared with the non-participant peers of those individuals, to determine if the program has a statistically significant effect (including long-term effects) on such outcomes; and

(iii) evaluates the cost-effectiveness of the program.

The Secretary shall prepare and disseminate to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Workforce of the House of Representatives, and on the publicly available website of the Department, reports containing the results of the studies conducted under this paragraph.

(A) ; and

(B) in paragraph (5), by adding at the end the following:

For each grant or contract awarded under this paragraph, the Secretary shall conduct a rigorous evaluation of the multistate project to determine the impact of the activities supported by the project, including the impact on the employment and earnings of program participants.

The Secretary shall prepare and disseminate to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Workforce of the House of Representatives, and to the public, including through electronic means, reports containing the results of evaluations conducted under this subparagraph.

(B) .

Section 169 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3224) is further amended by adding at the end the following:

Of the amount made available pursuant to section 132(a)(2)(A) for any program year, the Secretary shall use not less than 5 percent and not more than 10 percent of such amount, and may also use funds authorized for purposes of carrying out this section, to award grants to eligible entities to create workforce longitudinal data systems, talent marketplaces, and associated resources for the purposes of assisting States to—

(A) improve program quality;

(B) produce evidence for decision making;

(C) meet performance reporting requirements;

(D) protect the privacy of users; and

(E) improve transparency in relation to labor market trends and changes in job skills needed to obtain employment.

To be eligible to receive a grant under this subsection, an eligible entity shall submit an application to the Secretary, at such time and in such manner as the Secretary may require, which shall include—

(A) a description of the activities the eligible entity is proposing, including a description of the need for such activities and a detailed budget;

(B) a description of the expected outcomes and outputs (such as systems or products) that will result from the proposed activities and the proposed uses of such outputs;

(C) a description of how the proposed activities will support the reporting of performance data for the performance accountability requirements under section 116, including outcomes for eligible training providers;

(D) a description of the methods and procedures the eligible entity will use to ensure the security and privacy of the collection, storage, and use of all data involved in the systems and resources supported through the grant, including compliance with State and Federal privacy and confidentiality law;

(E) a plan for how the eligible entity will continue the activities or sustain the use of the outputs created with the grant funds after the grant period ends; and

(F) a description of how the eligible entity will ensure interoperability and portability between the talent marketplace maintained by the eligible entity and other talent marketplaces through the use of open standards.

In awarding grants under the subsection, the Secretary shall give priority to eligible entities that—

(A) are—

(i) State agencies of States that have not previously received a grant from the Secretary for the purposes of this subsection and demonstrate a substantial need to improve its data infrastructure, including for the development of a talent marketplace; or

(ii) consortia of State agencies that are comprised of State agencies from multiple States and include at least one State agency described in clause (i) and have the capacity to make significant contributions toward building interoperable and portable interstate data infrastructure; and

(B) will use grant funds to—

(i) expand the adoption and use of linked, publicly available, and interoperable data on knowledge, skills, and abilities represented through credentials, occupational job descriptions, and learning assertions, including through the development of a talent marketplace or other tools and services designed to help learners and workers make informed decisions;

(ii) participate in and contribute data to a multistate data collaborative, including data that provides participating States the ability to better understand—

(I) earnings and employment outcomes of individuals who work out-of-State; and

(II) interstate earnings and employment trends;

(iii) enhance collaboration with private sector workforce and labor market data entities and the end-users of workforce and labor market data, including individuals, employers, economic development agencies, and workforce development providers;

(iv) leverage the use of non-Federal contributions to improve workforce data infrastructure, including staff capacity building; or

(v) expand existing statewide integrated longitudinal data systems, including such systems receiving assistance under section 208 of the Educational Technical Assistance Act of 2002 (20 U.S.C. 9607).

In addition to the activities described in paragraph (3)(B), an eligible entity awarded a grant under this subsection may use funds to carry out any of the following activities:

(A) Developing or enhancing a State’s workforce longitudinal data system, including by participating and contributing data to the State’s data system, if applicable, that links with elementary and secondary school and postsecondary data.

(B) Accelerating the replication and adoption of data systems, projects, products, or practices already in use in one or more States to other States.

(C) Research and labor market data improvement activities to improve the timeliness, relevance, and accessibility of such data through pilot projects that are developed locally but designed to scale to other regions or States.

(D) Establishing or enhancing a talent marketplace.

(E) Developing policies, guidelines, and security measures for data collection, storing, and sharing to ensure compliance with relevant Federal and State privacy laws and regulations.

(F) Increasing local board access to and integration with the State’s workforce longitudinal data system in a secure manner.

(G) Creating or participating in a data exchange for collecting and using standards-based jobs and employment data including, at a minimum, job titles or occupation codes.

(H) Improving State and local staff capacity to understand, use, and analyze data to improve decision-making and improve participant outcomes.

A grant awarded under this subsection may be for a period of up to 3 years.

Funds made available under this subsection shall be used to supplement, and not supplant, other Federal, State, or local funds used for development of State data systems.

Each eligible entity that receives a grant under this subsection shall submit a report to the Secretary not later than 180 days after the conclusion of the grant period on the activities supported through the grant and improvements in the use of workforce and labor market information that have resulted from such activities.

In this subsection—

The term ‘eligible entity’ means a State agency, including a State workforce agency or a consortium of State agencies, including a multistate data collaborative, that is or includes the State agency responsible for—

(i) State employer wage records used by the State’s unemployment insurance programs in labor market information reporting and analysis and for fulfilling the reporting requirements under section 116(d);

(ii) the production of labor market information; and

(iii) the direct administration of one or more of the core programs.

The term multistate data collaborative means a partnership among two or more States to coordinate the governance and standards for workforce related data maintained by such States in order to facilitate interoperability and the secure exchange of such data between such States.

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Section 170 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3225) is amended—

(1) in subsection (b)—

(A) in paragraph (1)—

(i) in subparagraph (C), by striking and at the end;

(ii) in subparagraph (D)(ii), by striking the period at the end and inserting; and; and

(iii) by adding at the end the following:

(E) to an entity described in subsection (c)(1)(B) to provide employment and training activities related to the prevention and treatment of substance use disorders, including addiction treatment, mental health treatment, and pain management, in an area that, as a result of widespread substance use, addiction, and overdoses, has higher-than-average demand for such activities that exceeds the availability of State and local resources to provide such activities.

(iii) ; and

(B) by adding at the end the following: