Critical Industry Skills Act
Sponsored By: Representative Messmer
Introduced
Summary
Creates state-run funds that pay employers and training partners for industry-focused skills training tied to job placement. This bill would let Governors reserve a portion of WIOA allotments to fund competency-based, employer-led training and to reward programs with performance-based, per-worker payments.
Show full summary
- Workers and youth: More short, work-based and competency-based training would be supported, including for youth ages 18–24, with payments tied to program completion and a six-month job retention milestone.
- Employers and small businesses: Participating employers could receive staged, per-worker payments after completion and after six months of employment. Federal cost shares are capped at up to 90 percent for firms with 25 or fewer employees, 75 percent for firms with 26–99 employees, and 50 percent for firms with 100 or more employees.
- States and partnerships: Governors may reserve up to 10 percent of certain state allotments, require matching from state or other federal sources, award grants to industry or sector partnerships (grants up to 2 years), and run priority competitions for high-growth or high-wage industries with required performance reporting and annual state reports to the Secretary.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Better Reporting, Assessments, and Notices
Local workforce boards and training providers would have to use quarterly wage records and the National Directory of New Hires for performance reporting. States would work with employers and colleges to approve and share competency-based assessments that can give credentials or college credit and help workers show skills to employers. Training programs would need to notify participants if their program loses eligible status. If a local area asks for help and has more demand for dislocated worker training accounts than reserved funds, the State would assist and notify the Secretary if State reserved funds are insufficient and consider a national dislocated worker grant.
Grants for Employer Partnerships and Pathways
A State could establish a Partnership and Career Pathways Fund to award grants up to two years to employer-led partnerships in State high-growth industries. Grants must prioritize geographic diversity, sustainability, and serving people with barriers to employment. Applications must include an employer pledge to employ each participant for at least one year after program completion. Federal share caps for training depend on employer size: 70% (≤25 employees), 55% (26–99), and 40% (≥100); administrative costs paid by grants may not exceed 10%, and up to 20% of funds can be used in year one for planning.
Per-Worker Payments for Industry Jobs
A State could create a Critical Industry Skills Fund to pay staged, per-worker payments to employers or intermediaries for eligible skills programs. Payments would be split: part after program completion and the rest after six months of employment with the hiring employer. Federal share caps depend on employer size: 90% for firms with 25 or fewer employees; 75% for 26–99; and 50% for 100 or more. States would report participant counts and performance to the Secretary annually, and the Secretary would study State funds within four years.
Governor can Reserve State Workforce Funds
This bill would let a Governor reserve up to 10% of certain State workforce allotments to create two new State funds. Reserved money must be matched with other Governor reservations, other Federal funds, or State funds. The Governor could not reserve more than the amount they commit from those matching sources.
New Rules for State Fund Allocations
Reallocations among local workforce areas would be provided as performance-based incentive payments. To get reallocated youth, adult, or dislocated worker funds, a local area would need an average of 100% of its local performance across all indicators for the most recent year and no Governor corrective action for uniform administrative noncompliance. The bill would also let States consider an additional paragraph when calculating within-State allocations, which may change how funds are split among local areas.
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Sponsors & CoSponsors
Sponsor
Messmer
IN • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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