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119-hr-7566119th CongressWALLET

Federal Jobs Guarantee Development Act of 2026

Sponsored By: Representative Watson Coleman, Bonnie [D-NJ-12]

Introduced

Summary

This bill would create a pilot Federal Job Guarantee program that gives competitive grants to local and Tribal governments to hire residents in high-unemployment areas. It would set wage and benefit minimums, fund training and supportive services, and require public posting and formal evaluation.

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  • Workers and jobseekers: Residents 18 and older in a service area who apply through a Job Guarantee Program would be offered employment. Jobs must meet wage floors, include health insurance comparable to the Federal Employee Health Benefits Program, provide paid family and sick leave, and offer up to 8 weeks of paid training with extensions for those facing employment barriers.
  • Local and Tribal governments and communities: Eligible entities are political subdivisions or Tribal entities in areas with unemployment at least 150 percent of the national rate. The program would award grants to up to 15 entities for up to 3 years and require applicants to show job design, data systems, public posting plans, and commitments to avoid displacing current workers.
  • Families, supports, and employer incentives: Grant funds may pay for childcare, transportation, housing supports, adult education, reentry services, and workplace learning advisors to help families. The bill also expands the Work Opportunity Tax Credit to include qualified program participants who worked at least 3 months before hire, for hires after Dec. 31, 2026.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Guaranteed jobs with pay and benefits

If enacted, jobs in the pilot would have a wage floor and must include health insurance comparable to the Federal Employee Health Benefits Program. Jobs would include minimum paid family leave and paid sick leave where applicable and up to 8 weeks of paid training plus up to 8 weeks pre-job training. Grant funds could pay for transportation, child care, housing supports, needs-based payments, reentry services, and financial literacy. Grantees could not use funds to replace current employees, and Federal agencies that hire participants must meet the same wage and benefit rules for up to three years per person.

Tax credit to hire program participants

If enacted, the Work Opportunity Tax Credit would add a new eligible group for certified job guarantee participants. A qualified participant would be someone certified as having done at least three months in a job guarantee program during the six months before hire. The expansion would apply to hires after December 31, 2026. The bill text does not set the credit amount or formula.

Job Guarantee trust fund created

If enacted, the bill would create a Job Guarantee Program Trust Fund in the Treasury and authorize appropriations as necessary to fund it. The Secretary would use the Fund to pay grantees and, at year end, transfer amounts to Federal agencies to reimburse the full cost of employing participants. The Fund would hold deposits made under the Act and any interest earned. The bill does not list specific dollar amounts.

Pilot grants for high-unemployment areas

If enacted, the Department of Labor would award up to 15 competitive pilot grants to places with unemployment at least 150% of the national rate. Grants would last up to three years and must give any local resident age 18 or older who applies a job through the program. The Secretary would set national job priorities before awards, including child care, elder care, clean energy, and sustainable infrastructure. Grantees must certify they used at least 80% of the prior payment before getting more money, and the Inspector General would audit grants yearly.

Sponsors & CoSponsors

Sponsor

Watson Coleman, Bonnie [D-NJ-12]

NJ • D

Cosponsors

  • Rep. Omar, Ilhan [D-MN-5]

    MN • D

    Sponsored 2/12/2026

  • Rep. Lee, Summer L. [D-PA-12]

    PA • D

    Sponsored 2/12/2026

  • Rep. McIver, LaMonica [D-NJ-10]

    NJ • D

    Sponsored 2/12/2026

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 2/24/2026

Roll Call Votes

No roll call votes available for this bill.

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