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119-s-2987119th CongressWALLET

American Workforce Act

Sponsored By: Senator Cotton, Tom [R-AR]

Introduced

Summary

This bill would create a federally run program to expand employer-led career training by funding and standardizing paid, on-the-job learning through federal-backed subsidies for employer-provided, paid, full-time workforce training. It would place a Senate-confirmed Director inside the Economic Development Administration to run the program, set contract templates, collect and publish data, and enforce rules.

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  • Workers and trainees: Positions must be paid and full-time. Trainees must be U.S. citizens with a high school diploma or equivalent and no bachelor’s degree, must be paid at least the higher of the federal or applicable state minimum wage, and the program sets wage floors tied to local median incomes including a not-less-than 80% county median benchmark.
  • Employers and training providers: Employers get subsidies that cover training costs only not wages. Subsidies can support a trainee for up to 3 years, contracts use a standardized template of 3 pages or less, the Director reviews contracts within 1 month with a 32-day approval presumption, and penalties include suspensions up to 5 years and fines up to prior two years of subsidy payments.
  • Transparency and oversight: The Director must publish project disclosures and recurring non-identifying metrics, produce 5- and 10-year reports to Congress, and the program sunsets within 11 years absent extension.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Employer-paid training and wages

This bill would give employers a federal subsidy to pay training costs for full-time, paid workforce trainees. The subsidy could not be used to pay trainee wages. Employers would still have to pay at least the higher of the federal or state/local minimum wage, and trainee jobs would have to meet a floor of 80% of the county (or nearest metro) median household income. Employers could get subsidy support for up to 3 years per trainee and must give current employees a wage raise on completion equal to at least 25% of the subsidy value. The Director would also pay a one-time $1,000 hiring bonus to an employer not sooner than 6 months after hiring a completed trainee who meets the wage standard.

New workforce office and oversight

This bill would create an American Workforce Division at Commerce and a Senate-confirmed Director to run the program. The Director would have to review and approve or disapprove proposed employer-trainee contracts within one month; a contract not disapproved by day 32 would be treated as approved. The Director must publish a short contract template, collect and publish project records and metrics, issue regulations within three months, and deliver 5- and 10-year program reports. Starting five years after enactment the Secretary could set trainee-to-job ratios. Trainees could file complaints; the Director would begin investigations within one month and, with clear evidence, make preliminary determinations within 90 days. Penalties could include warnings, suspensions up to 5 years, and fines up to the amount of subsidies an employer received in the prior two years. Taking part in a workforce project alone would not make an employer a federal contractor under OFCCP rules.

Sponsors & CoSponsors

Sponsor

Cotton, Tom [R-AR]

AR • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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