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119-s-3846119th CongressWALLET

Employer-Directed Skills Act

Sponsored By: Senator Budd, Ted [R-NC]

Introduced

Summary

This bill would create a new training model called employer-directed skills development inside the public workforce system. It would raise employer cost-sharing and change how training is referred and measured.

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  • Employers: Employers who sponsor these programs must pay a share of training costs based on size — 10% for firms with 50 or fewer employees, 25% for 51–99 employees, and 50% for 100 or more. Employers must commit to hire participants who successfully complete the program.
  • Jobseekers and participants: Training must be selected or designed to meet a specific employer’s skill needs and can come with employer referrals that let a one-stop operator skip interviews or evaluations when the employer certifies the candidate needs training to get hired.
  • Workforce boards, one-stop operators, and states: The bill would replace “customized training” with employer-directed skills development, add an employer contract option, require one-stop operators to collect minimum provider data across training types, and change performance reporting to a ratio that counts participants who completed on-the-job training or employer-directed programs against all training exits.

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Bill Overview

Analyzed Economic Effects

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

Employer-directed training with hire pledge

This bill would create "employer-directed skills development" programs that meet an employer's specific skill needs. Employers would have to pay part of program costs: at least 10% for firms with 50 or fewer employees, 25% for firms with 51 to 99 employees, and 50% for firms with 100 or more employees. Local workforce boards would contract with employers, and employer applications would name the provider, program length, credential or skill, total cost, employer payment, and a pledge to hire participants who complete. One-stop centers could skip interviews when an employer refers and certifies a person needs the training and can succeed, but centers must still apply statutory priority rules. The bill would add a new performance measure tracking the share who complete on-the-job or employer-directed training before exiting in a program year.

One-stop data rules for training providers

This bill would require a one-stop operator to collect basic information from providers of on-the-job training, employer-directed programs, incumbent worker training, internships, paid or unpaid work experiences, and transitional employment. The data must be enough for states to use administrative records to produce the performance information the Governor requires. This requirement would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Budd, Ted [R-NC]

NC • R

Cosponsors

  • Sen. Cassidy, Bill [R-LA]

    LA • R

    Sponsored 2/11/2026

  • Sen. Husted, Jon [R-OH]

    OH • R

    Sponsored 2/11/2026

Roll Call Votes

No roll call votes available for this bill.

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