Labor Department to fund skills training for low-wage workers and formerly incarcerated people

What it does

This bill directs the Department of Labor to award competitive grants of up to $30 million per year (2026–2029) to consortiums of nonprofits, training organizations, and career schools to run workforce training programs. Grantees must serve at least 50% formerly incarcerated people and low-income workers, pay enrollees a living wage during 12+ week programs, provide wraparound support (childcare, transportation, tutoring), and partner with employers in high-demand sectors (construction, manufacturing, IT, healthcare, shipbuilding). Participants must earn recognized credentials and be tracked for employment outcomes. The bill aims to help workers without 4-year degrees gain skills for better-paying jobs.

Why we flagged it

The bill is a straightforward federal grant authorization for sectoral workforce training, with explicit targeting of disadvantaged populations and mandatory outcome reporting. It is not a tax provision, deregulation, or commemorative measure—it is a direct public investment in skills training and income support.

What the text implies

• The 'living wage' definition is delegated to grantees and varies by local cost of living, creating potential inconsistency in what constitutes adequate support across regions and no federal floor.
• Employer partnerships are voluntary; if employers do not engage, grantees must still deliver training, potentially reducing program quality or employer buy-in for job placement.
• The bill requires 50% enrollment from formerly incarcerated/low-income populations but does not mandate hiring commitments from partner employers post-training, leaving placement outcomes dependent on employer discretion.
• Reporting focuses on earnings and credential attainment but does not require tracking of credential quality, employer recognition, or long-term career progression—outcomes may be short-term wage gains without sustained advancement.
• The $30M annual authorization is modest relative to the 51.9 million workers earning under $15/hour; program reach will be limited and highly competitive.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill expands federal funding for skills training and income support targeted at workers earning under $15/hour, formerly incarcerated people, and rural/urban low-income populations—groups with documented barriers to employment. Mandatory living-wage stipends, wraparound services, and employer partnerships with career-growth requirements create concrete pathways to higher earnings; the Aspen Institute finding cited (18% income gain from credentials) suggests real economic mobility. The 50% en

Who stands to gain

• nonprofit organizations (501(c)(3))
• national training organizations
• accredited career and technical schools
• post-secondary career and technical networks
• employers (via subsidized training partnerships and advisory roles)

Named in the bill

Department of Labor, Secretary of Labor, Internal Revenue Code section 501(c)(3), Higher Education Act of 1965, Workforce Innovation and Opportunity Act (WIOA), Carl D. Perkins Career and Technical Education Act of 2006, Aspen Institute Economic Opportunities Program, Bureau of Labor Statistics, U.S. Census Bureau

Where it stands

5 cosponsors: 3 Republicans, 2 Democrats.

• Jun 3, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jun 3, 2025 — Referred to House Committee on Education and Workforce · Congress.gov: “Referred to the House Committee on Education and Workforce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.