April 2, 2026
Mr. Messmer introduced the following bill; which was referred to the Committee on Education and Workforce
To amend the Workforce Innovation and Opportunity Act to require States to establish critical industry funds or certain industry or sector partnerships, and for other purposes.
Section 1. Short title
This Act may be cited as the Critical Industry Skills Act
.
Sec. 2. Reservations; Reallocation
(a) Reservations for statewide activities
Section 128(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3163(a)) is amended—
(1)
in paragraph (2), by striking reserved amounts
in each place and inserting reserved amounts required under paragraph (1)
; and
(2)
by adding at the end the following:
(3) Critical industry skills fund, and industry sector partnership and career pathways development fund
(A) Authorized reservation
In addition to the reservations required under paragraph (1) and section 133(a)(2), and subject to subparagraph (B), the Governor may reserve not more than 10 percent of each of the amounts allotted to the State under section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 132(b) for a fiscal year to establish and administer any one, or both, of the following:
(i)
A critical industry skills fund described in section 134(a)(4).
(ii)
An industry or sector partnership and career pathways development fund described in section 134(a)(5).
(B) Matching funds
(i) Requirement
The amount of funds reserved by a Governor under subparagraph (A) for a fiscal year may not exceed the amount of funds that such Governor commits to using from any of the funds listed in clause (ii) of this subparagraph for the purposes of establishing and administering the funds described in clauses (i) and (ii) of subparagraph (A) for such fiscal year.
(ii) Sources of matching funds
The funds listed in this clause are as follows:
(I)
Funds reserved by the Governor under paragraph (1) of this subsection.
(II)
Other Federal funds not described in subclause (I).
(III)
State funds.
(b) Reallocation among local areas
Section 128(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is amended—
(1)
in paragraph (1), by inserting the following before the period at the end: as performance-based incentive payments
; and
(2)
in paragraph (4)—
(A)
by striking that does not
and inserting the following:
that—
(A)
does not;
(B)
by striking the period at the end and inserting a semicolon; and
(C)
by adding at the end the following:
(B)
has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the youth program authorized under this chapter for the most recent program year for which performance data is available; and
(C)
was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made.
Sec. 3. Reservations for State activities; within State allocations; Reallocation
(a) Reservations for State activities
Section 133(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(a)) is amended—
(1)
in paragraph (1), by striking section 128(a)
and inserting section 128(a)(1)
; and
(2)
by adding at the end the following:
(3) Critical industry skills fund, and industry or sector partnership and career pathways fund
In addition to the reservations required under paragraphs (1) and (2), the Governor may make the reservation authorized under section 128(a)(3).
(b) Within State allocations
Section 133(b)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(b)) is amended—
(1)
in subparagraph (A), by striking subsection (a)(1)
and inserting paragraph (1) or (3) of subsection (a)
; and
(2)
in subparagraph (B), by striking paragraph (1) or (2) of subsection (a)
and inserting paragraph (1), (2), or (3) of subsection (a)
.
(c) Reallocation among local areas
Section 133(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is amended—
(1)
in paragraph (1), by inserting before the period at the end, the following: as performance-based incentive payments
;
(2)
in paragraph (4)—
(A)
in subparagraph (A)—
(i)
by striking that does not
and inserting the following:
that—
(i)
does not;
(ii)
by striking ; and
and inserting a semicolon; and
(iii)
by adding at the end the following:
(ii)
has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the adult program authorized under this chapter for the most recent program year for which performance data is available; and
(iii)
was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made; and; and
(B)
in subparagraph (B)—
(i)
by striking that does not
and inserting the following:
that—
(i)
does not;
(ii)
by striking the period at the end and inserting a semicolon; and
(iii)
by adding at the end the following:
(ii)
has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the dislocated worker program authorized under this chapter for the most recent program year for which performance data is available; and
(iii)
was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made; and; and
(3)
by adding at the end the following:
(5) Use of incentive funds
Any amounts provided to a local area as a performance incentive payment under this subsection shall not be subject to the requirements described in section 134(c)(1)(B).
Sec. 4. Use of funds for employment and training activities
Section 134(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(1))—
(1) In general
Section 134(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(1))—
(A)
in subparagraph (A), by striking and
at the end;
(B)
in subparagraph (B)—
(i)
in the matter preceding clause (i), by striking 128(a)
and inserting 128(a)(1)
; and
(ii)
by amending clause (ii) to read as follows:
(ii)
may be used to carry out any of the statewide employment and training activities described in paragraph (3) (including establishing and administering any one, or both, of the funds referred to in subparagraph (C)); ; and
(C)
by inserting before the flush left text at the end the following:
(C)
as described in section 128(a)(3), shall be used to establish and administer any one, or both, of the following:
(i)
a critical industry skills fund described in paragraph (4); or
(ii)
an industry or sector partnership and career pathways development fund described in paragraph (5).
(2) Required statewide employment and training activities
(A) Statewide rapid response activities
Section 134(a)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(2)(A)) is amended—
(i)
in clause (i)—
(I)
in subclause (I)—
(aa)
by striking working
and inserting as a rapid response unit working
; and
(bb)
by striking and
at the end;
(II)
in subclause (II), by striking the period at the end and inserting ; and
; and
(III)
by adding at the end the following:
(III)
provision of additional assistance to any local area that has excess demand for individual training accounts for dislocated workers in such local area and requests such additional assistance under this subclause in accordance with paragraph (4) of section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (29 U.S.C. 3224a(5)), upon a determination by the State that, in using funds allocated to such local area pursuant to paragraph (1) of such section 414(c) and in using funds as required under subsection (c)(1)(B) of this section for the purpose described in paragraph (2)(A) of such section 414(c), the local area is in compliance with the requirements of such section 414(c). ; and
(ii)
by adding at the end the following:
(iii) Insufficient funds to meet excess demand
If a State determines that a local area with excess demand as described in clause (i)(III) has met the compliance requirements described in such clause, but the State does not have sufficient funds reserved under section 133(a)(2) to meet such excess demand, the State—
(I)
shall notify the Secretary of such excess demand; and
(II)
if eligible, may apply for a national dislocated worker grant under section 170 of this Act.
(B) Statewide employment and training activities
Section 134(a)(2)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(2)(B)) is amended—
(i)
in clause (i)—
(I)
in subclause (III), by striking and
at the end;
(II)
by amending subclause (IV) to read as follows:
(IV)
local areas, one-stop operators, one-stop partners, and eligible providers, including the development and training of staff, which may include—
(aa)
the development and training of staff to provide information about wage levels and available benefits across in-demand industry sectors or occupations, and information about opportunities for individuals with barriers to employment to enter in-demand industry sectors or occupations and nontraditional occupations;
(bb)
providing capacity building and technical assistance to State board and local board members on the development of exemplary program activities;
(cc)
the development and education of staff to increase expertise in providing opportunities for covered veterans (as defined in section 4212(a)(3)(A) of title 38, United States Code) to enter in-demand industry sectors or occupations and nontraditional occupations; and
(dd)
the provision of technical assistance to local areas that fail to meet local performance accountability measures described in section 116(c); and; and
(III)
by adding at the end the following:
(V)
local boards and eligible providers of training services in carrying out the performance reporting required under section 116(d), including facilitating data matches for program participants—
(aa)
using quarterly wage record information (including the wage records made available by any other State and information provided from the National Directory of New Hires in accordance with section 453(j)(8) of the Social Security Act (42 U.S.C. 653(j)(8))); and
(bb)
other sources of information, as necessary to measure the performance of programs and activities conducted under this chapter or chapter 2 of this subtitle;;
(ii)
in clause (ii), by striking section 106(b)(7)
and inserting section 106(b)(6)
;
(iii)
in clause (iii), by striking section 116(i)
and inserting section 116(j)
;
(iv)
in clause (v)—
(I)
in subclause (II)—
(aa)
by striking customized training
and inserting employer-directed skills development
; and
(bb)
by striking transitional jobs
and inserting transitional jobs, or sponsors of apprenticeships and pre-apprenticeships
;
(II)
in subclause (III), by inserting , including business engaged in joint labor-management partnerships
before the semicolon;
(III)
by redesignating subclauses (V) and (VI) as subclauses (VI) and (VII), respectively;
(IV)
by inserting after subclause (IV) the following:
(V)
information on effective coordination of supportive services for workers and jobseekers;;
(V)
in subclause (VI), as so redesignated—
(aa)
by striking subsections (d) and (h) of section 122
and inserting subsections (d) and (i) of section 122
; and
(bb)
by striking and
at the end; and
(VI)
by adding at the end the following:
(VIII)
information to participants on understanding and accessing State-administered programs and services available to jobseekers; ;
(v)
by redesignating clause (vi) as clause (vii);
(vi)
by inserting after clause (v) the following:
(vi)
notifying participants of an eligible program of training services whose participation is funded under this Act, if such program’s status as an eligible program of training services is revoked under section 122(c)(4);;
(vii)
in clause (vii), as so redesignated, by striking the period at the end and inserting a semicolon; and
(viii)
by adding at the end the following:
(viii)
coordinating (which may be done in partnership with other States) with industry organizations, employers (including small and mid-sized employers), industry or sector partnerships, training providers, local boards, and institutions of higher education to identify or develop competency-based assessments that are a valid and reliable method of collecting information with respect to, and measuring, the prior knowledge, skills, and abilities of individuals who are adults or dislocated workers for the purpose of—
(I)
awarding, based on the knowledge, skills, and abilities of such an individual validated by such assessments—
(aa)
a recognized postsecondary credential that is used by employers in the State for recruitment, hiring, retention, or advancement purposes;
(bb)
postsecondary credit toward a recognized postsecondary credential aligned with in-demand industry sectors and occupations in the State for the purpose of accelerating attainment of such credential; and
(cc)
postsecondary credit for progress along a career pathway developed by the State or a local area within the State;
(II)
developing individual employment plans under subsection (c)(2)(B)(vii)(II) that incorporate the knowledge, skills, and abilities of such an individual to identify—
(aa)
in-demand industry sectors or occupations that require similar knowledge, skills, and abilities; and
(bb)
any upskilling needed for the individual to secure employment in such a sector or occupation; and
(III)
helping such an individual communicate such knowledge, skills, and abilities to prospective employers through a skills-based resume, profile, or portfolio; and
(ix)
disseminating to local areas and employers information relating to the competency-based assessments identified or developed pursuant to clause (viii), including—
(I)
any credential or credit awarded pursuant to items (aa) through (cc) of clause (viii)(I);
(II)
the industry organizations, employers, training providers, and institutions of higher education located within the State that recognize the knowledge, skills, and abilities of an individual validated by such assessments;
(III)
how such assessments may be provided to, and accessed by, individuals through the one-stop delivery system; and
(IV)
information on the extent to which such assessments are being used by employers and local areas in the State.
(3) Allowable statewide employment and training activities
Section 134(a)(3)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(3)(A))—
(A)
in clause (i)—
(i)
by inserting or evidence-based
after innovative
;
(ii)
by inserting local communities and
after needs of
;
(iii)
by striking customized training
and inserting employer-directed skills development
;
(iv)
by inserting and partnerships with
after utilization of
;
(v)
by inserting and labor-management partnerships
after business intermediaries
; and
(vi)
by inserting and medium-sized
before employers) in the State, and
;
(B)
in clause (ii)—
(i)
by inserting , or bringing evidence-based strategies to scale,
after strategies
; and
(ii)
by inserting supporting such individuals in achieving economic self-sufficiency and mobility, and
after employment and
;
(C)
in clause (iii)—
(i)
by striking and prior learning assessment to
and inserting , prior learning assessment, or a competency-based assessment identified or developed by the State under paragraph (2)(B)(viii), to
; and
(ii)
by striking stackable
and inserting permit articulation into higher level degree or other credential programs
;
(D)
in clause (iv), by inserting , which may include on-the-job training, employer-directed skills development, transitional jobs, industry or sector partnerships, apprenticeships, and other programs
after employment
;
(E)
in clause (viii)—
(i)
in subclause (I), by inserting , including such activities funded through other Federal and State laws
after development activities
; and
(ii)
in subclause (II)—
(I)
in item (cc), by inserting activities carried out by comprehensive transition and postsecondary programs for students with intellectual disabilities established under section 767 of the Higher Education Act of 1965 (20 U.S.C. 1140g),
after developmental disabilities,
;
(II)
in item (dd), by striking activities, including those
and inserting activities and services to promote digital literacy skills, including activities and services
; and
(III)
by adding at the end the following:
(gg)
programs under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.) that support employment and economic security; and;
(F)
in clause (xi), by inserting that exceed the local levels of performance
after local areas
;
(G)
in clause (xiii), by striking and
at the end;
(H)
in clause (xiv)—
(i)
by inserting conducting feasibility studies for the effectiveness of such strategies in meeting the employment and skills development needs of target populations in the local areas that are using such feasibility studies,
after data collection,
; and
(ii)
by striking the period at the end and inserting a semicolon; and
(I)
by adding at the end the following:
(xv)
supporting employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments (including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(viii)), and support in the creation of skills-based job descriptions;
(xvi)
developing partnerships between educational institutions (including area career and technical education schools, local educational agencies, and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce and the employment needs of employers in regions of the State, as determined by the most recent analysis conducted under subparagraphs (A), (B), and (D) of section 102(b)(1);
(xvii)
identifying and making available to residents of the State, free or reduced cost access to online skills development programs that are aligned with in-demand industries or occupations in the State and lead to attainment of a recognized postsecondary credential valued by employers in such industries or occupations;
(xviii)
establishing and administering a critical industry skills fund described in paragraph (4); and
(xix)
establishing and administering an industry or sector partnership and career pathways development fund described in paragraph (5).
(4) Critical industry skills fund
Section 134(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)), as amended, is further amended by adding at the end the following:
(4) Critical industry skills fund
(A) Performance-based payments
In addition to the funds described in paragraph (3)(A), a State may use any funds reserved under paragraph (3)(A) of section 128(a) to establish and administer a critical industry skills fund to award performance-based payments on a per-worker basis to eligible entities that provide, to prospective workers or incumbent workers (which may include youth age 18 through age 24), eligible skills development programs that are in any of the industries and occupations identified by the Governor (in consultation with the State board) for purposes of this paragraph, and that will result in employment or retention with an employer in such an industry or occupation (in this paragraph referred to as a
participating employer).(B) Optional priority
The Governor (in consultation with the State board) may select the industries and occupations identified under subparagraph (A) that should be prioritized under this paragraph.
(C) Submission of proposals
To be eligible to receive a payment under the critical industry skills fund established under this paragraph by a State, an eligible entity shall submit to the Governor, a proposal describing the eligible skills development program to be provided by the eligible entity under this paragraph, in such form, at such time, and containing such information, as the Governor may reasonably require.
(D) Reimbursement for approved proposals
(i) State requirements
(I) In general
With respect to each eligible entity whose proposal under subparagraph (C) has been approved by the Governor, the Governor shall make payments (in an amount determined by the Governor and subject to the requirements of subclause (II) of this clause, subparagraph (E), and any other limitations determined necessary by the State) from the critical industry skills fund established under this paragraph to such eligible entity for each participant of the eligible skills development program described in such proposal and with respect to whom the eligible entity meets the requirements of clause (ii).
(II) Payments
In making payments to an eligible entity under subclause (I) with respect to a participant—
(aa)
a portion of the total payment shall be made after the participant successfully completes the eligible skills development program offered by the eligible entity; and
(bb)
the remainder of such total payment shall be made after the participant has been employed by the participating employer of the eligible entity for the 6-month period after successful completion of the program.
(ii) Eligible entity requirements
To be eligible to receive the payments described in clause (i) with respect to a participant, an eligible entity shall submit such documentation as the Governor determines necessary to verify whether the participant meets the requirements of items (aa) and (bb) of clause (i)(II), and to comply with the performance reporting described in subparagraph (F).
(E) Non-Federal cost sharing
(i) Limits on Federal share
An eligible entity may not receive funds under subparagraph (D) with respect to a participant of the eligible skills development program offered by the eligible entity in excess of the following costs of such program with respect to such participant:
(I)
In the case of a participating employer of such eligible entity with 25 or fewer employees, 90 percent of the costs.
(II)
In the case of a participating employer of such eligible entity with more than 25 employees, but fewer than 100 employees, 75 percent of the costs.
(III)
In the case of a participating employer of such eligible entity with 100 or more employees, 50 percent of the costs.
(ii) Non-Federal share
(I) In general
Any costs of the eligible skills development program offered to a participant by such eligible entity that are not covered by the funds received under subparagraph (D) shall be the non-Federal share provided by the eligible entity (in cash or in-kind).
(II) Employer cost sharing
If the eligible skills development program is being provided on-the-job, the non-Federal share provided by an eligible entity may include the amount of the wages paid by the participating employer of the eligible entity to a participant while such participant is receiving the training.
(F) Performance reporting
Using the participant information provided by eligible entities under subparagraph (D)(ii), the State shall submit to the Secretary a report, on an annual basis, with respect to all participants for which the eligible entities received funds under this paragraph for the most recent program year, which shall include—
(i)
the number of individuals who participated in eligible skills development programs provided by such eligible entities through the critical industry skills fund under this paragraph; and
(ii)
the performance of such participants on the primary indicators of performance described in subclauses (I) through (III) of section 116(b)(2)(A)(i).
(G) Definitions
In this paragraph:
(i) Eligible entity
The term eligible entity means—
(I)
a participating employer or a group of participating employers;
(II)
an industry or sector partnership that includes a participating employer; or
(III)
another entity serving as an intermediary (such as a local board) that is in partnership with a participating employer.
(ii) Eligible skills development program
The term eligible skills development program, when used with respect to an eligible entity—
(I)
means a program with respect to which a State may set a maximum and minimum length (in weeks);
(II)
includes work-based education or related occupational skills instruction that—
(aa)
develops the specific technical skills necessary for successful performance of the occupations in which participants are to be employed upon completion; and
(bb)
may be provided—
(AA)
by the eligible entity; or
(BB)
by any training provider that is selected by the eligible entity and without regard to whether such provider is on a list of eligible providers of training services described in section 122(d); and
(III)
does not include employee onboarding, orientation, or professional development generally provided to employees.
(5) Industry or sector partnership and career pathways development fund
Section 134(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)), as amended, is further amended by adding at the end the following:
(5) Industry or sector partnership and career pathways development fund
(A) Purpose
The purpose of this paragraph is to establish new or expand existing industry or sector partnerships and career pathway programs to encourage regional economic growth and competitiveness, and improve worker training, retention, and advancement.
(B) Description of Fund
In addition to the funds described in paragraph (3)(A), a State may use any funds reserved under paragraph (3)(A) of section 128(a) to establish and administer an industry or sector partnership and career pathways development fund to award grants to eligible partnerships to establish or expand industry or sector partnerships that include employers in a high-growth or high-wage industry of the State in order to meet the following objectives:
(i)
Build capacity among such partnerships to prepare jobseekers and incumbent workers participating in such partnerships for careers in such a high-growth or high-wage industry.
(ii)
Leverage the capacity of such partnerships to develop, improve, expand, or implement education, employment, and training opportunities for individuals with barriers to employment.
(iii)
Strengthen coordination between such industry or sector partnerships and one-stop partners for the local areas involved that are described in paragraphs (1) and (2) of section 121(b).
(iv)
Develop or expand a career pathway program that utilizes integrated education and training strategies and supports multiple points of entry and exit for working learners.
(C) Duration
Each grant awarded under this paragraph shall be for a period of not more than 2 years.
(D) Award basis
(i) Geographic diversity
The Governor shall award grants under this paragraph in a manner that ensures geographic diversity in the areas in the State in which activities will be carried out under the grants.
(ii) Priority
In awarding grants under this paragraph, the Governor shall give priority consideration to eligible partnerships that—
(I)
include (or will include) as a partner in the industry or sector partnership to be established or expanded under this paragraph, a 2-year public institution of higher education;
(II)
demonstrate long-term sustainability of such industry or sector partnership; and
(III)
demonstrate the ability of such industry or sector partnership to serve individuals who—
(aa)
are individuals with a barrier to employment, including individuals with disabilities;
(bb)
are facing significant worker dislocation due to a disruption or change in the regional or State economy or labor market;
(cc)
have traditionally been underserved by regional economic development and sector partnership activities (including rural areas in the State); or
(dd)
are—
(AA)
out-of-school youth, disadvantaged youth, or disadvantaged adults; or
(BB)
unemployed individuals, within the meaning of section 6(b)(1)(B) of the Wagner-Peyser Act (29 U.S.C. 49e(b)(1)(B)).
(iii) Additional optional priority
In awarding grants under this paragraph, in addition to the priority consideration required under clause (ii), the Governor may give priority consideration to eligible partnerships that include, or will include, as a partner in the industry or sector partnership to be established or expanded under this section—
(I)
a 4-year public institution of higher education at which the highest degree that is predominantly awarded to students is an associate degree; or
(II)
a 2-year Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b))).
(E) Application
(i) In general
An eligible partnership seeking a grant under this paragraph shall submit an application to the Governor at such time, in such manner, and containing such information as the Governor may reasonably require, including the contents described in clause (ii).
(ii) Contents
An eligible partnership seeking a grant under this paragraph shall submit an application to the Governor under clause (i) containing, at minimum—
(I)
a description of the eligible partnership, and the industry or sector partnership that will be established or expanded with such grant;
(II)
the expected participation and responsibilities of each of the partners that will be included in such industry or sector partnership;
(III)
a description of the high-growth or high-wage industry sector to be served by such industry or sector partnership, and a description of how such industry sector was identified;
(IV)
a description of the workers and other individuals who will be targeted or recruited by such industry or sector partnership, including the number of workers and other individuals who will be served by the partnership;
(V)
an analysis of the existing labor market to be served by such industry or sector partnership, which includes—
(aa)
a description of potential barriers to employment for the targeted workers and other individuals;
(bb)
the estimated share of such workers and other individuals who are individuals with a barrier to employment; and
(cc)
a description of strategies that will be developed to help such workers and other individuals overcome such barriers;
(VI)
a description of the Federal and non-Federal resources, available under provisions of law other than this paragraph, that will be leveraged in support of such industry or sector partnership and the activities carried out by the partnership under this paragraph;
(VII)
a description, using common, linked, open-data descriptive language, of the recognized postsecondary credential that will be provided to individuals who successfully complete the education and training program provided through an education provider in such industry or sector partnership;
(VIII)
an assurance that any eligible provider of training services in such industry or sector partnership is on a list of eligible providers of training services described in section 122(d); and
(IX)
a commitment from a participating employer in such industry or sector partnership to employ each participant of such education and training program (which may be a career pathway program) for not less than a 1-year period, in accordance with the employment policies of such employer, after successful completion of the training portion of the education and training program operated by such participating employer.
(F) Uses of funds
(i) In general
An eligible partnership awarded a grant under this paragraph shall use such grant funds to establish a new industry or sector partnership or expand the industry or sector partnership of the eligible partnership to meet the objectives listed in subparagraph (B)—
(I)
by engaging businesses in accordance with clause (iii); and
(II)
by carrying out an education and training program that—
(aa)
leads to the recognized postsecondary credential described in the eligible partnership’s application in subparagraph (E)(ii)(VII);
(bb)
includes an apprenticeship, work-based learning, or on-the-job training program that leads to an employment commitment described in subparagraph (E)(ii)(IX) with a participating employer of the industry or sector partnership;
(cc)
may include the development or expansion of a new or existing career pathway program as described in clause (iv); and
(dd)
may include the provision of supportive services as described in clause (v).
(ii) Planning activities
An eligible partnership receiving a grant under this paragraph may use not more than 20 percent of the grant funds to carry out planning activities during the first year of the grant period that are necessary to establish a new industry or sector partnership or expand the industry or sector partnership of the eligible partnership, which may include—
(I)
recruiting key stakeholders in the high-growth or high-wage industry to be served by such industry or sector partnership;
(II)
conducting outreach to local businesses, employers, labor organizations, local boards, education and training providers, and business and employer associations;
(III)
identifying, through an evaluation, the training needs of multiple businesses in the high-growth or high-wage industry, including identifying any needs for—
(aa)
skills critical to competitiveness and innovation in the high-growth or high-wage industry;
(bb)
an education and training program, including any apprenticeship program or other work-based learning program supported by the grant; and
(cc)
the usage of career pathways to align education and training with job openings in the high-growth or high-wage industry; and
(IV)
recruiting individuals with barriers to employment to participate in the education and training program.
(iii) Business engagement
An industry or sector partnership established or expanded with a grant under this paragraph shall use the grant funds to engage businesses (including small and medium-sized businesses that are in the high-growth or high-wage industry and that may be a participating employer of the partnership) in the establishment and implementation of an apprenticeship, work-based learning, or on-the-job training program offered through the education and training program of the partnership, and which may include—
(I)
the navigation of the registration process for a sponsor of such an apprenticeship program;
(II)
the connection of the business with an education provider in the industry or sector partnership to develop classroom instruction to complement learning through such an apprenticeship, work-based learning, or on-the-job training program;
(III)
the development of such a work-based learning program;
(IV)
the provision of career awareness activities for participants of such an apprenticeship, work-based learning, or on-the-job training program, such as career guidance and academic counseling;
(V)
the recruitment of individuals with barriers to employment to participate in such an apprenticeship, work-based learning, or on-the-job training program; and
(VI)
other evidence-based approaches to connecting businesses with workers and establishing pathways to unsubsidized employment for individuals participating in the education and training program and other programs funded under this title.
(iv) Career pathway programs
(I) In general
An industry or sector partnership established or expanded with a grant under this paragraph may use such grant funds for the development or expansion of a new or existing career pathway program that utilizes integrated education and training strategies and supports multiple entry and exit points for working students and other working participants, which may include—
(aa)
dual-enrollment approaches for participants, including youth, seeking to participate in a career pathway program; and
(bb)
strategies that help working students and other nontraditional and adult student populations access skills and the recognized postsecondary credentials described in subparagraph (E)(ii)(VII) of the eligible partnership’s application.
(II) Authorized activities
In establishing or expanding such new or existing career pathway program, the industry or sector partnership may use a grant under this paragraph for—
(aa)
the provision of evidence-based professional development for faculty and other staff of an education provider in the industry or sector partnership;
(bb)
the acquisition of equipment necessary to support the delivery of the career pathway program; and
(cc)
any other evidence-based activities to support the development or implementation of the career pathway program.
(v) Supportive services
In accordance with section 181(h), an industry or sector partnership established or expanded with a grant under this paragraph may use such grant funds to provide supportive services to support the success of individuals, including individuals with barriers to employment, who are participating in training services, as described in subsection (c)(3)(D), which are offered through such partnership.
(G) Designation of a fiscal agent
An eligible partnership receiving a grant under this paragraph shall designate an entity of the eligible partnership as the fiscal agent for the receipt, management, and expenditure of the grant funds.
(H) Non-Federal cost sharing
(i) Limits on Federal share
An industry or sector partnership established or expanded with a grant under this paragraph may not receive such grant funds for purposes of funding the education and training program offered through such partnership in excess of the following costs of establishing, operating, and sustaining such program:
(I)
In the case in which the participating employers in such eligible partnership employ 25 or fewer employees, 70 percent of the costs.
(II)
In the case in which the participating employers in such eligible partnership employ more than 25 employees, but fewer than 100 employees, 55 percent of the costs.
(III)
In the case in which the participating employers in such eligible partnership employ 100 or more employees, 40 percent of the costs.
(ii) Non-Federal share
Any costs of establishing, operating, and sustaining such program that are not covered by the grant received under this paragraph shall be the non-Federal share provided by the industry or sector partnership.
(I) Performance reporting
Not later than 2 years after the first award of funds under this paragraph is made by the Governor and on an annual basis thereafter, the Governor shall prepare and submit to the Secretary a report with respect to the participants served by each eligible partnership receiving funds under this paragraph in the most recent program year, which report shall include—
(i)
levels of performance achieved by the eligible partnership, with respect to the primary indicators of performance under clause (i) or (ii) of section 116(b)(2)(A), as applicable, for all individuals served by the eligible partnership, disaggregated by race, ethnicity, sex, disability status, and age; and
(ii)
levels of performance achieved by the eligible partnership with respect to the primary indicators of performance under clause (i) or (ii) of section 116(b)(2)(A), as applicable, for individuals with barriers to employment served by the eligible partnership, disaggregated by race, ethnicity, sex, disability status, and age.
(J) Availability of report
The report submitted by eligible partnerships under subparagraph (I) shall—
(i)
be made digitally available by the Secretary using linked, open, and interoperable data; and
(ii)
include the number of individuals who were served by each such eligible partnership.
(K) Limit on administrative costs
An eligible partnership receiving a grant under this paragraph may not use more than 10 percent of the grant funds for administrative costs.
(L) Definitions
In this paragraph:
(i) Eligible partnership
The term eligible partnership means—
(I)
an industry or sector partnership that—
(aa)
includes a participating employer; and
(bb)
is seeking to further implement or expand such industry or sector partnership; or
(II)
a workforce collaborative that is seeking to become an industry or sector partnership that includes a participating employer.
(ii) High-growth or high-wage industry
The term high-growth or high-wage industry, when used with respect to an eligible partnership, means an industry that—
(I)
has, or is expected to have, a high rate of growth and an unmet demand for skilled workers, as determined by the Governor of the State in which the eligible partnership is located;
(II)
has been designated by the Governor as an in-demand industry experiencing high growth in such State; and
(III)
includes occupations determined by the Governor—
(aa)
with wages that are significantly higher than an occupation of similar level of skill or needed skill development; or
(bb)
that are aligned with career pathways into higher wage occupations.
(iii) Participating employer
The term participating employer, when used with respect to an eligible partnership, means an employer in a high-growth or high-wage industry that is (or will be) part of the industry or sector partnership that will be expanded (or established) by the eligible partnership under this paragraph.
Sec. 5. Study on statewide critical industry skills funds
Section 169(b)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3224(b)(4)) is amended—
(1)
by redesignating subparagraph (K) as subparagraph (L); and
(2)
by inserting after subparagraph (J) the following:
(K) Study on statewide critical industry skills funds
The Secretary shall, not later than 4 years after the date of enactment of this subparagraph, conduct a study that will review the usage of statewide critical industry skills funds established by States under section 134(a)(4) and identify, for purposes of measuring the overall effectiveness of the program—
(i)
the industries targeted by the funds under section 134(a)(4);
(ii)
the occupations for which workers are being upskilled;
(iii)
how frequently skills development is provided to prospective workers and incumbent workers; and
(iv)
the reported performance outcomes.