(A)

in the heading, by striking language; and

(B)

by striking language; and

(A)

by redesignating clauses (vi) through (xi) as clauses (viii) through (xiii), respectively; and

(B)

by striking clause (v) and inserting the following:

(v)

State educational agencies or local educational agencies;

(vi)

State higher education agencies, as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003), or State systems of higher education;

(vii)

other State or local agencies;

(A)

in paragraph (1)—

(B)

in paragraph (2)—

(A)

in subparagraph (A), by striking shall the second place it appears and inserting may; and

(B)

in subparagraph (B)—

(1)

in paragraph (1)—

(2)

by striking paragraphs (2) through (7), and inserting the following:

(2) Continuation period

Except as provided in paragraph (5) of this subsection and subsection (d), in order to receive an allotment under section 127(b) or 132(b), the Governor shall maintain the designations of local areas in the State under this subsection (as in effect on the day before the date of enactment of the A Stronger Workforce for America Act of 2026) until the end of the third full program year after the date of enactment of the A Stronger Workforce for America Act of 2026.

(3) Initial alignment review

(A) In general

Prior to the third full program year after the date of enactment of the A Stronger Workforce for America Act of 2026, the Governor shall—

(i)

review the designations of local areas in the State (as in effect on the day before the date of enactment of the A Stronger Workforce for America Act of 2026); and

(ii)

(I)

based on the considerations described in paragraph (1)(B), issue proposed redesignations of local areas in the State through the process described in paragraph (1)(A), which shall—

(aa)

include an explanation of the strategic goals and objectives that the State intends to achieve through such redesignations; and

(bb)

be subject to the approval of the chief elected officials of the local areas in the State in accordance with the process described in subparagraph (C); or

(II)

with respect to a State described in subsection (d)(2)(B), if the Governor determines that such State should be designated as a single State local area, conduct a process in accordance with the requirements of subsection (d)(2).

(B) Designation of local areas

A redesignation of local areas in a State that is approved by a majority of the chief elected officials of the local areas in the State through the process described in subparagraph (C) shall take effect on the first day of the 4th full program year after the date of enactment of the A Stronger Workforce for America Act of 2026.

(C) Process to reach majority approval

To approve a designation of local areas in the State, the chief elected officials of the local areas in the State shall comply with the following:

(i) Initial vote

Not later than 60 days after the Governor issues proposed redesignations under subparagraph (A), the chief elected official of each local area shall review the proposed redesignations and submit a vote to the Governor either approving or rejecting the proposed redesignations.

(ii) Results of initial vote

If a majority of the chief elected officials of the local areas in the State vote under clause (i)—

(I)

to approve such proposed redesignations, such redesignations shall take effect in accordance with subparagraph (B); or

(II)

to disapprove such proposed redesignations, the chief elected officials of the local areas in the State shall comply with the requirements of clause (iii).

(iii) Alternate redesignations

In the case of the disapproval described in clause (ii)(II), not later than 120 days after the Governor issues proposed redesignations under subparagraph (A), the chief elected officials of the local areas in the State shall—

(I)

select 2 alternate redesignations of local areas—

(aa)

one of which aligns with the regional economic development areas in the State; and

(bb)

one of which aligns with the regions described in subparagraph (A) or (B) of subsection (a)(2); and

(II)

conduct a vote to approve, by majority vote, 1 of the 2 alternate redesignations described in subclause (I).

(iv) Effective date of alternate designations

The alternate redesignations approved pursuant to clause (iii)(II) shall take effect in accordance with subparagraph (B).

(4) Subsequent alignment reviews

On the date that is the first day of the 12th full program year after the date of enactment of the A Stronger Workforce for America Act of 2026, and every 8 years thereafter, the Governor shall—

(A)

review the designation of local areas; and

(B)

carry out the requirements of paragraph (3)(A)(ii), except that any redesignation of local areas in a State that is approved by a majority of the chief elected officials of the local areas in the State through the process described in paragraph (3)(C) shall take effect on the first day of the next full program year after the Governor’s review pursuant to this paragraph.

(5) Interim revisions

(A) Approval of certain redesignation requests

(i) In general

At any time, and notwithstanding the requirements of paragraphs (2), (3), and (4), the Governor, upon receipt of a request for a redesignation of a local area described in clause (ii), may approve such request.

(ii) Requests

The following requests may be approved pursuant to clause (i) upon request:

(I)

A request from multiple local areas to be redesignated as a single local area.

(II)

A request from multiple local areas for a revision to the designations of such local areas, which would not impact the designations of local areas that have not made such request.

(III)

A request for designation as a local area from an area described in section 107(c)(1)(C).

(B) Other redesignations

Other than the redesignations described in subparagraph (A), the Governor may only redesignate a local area outside of the process described in paragraphs (3) and (4), if the local area that will be subject to such redesignation has not—

(i)

performed successfully;

(ii)

sustained fiscal integrity; or

(iii)

in the case of a local area in any planning region described in subparagraph (B) or (C) of subsection (a)(2), met the requirements described in subsection (c)(1).

(C) Effective date

Any redesignation of a local area approved by the Governor under subparagraph (A) or (B) shall take effect on the first date of the first full program year after such date of approval.

(6) Appeals

(A) In general

The chief elected official of a local area that is subject to a redesignation of such local area under paragraph (3), (4), or (5) may submit an appeal to maintain its existing designation to the State board under an appeal process established in the State plan as specified in section 102(b)(2)(D)(i)(III).

(B) State board requirements

The State board shall grant an appeal to maintain an existing designation of a local area described in subparagraph (A) only if the local board of the local area can demonstrate that the process for redesignation of such local area under paragraph (3), (4), or (5), as applicable, has not been followed.

(C) Secretarial requirements

If a request to maintain an existing designation as a local area is not granted as a result of such appeal, the Secretary, after receiving a request for review from the local board of such local area and determining that the local board was not accorded procedural rights under the appeals process referred to in subparagraph (A), shall—

(i)

review the process for the redesignation of the local area under paragraph (3), (4), or (5), as applicable; and

(ii)

upon determining that the applicable process has not been followed, require that the local area’s existing designation be maintained.

(7) Redesignation incentive

The State may provide funding from funds made available under sections 128(a)(1) and 133(a)(1) to provide payments to incentivize—

(A)

groups of local areas to request to be redesignated as a single local area under paragraph (5)(A); or

(B)

multiple local boards in a planning region to develop an agreement to operate as a regional consortium under subsection (c)(3).

(1)

in paragraph (1)—

(2)

in paragraph (2), by inserting , including to assist with establishing administrative costs arrangements or cost arrangements for services under subparagraphs (F) and (G) of such paragraph after delivery efforts;

(3)

by redesignating paragraph (3) as paragraph (4); and

(4)

by inserting after paragraph (2), as so amended, the following:

(3) Regional consortiums

(A) In general

The local boards and chief elected officials of any local area in any planning region described in subparagraph (B) or (C) of subsection (a)(2) may develop an agreement to receive funding under section 128(b) and section 133(b) as a single consortium for the planning region.

(B) Consortium agreements

If the local boards and chief elected officials develop such an agreement—

(i)

one of the chief elected officials in the planning region shall designate the fiscal agent for the consortium;

(ii)

the local boards shall develop a memorandum of understanding to jointly administer the activities for the consortium; and

(iii)

the required activities for local areas under this Act (including the required functions of the local boards described in section 107(d)) shall apply to such a consortium as a whole and may not be applied separately or differently to the local areas or local boards within such consortium.

(1)

by redesignating paragraph (2) as paragraph (3); and

(2)

by inserting after paragraph (1), the following:

(2) New designation

(A) Process

If, upon a review described in paragraph (3)(A) or (4)(B) of subsection (b) of a State described in subparagraph (B)of this paragraph, the Governor of such State determines, after consultation with the State board, that such State should be designated as a single State local area—

(i)

the Governor shall propose to the legislature of the State to designate such State as a single State local area;

(ii)

in a case in which the majority of the legislature of the State consents to the Governor’s proposed designation—

(I)

such designation shall take effect in accordance with subparagraph (C); and

(II)

the Governor shall identify the State as a local area in the State plan; and

(iii)

in a case in which in which the majority of the legislature of the State does not so consent to the Governor’s proposed designation, the designations of the local areas in the State shall be maintained and shall be subject to the requirements of subsection (b)(4).

(B) State described

A State described in this subparagraph is a State that—

(i)

has not been designated as a single State local area under paragraph (1); and

(ii)

(I)

has a population of less than 5,100,000, as determined by the last decennial census preceding such designation; or

(II)

contains 5 or fewer local areas.

(C) Effective date

Notwithstanding subsection (b)(2), a designation described in paragraph (A) shall take effect on the later of—

(i)

the first day of the third full program year after the date of enactment of the A Stronger Workforce for America Act of 2026; or

(ii)

the first day of the first full program year following the date on which the Governor so designates the State as a single State local area.

(D) Reestablishment of local areas

(i) In general

At the end of the 5-year period beginning on the date on which a State is designated as a single State local area under subparagraph (A), the Secretary shall notify the Governor of such State if, during such 5-year period, the average of the overall State program scores (as referred to in section 116(f)(2)) across the adult and dislocated worker programs and youth programs authorized under chapters 2 and 3 of subtitle B are lower than the average of the State overall program scores across such programs during the 5-year period for such period ending on the date prior the date on which such State was so designated.

(ii) Determination after notice

(I) In general

If, after receiving the notice described in clause (i) with respect to a State, the Governor determines—

(aa)

that the designation of the State as a single State local area should be maintained, the Governor shall comply with subclause (II) or (III), as appropriate; or

(bb)

that such designation should not be so maintained, the Governor shall reestablish the local areas that comprised the State prior to the designation of the State as a single State local area under subparagraph (A), and such reestablishment shall take effect on the first day of the first full program year after the Governor receives such notice.

(II) Requirements for maintaining designation

A designation described in subclause (I)(aa) with respect to a State may only be so maintained if the Governor—

(aa)

not later than 180 days after the date on which Governor receives the notice described in clause (i), issues a public notice of the determination by the Governor that the designation of such State as a single State local area should be maintained; and

(bb)

not later than 1 year after the date on which the Governor issues such public notice, the Governor receives the consent of a majority of the legislature of the State to so maintain the designation.

(III) Failure to meet requirements

If the Governor fails to comply with each of the requirements of subclause (II) with respect to a State—

(aa)

a designation described in subclause (I)(aa) for such State may not be so maintained; and

(bb)

the Governor shall reestablish the local areas that comprised the State prior to the designation of the State as a single State local area under subparagraph (A), and such reestablishment shall take effect on the first full program year after the date that is 1 year after the date on which the Governor issues the public notice described in subclause (II)(aa) with respect to the State.

(1)

in paragraph (2)—

(2)

in paragraph (4)(A)—

(1)

in paragraph (2)(A), by striking section 108(b)(1)(D) and inserting 108(b)(1)(E);

(2)

in paragraph (3), by inserting , including, to the extent practicable, local representatives of the core programs and the programs described in section 121(b)(1)(B), after system stakeholders;

(3)

in paragraph (4)—

(4)

in paragraph (5), by inserting and which, to the extent practicable, shall be aligned with career and technical education programs of study (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302(3)) offered within the local area before the period at the end;

(5)

in paragraph (6)—

(6)

in paragraph (10)(C)—

(7)

in paragraph (12)(A), by striking activities and inserting funds allocated to the local area under section 128(b) and section 133(b) for the youth workforce development activities described in section 129 and local employment and training activities described in section 134(b), and the activities.

(A)

by striking section 102(b)(1)(E) and inserting section 102(b)(1)(F); and

(B)

by striking shall prepare and inserting may prepare; and

(A)

in paragraph (1)—

(B)

in paragraph (2), by striking section 102(b)(1)(E) and inserting “section 102(b)(1)(F);

(C)

in paragraph (4)—

(D)

in paragraph (6)(B), by inserting , such as the use of affiliated sites after means;

(E)

in paragraph (9)—

(F)

in paragraph (12), by inserting including as described in section 134(c)(2), after system,; and

(G)

in paragraph (13), by inserting before the semicolon at the end the following: , and encourage eligible youth who are enrolled in adult education and literacy activities under title II to co-enroll in youth workforce investment activities carried out by the local board, as appropriate.

(1) Primary indicators of performance

Section 116(b)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(2)(A)) is amended—

(2) Levels of performance

Section 116(b)(3)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(3)(A)) is amended—

(1)

by amending paragraph (1) to read as follows:

(1) In general

(A) Templates for performance reports

Not later than 24 months after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary of Labor shall develop, or review and modify, as appropriate, to comply with the requirements of this subsection, the templates for performance reports that shall be used by States (including by States on behalf of eligible providers of training services under section 122) and local areas to produce a report on outcomes achieved by the core programs. In developing, or reviewing and modifying, such templates, the Secretary of Labor shall take into account the need to maximize the value of the templates for workers, jobseekers, employers, local elected officials, State officials, Federal policymakers, and other key stakeholders.

(B) Standardized reporting

In developing, or reviewing and modifying, the templates under subparagraph (A), the Secretary of Labor shall ensure that States and local areas, in producing performance reports for core programs and eligible providers of training services, collect and report information on common data elements—

(i)

in a comparable and uniform format; and

(ii)

using terms that are assigned identical meanings across all such reports.

(C) Additional reporting

The Secretary of Labor—

(i)

in addition to the information on the common data elements, may require additional information with respect to any core program as necessary for effective reporting; and

(ii)

shall periodically review any such requirement for additional information to ensure the requirement is necessary and does not impose an undue reporting burden.

(D) Privacy

The Secretary of Labor shall ensure subparagraph (B) is carried out in a manner that protects and promotes individual privacy and data security, in accordance with applicable Federal privacy laws.

(E) Access to wage records

(i) Access

A State may facilitate for a local area that meets the requirements of clause (ii), for the sole purpose of fulfilling the reporting requirements under this subsection, access to the quarterly wage records (excluding such records made available by any other State) of program participants in the local area.

(ii) Privacy protections

To receive access to such quarterly wage records, the local area shall have demonstrated to the State the ability to comply, and agree to comply, with all applicable Federal and State requirements relating to the access and use of such quarterly wage records, including requirements relating to data privacy and cybersecurity.;

(2)

in paragraph (2)—

(3)

in paragraph (3)—

(4)

by amending paragraph (4) to read as follows:

(4) Contents of eligible training providers performance report

(A) In general

The State shall use the information submitted by the eligible providers of training services under section 122 and administrative records, including quarterly wage records, of the participants of the programs offered by the providers to produce a performance report on the eligible providers of training services in the State, which shall include, subject to paragraph (6)(C)—

(i)

with respect to each program of study (or the equivalent) of a provider on the list described in section 122(d)—

(I)

information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) with respect to all individuals engaging in the program of study (or the equivalent); and

(II)

the total number of individuals exiting from the program of study (or the equivalent), disaggregated by whether such individuals completed the program of study (or equivalent); and

(ii)

with respect to all eligible providers of training services under section 122—

(I)

the total number of participants who received training services through each adult and dislocated worker program authorized under chapter 3 of subtitle B, disaggregated by the type of entity that provided the training services, during the most recent program year and the 3 preceding program years;

(II)

the total number of participants who exited from training services, disaggregated by the type of entity that provided the training services, and by whether such participants completed the training services, during the most recent program year and the 3 preceding program years;

(III)

the average cost per participant for the participants who received training services, disaggregated by the type of entity that provided the training, during the most recent program year and the 3 preceding program years;

(IV)

the average of the per-program ratios of median earnings increase for a participant to the total cost of the provider's program, as described in section 122(b)(5)(B)(i)(III) for the participant; and

(V)

the number of individuals with barriers to employment served by each adult and dislocated worker program authorized under chapter 3 of subtitle B, disaggregated by each subpopulation of such individuals, and by race, ethnicity, sex, and age; and

(iii)

to the extent practicable, with respect to each recognized postsecondary credential on the list of credentials awarded by eligible providers in the State described in section 122(d)(2)—

(I)

information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) for all participants in the State receiving such credential; and

(II)

information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) for participants in the State receiving such credential who are individuals with barriers to employment, disaggregated by each subpopulation of such individuals, and by race, ethnicity, sex, and age.; and

(5)

in paragraph (6)—

(1)

in paragraph (1)—

(2)

in paragraph (2), by adding A State may use various forms of analysis, such as machine learning or other advanced analytics, to improve program operations and outcomes and to identify areas for further evaluation. at the end.

(1)

in paragraph (1)—

(2)

in paragraph (2)—

(1)

by redesignating subsection (i) as subsection (j); and

(2)

by inserting after subsection (h) the following:

(i) Information and technical assistance

Beginning not later than 12 months after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary of Labor shall hold meetings with each State board and State agency that administers a core program, and that requests such a meeting, to provide information and technical assistance concerning the performance accountability measures established in accordance with subsection (b), and related requirements for States under this section.

(1)

in the first sentence of paragraph (2), by inserting , and may use 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)) after State law;

(2)

by redesignating paragraph (3) as paragraph (4); and

(3)

by inserting after paragraph (2) the following:

(3) Designated entity

The Governor shall designate a State agency (or appropriate State entity) to assist in carrying out the performance reporting requirements of this section for core programs and eligible providers of training services. The designated State agency (or appropriate State entity) shall be responsible for—

(A)

facilitating data matches using quarterly wage record information, including wage record information made available by other States, to measure employment and earnings outcomes;

(B)

notifying State agencies that administer core programs and eligible providers of training services of the State's procedures for data validation and reliability, as described in subsection (d)(5); and

(C)

protection against disaggregation that would violate applicable privacy standards, as described in subsection (d)(6)(C).

(1)

in paragraph (1)—

(2)

in paragraph (2)—

(1)

in paragraph (1), by striking paragraphs (2) and (3) and inserting paragraphs (2) and (5);

(2)

in paragraph (2)(B)—

(3)

by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively; and

(4)

by inserting after paragraph (2) the following:

(3) Responsibilities

(A) In general

In operating a one-stop delivery system referred to in subsection (e), a one-stop operator—

(i)

shall—

(I)

manage operations of the one-stop delivery system in the local area;

(II)

facilitate coordination among the one-stop partners in such one-stop delivery system; and

(III)

take the necessary steps to ensure efficient and effective service delivery for individuals served by the one-stop delivery system, including individuals with barriers to employment; and

(ii)

may, subject to the requirements under subparagraph (B), directly provide services to job seekers and employers.

(B) Internal controls

In a case in which a one-stop operator seeks to operate as a service provider pursuant to subparagraph (A)(ii), the local board shall establish internal controls (which shall include written policies and procedures)—

(i)

with respect to the competition in which the one-stop operator will compete to be selected as such service provider, and the subsequent oversight, monitoring, and evaluation of the performance of such one-stop operator as such service provider; and

(ii)

which require compliance with—

(I)

relevant Office of Management and Budget circulars relating to conflicts of interest; and

(II)

any applicable State conflict of interest policy.

(4) Local boards as one-stop operators

Subject to approval from the chief elected official and Governor and in accordance with any other eligibility criteria established by the State, a local board may serve as a one-stop operator, if the local board—

(A)

enters into a written agreement with the chief elected official that clarifies how the local board will carry out the functions and responsibilities as a one-stop operator in a manner that complies with the appropriate internal controls to prevent any conflicts of interest, which shall include how the local board, while serving as a one-stop operator, will—

(i)

comply with the relevant Office of Management and Budget circulars relating to conflicts of interest; and

(ii)

any applicable State conflict of interest policy; and

(B)

complies with the other applicable requirements of this subsection.

(1)

in paragraph (2)—

(2)

in paragraph (4), by inserting after the first sentence the following: The system identifier shall be prominently and visibly displayed at each comprehensive and specialized one-stop center operated by the one-stop delivery system, including physical and virtual centers identified in paragraph (2)(A), and the sites and centers described in subparagraphs (B) through (E) of paragraph (2).; and

(3)

by adding at the end the following:

(5) Minimum digital functionality regulations

The Secretary shall issue regulations to establish minimum digital functionality requirements with respect to the one-stop delivery system.

(1)

by striking paragraph (1);

(2)

by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively;

(3)

in paragraph (1), as so redesignated—

(4)

in paragraph (2), as so redesignated—

(5)

by inserting after paragraph (2), as so redesignated, the following:

(3) Supplemental infrastructure funding

For any fiscal year in which the allocation received by a local area under paragraph (2) is insufficient to cover the total costs of infrastructure of one-stop centers in such local area, the local board, the chief elected official, and the one-stop partners that have entered into the local memorandum of understanding with the local board under subsection (c) may agree to fund, using Federal or other funds, the remainder of any such costs using a method described in such memorandum.; and

(6)

in paragraph (4), by inserting after operation of the one-stop center the following: (whether for in-person or virtual service delivery).

(1)

by redesignating subsections (f) through (i) as subsections (g) through (j), respectively;

(2)

by striking the section heading and all that follows through subsection (e) and inserting the following:

122. Identification of eligible providers of training services

(a) Eligibility

(1) In general

Except as provided in subsection (i), the Governor, after consultation with the State board and considering the State’s adjusted levels of performance described in section 116(b)(3)(A)(iv), shall establish—

(A)

procedures regarding the eligibility of providers of training services to receive funds provided under section 133(b) for the provision of training services through programs with eligibility under this section (in this section referred to as eligible programs) in local areas in the State; and

(B)

the minimum levels of performance on the criteria for a program to receive such eligibility.

(2) Providers

Subject to the provisions of this section, to be eligible to receive those funds for the provision of training services, the provider shall be—

(A)

an institution of higher education that provides a program that leads to a recognized postsecondary credential;

(B)

an entity that carries out programs registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); or

(C)

another public or private provider of a program of training services, which may include joint labor-management organizations, providers of entrepreneurial skills development programs, industry or sector partnerships, groups of employers, trade or professional associations, and eligible providers of adult education and literacy activities under title II (if such activities are provided in combination with occupational skills training or integrated education and training programs).

(3) Inclusion in list of eligible providers

(A) Compliance with additional criteria, information requirements and procedures

A provider described in subparagraph (A) or (C) of paragraph (2) (other than a provider described in subparagraph (B)(ii) of this paragraph) shall comply with the criteria, information requirements, and procedures established under this section to be included on the list of eligible providers of training services described in subsection (d).

(B) Automatic inclusion

(i) Providers of registered apprenticeship programs

A provider described in paragraph (2)(B) shall be included and maintained on the list of eligible providers of training services described in subsection (d) for so long as the corresponding program of the provider remains registered as described in paragraph (2)(B).

(ii) Providers of Workforce Pell Programs

With respect to a provider described in paragraph (2)(A) that provides an eligible program for purposes of the Workforce Pell Grant program under section 401(k) of the Higher Education Act of 1965 (20 U.S.C. 1070a(k)), as added by section 83002(a) of Public Law 119–21, such provider shall be included and maintained on the list of eligible providers of training services described in subsection (d) for so long as the provider provides such eligible program.

(b) Criteria and information requirements

(1) General criteria for programs

Each provider shall demonstrate to the Governor that the program for which the provider is seeking eligibility under this section—

(A)

prepares participants to meet the hiring requirements of potential employers in the State, or a local area within the State, for employment that—

(i)

is high-skill and high-wage; or

(ii)

is in an in-demand industry sector or occupation;

(B)

leads to a recognized postsecondary credential;

(C)

has been offered by the provider for not less than 1 year; and

(D)

meets the performance requirements for eligibility described in paragraph (2).

(2) Performance criteria for eligibility

(A) In general

The Governor shall—

(i)

establish and publicize minimum levels of performance for each of the criteria listed in subparagraph (B) that a program offered by a provider of training services shall achieve, for all participants in the program (including participants for whom the provider receives payments under this title) for the program to receive and maintain eligibility under this section;

(ii)

verify the performance achieved by such a program with respect to each such criterion to determine whether the program meets the corresponding minimum level of performance established under clause (i)—

(I)

in the case of the criteria described in (ii) through (iv) of subparagraph (B), using State administrative data (such as quarterly wage records); and

(II)

in the case of the criteria described in subparagraph (B)(i), using any applicable method for such verification; and

(iii)

in verifying the performance achievement of a program to make such determination, verify that such program included a sufficient number of program participants to protect participants’ personally identifiable information, and to provide information that is a reliable indicator of performance achievement.

(B) Performance criteria

The performance criteria to receive and maintain eligibility for a program under this section are each of the following:

(i)

The credential attainment rate of program participants (calculated as the percentage of program participants who obtain the recognized postsecondary credential that the program prepares participants to earn within 6 months after exit from the program).

(ii)

The job placement rate of program participants (calculated as the percentage of program participants in unsubsidized employment during the second quarter after exit from the program).

(iii)

The median earnings of program participants who are in unsubsidized employment during the second quarter after exit from the program.

(iv)

The ratio of median earnings increase to the total cost of program, calculated as the ratio of—

(I)

the median value of the difference between—

(aa)

participant wages from unsubsidized employment during the second quarter after program exit; and

(bb)

participant wages during the quarter prior to entering the program; to

(II)

the total cost of the program (as described in paragraph (5)(B)(i)(III)).

(C) Local criteria

With respect to any program receiving eligibility under this section from a Governor, a local board in the State may require higher levels of performance than the minimum levels of performance established by the Governor under this paragraph for the program to be an eligible program in the corresponding local area, but may not—

(i)

require any information or application from the provider that is not required for such eligibility; or

(ii)

establish a performance requirement with respect to any criterion not listed in subparagraph (B).

(3) Employer-sponsored or industry or sector partnership designation

(A) In general

The Governor shall establish procedures and criteria for a provider to demonstrate that a program meets, in applying for an employer-sponsored designation for a program that has received eligibility under this subsection, which shall include demonstrating a commitment from an employer or an industry or sector partnership to—

(i)

pay to the provider, on behalf of each participant enrolled in such program under this Act, not less than 25 percent of the total cost of the program (as described in paragraph (5)(B)(i)(III)), which shall be provided in lieu of 25 percent of the amount that the provider would have otherwise received under section 133(b) for the provision of training services by such program to such participant; and

(ii)

guarantee an interview and meaningful consideration for a job with the employer, or in the case of an industry or sector partnership, an employer within such partnership, for each such participant that successfully completes the program.

(B) Restriction on financial arrangement

A provider of a program receiving an employer-sponsored designation under this paragraph may not—

(i)

have an ownership stake in the employer or industry or sector partnership making a commitment described in subparagraph (A); or

(ii)

enter into an arrangement to reimburse an employer or partnership for the costs of a participant paid by such employer or partnership under this paragraph.

(4) Workforce innovation leader designation

(A) In general

If the Governor determines that a program offered by an eligible provider meets the minimum levels of performance described in subparagraph (B) to receive a Workforce Innovation Leader (or WIL) designation, which designates the program as a WIL program, the Governor shall grant the program designation as a WIL program and inform the provider of such program of their ability to display the WIL seal, as described in subparagraph (C), in marketing materials.

(B) Levels

A eligible program shall meet the levels of performance to receive a WIL designation if such program has achieved—

(i)

a credential attainment rate of program participants (calculated as the percentage of program participants who obtain the recognized postsecondary credential that the program prepares participants to earn within 6 months after exit from the program) of not less than 80 percent;

(ii)

a job placement rate of program participants (calculated as the percentage of program participants in unsubsidized employment during the second quarter after exit from the program) of not less than 70 percent;

(iii)

median earnings of program participants who are in unsubsidized employment during the second quarter after exit from the program that are not less than 25 percent greater than the State-level median earnings of individuals ages 25 through 34 in the labor force who have only a regular high school diploma or its recognized equivalent; and

(iv)

a ratio of greater than 1.5 of median earnings increase to the total cost of program, calculated as the ratio of—

(I)

the median value of the difference between—

(aa)

participant wages from unsubsidized employment during the second quarter after program exit; and

(bb)

participant wages during the quarter prior to entering the program; to

(II)

the total cost of the program (as described in paragraph (5)(B)(i)(III)).

(C) WIL seal

Not later than 2 years after the date of enactment of the A Stronger Workforce for America Act of 2026, the Secretary shall design a seal signifying that a program has achieved a WIL designation, for the Governor of each State to provide to any programs in their State that achieve the performance necessary to receive a WIL designation.

(D) Loss of wil designation

If, during the annual review of eligibility described in subsection (c)(3), the Governor determines that a WIL program no longer meets the levels described in subparagraph (B) or otherwise has eligibility under this section revoked or terminated, or the provider of the program has eligibility terminated under subsection (g)(1)(A), the Governor shall revoke the program’s WIL designation and inform the provider of such program that such provider may no longer display the WIL seal in marketing materials or otherwise.

(5) Information requirements

A provider that seeks to establish eligibility under this section, and an eligible provider, shall submit appropriate, accurate, and timely information to the Governor, to enable the Governor to carry out subsection (d), with respect to all participants in each eligible program (including participants for whom the provider receives payments under this title) offered by the provider, which information shall—

(A)

be made available by the State in a common, linked, open, and interoperable data format; and

(B)

consist of—

(i)

information on—

(I)

in the case of an eligible provider offering a program who is seeking to maintain eligibility, the performance of the program with respect to the indicators described in section 116(b)(2)(A) for participants in the program;

(II)

the recognized postsecondary credentials received by such participants, including, in relation to each such credential, the issuing entity, any third-party endorsements, the occupations for which the credential prepares individuals, the competencies achieved by the individuals, the level of mastery of such competencies (including how mastery is assessed) achieved by the individuals, and any transfer value or stackability;

(III)

the total cost of the program, including the costs of the published tuition and fees, supplies, and books, and any other costs required by the provider, for a participant in the program;

(IV)

the percentage of such participants that complete the program within the expected time to completion; and

(V)

the program’s level of performance on the criteria described in paragraph (2) and not otherwise included in clause (I) of this clause; and

(ii)

with respect to employment and earnings measures described in subclauses (I) through (III) of section 116(b)(2)(A)(i) and the performance criteria described in subsection (b)(2) for such participants—

(I)

the necessary information for the State to develop program performance data using State administrative data (such as quarterly wage records); and

(II)

the necessary information to determine the percentage of such participants who entered unsubsidized employment in an occupation related to the program, to the extent practicable.

(6) Eligible provider

In this section, other than subsection (i), a provider of an eligible program under this section shall be considered to be identified as an eligible provider of training services.

(c) Procedures

(1) Application procedures

The procedures established under subsection (a) shall identify the application process for a provider of training services (for a program offered by the provider) to become eligible to receive funds provided under section 133(b) for the provision of training services. That process shall be implemented in a manner that minimizes the financial and administrative burden on the provider and shall not require the submission of information in excess of the information required to determine a program’s eligibility under paragraphs (1), (2), and (5) of subsection (b). The procedures shall identify the respective roles of the State and local areas in receiving and reviewing the applications and in making determinations of such eligibility based on the criteria, information requirements, and procedures established under this section. The procedures shall also establish a process, for a provider of training services to appeal a denial or revocation or termination of eligibility under this section, that includes an opportunity for a hearing and prescribes appropriate time limits to ensure prompt resolution of the appeal.

(2) Approval

A Governor shall make a determination of such eligibility with respect to a program for which the provider is seeking eligibility under this section not later than 30 days after receipt of an application submitted by such provider consistent with the procedures in paragraph (1).

(3) Renewal procedures

The procedures established by the Governor shall also provide for annual review and renewal of eligibility under this section for a program of training services that continues to meet the requirements under paragraphs (1), (2), and (5) of subsection (b).

(4) Revocation of eligibility

The procedures established under subsection (a) shall adhere to the following requirements for revocation of eligibility by the Governor:

(A) Failure to provide required information

With respect to a provider of training services that is eligible under this section for a program year with respect to an eligible program, but that does not provide the information described in subsection (b)(5) with respect to such program for such program year (including information on performance necessary to determine if the program meets the minimum levels of performance on the performance criteria to maintain eligibility), the provider shall be ineligible under this section with respect to such program for the program year after the program year for which the provider fails to provide such information.

(B) Failure to meet performance criteria

(i) First year

The provider of an eligible program that has received eligibility under subsection (c)(2) for a program year but fails to meet the minimum levels of performance on the performance criteria described in subsection (b)(2) for the most recent program year for which performance data on such criteria are available shall be notified of such failure by the Governor.

(ii) Second consecutive year

A program that fails to meet the minimum levels of performance for a second consecutive program year shall be ineligible under this section with respect to such program for the program year following such second consecutive program year and until the program meets the minimum levels of performance.

(iii) Reapplication

A provider that loses eligibility under this subparagraph with respect to a program may reapply to receive eligibility for the program according to the procedures described in this subparagraph if the program meets the minimum levels of performance described in clause (i), for the most recent program year for which performance data on the performance criteria are available.

(C) Repeated failure

A program for which the Governor revokes eligibility under subparagraph (A) or (B)—

(i)

2 times shall be determined ineligible under this section by the Governor for a period of at least 2 years;

(ii)

3 times shall be determined ineligible under the section by the Governor for a period of at least 5 years; and

(iii)

more than 3 times shall be determined ineligible under this section by the Governor for a period of at least 10 years.

(5) Continuity of training services

A provider of a program for which the Governor revokes eligibility under paragraph (4) shall—

(A)

be prohibited from enrolling any new participants whose participation would be funded under section 133(b) in the program and from receiving any payments from funds provided under section 133(b) for any participants not already enrolled in the program on the date of revocation or termination until and unless the Governor determines that the provider has demonstrated that the program offered by the provider has met the requirements for the provider to gain the opportunity to reapply for eligibility under the procedure described in paragraph (4)(B)(iii); and

(B)

enable each participant currently enrolled in the program, on the date of the revocation or termination, to complete such program.

(6) Notification of program loss of eligibility

The local board serving participants whose participation is funded under section 133(b) in a program for which eligibility is revoked by the Governor under this subsection shall notify such participants that such program no longer meets the State’s requirements for eligible providers of training services under this Act and that the participant has the opportunity to continue receiving training services from such program, in order to complete the program.

(7) Multistate providers

The procedures established under subsection (a) shall specify the process for any provider of training services offering a program that is eligible under this section in a first State to establish eligibility under this section in an additional State, which shall, to the extent practicable, minimize financial and administrative burdens on any such provider by authorizing the provider to submit the same application materials and information to the Governor of the additional State that was accepted by the Governor granting the provider’s eligibility in the first State, as long as the program meets the applicable State requirements for such eligibility established under subsection (b).

(8) Online providers

The procedures established under subsection (a) shall apply to a provider that delivers training services exclusively online. If a participant chooses a provider that delivers training services exclusively online and is not located in the State of the local area that approved such training services for the participant in accordance with section 133(c)(3)(A)(i), such provider shall be ineligible to receive payment for such participant from funds allotted to such State under section 132 unless such provider is on the list of eligible providers of training services described in subsection (d) for such State with respect to the program involved.

(d) List and information to assist participants in choosing providers

(1) In general

In order to facilitate and assist participants in choosing employment and training activities and in choosing providers of training services, the Governor shall ensure that an appropriate list of providers determined to be eligible under this section to offer a program in the State (and, as appropriate, in a local area), accompanied by information identifying the recognized postsecondary credential offered by the provider and other appropriate information, is prepared. The list shall be provided to the local boards in the State, and made available to such participants and to members of the public through the one-stop delivery system in the State in accordance with paragraph (4).

(2) Talent marketplace

The Governor may establish (or develop in partnership with other States) a talent marketplace.

(3) Accompanying information

The accompanying information referred to in paragraph (1) shall consist of—

(A)

with respect to providers described in subparagraphs (A) and (C) of subsection (a)(2) (other than providers described in subsection (a)(3)(B)(ii)), information provided by such providers (disaggregated by local areas served, as applicable) in accordance with subsection (b);

(B)

with respect to a program described in subsection (b)(3) that is offered by a provider, information promoting the program as having an employer-sponsored designation and identifying the employer or partnership sponsoring the program; and

(C)

with respect to a program described in subsection (b)(4) that is offered by a provider, information promoting the program as being a WIL program and displaying the seal described in subsection (b)(4)(C).

(4) Availability

The list (including the talent marketplace if one has been established by the State), and the accompanying information shall be made available to such participants and to members of the public through the one-stop delivery system in the State—

(A)

on a publicly accessible website that—

(i)

is consumer-tested; and

(ii)

is searchable, easily understandable, and navigable, and allows for the comparison of eligible programs through the use of common, linked, open-data descriptive language, including interoperable skills and competency data; and

(B)

in a manner that does not reveal personally identifiable information about an individual participant.

(5) Website technical assistance

The Secretary shall—

(A)

upon request, provide technical assistance to a State on establishing a website that meets the requirements of paragraph (4); and

(B)

disseminate to each State effective practices or resources from States and private sector entities related to establishing a website that is consumer-tested to ensure that the website is easily understood, searchable, and navigable.

(6) Limitation

In carrying out the requirements of this subsection, no personally identifiable information regarding a student, including a Social Security number, student identification number, or other identifier, may be disclosed without the prior written consent of the student or student’s parent in compliance with section 444 of the General Education Provisions Act (20 U.S.C. 1232g).

(e) Opportunity to submit comments

In establishing, under this section, criteria, procedures, and the list of eligible providers described in subsection (d), the Governor shall provide an opportunity for interested members of the public to make recommendations and submit comments regarding such criteria, procedures, and list.

(f) Provider performance incentives

(1) In general

The Governor shall establish a system of performance incentive payments to be awarded to eligible providers in addition to the amount paid under section 133(b) to such providers for the provision of training services to participants of eligible programs. Such system of performance incentive payments may be established to award the payments to providers of eligible programs that—

(A)

achieve levels of performance above the minimum levels established by the Governor under subsection (b)(2);

(B)

serve a significantly higher number of individuals with barriers to employment compared to training providers offering similar training services; or

(C)

achieve other performance successes, including those related to jobs that provide economic stability and upward mobility (such as jobs with high wages and family sustainable benefits) as determined by the State or the local board.

(2) Incentive payments

Incentive payments to providers established under paragraph (1) shall be awarded to eligible providers from funds reserved by the Governor under section 128(a)(1), except that not more than 5 percent of the funds reserved by the Governor under section 128(a)(1) may be used for such payments.;

(3)

by striking subsections (i) and (j) and inserting the following:

(i) On-the-job training, employer-directed skills development, incumbent worker training, and other training exceptions

(1) In general

Providers of on-the-job training, employer-directed skills development, incumbent worker training, internships, paid or unpaid work experience opportunities, or transitional employment shall not be subject to the requirements of subsections (a) through (f).

(2) Collection and dissemination of information

A one-stop operator in a local area shall collect the minimum amount of information from providers of on-the-job training, employer-directed skills development, incumbent worker training, internships, paid or unpaid work experience opportunities, or transitional employment as necessary to enable the use of State administrative data to generate such performance information as the Governor may require, and use the information to determine whether the providers meet such performance criteria as the Governor may require. The one-stop operator shall disseminate information identifying such providers that meet the criteria as eligible providers, and the performance information, through the one-stop delivery system. Providers determined to meet the criteria shall be considered to be identified as eligible providers of training services.

(j) Technical assistance

The Governor may apply to the Secretary for technical assistance, as described in section 168(c), for purposes of carrying out the requirements of the amendments made by the A Stronger Workforce for America Act of 2026 to this section, and the Secretary shall provide such technical assistance in a timely manner.

(1)

the minimum levels of performance established by the Governor of each State with respect to the performance criteria under subsection (b)(2) of that section 122 for such eligible providers of training services in the State;

(2)

the number of such eligible providers of training services in the State in each program year that begins after the date of enactment of this Act, compared with the number of such providers in the State in the program year that began immediately preceding that date of enactment; and

(3)

the average length of time that such eligible providers of training services in the State maintain eligibility, disaggregated by the type of entity that provided the training services.

(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.

(1)

in paragraph (1), by inserting the following before the period at the end: as performance-based incentive payments; and

(2)

in paragraph (4)—

(1) Eligibility determination

(2) Exception and limitation

Section 129(a)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(3)) is amended—

(3) Out-of-school youth priority

Section 129(a)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(4)) is amended—

(1)

in the matter preceding subparagraph (A), by striking sections 128(a) and inserting sections 128(a)(1);

(2)

in subparagraph (B), by inserting through a website that is consumer-tested to ensure that the website is easily understood, searchable, and navigable and allows for comparison of eligible providers based on the program elements offered by such providers and the performance of such providers on the primary indicators of performance for the youth program as described in section 116(b)(2)(A)(ii) after under section 123; and

(3)

in subparagraph (D), by striking section 116(i) and inserting section 116(j).

(1)

in the matter preceding subparagraph (A), by striking sections 128(a) and inserting sections 128(a)(1);

(2)

in subparagraph (C), by inserting , which may include providing guidance on career options in in-demand industry sectors or occupations after in the State;

(3)

in subparagraph (D)—

(4)

in subparagraph (E), by striking the period at the end and inserting a semicolon; and

(5)

by adding at the end the following:

(F)

establishing, supporting, and expanding work-based learning opportunities (including transitional jobs and work-based learning opportunities designed for youth to develop and gain experience using emerging technologies, including artificial intelligence, in the workplace) that are aligned with career pathways;

(G)

raising public awareness (including through public service announcements, such as social media campaigns and elementary and secondary school showcases and school visits) about career and technical education programs and community-based and youth services organizations, and other endeavors focused on programs that prepare students for in-demand industry sectors or occupations;

(H)

developing partnerships between educational institutions (including area career and technical schools 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 (including the skills needed to use emerging technology tools and systems in the workplace) and the employment needs of employers in the regions or local areas of the State, as determined based on the most recent analysis conducted under subparagraphs (B) and (C) of section 102(b)(1);

(I)

coordinating activities with providers of a pre-apprenticeship program or apprenticeship program for youth in the State to establish, support, or expand the program described in this subparagraph, including any such program in the State receiving assistance under section 173;

(J)

coordinating activities with entities implementing reentry projects in the State focused on establishing or improving workforce development programs for juvenile offenders, including any such reentry projects in the State receiving assistance under section 172; and

(K)

coordinating activities with agencies implementing corrections education and other education programs in the State focused on providing incarcerated youth with education and skills development programs, including any such programs in the State receiving assistance under section 225.

(1) Program design

Section 129(c)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(1)) is amended—

(2) Program elements

Section 129(c)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(2)) is amended—

(3) Priority

Section 129(c)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(4)) is amended to read as follows:

(4) Priority

(A) Work experiences

Not less than 40 percent of the funds allocated to the local area as described in paragraph (1) shall be used to provide in-school youth and out-of-school youth with activities under paragraph (2)(C).

(B) Apprenticeships and pre-apprenticeships for youth

Not less than 12 and 1⁄2 percent of the funds used for the purposes described in subparagraph (A) shall be used to provide in-school youth and out-of-school youth with activities under paragraph (2)(C)(ii).

(4) Rule of construction

Section 129(c)(5) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(5)) is amended by inserting or local area after youth services.

(5) Linkages

Section 129(c)(7) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(7)) is amended by inserting , secondary schools, and area career and technical schools after agencies.

(6) Individual training accounts

Section 129(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)) is amended by adding at the end the following:

(9) Individual training accounts

(A) In general

Subject to subparagraph (B), funds allocated pursuant to paragraph (1) to a local area may be used to pay, through an individual training account, an eligible provider of training services described in section 122(d) for training services described in section 134(c)(3) provided to in-school youth who are not younger than age 16 and not older than age 21 and out-of-school youth, in the same manner that an individual training account is used to pay an eligible provider of training services under section 134(c)(3)(F)(iii) for training services provided to an adult or dislocated worker.

(B) Special rule for in-school youth younger than age 18

To use an individual training account to pay for a program of training services that will take place during regular school hours for an in-school youth who is younger than the age 18, the local area shall receive written approval from the secondary school at which the in-school youth is enrolled prior to the start of the program of training services.

(7) Summer and year-round employment opportunities requirements

Section 129(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)) is further amended by adding at the end the following:

(10) Summer and year-round employment opportunities requirements

(A) In general

A summer employment opportunity or a year-round employment opportunity referred to in paragraph (2)(C)(i) shall be a program that matches eligible youth participating in such program with an appropriate employer (based on factors including the needs of the employer and the age, skill, and informed aspirations of the eligible youth) that—

(i)

shall include—

(I)

a component of occupational skills education; and

(II)

not less than 2 of the activities described in subparagraphs (G), (H), (I), (K), (M), and (O) of paragraph (2);

(ii)

may not use funds allocated under this chapter to subsidize more than 50 percent of the wages of each eligible youth participant in such program;

(iii)

in the case of a summer employment opportunity, complies with the requirements of subparagraph (B); and

(iv)

in the case of a year-round employment opportunity, complies with the requirements of subparagraph (C).

(B) Summer employment opportunity

In addition to the applicable requirements described in subparagraph (A), a summer employment opportunity—

(i)

may not be less than 4 weeks; and

(ii)

may not pay less than the highest applicable wage required by the applicable Federal, State, or local minimum wage law.

(C) Year-round employment opportunity

In addition to the applicable requirements described in subparagraph (A), a year-round employment opportunity—

(i)

may not be shorter than 180 days or longer than 1 year;

(ii)

may not pay less than the highest applicable wage required by the applicable Federal, State, or local minimum wage law; and

(iii)

may not employ the eligible youth for less than 20 hours per week, except in instances when the eligible youth are under the age of 18 or enrolled in school.

(D) Priority

In selecting summer employment opportunities or year-round employment opportunities for purposes of paragraph (2)(C)(i), a local area shall give priority to such opportunities that meet the requirements of this paragraph and that are in existing or emerging high-skill, high-wage, or in-demand industry sectors or occupations.

(8) Conforming amendment

Section 129(c)(3)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(3)(B)) is amended by striking basic skills and inserting foundational skill needs.

(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).

(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).

(1)

in paragraph (1), by inserting before the period at the end, the following: as performance-based incentive payments;

(2)

in paragraph (4)—

(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).

(1) In general

Section 134(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(1))—

(2) Required statewide employment and training activities

(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))—

(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.

(1) Minimum amount for skills development

Section 134(c)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(1)) is amended—

(2) Career services

Section 134(c)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(2)) is amended—

(3) Training services

Section 134(c)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)) is amended—

(1) Activities

Section 134(d)(1)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(1)(A)) is amended—

(2) Supportive services

Section 134(d)(2)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(2)(B)) is amended, by inserting , including through programs of one-stop partners, who are after programs.

(3) Needs-related payments

Section 134(d)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(3)) is amended—

(4) Incumbent worker training programs

(i)

by striking 21 and inserting 24;

(ii)

by inserting or, if the date of enrollment is not greater than 60 days after the date of application, the date of application, after enrollment,;

(iii)

by amending subparagraph (A) to read as follows:

(A)

an individual who is age 16 or 17 shall be eligible only upon an individual determination by the director of a Job Corps campus that such individual meets the criteria described in subparagraph (A) or (B) of section 145(b)(1); and; and

(iv)

in subparagraph (B), by striking either;

(i)

by amending subparagraph (A) to read as follows:

(A)

Has foundational skill needs.; and

(ii)

in subparagraph (C), by striking (42 U.S.C. 14043e-2(6))) and inserting (34 U.S.C. 12473(6))).

(i)

by striking center each place it appears and inserting campus; and

(ii)

in subparagraph (A), by inserting after area career and technical education school, the following: an institution of higher education,;

(i)

in subparagraph (A)—

(ii)

in subparagraph (B)—

(i)

by striking center each place it appears and inserting campus;

(ii)

in subparagraph (B), by inserting or postsecondary credit, which credit shall permit articulation into a credential program after program;

(iii)

in subparagraph (D), by inserting after is located the following: , including agreements to provide off-campus work-based learning opportunities aligned with the career and technical education provided to enrollees;

(iv)

by redesignating subparagraphs (E), (F), (G), (H), (I), (J), and (K) as subparagraphs (F), (G), (H), (I), (J), (K), and (L), respectively; and

(v)

by inserting after subparagraph (D) the following:

(E)

A description of the policies that will be implemented at the campus regarding security and access to campus facilities, including procedures to report on and respond to violations of the disciplinary policy described in section 152(b) and other emergencies occurring on campus.;

(i)

in subparagraph (C), by striking and after the semicolon;

(ii)

by redesignating subparagraph (D) as subparagraph (E); and

(iii)

by inserting after subparagraph (C) the following:

(D)

has maintained a safe and secure campus environment; and

(i)

by inserting before the period at the end the following: , and productive activities, such as tutoring or other skills development opportunities, for enrollees to participate in outside of regular class time and work hours; and

(ii)

by striking clauses (i) through (xi) of section 134(c)(2)(A) and inserting subclauses (I) through (V) of section 134(c)(2)(A)(ii) or in clauses (i) through (viii) of section 134(c)(2)(B);