SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innovation for Tomorrow's Workforce 
Act''.

SEC. 2. INNOVATION FUND.

    Section 114 of the Carl D. Perkins Career and Technical Education 
Act of 2006 (20 U.S.C. 2324) is amended--
            (1) in subsection (d), by adding at the end the following:
            ``(6) Innovation.--
                    ``(A) Grant program.--To identify and support 
                innovative strategies and activities to improve career 
                and technical education and align workforce skills with 
                labor market needs, the Secretary may award grants, by 
                using early-phase, mid-phase, and expansion grants, to 
                eligible entities to--
                            ``(i) create, develop, implement, or take 
                        to scale evidence-based, field-initiated 
                        innovations, including through a pay for 
                        success initiative to improve student outcomes 
                        in career and technical education, which may 
                        include activities that--
                                    ``(I) improve career and technical 
                                education outcomes of students served 
                                by eligible entities under this title;
                                    ``(II) improve career and technical 
                                education teacher effectiveness;
                                    ``(III) improve the transition of 
                                students from secondary education to 
                                postsecondary education, 
                                apprenticeships, or employment;
                                    ``(IV) improve the incorporation of 
                                comprehensive work-based learning into 
                                career and technical education;
                                    ``(V) increase the effective use of 
                                technology within career and technical 
                                education programs;
                                    ``(VI) support new models for 
                                integrating academic content, career 
                                and technical education, and pre-
                                apprenticeship and apprenticeship 
                                content in such programs;
                                    ``(VII) support the development and 
                                enhancement of innovative delivery 
                                models for career and technical 
                                education;
                                    ``(VIII) work with industry to 
                                design and implement courses or 
                                programs of study aligned to labor 
                                market needs in new or emerging fields;
                                    ``(IX) integrate science, 
                                technology, engineering, and 
                                mathematics fields, including computer 
                                science education, with career and 
                                technical education;
                                    ``(X) support innovative approaches 
                                to career and technical education by 
                                redesigning the high school experience 
                                for students, which may include 
                                evidence-based transitional support 
                                strategies for students who have not 
                                met postsecondary education eligibility 
                                requirements;
                                    ``(XI) improve career and technical 
                                education concentrator employment 
                                outcomes in nontraditional fields; or
                                    ``(XII) support the use of career 
                                and technical education programs and 
                                career and technical programs of study 
                                in a coordinated strategy to address 
                                identified employer needs and workforce 
                                shortages, such as shortages in the 
                                early childhood, elementary school, and 
                                secondary school education workforce; 
                                and
                            ``(ii) rigorously evaluate such 
                        innovations.
                    ``(B) Matching funds.--
                            ``(i) Matching funds required.--Except as 
                        provided under clause (ii), to receive a grant 
                        under this paragraph, an eligible entity shall 
                        demonstrate that matching funds will be 
                        provided, through cash or in-kind 
                        contributions, from public or private sources 
                        in an amount equal to not less than 25 percent 
                        of the funds provided under such grant.
                            ``(ii) Exception.--The Secretary may waive 
                        the matching fund requirement under clause (i) 
                        if the eligible entity demonstrates exceptional 
                        circumstances.
                    ``(C) Application.--To receive a grant under this 
                paragraph, an eligible entity shall submit to the 
                Secretary, at such time as the Secretary may require, 
                an application that--
                            ``(i) identifies and designates the agency, 
                        institution, or school responsible for the 
                        administration and supervision of the program 
                        assisted under this paragraph;
                            ``(ii) provides an assurance that matching 
                        funds will be obtained before implementation of 
                        the grant;
                            ``(iii) describes how the eligible entity 
                        will use the grant funds, including how such 
                        funds will directly benefit students, including 
                        special populations, served by the eligible 
                        entity; and
                            ``(iv) describes how the program assisted 
                        under this paragraph will be coordinated with 
                        the activities carried out under section 124 or 
                        135.
                    ``(D) Priority.--In awarding grants under this 
                paragraph, the Secretary shall give priority to 
                applications from eligible entities that will 
                predominantly serve students from low-income families.
                    ``(E) Geographic diversity.--In awarding grants 
                under this paragraph for a fiscal year, the Secretary 
                shall award not less than 25 percent of the total 
                amount of funds available for such fiscal year to 
                eligible entities proposing to fund career and 
                technical education activities that serve--
                            ``(i) a local educational agency with an 
                        urban-centric district locale code of 32, 33, 
                        41, 42, or 43, as determined by the Secretary;
                            ``(ii) an institution of higher education 
                        primarily serving one or more areas served by 
                        such a local educational agency;
                            ``(iii) a consortium of such local 
                        educational agencies or such institutions of 
                        higher education;
                            ``(iv) a partnership between--
                                    ``(I) an educational service agency 
                                or a nonprofit organization; and
                                    ``(II) such a local educational 
                                agency or such an institution of higher 
                                education; or
                            ``(v) a partnership between--
                                    ``(I) a grant recipient described 
                                in clause (i) or (ii); and
                                    ``(II) a State educational agency.
                    ``(F) Uses of funds.--An eligible entity that is 
                awarded a grant under this paragraph shall use the 
                grant funds in a manner consistent with subparagraph 
                (A)(i).
                    ``(G) Evaluation.--Each eligible entity receiving a 
                grant under this paragraph shall--
                            ``(i) provide for an independent evaluation 
                        of the activities carried out using such grant; 
                        and
                            ``(ii) submit to the Secretary an annual 
                        report that includes--
                                    ``(I) a description of how funds 
                                received under this paragraph were 
                                used;
                                    ``(II) the performance of the 
                                eligible entity with respect to, at a 
                                minimum, the performance indicators 
                                described in section 113(b)(2), as 
                                applicable, and disaggregated by--
                                            ``(aa) subgroups of 
                                        students described in section 
                                        1111(c)(2)(B) of the Elementary 
                                        and Secondary Education Act of 
                                        1965 (20 U.S.C. 6311(c)(2)(B)), 
                                        as amended by the Every Student 
                                        Succeeds Act (Public Law 114-
                                        95);
                                            ``(bb) special populations; 
                                        and
                                            ``(cc) as appropriate, each 
                                        career and technical education 
                                        program and career and 
                                        technical education program of 
                                        study; and
                                    ``(III) a quantitative analysis of 
                                the effectiveness of the project 
                                carried out under this paragraph.
                    ``(H) Definitions.--In this paragraph:
                            ``(i) Eligible entity.--The term `eligible 
                        entity' means a consortium that meets the 
                        following requirements:
                                    ``(I) The consortium includes one 
                                or more of the following:
                                            ``(aa) A local educational 
                                        agency.
                                            ``(bb) An educational 
                                        service agency.
                                            ``(cc) An area career and 
                                        technical education school.
                                            ``(dd) A postsecondary 
                                        educational institution 
                                        receiving funds under this Act.
                                            ``(ee) A State educational 
                                        agency.
                                            ``(ff) The Bureau of Indian 
                                        Education.
                                            ``(gg) A State 
                                        apprenticeship agency or 
                                        apprenticeship sponsor.
                                    ``(II) The consortium may also 
                                include regional, State, or local 
                                public or private organizations or 
                                employers, including community-based 
                                organizations.
                                    ``(III) The consortium is led by an 
                                entity, or partnership of entities, 
                                described in subclause (I) and 
                                identified as the leader of the 
                                eligible entity in its application 
                                submitted under subparagraph (C).
                            ``(ii) Pay for success initiative.--The 
                        term `pay for success initiative' has the 
                        meaning given that term in section 8101 of the 
                        Elementary and Secondary Education Act of 1965 
                        (20 U.S.C. 7801).
                    ``(I) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this paragraph.''; and
            (2) in subsection (e), by inserting ``(except for 
        subsection (d)(6))'' after ``section''.

SEC. 3. OPEN EDUCATION RESOURCES.

    (a) State Leadership Activities.--Section 124(c) of the Carl D. 
Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2344(c)) 
is amended--
            (1) in paragraph (16)(B), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (17), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(18) making all forms of instructional content widely 
        available, which may include use of open educational 
        resources;''.
    (b) Local Uses of Funds.--Section 135(c) of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 U.S.C. 2355(c)) is 
amended--
            (1) in paragraph (19)(D), by striking ``and'' after the 
        semicolon;
            (2) by redesignating paragraph (20) as paragraph (23); and
            (3) by inserting after paragraph (19) the following:
            ``(20) to make all forms of instructional content widely 
        available, which may include use of open educational 
        resources;''.

SEC. 4. PAY-FOR-SUCCESS.

    (a) State Leadership Activities.--Section 124(c) of the Carl D. 
Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2344(c)), 
as amended by section 3, is further amended by adding at the end the 
following:
            ``(19) supporting pay for success initiatives (as defined 
        in section 8101 of the Elementary and Secondary Education Act 
        of 1965); and''.
    (b) Local Uses of Funds.--Section 135(c) of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 U.S.C. 2355(c)), as 
amended by section 3, is further amended by inserting after paragraph 
(20) the following:
            ``(21) to support pay for success initiatives (as defined 
        in section 8101 of the Elementary and Secondary Education Act 
        of 1965);''.

SEC. 5. WORK-BASED LEARNING OPPORTUNITIES AND APPRENTICESHIPS.

    (a) State Leadership Activities.--Section 124(c) of the Carl D. 
Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2344(c)), 
as amended by sections 3 and 4, is further amended by adding at the end 
the following:
            ``(20) providing or supporting work-based learning 
        opportunities, which may include employer-led training 
        resulting in a recognized credential and apprenticeship 
        programs.''.
    (b) Local Uses of Funds.--Section 135(b)(3) of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 U.S.C. 2355(b)(3)) is 
amended by striking ``which may include work-based learning 
experiences'' and inserting ``which may include work-based learning 
opportunities, such as employer-led training resulting in a recognized 
credential and apprenticeship programs''.

SEC. 6. JOINT DEMONSTRATION PROJECTS.

    (a) Evaluations.--Section 114(d)(2)(B) of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 U.S.C. 2324(d)(2)(B)) is 
amended--
            (1) in clause (vi), by striking ``and'' after the 
        semicolon;
            (2) in clause (vii), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
                            ``(viii) the effectiveness of projects 
                        authorized under paragraph (7), including 
                        whether such projects achieved intended outcome 
                        goals and improved the quality and alignment of 
                        career and technical education and workforce 
                        education and training programs.''.
    (b) Joint Demonstration Projects.--Section 114(d) of the Carl D. 
Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2324(d)), 
as amended by section 2, is further amended by adding at the end the 
following:
            ``(7) Joint projects.--The Secretary, under the authority 
        provided under subparagraph (5), and the Secretary of Labor, 
        under the authority provided under sections 156 and 171 of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3206, 
        3226), are authorized to carry out, in consultation with the 
        Director, joint experimental, research, pilot, or demonstration 
        projects regarding integrated, aligned, coordinated, and 
        effective career and technical education and workforce 
        education and training programs in order to address employment 
        and training needs.''.

SEC. 7. COMPETENCY-BASED EDUCATION.

    Section 135(c) of the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2325(c)), as amended by sections 3 and 
4, is further amended by inserting after paragraph (21) the following:
            ``(22) expanding opportunities for students to participate 
        in competency-based education programs; and''.
Innovation for Tomorrow's Workforce Act This bill amends the Carl D. Perkins Career and Technical Education Act of 2006 to authorize the Department of Education (ED) to award early-phase, mid-phase, or expansion grants to eligible entities, including local educational agencies and area career and technical education (CTE) schools, to:   create, develop, implement, or take to scale evidence-based, field initiated innovations, including through a pay for success initiative to improve CTE student outcomes; and  evaluate such innovations rigorously.   Funding under the Act may be used by eligible agencies for state leadership activities and by eligible recipients for local uses to support CTE programs to:   make all forms of instructional content widely available, which may include the use of open educational resources; and support pay for success initiatives.   Funding under the Act may also be used by eligible agencies for state leadership activities to provide or support work-based learning opportunities for students, which may include employer-led training resulting in recognized credential and apprenticeship programs for such students. Funds received for local use shall be used for such activities. ED and the Department of Labor may carry out joint experimental, research, pilot, or demonstration projects regarding integrated, aligned, coordinated, and effective CTE and workforce education and training programs in order to address employment and training needs. The independent assessment of career and technical education programs required under such Act is expanded to include an evaluation of the effectiveness of such projects. Funding under the Act may be used by eligible agencies for local uses to expand opportunities for students to participate in competency-based education programs.
Innovation for Tomorrow's Workforce Act