II 

117TH CONGRESS 

2D SESSION S. 4810 

To establish a program of workforce development as an alternative to college 

for all, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 8, 2022 

Mr. COTTON introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To establish a program of workforce development as an 

alternative to college for all, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Workforce 

5 Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) AMERICAN WORKFORCE CONTRACT.—The 

9 term ‘‘American workforce contract’’ means a con10 tract approved by the Director, and entered into by 


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1 an employer and a prospective trainee under section 

2 4(b)(6). 

3 (2) AMERICAN WORKFORCE PROGRAM.—The 

4 term ‘‘American workforce program’’ means a pro5 gram established under section 4(a) that provides, 

6 for each participating trainee, a paid, full-time posi7 tion in which the trainee is engaged in— 

8 (A) structured on-the-job work, as speci9 fied by the American workforce contract in10 volved; and 

11 (B) educational workforce training de12 scribed in section 4(f), as specified by the 

13 American workforce contract. 

14 (3) COMPETENCY-BASED CREDENTIAL.—The 

15 term ‘‘competency-based credential’’ means a cre16 dential awarded on the basis of a performance-based 

17 test that— 

18 (A) is taken to demonstrate proficiency in 

19 knowledge and abilities essential to the industry 

20 or occupation; and 

21 (B) does not place restrictions on how, 

22 when, or where the test taker studied and ac23 quired the knowledge and abilities. 


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1 (4) DIRECTOR.—The term ‘‘Director’’ means 

2 the Director of the American Workforce Division, 

3 appointed under section 3(b). 

4 (5) EMPLOYER.—The term ‘‘employer’’ means 

5 a for-profit employer, as defined in section 3 of the 

6 Fair Labor Standards Act of 1938 (29 U.S.C. 203), 

7 other than a public agency, as defined in that sec8 tion. 

9 (6) PROSPECTIVE TRAINEE.—The term ‘‘pro10 spective trainee’’ means an individual who— 

11 (A) applies to an employer to enter into an 

12 American workforce contract; and 

13 (B) on the date of application, meets the 

14 requirements of paragraph (8)(A). 

15 (7) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of Commerce. 

17 (8) TRAINEE.—The term ‘‘trainee’’ means any 

18 individual who— 

19 (A) on the date of application to an em20 ployer to enter into an American workforce con21 tract— 

22 (i) is a United States citizen; 

23 (ii) has a high school diploma or its 

24 generally recognized equivalent; and 


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1 (iii) has not earned a bachelor’s or 

2 higher degree, such as a master’s or doc3 toral degree; and 

4 (B) entered into an American workforce 

5 contract, which is still in effect, with the em6 ployer. 

7 (9) WORKFORCE PROJECT.—The term ‘‘work8 force project’’ means a project carried out under an 

9 American workforce contract as part of the Amer10 ican workforce program. 

11 SEC. 3. ESTABLISHMENT OF AMERICAN WORKFORCE DIVI12 SION. 

13 (a) ESTABLISHMENT.—There is established in the 

14 Economic Development Administration of the Department 

15 of Commerce an American Workforce Division that ad16 ministers, subject to the availability of appropriations, the 

17 American workforce program established under section 

18 4(a). 

19 (b) DIRECTOR.— 

20 (1) IN GENERAL.—The American Workforce 

21 Division shall be headed and administered, in ac22 cordance with the provisions of this Act, by a Direc23 tor. The Director shall be appointed by the Presi24 dent, by and with the advice and consent of the Sen25 ate. The Director shall report directly to the SecVerDate Sep 11 2014 16:00 Sep 09, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4810.IS S4810

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1 retary and shall perform, in addition to any func2 tions specified in law for or required to be delegated 

3 to such officer, such additional functions as the Sec4 retary may prescribe. 

5 (2) QUALIFICATIONS.—The Director shall have 

6 significant experience in the private sector. 

7 (3) AUTHORITY BEFORE CONFIRMATION.— 

8 Until the initial appointment of an individual to the 

9 position of Director, by and with the advice and con10 sent of the Senate, and, thereafter, if the individual 

11 serving as the Director dies, resigns, or is otherwise 

12 unable to perform the functions and duties of the of13 fice of the Director, the Secretary of Commerce shall 

14 designate an officer or employee of the Department 

15 of Commerce to perform the functions and duties of 

16 the Director under this Act temporarily in an acting 

17 capacity. 

18 (c) RESPONSIBILITIES OF THE DIRECTOR.—The Di19 rector shall be responsible for each of the following: 

20 (1) Reviewing, and approving or disapproving, 

21 each proposed American workforce contract received 

22 by the Director not later than 1 month after the 

23 date of receipt of the proposed contract. 


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1 (2)(A) Maintaining records of American work2 force contracts and ensuring compliance with the 

3 contracts. 

4 (B) Publishing a standardized template for 

5 American workforce contracts, which template shall 

6 not exceed 3 pages, and shall be used by prospective 

7 trainees and employers to draft a proposed Amer8 ican workforce contract to submit to the Director for 

9 review and approval. 

10 (3) In accordance with subsection (d), receiving 

11 complaints, carrying out investigations, and taking 

12 disciplinary and correction action. 

13 (4) In accordance with subsection (e), making 

14 determinations and taking disciplinary and correc15 tive action. 

16 (5) Coordinating activities with State govern17 ments and local governments to— 

18 (A) publicize the opportunity to receive 

19 workforce education subsidies for workforce 

20 projects, with employers in high-wage, high-de21 mand industries and occupations; and 

22 (B) encourage employers to recruit stu23 dents from secondary schools to participate in 

24 the workforce projects. 


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1 (6) Developing and maintaining a comprehen2 sive, publicly accessible, and user-friendly website to 

3 allow employers from each State to simply indicate 

4 their demand for workers in their industry or occu5 pation, post it online, and accept applications for 

6 training from prospective trainees and ensures pro7 spective trainees can easily search and compare op8 tions. 

9 (7) Preparing 5- and 10-year reports under sec10 tion 6, and submitting the reports to Congress. 

11 (8)(A) Collecting, on an ongoing basis, up-to12 date contact information, including an email, phone 

13 number, and mailing address, for each employer par14 ticipating in a workforce project in the American 

15 workforce program. 

16 (B) Annually collecting the following informa17 tion about the American workforce program: 

18 (i) The total number of new and con19 tinuing trainees training in each workforce 

20 project under an American workforce contract. 

21 (ii) The annual completion rate for train22 ees, calculated by comparing the number of 

23 trainees in a designated American workforce 

24 program cohort who successfully completed a 

25 workforce project with an employer and were 


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1 hired as full-time regular employees by the 

2 same employer, with the number of trainees in 

3 that cohort who began participating in a work4 force project. 

5 (iii) The annual rate of trainees who suc6 cessfully completed a workforce project with an 

7 employer but were not hired as full-time regular 

8 employees by the same employer compared with 

9 the number of trainees who began participating 

10 in a workforce project. 

11 (iv) The median length of time for work12 force project completion. 

13 (v) A survey conducted by the Director, 

14 based on a random sample and designed to gen15 erate statistically significant results, to estimate 

16 the post-American workforce program employ17 ment retention rate for former trainees, cal18 culated 1 and 2 years after completion of a 

19 workforce project, broken down by— 

20 (I) former trainees who are employed by 

21 the employer with whom they completed their 

22 workforce project; 

23 (II) former trainees employed in the same 

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1 pation in which they completed that workforce 

2 project, but by a different employer; and 

3 (III) former trainees who are employed, 

4 but in an industry or occupation that is not the 

5 industry or occupation described in subclause 

6 (II). 

7 (vi) The credentials attained by trainees 

8 through the American workforce program, bro9 ken down by type (such as competency-based 

10 credentials, certifications, and licenses) and the 

11 number of such credentials attained. 

12 (vii) The annualized average earnings of 

13 former trainees, calculated over a significant 

14 time period after completion of a workforce 

15 project. 

16 (viii) Median and mean workforce edu17 cation subsidy provided per trainee. 

18 (ix) Basic demographic information, such 

19 as age, sex, and area of residence, on trainees. 

20 (d) WHISTLEBLOWER COMPLAINTS.— 

21 (1) COMPLAINT.—A trainee (including an em22 ployee participating as a trainee) in a workforce 

23 project may file a complaint with the Director alleg24 ing that the employer involved is not complying with 


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1 the terms of the American workforce contract in2 volved. 

3 (2) PRELIMINARY DETERMINATION.—The Di4 rector shall begin an investigation into the complaint 

5 within 1 month after the date of receipt of the com6 plaint. Not later than 90 days after the beginning of 

7 the investigation, if the Director determines that 

8 there is clear and convincing evidence that the com9 plaint is valid, the Director shall make a preliminary 

10 determination on disciplinary or corrective action. 

11 (3) NOTICE AND OPPORTUNITY TO RESPOND.— 

12 If the Director makes a preliminary determination 

13 under paragraph (2) of noncompliance, the Director 

14 shall provide the employer with reasonable notice 

15 and opportunity to respond to the preliminary deter16 mination. 

17 (4) DISCIPLINARY OR CORRECTIVE ACTION.— 

18 Disciplinary or corrective action under this sub19 section may consist of— 

20 (A) issuing to the employer a warning or 

21 temporary suspension, of not more than 5 

22 years, from participation in the American work23 force program; and 

24 (B) assessing a civil penalty against the 

25 employer of not more than the amount of funds 


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1 received by the employer through workforce 

2 education subsidies during the past 2 years. 

3 (5) APPEAL.—If the Director so determines 

4 that the appropriate disciplinary or corrective action 

5 includes a suspension, the employer shall have 90 

6 days to appeal the validity or the disciplinary or cor7 rective action to the Director, with mandatory review 

8 by the Secretary of Commerce. 

9 (6) FINAL DETERMINATION.—After such man10 datory review, the Director shall make a final deter11 mination on the validity and on the appropriate dis12 ciplinary or corrective action, contingent on approval 

13 from the Secretary of Commerce. 

14 (e) NONCOMPLIANCE DETERMINATIONS.— 

15 (1) ACCOUNTABILITY.—The Director— 

16 (A) may, in order to make a preliminary 

17 determination about whether there is clear and 

18 convincing evidence that employers partici19 pating in workforce projects are complying with 

20 the terms of the American workforce contracts 

21 involved and meeting the requirements of the 

22 American workforce program— 

23 (i) demand and review relevant mate24 rials from the employers; and 


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1 (ii) conduct random, periodic compli2 ance reviews of workforce projects; and 

3 (B) shall review information in public dis4 closure documents submitted under section 

5 4(g), including reviewing completion rates pro6 vided under section 4(g)(2)(A) to make a pre7 liminary determination about whether there is 

8 clear and convincing evidence that employers 

9 are participating in a workforce project with a 

10 completion rate below 25 percent over 4 years. 

11 (2) NOTICE AND OPPORTUNITY TO RESPOND.— 

12 If the Director makes a preliminary determination 

13 under paragraph (1) of noncompliance or participa14 tion in a workforce project described in paragraph 

15 (1)(B), the Director shall provide the employer with 

16 reasonable notice and opportunity to respond to the 

17 preliminary determination. 

18 (3) WARNING OR CIVIL PENALTY.— 

19 (A) IN GENERAL.—The Director may, at 

20 the discretion of the Director, issue a warning 

21 to or assess a civil penalty against an employer 

22 if, after carrying out paragraph (2), the Direc23 tor makes a final determination that there is 

24 clear and convincing evidence that— 


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1 (i) the employer is participating in a 

2 workforce project described in paragraph 

3 (1)(B); or 

4 (ii) the employer is violating the terms 

5 of an American workforce contract or the 

6 requirements of the American workforce 

7 program. 

8 (B) CALCULATION OF CIVIL PENALTY.—A 

9 civil penalty assessed under subparagraph (A) 

10 shall be in an amount that is not more than the 

11 amount of funds received by the employer 

12 through workforce education subsidies during 

13 the past 2 years. 

14 (4) SUSPENSION.—The Director may, at the 

15 discretion of the Director, temporarily suspend an 

16 employer from the American workforce program for 

17 not more than 5 years if, after carrying out para18 graph (2), the Director makes a final determination 

19 that there is clear and convincing evidence that— 

20 (A) the employer is participating in a 

21 workforce project described in paragraph 

22 (1)(B); or 

23 (B) the employer is consistently or egre24 giously violating the terms of an American 


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1 workforce contract or the requirements of the 

2 American workforce program. 

3 (f) INTERFERENCE WITH PROCEEDINGS OR INQUIR4 IES.—It shall be unlawful for any employer to discharge 

5 or in any other manner discriminate against any trainee 

6 because such trainee— 

7 (1) has filed any complaint under subsection 

8 (d); 

9 (2) has given, or is about to give, any informa10 tion in connection with any inquiry or proceeding 

11 under this Act (including any inquiry or proceeding 

12 under subsection (d) or (e)); or 

13 (3) has testified, or is about to testify, in any 

14 such inquiry or proceeding under this Act. 

15 SEC. 4. AMERICAN WORKFORCE PROGRAM. 

16 (a) IN GENERAL.—The Director shall establish, sub17 ject to the availability of appropriations, an American 

18 workforce program, and carry out the program by sup19 porting workforce projects with American workforce con20 tracts, distributing workforce education subsidies and bo21 nuses for hiring, and providing technical and administra22 tive support. 

23 (b) CONTRACTS.— 

24 (1) IN GENERAL.—To be eligible to receive a 

25 workforce education subsidy, bonus for hiring, or 


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1 technical support under this Act for a workforce 

2 project, an employer and prospective trainee shall 

3 prepare a proposed American workforce contract 

4 under this subsection, based on the standardized 

5 template created by the Director, and submit the 

6 proposed contract to the Director for approval. The 

7 page limitation placed on the Director’s template 

8 under subsection (c)(2)(B) shall not apply to the 

9 proposed American workforce contract prepared by 

10 the trainee and employer or the final American 

11 workforce contract. 

12 (2) PROVISIONS.—The proposed contract be13 tween an individual who is a prospective trainee and 

14 the employer shall include each of the following: 

15 (A) PARTIES INVOLVED.—The name of the 

16 individual, the employer participating in the 

17 workforce project, and any third-party entity 

18 with whom the employer is partnering to pro19 vide the educational workforce training compo20 nent of the project (referred to in this Act as 

21 a ‘‘third-party training entity’’). 

22 (B) TERM.—The term, which shall not be 

23 shorter than 6 weeks, of the workforce project 

24 (including specifying total time to completion) 

25 and the amount of time the individual will 


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1 spend in structured on-the-job work and in edu2 cational workforce training (including specifying 

3 hours per week, month, and year). 

4 (C) WORK AND TRAINING PLAN.—A de5 tailed overview of the curriculum for the edu6 cational workforce training, a description of the 

7 structured on-the-job work, and a description of 

8 skills and competencies to be attained through 

9 the workforce project. 

10 (D) WRITTEN WORKFORCE AGREEMENT.— 

11 A proposed written workforce agreement for the 

12 individual that outlines each of the following: 

13 (i) The terms and conditions of the 

14 individual’s work and training. 

15 (ii) The wage or salary an individual 

16 will receive as a trainee and the estimated 

17 starting wage or salary, in accordance with 

18 the requirements of subsection (e), for 

19 each position, described in subsection (e), 

20 that the individual is receiving training for 

21 and being considered for. 

22 (iii) The technical and professional 

23 standards that will be met by the indi24 vidual for successful completion of the 

25 workforce project. 


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1 (iv)(I) Expected long-term and short2 term outcomes for the individual, including 

3 qualifying positions of the type the indi4 vidual is being trained for at the employer 

5 and third-party training entities (if appli6 cable), and the estimated wage or salary 

7 range for the occupation the individual is 

8 being trained for. 

9 (II) The projected growth of the rel10 evant industry or occupation, if informa11 tion on that growth is available to the em12 ployer or obtainable with such technical as13 sistance as the Director may provide. 

14 (v) The circumstances under which 

15 the individual’s wage or salary will increase 

16 during the workforce project. 

17 (vi) A description of voluntary 

18 mentorship opportunities that may be 

19 available. 

20 (vii) A disclosure of the amount of the 

21 payment from a workforce education sub22 sidy that the employer will receive per pay23 ment period from the Director and any 

24 costs or expenses that will be charged to 


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1 the trainee or could reasonably be expected 

2 to be charged to the trainee. 

3 (viii) If 1 or more competency-based 

4 credentials exist for the relevant industry 

5 or occupation, a description of the top 1 to 

6 3 such credentials that the individual 

7 might earn on successful completion of the 

8 workforce project. 

9 (ix) If no competency-based credential 

10 exists for the industry or occupation, a de11 scription of any other credential, such as a 

12 certification or license, that the individual 

13 might earn in the relevant industry or oc14 cupation due to experience in the work15 force project. 

16 (3) REVIEW OF CREDENTIALS.— 

17 (A) IN GENERAL.—Not later than 1 month 

18 after receiving for review a proposed American 

19 workforce contract, the Director shall review 

20 the credentials specified in the contract under 

21 clause (viii) or (ix) of paragraph (2)(D) and 

22 may note any additional credentials the Direc23 tor determines a trainee should consider earn24 ing. Any such credential noted by the Director 

25 shall be described in the contract. 


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1 (B) RULES OF CONSTRUCTION.—Nothing 

2 in this section shall be construed to— 

3 (i) permit the Director to reject an 

4 entire proposed American workforce con5 tract solely because of the Director’s view 

6 of a credential described in the proposed 

7 contract; or 

8 (ii) require a trainee to agree to earn 

9 a competency-based credential or another 

10 credential specified in the American work11 force contract, as a condition of using 

12 funding provided through a workforce edu13 cation subsidy under this section. 

14 (4) REVIEW OF CONTRACT.— 

15 (A) IN GENERAL.—Not later than 1 month 

16 after receiving a proposed American workforce 

17 contract, the Director shall review, and approve 

18 or disapprove, the proposed contract (including 

19 conducting the review under paragraph (3) and 

20 determining whether the employer has provided 

21 the appropriate written disclosure document 

22 under subsection (g)). 

23 (B) PRESUMPTION OF APPROVAL.—There 

24 shall be a presumption of approval for a pro25 posed American workforce contract, in that 


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1 such a contract that has not been disapproved 

2 by the Director shall be considered to be ap3 proved on the 32nd day after the date of that 

4 receipt. A proposed American workforce con5 tract may only be disapproved for failing to 

6 meet the requirements of this Act. If such a 

7 proposed contract is disapproved, the Director 

8 shall describe the reason, with a citation to the 

9 requirement not met, and a recommendation for 

10 how the proposed contract shall be amended to 

11 comply with this Act. 

12 (5) REVIEW OF RESUBMISSION.—If an em13 ployer and individual submit a proposed contract 

14 under paragraph (1) that is not approved under 

15 paragraph (4), the employer and individual may re16 submit the amended proposed contract for review as 

17 described in paragraph (4). For purposes of para18 graph (4)(B), the reference to the date of receipt 

19 shall be considered to be the date of receipt of the 

20 resubmitted proposed contract. 

21 (6) ENTRY INTO CONTRACT.—Once a proposed 

22 contract has been approved under paragraph (4) or 

23 (5), the individual and employer involved may enter 

24 into the contract and initiate the workforce project. 


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1 (7) CURRENT EMPLOYEES.—A participating 

2 employer may enter into an American workforce con3 tract with, and enroll into their workforce project, 

4 an employee who holds a position with the employer 

5 if the employer agrees to— 

6 (A) maintain employment for that em7 ployee at the employee’s wage or salary on the 

8 date of enrollment, or a higher wage or salary; 

9 and 

10 (B) provide an increase to the employee’s 

11 annual wage or salary, if the employee success12 fully completes the workforce project, that is 

13 equal to not less than 25 percent of the value 

14 of the educational workforce subsidy provided 

15 for the project. 

16 (c) WORKFORCE EDUCATION SUBSIDIES.—Not ear17 lier than the date on which an individual and employer 

18 enter into an American workforce contract approved by 

19 the Director, the Director shall provide an education work20 force subsidy to the employer operating the workforce 

21 project. Each of the following rules shall apply to the 

22 workforce education subsidy and the trainee involved and 

23 employer: 

24 (1) The workforce education subsidy may be 

25 used to subsidize the cost of educational workforce 


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1 training (onsite or with an eligible third-party train2 ing entity), not the wage or salary of the trainee. 

3 (2) The employer shall pay, at regular intervals, 

4 the trainee a wage or salary at a rate that is not less 

5 than the higher of— 

6 (A) the rate in effect under section 6(a)(1) 

7 of the Fair Labor Standards Act of 1938 (29 

8 U.S.C. 206(a)(1)); or 

9 (B) the rate in effect under a State or 

10 local minimum wage law that applies to the 

11 State or locality in which the trainee is engaged 

12 in labor or service for the employer. 

13 (3) The employer shall provide a working envi14 ronment for the trainee that meets all applicable 

15 Federal, State, and local safety laws and regula16 tions. 

17 (4) Neither the Director or any other officer or 

18 employee of the executive branch of the Federal 

19 Government may make the workforce education sub20 sidy contingent on any requirement not specified in 

21 this Act. 

22 (5) The employer shall not currently be sus23 pended from participating in workforce projects sub24 section (d) or (e) of section 3. 


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1 (6) Participation in the workforce project in2 volved shall not make the employer subject to the ju3 risdiction of the Office of Federal Contract Compli4 ance Programs of the Department of Labor as a 

5 Federal contractor, including not being subject to 

6 Executive Order 11246. 

7 (7) The employer shall comply with all applica8 ble Federal, State, and local statutory laws per9 taining to nondiscrimination in employment. 

10 (8) The workforce education subsidy may not 

11 be used for— 

12 (A) diversity, equity, and inclusion train13 ing, or culturally responsive training; or 

14 (B) any other training that may violate— 

15 (i) title VII of the Civil Rights Act of 

16 1964 (42 U.S.C. 2000e et seq.), by con17 tributing to a hostile work environment; or 

18 (ii) title VI of the Civil Rights Act of 

19 1964 (42 U.S.C. 2000d et seq.), including 

20 its prohibition, on the ground of race, 

21 color, or national origin, of discrimination 

22 under any program or activity receiving 

23 Federal financial assistance. 

24 (9) The workforce education subsidy may not 

25 be used for political spending, electioneering, or any 


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1 other purpose that is not directly related to edu2 cational workforce training. 

3 (10) The Director shall make payments from 

4 the workforce education subsidy to the employer— 

5 (A) in even installments, following the end 

6 of each financial quarter in which the training 

7 and on-the-job work specified in the American 

8 workforce contract have been completed by the 

9 trainee; 

10 (B) in sums of not more than $1,500 per 

11 month; and 

12 (C) for a total amount of not more than 

13 $9,000, as determined on the basis of the 

14 American workforce contract. 

15 (11) A State government or locality may sup16 plement the workforce education subsidy with addi17 tional funds, if the State government or locality does 

18 not make accepting such funds or any conditions at19 tached to the funds a requirement of accepting Fed20 eral funding. 

21 (12) If the trainee chooses to leave a workforce 

22 project after the halfway point of the term of the 

23 workforce project, the trainee will be considered to 

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1 cation subsidies through which the trainee is eligible 

2 to receive educational workforce training. 

3 (13) If the employer ceases operations, the 

4 trainee shall not be held at fault, meaning that the 

5 trainee may receive educational workforce training, 

6 funded with the full value of the workforce education 

7 subsidy, for a workforce project with a subsequent 

8 eligible employer, notwithstanding the time require9 ment of paragraph (15). 

10 (14) The maximum period of time for which an 

11 employer (including a subsequent employer described 

12 in paragraph (13)) may receive payments, provided 

13 through the workforce education subsidy for edu14 cation workforce training of a trainee, shall be 3 

15 years. 

16 (15)(A) In order for a trainee to enroll in a 

17 workforce project with a subsequent eligible em18 ployer through a second or third such subsidy, the 

19 trainee shall receive the related educational work20 force training not less than 1 year after the conclu21 sion of the trainee’s most recent training through a 

22 workforce education subsidy. 

23 (B) The time limit described in subparagraph 

24 (A) shall not apply to a trainee who— 


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1 (i) completed a workforce project with, but 

2 was not hired by, an employer; and 

3 (ii) seeks to receive such training through 

4 a workforce project with the trainee’s next em5 ployer. 

6 (16) The employer shall meet the applicable 

7 minimum ratios specified under section 5(d). 

8 (17) The employer shall use E-Verify for each 

9 trainee enrolled and individual hired or employed 

10 during the period for which the employer accepts 

11 funds through a subsidy provided under this Act, re12 gardless of whether the trainee or individual partici13 pated in a workforce project. 

14 (18) The employer shall publish a public disclo15 sure document, consistent with subsection (g). 

16 (d) BONUS FOR HIRING.— 

17 (1) IN GENERAL.—If an trainee, on completion 

18 of a workforce project, is hired as a full-time, reg19 ular employee of the employer participating in the 

20 workforce project, with a wage or salary described in 

21 subsection (e)(1), the employer shall receive a bonus 

22 of $1,000 (in addition to any payment received 

23 through a workforce education subsidy). The Direc24 tor shall pay the bonus not sooner than the date 

25 that is 6 months after the trainee is so hired. 


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1 (2) RULES.—Subject to paragraph (3), each of 

2 the rules described in paragraphs (5), (6), (8), (9), 

3 (11), (16), (17), and (18) shall apply to the bonus, 

4 and the trainee hired and employer, except that a 

5 reference in those paragraphs— 

6 (A) to a workforce educational subsidy 

7 shall be considered to be a reference to the 

8 bonus; and 

9 (B) to a trainee shall be considered to be 

10 a reference to the trainee hired. 

11 (3) USE OF BONUS.—An employer who receives 

12 a bonus under this subsection may use the bonus 

13 funds to supplement the wage or salary of the train14 ee hired. 

15 (e) POSITION FOR THE TRAINEE.— 

16 (1) WAGES.—An employer participating in a 

17 workforce project shall be training each trainee and 

18 considering each trainee for a position that would 

19 have an annual wage or salary of not less than 80 

20 percent of— 

21 (A) the annual median household income 

22 of the county in which the job involved is lo23 cated (or an hourly wage based on that income 

24 and adjusted for a 2,080-hour annual work pe25 riod), as determined by the 5-year estimates of 


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1 the American Community Survey of the Bureau 

2 of the Census; or 

3 (B) if the county involved is not in a 

4 micropolitan or metropolitan area, the annual 

5 median household income for the nearest 

6 micropolitan or metropolitan area, as deter7 mined by the Bureau of the Census. 

8 (2) REMOTE WORK.—An employer providing re9 mote work for a trainee or employee (in a position 

10 referred to in paragraph (1)) shall use the trainee’s 

11 or employee’s location when determining an applica12 ble wage or salary under this Act. Such a trainee or 

13 employee engaging in remote work shall live in the 

14 United States and file Federal income taxes in the 

15 United States. 

16 (3) WORK.—An employer participating in a 

17 workforce project shall provide structured on-the-job 

18 work for each trainee in a job that requires special19 ized knowledge and experience and involves the per20 formance of complex tasks, to prepare the trainee 

21 for a position referred to in paragraph (1). 

22 (f) EDUCATIONAL WORKFORCE TRAINING.—In pro23 viding for educational workforce training through a work24 force project to a trainee, an employer shall meet each 

25 of the following requirements: 


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1 (1) SKILLS.—The employer shall ensure that 

2 the training is designed in a manner that enables 

3 trainees to obtain and demonstrate competency and 

4 obtain progressively advancing and portable skills 

5 that are necessary for the industry or occupation in6 volved. 

7 (2) PARTNERS.—The employer may partner 

8 with any of the following eligible third-party training 

9 entities, and may pay such a third-party training en10 tity with funds from a workforce education subsidy, 

11 in order to provide the training for trainees in the 

12 workforce project: 

13 (A) A trade, industry, or employer group 

14 or association. 

15 (B) A corporation or other related orga16 nized entity. 

17 (C) An educational institution, such as an 

18 institution of higher education, including a com19 munity college, or a secondary school. 

20 (D) A State or local government agency or 

21 entity. 

22 (E) A nonprofit organization. 

23 (F) A union. 

24 (G) A joint labor-management organiza25 tion. 


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1 (H) A certification or accreditation body or 

2 entity for an industry or occupation. 

3 (I) A consortium or partnership of entities 

4 such as entities described in any of subpara5 graphs (A) through (H). 

6 (3) CREDENTIALS.—The employer shall ensure 

7 that, in conjunction with that training, the trainee 

8 shall be made aware of any widely used competency9 based credentials in the employer’s industry or occu10 pation. If a competency-based credential is described 

11 in the trainee’s American workforce contract, the 

12 employer shall not forbid the trainee, or provide a 

13 disincentive to discourage the trainee, from taking a 

14 related competency-based credential exam. 

15 (4) DEFINITIONS.—In this subsection: 

16 (A) COMMUNITY COLLEGE.—The term 

17 ‘‘community college’’ means an institution of 

18 higher education (as defined in section 101(a) 

19 of the Higher Education Act of 1965 (20 

20 U.S.C. 1001(a))) at which the highest degree 

21 that is predominately awarded to students is an 

22 associate degree. 

23 (B) INSTITUTION OF HIGHER EDU24 CATION.—The term ‘‘institution of higher edu25 cation’’ has the meaning given that term in secVerDate Sep 11 2014 16:00 Sep 09, 2022 Jkt 029200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S4810.IS S4810

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1 tion 102 of the Higher Education Act of 1965 

2 (20 U.S.C. 1002). 

3 (g) PUBLIC DISCLOSURE DOCUMENT.— 

4 (1) IN GENERAL.—The Director shall require 

5 each participating employer seeking approval for a 

6 proposed American workforce contract to provide a 

7 written disclosure document, about the employer’s 

8 workforce project, that includes each of the following 

9 statistics and information: 

10 (A) The total expected cost, if any, for a 

11 trainee during or at the completion of the work12 force project, such as the cost of fees for a cer13 tification examination. 

14 (B) The expected wage or salary for the 

15 position of the employer that the workforce 

16 project is designed to train for. 

17 (C) The length of the workforce project. 

18 (D) The total expected number of hours of 

19 structured on-the-job work per week, and of 

20 hours of educational workforce training per 

21 week, for a trainee during the workforce 

22 project. 

23 (E) The total expected number of hours 

24 for which a trainee will be paid during the 

25 course of the workforce project. 


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1 (F) The hourly wage or salary for a train2 ee during the course of the workforce project. 

3 (G) Information stating any certifications, 

4 licenses, or other credentials that trainees in 

5 the workforce project might earn on successful 

6 completion of the workforce project. 

7 (2) ADDITIONAL PUBLIC DISCLOSURE FOR ES8 TABLISHED WORKFORCE PROJECTS.—Three years 

9 after an employer has completed a workforce project, 

10 the Director shall require the employer to include, in 

11 its written disclosure document, documentation that 

12 includes each of the following statistics: 

13 (A) The completion rate for trainees in a 

14 workforce project with the employer, calculated 

15 over the previous 3 years. 

16 (B) The percentage of trainees that com17 pleted a workforce project with, and were hired 

18 by, the employer participating in the project, 

19 calculated over the previous 2 years. 

20 (C) The average wage or salary of cur21 rently employed (as of the date of collection of 

22 the wage or salary information) trainees who 

23 completed a workforce project, during the last 

24 3 years, presented in a way that does not reveal 


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1 individually identifiable wage or salary informa2 tion. 

3 (3) AVAILABILITY.—The disclosure documents 

4 described in paragraphs (1) and (2) shall be made 

5 available to the general public by the Director. 

6 SEC. 5. GENERAL PROVISIONS. 

7 (a) WORKFORCE PROJECT AFTER PAYMENT PE8 RIOD.—Nothing in this Act shall be construed to require 

9 a workforce project to end after 3 years, the maximum 

10 period of time for which an employer may receive pay11 ments through a workforce education subsidy for a train12 ee, if the employer pays for the cost of the associated edu13 cational workforce training for the portion of the project 

14 after that maximum period. 

15 (b) RELATIONSHIP TO OTHER PROJECTS.—Individ16 uals who do not meet the criteria described in section 

17 2(8)(A) may participate in projects, structured like work18 force projects described in this Act, if the employer or an 

19 organization other than the Federal Government provides 

20 the necessary funding for wages or salaries, and edu21 cational workforce training. 

22 (c) THIRD-PARTY TRAINING ENTITY.—The Sec23 retary may not pressure, or provide an incentive or dis24 incentive to, an employer to choose 1 eligible entity over 

25 another as a third-party training entity. The choice of a 


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1 third-party training entity shall be made entirely by an 

2 employer. 

3 (d) REGULATIONS ON RATIOS.— 

4 (1) RATIOS.—Beginning 5 years after the date 

5 of enactment of this Act, the Secretary may issue 

6 regulations that specify 1 or more ratios, based on 

7 categories of jobs as defined by the Secretary, be8 tween the number of job openings for a prospective 

9 position, as a full-time regular employee, related to 

10 a workforce project, and the number of trainees in 

11 that project. 

12 (2) OBJECTIVES.—In issuing the regulations, 

13 the Secretary shall consider the following objectives: 

14 (A) Assuring that a trainee has a reason15 able opportunity to be hired as a full-time, reg16 ular employee by the employer participating in 

17 the workforce project. 

18 (B) Ensuring that an employer’s hiring 

19 discretion is not limited in a manner that would 

20 incentivize an employer to lower standards for 

21 a position that is particularly difficult or dan22 gerous. 

23 (e) CRITERIA.—The Secretary may establish criteria 

24 regarding technical matters and provide technical assist25 ance for meeting the requirements of this Act. 


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1 (f) REQUIRED REGULATIONS.—Regulations required 

2 under this Act shall be issued by the corresponding officer 

3 within 3 months after the date of enactment of this Act, 

4 except as otherwise specified. 

5 SEC. 6. EVALUATION REPORTS AND SUNSET. 

6 (a) 5-YEAR REPORT.—Not later than 5 years after 

7 the date of enactment of this Act, the Secretary shall pre8 pare and submit to Congress a report including each of 

9 the following information, analysis, and recommendations: 

10 (1) A comparison of the American workforce 

11 program to other major career and technical edu12 cation or apprenticeship programs administered by 

13 the Federal Government, including the registered 

14 apprenticeship program carried out under the Act of 

15 August 16, 1937 (commonly known as the ‘‘National 

16 Apprenticeship Act’’; 50 Stat. 664, chapter 663; 29 

17 U.S.C. 50 et seq.), and to the workforce investment 

18 activity programs administered under the Workforce 

19 Innovation and Opportunity Act (29 U.S.C. 3101 et 

20 seq.), on the basis of— 

21 (A) the completion rate of participants in 

22 each program; 

23 (B) the average earnings of participants in 

24 each program, calculated during— 


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1 (i) the related career and technical 

2 education, apprenticeship, workforce in3 vestment, or workforce project; and 

4 (ii) the period beginning 3 years and 

5 ending 5 years after the participants com6 plete the related career and technical edu7 cation, apprenticeship, workforce invest8 ment, or workforce project; 

9 (C) the percentages obtained by dividing— 

10 (i) the number of participants and 

11 rate of growth in participants for each pro12 gram; by 

13 (ii) the number of individuals in the 

14 labor force and the rate of growth of the 

15 labor force, respectively; 

16 (D) the level of direct engagement by em17 ployers with, and satisfaction from employers 

18 in, each program; and 

19 (E) the diversity of the industries and oc20 cupations of the employers who utilize each pro21 gram. 

22 (2) The overall completion rate for the Amer23 ican workforce program, the completion rate for 

24 workforce projects by industry and occupation, the 

25 number of trainees who dropped out of the program 


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1 entirely, broken down by industry and occupation, 

2 and the number who left a workforce project for an3 other workforce project. 

4 (3) The results of a survey, based on a random 

5 sample and designed to generate statistically signifi6 cant results, of trainees who have participated in the 

7 program. 

8 (4) The results of a survey, based on a random 

9 sample and designed to generate statistically signifi10 cant results, of employers who have participated in 

11 the program, including a breakdown by size of em12 ployer. 

13 (5) Data collected under section 3(c)(8)(B). 

14 (6) Information and technical criteria, other 

15 regulations, and guidance issued by the Secretary to 

16 administer the program. 

17 (7) Information on the rate of uptake by indi18 viduals and employers that are eligible to participate 

19 in the program, and recommendations for ways in 

20 which this rate of uptake could be improved. 

21 (8) Analysis on considerations for Congress 

22 about expanding the use of intermediary institutions, 

23 such as nonprofits, to better advertise the program. 

24 (9)(A) Analysis on considerations for Congress 

25 in expanding eligibility of the program for United 


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1 States citizens who do not have a high school di2 ploma or its generally recognized equivalent. 

3 (B) Analysis on considerations for Congress in 

4 encouraging trainees to obtain industry-recognized 

5 credentials that help to provide recognition of a 

6 portable skill. 

7 (C) Analysis on considerations for Congress on 

8 the effect and necessity of regulations described in 

9 section 5(d). 

10 (D) Recommendations for Congress on encour11 aging participation in workforce projects by small 

12 businesses. 

13 (10) Analysis on considerations for Congress 

14 about how to effectively engage high school students 

15 in a workforce project, including— 

16 (A) how coursework for a technical high 

17 school, or career and technical education in a 

18 high school, could qualify towards the comple19 tion of a workforce project; and 

20 (B) how time spent in structured on-the21 job work or educational workforce training for 

22 a workforce project could count towards high 

23 school graduation. 


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1 (11) Recommendations for improvement and re2 authorization of the American workforce program by 

3 Congress. 

4 (b) 10-YEAR REPORT.—Not later than 10 years after 

5 the date of enactment of this Act, the Secretary shall pre6 pare and submit to Congress a report containing the infor7 mation, analysis, and recommendations described in sub8 section (a). 

9 (c) SUNSET.—The program authorized by section 4 

10 and the position of the Director shall cease to exist on 

11 the earlier of— 

12 (1) the date on which the Director submits the 

13 report described in subsection (b) to Congress; or 

14 (2) the day that is 11 years after the date of 

15 enactment of this Act. 

16 SEC. 7. EXCISE TAX ON CERTAIN LARGE PRIVATE COLLEGE 

17 AND UNIVERSITY ENDOWMENTS. 

18 (a) IN GENERAL.—Subchapter H of chapter 42 of 

19 the Internal Revenue Code of 1986 is amended by adding 

20 at the end the following new section: 

21 ‘‘SEC. 4969. EXCISE TAX ON CERTAIN LARGE PRIVATE COL22 LEGE AND UNIVERSITY ENDOWMENTS. 

23 ‘‘(a) TAX IMPOSED.—There is hereby imposed on 

24 each specified applicable educational institution for the 

25 taxable year a tax equal to 1 percent of the aggregate fair 


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1 market value of the assets of the institution at the end 

2 of the preceding taxable year. 

3 ‘‘(b) SPECIFIED APPLICABLE EDUCATIONAL INSTI4 TUTION.—For purposes of this subchapter, the term ‘spec5 ified applicable educational institution’ means any applica6 ble educational institution, other than an institution which 

7 is religious in nature, the aggregate fair market value of 

8 the assets of which at the end of the preceding taxable 

9 year (other than those assets which are used directly in 

10 carrying out the institution’s exempt purpose) is at least 

11 $2,500,000,000. 

12 ‘‘(c) OTHER TERMS.—For purposes of this section— 

13 ‘‘(1) ASSETS.—The rules of section 4968(d) 

14 shall apply. 

15 ‘‘(2) STUDENT.—The rules of section 

16 4968(b)(2) shall apply.’’. 

17 (b) CLERICAL AMENDMENT.—The table of sections 

18 for subchapter H of chapter 42 of the Internal Revenue 

19 Code of 1986 is amended by adding at the end the fol20 lowing new item: 

‘‘Sec. 4969. Excise tax on certain large private college and university endowments.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2022. 

Æ 


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