II 

118TH CONGRESS 

2D SESSION S. 3825 

To amend the Workforce Innovation and Opportunity Act to establish a 

State innovation demonstration authority. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2024 

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

to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To amend the Workforce Innovation and Opportunity Act 

to establish a State innovation demonstration authority. 

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 ‘‘One Door to Work 

5 Act’’. 

6 SEC. 2. STATE INNOVATION DEMONSTRATION AUTHORITY. 

7 Section 190 of the Workforce Innovation and Oppor8 tunity Act (29 U.S.C. 3250) is amended to read as follows: 


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1 ‘‘SEC. 190. STATE INNOVATION DEMONSTRATION AUTHOR2 ITY. 

3 ‘‘(a) PURPOSE.—The purpose of this section is to au4 thorize any State to apply under this section on behalf 

5 of the entire State, or a local area or a consortium of local 

6 areas in the State, to receive the allotments or allocations 

7 of the State or the local areas, respectively, for youth 

8 workforce investment activities and adult and dislocated 

9 worker employment and training activities under this Act, 

10 and for activities under the Wagner-Peyser Act, as a con11 solidated grant for 5 years for the purpose of carrying out 

12 a demonstration project to pursue innovative reforms to 

13 achieve better outcomes for jobseekers, employers, and 

14 taxpayers. 

15 ‘‘(b) GENERAL AUTHORITY.— 

16 ‘‘(1) WAIVERS AND DEMONSTRATION GRANT

17 AMOUNTS.—Notwithstanding any other provision of 

18 law, during the demonstration period applicable to a 

19 demonstration project approved for a State pursuant 

20 to subsection (d)(3), the Secretary shall comply with 

21 each of the following: 

22 ‘‘(A) WAIVERS.—Subject to paragraph (2), 

23 waive for the State as a whole, or for the local 

24 area or the consortium of local areas in such 

25 State selected by the State to carry out such 

26 demonstration project— 


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1 ‘‘(i) all the statutory and regulatory 

2 requirements of subtitle A, subtitle B, and 

3 this subtitle; and 

4 ‘‘(ii) all the statutory or regulatory re5 quirements of the Wagner-Peyser Act (29 

6 U.S.C. 49g et seq.). 

7 ‘‘(B) DEMONSTRATION GRANT

8 AMOUNTS.—For each fiscal year applicable to 

9 such demonstration period: 

10 ‘‘(i) STATE AS A WHOLE.—In a case 

11 of a State approved to carry out a dem12 onstration project under this section on be13 half of the State as a whole, distribute as 

14 a consolidated sum to the State, for pur15 poses of carrying out the project, the 

16 State’s total allotment for such fiscal year 

17 under— 

18 ‘‘(I) subsections (b)(1)(C) and 

19 (c) of section 127; 

20 ‘‘(II) paragraphs (1)(B) and 

21 (2)(B) of section 132(b), and section 

22 132(c); and 

23 ‘‘(III) section 6 of the Wagner24 Peyser Act (29 U.S.C. 49e). 


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1 ‘‘(ii) LOCAL AREA.—In a case of a 

2 local area selected by a State to carry out 

3 a demonstration project under this section, 

4 require the State to— 

5 ‘‘(I) distribute as a consolidated 

6 sum to the local board for such local 

7 area, for purposes of carrying out the 

8 project— 

9 ‘‘(aa) the local area’s alloca10 tion for such fiscal year under— 

11 ‘‘(AA) subsections (b) 

12 and (c) of section 128; and 

13 ‘‘(BB) subsections (b) 

14 and (c) of section 133; and 

15 ‘‘(bb) any funds under sec16 tion 6 of the Wagner-Peyser Act 

17 (29 U.S.C. 49e) that the State 

18 would otherwise allocate for such 

19 fiscal year to the one-stop deliv20 ery system in the local area; or 

21 ‘‘(II) if the local board of the 

22 local area enters into a written agree23 ment with the State for the State to 

24 serve as the fiscal agent for the local 

25 board during the demonstration 


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1 project, use the funds described in 

2 items (aa) and (bb) of subclause (I) 

3 for purposes of carrying out the 

4 project on behalf of the local board. 

5 ‘‘(iii) CONSORTIUM OF LOCAL

6 AREAS.—In a case of a consortium of local 

7 areas selected by a State to carry out a 

8 demonstration project under this section, 

9 require the State to— 

10 ‘‘(I) distribute as a consolidated 

11 sum to the consortium, for purposes 

12 of carrying out the project— 

13 ‘‘(aa) the total amount of 

14 the allocations for the local areas 

15 in such consortium for such fiscal 

16 year under— 

17 ‘‘(AA) subsections (b) 

18 and (c) of section 128; and 

19 ‘‘(BB) subsections (b) 

20 and (c) of section 133; and 

21 ‘‘(bb) any funds under sec22 tion 6 of the Wagner-Peyser Act 

23 (29 U.S.C. 49e) that the State 

24 would otherwise allocate for such 

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1 ery systems in the local areas in 

2 such consortium; or 

3 ‘‘(II) if the consortium enters 

4 into a written agreement with the 

5 State for the State to serve as the fis6 cal agent for the local boards rep7 resented in the consortium during the 

8 demonstration project, use the funds 

9 described in items (aa) and (bb) of 

10 subclause (I) for purposes of carrying 

11 out the project on behalf of such con12 sortium. 

13 ‘‘(2) EXCEPTIONS.—A State, local area, or con14 sortium of local areas carrying out a demonstration 

15 project under this section— 

16 ‘‘(A) shall comply with statutory or regu17 latory requirements of— 

18 ‘‘(i) this Act relating to— 

19 ‘‘(I) wage and labor standards; 

20 ‘‘(II) nondisplacement protec21 tions; 

22 ‘‘(III) participation and protec23 tion of workers and participants; 

24 ‘‘(IV) nondiscrimination; 


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1 ‘‘(V) grievance procedures and 

2 judicial review; and 

3 ‘‘(VI) performance accountability 

4 and reporting, except as otherwise 

5 provided in this section; and 

6 ‘‘(ii) the Wagner-Peyser Act relating 

7 to provision of services to unemployed in8 surance claimants and veterans, and relat9 ing to universal access to basic labor ex10 change services without cost to jobseekers; 

11 and 

12 ‘‘(B) may choose to comply with any other 

13 statutory or regulatory requirement of this Act 

14 or the Wagner-Peyser Act. 

15 ‘‘(c) DEMONSTRATION PERIOD; LIMITATIONS.— 

16 ‘‘(1) IN GENERAL.—A demonstration project 

17 approved under this section for a State, local area, 

18 or consortium— 

19 ‘‘(A) shall be carried out for a 5-year dem20 onstration period; and 

21 ‘‘(B) may be renewed for additional 5-year 

22 demonstration periods, if the State, local area, 

23 or consortium meets its expected levels of per24 formance established under subsection (f)(1) for 


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1 each of the final 3 years of the preceding 5-year 

2 period. 

3 ‘‘(2) LIMITATIONS.— 

4 ‘‘(A) DEMONSTRATION PERIOD LIMITA5 TIONS.—For each 5-year demonstration period 

6 (including renewals of such period)— 

7 ‘‘(i) not more than 8 States may carry 

8 out demonstration projects approved for a 

9 State as a whole under this section; and 

10 ‘‘(ii) not more than 8 local areas (or 

11 consortia of local areas) may carry out 

12 demonstration projects approved for a local 

13 area (or a consortium) under this section. 

14 ‘‘(B) STATE LIMITATIONS.—Not more 

15 than 1 demonstration project may be approved 

16 under this section per State. For purposes of 

17 this paragraph, a demonstration project ap18 proved for a local area or a consortium of local 

19 areas in a State shall be considered a dem20 onstration project approved under this section 

21 for the State. 

22 ‘‘(d) APPLICATION.— 

23 ‘‘(1) IN GENERAL.—To be eligible to carry out 

24 a demonstration project under this section, a State 

25 shall submit to the Secretary an application at such 


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1 time, and in such manner, as the Secretary may rea2 sonably require, and containing the information de3 scribed in paragraph (2). 

4 ‘‘(2) CONTENT.—Each application submitted by 

5 a State under this subsection shall include the fol6 lowing: 

7 ‘‘(A) A description of the demonstration 

8 project to be carried out under this section, in9 cluding— 

10 ‘‘(i) whether the project will be car11 ried out— 

12 ‘‘(I) by the State as a whole; 

13 ‘‘(II) by a local area, and if so— 

14 ‘‘(aa) an identification of— 

15 ‘‘(AA) such local area; 

16 and 

17 ‘‘(BB) whether the 

18 local board for such local 

19 area is the fiscal agent for 

20 the project, or whether the 

21 local board has entered into 

22 a written agreement with 

23 the State for the State to 

24 serve as the fiscal agent dur25 ing the project; and 


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1 ‘‘(bb) written verification 

2 from the local board for such 

3 local area that such local board 

4 agrees— 

5 ‘‘(AA) to carry out such 

6 project; and 

7 ‘‘(BB) to the fiscal 

8 agent identified in item 

9 (aa)(BB); and 

10 ‘‘(III) by a consortium of local 

11 areas in the State, and if so— 

12 ‘‘(aa) an identification of— 

13 ‘‘(AA) each local area 

14 that comprises the consor15 tium; and 

16 ‘‘(BB) the local area 

17 that will serve as the fiscal 

18 agent for the consortium 

19 during the project, or wheth20 er the consortium has en21 tered into a written agree22 ment with the State for the 

23 State to serve as the fiscal 

24 agent; and 


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1 ‘‘(bb) written verification 

2 from each local board of each 

3 local area identified in item 

4 (aa)(AA) that such local board 

5 agrees— 

6 ‘‘(AA) to carry out such 

7 project as a consortium; and 

8 ‘‘(BB) to the fiscal 

9 agent for the consortium 

10 identified in item (aa)(BB); 

11 ‘‘(ii) a description of the activities to 

12 be carried out under the project; and 

13 ‘‘(iii) the goals the State, local area, 

14 or consortium intends to achieve through 

15 such activities, which shall be aligned with 

16 purpose described in subsection (a). 

17 ‘‘(B) A description of the performance out18 comes the State, the local area, or consortium 

19 expects to achieve for such activities for each 

20 year of the demonstration period as described 

21 in subsection (f)(1). 

22 ‘‘(C) A description of how the State, local 

23 area, or consortium consulted with employers, 

24 the State board, and the local boards in the 


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1 State in determining the activities to carry out 

2 under the demonstration project. 

3 ‘‘(D) A description of how the State will 

4 make such activities available to jobseekers and 

5 employers in each of the local areas in the State 

6 or, in a case of a project that will be carried out 

7 by a local area or a consortium, a description 

8 of how such services will be made available to 

9 jobseekers and employers in such local area or 

10 each of the local areas in the consortium. 

11 ‘‘(E) A description, if appropriate, of how 

12 the State, local area, or consortium will inte13 grate the funds received, and the activities car14 ried out, under the demonstration project under 

15 this section with State workforce development 

16 programs and other Federal or State workforce, 

17 education, or social service programs (including 

18 the programs and activities listed in section 

19 103(a)(2), the program of adult education and 

20 literacy activities authorized under title II, and 

21 the program authorized under title I of the Re22 habilitation Act of 1973 (29 U.S.C. 720 et 

23 seq.)). 


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1 ‘‘(F) An assurance that the State, local 

2 area, or consortium will meet the requirements 

3 of this section. 

4 ‘‘(3) SECRETARIAL APPROVAL.— 

5 ‘‘(A) IN GENERAL.—Not later than 60 

6 days after the date on which a State submits an 

7 application under this subsection, the Secretary 

8 shall— 

9 ‘‘(i) in a case in which the application 

10 meets the requirements of this section and 

11 is not subject to the limitations described 

12 in subsection (c)(2), approve such applica13 tion and the demonstration project de14 scribed in such application; or 

15 ‘‘(ii) provide to the State a written ex16 planation of initial disapproval that meets 

17 the requirements of subparagraph (C). 

18 ‘‘(B) DEFAULT APPROVAL.—With respect 

19 to an application submitted by a State under 

20 this subsection that is not subject to the limita21 tions described in subsection (c)(2), if the Sec22 retary fails to approve such application or pro23 vide an explanation of initial disapproval for 

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1 tion project described in such application shall 

2 be deemed approved by the Secretary. 

3 ‘‘(C) INITIAL DISAPPROVAL.—An expla4 nation of initial disapproval provided by the 

5 Secretary to a State under subparagraph (A)(ii) 

6 shall provide the State— 

7 ‘‘(i) detailed reasons for why the ap8 plication does not meet the requirements of 

9 this section; and 

10 ‘‘(ii) if the State is not subject to the 

11 limitations described in subsection (c)(2), 

12 an opportunity to revise and resubmit the 

13 State’s application under this section. 

14 ‘‘(e) STATE DEMONSTRATION PROJECT REQUIRE15 MENTS.—A State, local area, or consortium that has been 

16 approved to carry out a demonstration project under this 

17 section shall meet each of the following requirements: 

18 ‘‘(1) USE OF FUNDS.—Use the funds received 

19 pursuant to subsection (b)(1)(B) solely to carry out 

20 the activities of the demonstration project to achieve 

21 the goals described in subsection (d)(2)(A)(iii). 

22 ‘‘(2) ADMINISTRATIVE COSTS LIMITATION.— 

23 Use not more than 10 percent of the funds received 

24 pursuant to subsection (b)(1)(B) for a fiscal year for 


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1 the administrative costs of carrying out the dem2 onstration project. 

3 ‘‘(3) PRIORITY FOR SERVICES.—Give priority 

4 for services under the project to veterans and their 

5 eligible spouses in accordance with the requirements 

6 of section 4215 of title 38, United States Code, re7 cipients of public assistance, low-income individuals, 

8 and individuals who are basic skills deficient. 

9 ‘‘(4) NUMBER OF PARTICIPANTS.—Serve a 

10 number of participants under the activities of the 

11 demonstration project for each year of the dem12 onstration period that— 

13 ‘‘(A) is greater than the number of partici14 pants served by such State, local area, or con15 sortium under the programs described in sub16 paragraphs (A) and (C) of section 3(13) for the 

17 most recent program year that ended prior to 

18 the beginning of the first year of the dem19 onstration period; or 

20 ‘‘(B) is not less than the number of par21 ticipants to be served under the activities of the 

22 demonstration project that is agreed upon be23 tween the State, local area, or consortium, and 

24 the Secretary— 


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1 ‘‘(i) prior to the Secretary’s approval 

2 of the application submitted under sub3 section (d); 

4 ‘‘(ii) after the Secretary takes into ac5 count— 

6 ‘‘(I) the goals the State, local 

7 area, or consortium intends to achieve 

8 through the demonstration project; 

9 and 

10 ‘‘(II) the participants the State, 

11 local area, or consortium intends to 

12 serve under such project; and 

13 ‘‘(iii) prior to approval of the applica14 tion submitted under subsection (d). 

15 ‘‘(5) REPORTING OUTCOMES.—Submit, on an 

16 annual basis, to the Secretary a report, with respect 

17 to such State, local area, or consortium, on— 

18 ‘‘(A) participant outcomes for each indi19 cator of performance described in subsection 

20 (f)(1)(A) for the activities carried out under the 

21 project; and 

22 ‘‘(B) the applicable requirements of section 

23 116(d)(2), including subparagraphs (B) 

24 through (G) and subparagraph (J), as such 


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1 subparagraphs are applicable to activities under 

2 the demonstration project. 

3 ‘‘(6) COMPLIANCE WITH CERTAIN EXISTING RE4 QUIREMENTS.—Comply with the statutory or regu5 latory requirements listed in subsection (b)(2)(A). 

6 ‘‘(7) EVALUATION.—Prior to the end of the 

7 demonstration period— 

8 ‘‘(A) conduct a rigorous evaluation of the 

9 employment and earnings outcomes of partici10 pants in activities carried out under the dem11 onstration project, compared to the outcomes of 

12 similarly situated individuals in such State, 

13 local area, or a local area in the consortium 

14 that do not participate in such activities; and 

15 ‘‘(B) submit to Congress and the Secretary 

16 the results of such evaluation. 

17 ‘‘(f) PERFORMANCE ACCOUNTABILITY.— 

18 ‘‘(1) ESTABLISHMENT OF EXPECTED PERFORM19 ANCE INDICATORS.— 

20 ‘‘(A) IN GENERAL.—Each State, local 

21 area, or consortium shall establish in the appli22 cation submitted under subsection (d), for each 

23 year of the demonstration period— 

24 ‘‘(i) with respect to participants who 

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1 els of performance for each of the indica2 tors of performance under section 

3 116(b)(2)(A)(i) for the activities carried 

4 out under the project under this section, 

5 which shall meet the requirements of sub6 paragraph (B); and 

7 ‘‘(ii) with respect to participants who 

8 are at least 16 years old and no older than 

9 24 years old, the expected levels of per10 formance for each of the indicators of per11 formance under section 116(b)(2)(A)(ii) 

12 for the activities carried out under the 

13 project under this section, which shall meet 

14 the requirements of subparagraph (B). 

15 ‘‘(B) 5TH YEAR.—Each of the expected 

16 levels of performance established for each of the 

17 indicators of performance under clauses (i) and 

18 (ii) of section 116(b)(2)(A) pursuant to sub19 paragraph (A) for the 5th year of the dem20 onstration period shall be higher than— 

21 ‘‘(i) the highest level of performance 

22 for the corresponding indicator of perform23 ance for the programs described in sub24 paragraphs (A) and (C) of section 3(13) 

25 for the most recent program year that 


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1 ended prior to the beginning of the first 

2 year of the demonstration period; or 

3 ‘‘(ii) an alternate baseline level of per4 formance that is agreed upon between the 

5 State, local area, or consortium, and the 

6 Secretary— 

7 ‘‘(I) prior to the Secretary’s ap8 proval of the application submitted 

9 under subsection (d); and 

10 ‘‘(II) after the Secretary takes 

11 into account— 

12 ‘‘(aa) the goals the State, 

13 local area, or consortium intends 

14 to achieve through the dem15 onstration project; and 

16 ‘‘(bb) the participants the 

17 State, local area, or consortium 

18 intends to serve under such 

19 project. 

20 ‘‘(2) SANCTIONS.— 

21 ‘‘(A) IN GENERAL.—The sanctions de22 scribed in section 116(f)(1)(B) shall apply to a 

23 State, local area, or consortium beginning on 

24 the 3rd year of the demonstration period for 

25 such State, local area, or consortium, except 


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1 that the levels of performance established under 

2 paragraph (1) shall be— 

3 ‘‘(i) deemed to be the State negotiated 

4 levels of performance for purposes of this 

5 paragraph; and 

6 ‘‘(ii) adjusted at the end of each pro7 gram year to reflect the actual characteris8 tics of participants served and the actual 

9 economic conditions experienced using a 

10 statistical adjustment model similar to the 

11 model described in section 

12 116(b)(3)(A)(viii). 

13 ‘‘(B) INELIGIBILITY FOR RENEWAL.—A 

14 State, local area, or consortium that is subject 

15 to sanctions under this paragraph shall be ineli16 gible to renew its demonstration period under 

17 subsection (c). 

18 ‘‘(3) IMPACT OF LOCAL OR CONSORTIUM DEM19 ONSTRATIONS ON STATEWIDE ACCOUNTABILITY.— 

20 With respect to a State with an approved dem21 onstration project for a local area or consortium of 

22 local areas in the State— 

23 ‘‘(A) the performance of such local area or 

24 consortium for the programs described in sub25 paragraphs (A) and (C) of section 3(13) shall 


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1 not be included in the levels of performance for 

2 such State for any of such programs for pur3 poses of section 116 for any program year that 

4 is applicable to any year of the demonstration 

5 period; and 

6 ‘‘(B) with respect to any local areas of the 

7 State that are not part of the demonstration 

8 project, the State shall reach a new agreement 

9 with the Secretary, for purposes of section 

10 116(b)(3)(A), on levels of performance for such 

11 programs for such program years.’’. 

Æ 


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