II 

115TH CONGRESS 

2D SESSION S. 2746 

To require the Secretary of Labor to establish a pilot program to provide 

grants for job guarantee programs. 

IN THE SENATE OF THE UNITED STATES 

APRIL 25, 2018 

Mr. BOOKER (for himself, Mrs. GILLIBRAND, Mr. MERKLEY, Ms. HARRIS, and 

Ms. WARREN) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To require the Secretary of Labor to establish a pilot 

program to provide grants for job guarantee programs. 

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 ‘‘Federal Jobs Guar5 antee Development Act of 2018’’. 

6 SEC. 2. JOB GUARANTEE PILOT PROGRAM. 

7 (a) DEFINITIONS.—In this section: 

8 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti9 ty’’ means an entity that— 


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1 (A) is a political subdivision of a State, 

2 Tribal entity, or a combination of contiguous 

3 political subdivisions or Tribal entities; 

4 (B) has an unemployment rate that is not 

5 less than 150 percent of the national unemploy6 ment rate, as determined by the Bureau of 

7 Labor Statistics (except in the case of Tribal 

8 entities which may submit their own employ9 ment data where no such Federal data is avail10 able for such entities) based on the most recent 

11 data available at the time the Secretary solicits 

12 applications for grants under this section; and 

13 (C) submits an application in accordance 

14 with subsection (d). 

15 (2) JOB GUARANTEE PROGRAM.—The term 

16 ‘‘job guarantee program’’ means a program that 

17 meets the requirements of subsection (c). 

18 (3) RURAL AREA.—The term ‘‘rural area’’ 

19 means an area that is located outside of a metropoli20 tan statistical area. 

21 (4) TRIBAL ENTITY.—The term ‘‘Tribal entity’’ 

22 means an Indian tribe or tribal organization as such 

23 terms are defined in section 4 of the Indian Self-De24 termination Act (25 U.S.C. 5304). 


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1 (5) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Labor. 

3 (b) ESTABLISHMENT.— 

4 (1) IN GENERAL.—The Secretary shall establish 

5 a pilot program to provide competitive grants to eli6 gible entities to establish programs to ensure that 

7 any individual within the area served by the entity 

8 who applies for a job through the program will be 

9 provided with employment as provided for in this 

10 section. 

11 (2) TERMINATION.—A job guarantee program 

12 established under a grant under this section shall 

13 terminate on the earlier of— 

14 (A) the end of the 3-year period beginning 

15 on the date of the grant; or 

16 (B) the date of any revocation of the 

17 grantee as an eligible entity. 

18 (c) JOB GUARANTEE PROGRAMS.—A job guarantee 

19 program meets the requirements of this subsection if the 

20 jobs provided under such program— 

21 (1) are available to all individuals who— 

22 (A) are 18 years of age or older; and 

23 (B) reside in the area served under the 

24 program; 


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1 except that participants in the program may be dis2 ciplined, released, or suspended from further partici3 pation in jobs under this program if they are found 

4 to be negligent, or generally disruptive to the work5 place involved under procedures established by the 

6 Secretary that provide for an opportunity for a re7 view of such determinations; 

8 (2) are, with respect to individual participants, 

9 included as part of an established bargaining unit 

10 and covered by any applicable collective bargaining 

11 agreement in effect if similarly situated employees 

12 part of such unit and represented by an exclusive 

13 bargaining representative; 

14 (3) are available for the duration of the pilot 

15 program; 

16 (4) provide a wage of not less than the greater 

17 of— 

18 (A) the hourly wage provided for under the 

19 provisions of S. 1242 (115th Congress, as in20 troduced); 

21 (B) the prevailing wage in the area in22 volved for a similar job as required by chapter 

23 67 of title 41, United States Code, and other 

24 related laws; or 


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1 (C) the applicable wage under an applica2 ble collective bargaining agreement as provided 

3 for under paragraph (2); 

4 (5) provide for coverage of the worker under a 

5 health insurance program that is comparable to that 

6 offered to Federal employees under the Federal Em7 ployee Health Benefits Program; and 

8 (6) provide, at a minimum— 

9 (A) paid family leave consistent with the 

10 provisions of S. 337 (115th Congress, as intro11 duced) and applicable State law; and 

12 (B) paid sick leave consistent with the pro13 vision of S. 636 (115th Congress, as intro14 duced) and applicable State law. 

15 (d) APPLICATIONS.—An eligible entity seeking a 

16 grant under this section shall submit an application to the 

17 Secretary at such time, in such manner, and containing 

18 such information as the Secretary may require. Such ap19 plication shall include— 

20 (1) a description of the geographic area and 

21 population that the entity intends to serve under the 

22 job guarantee program established under the grant, 

23 including the area unemployment rate, poverty rate, 

24 vacancy rate, crime rate, household income, homeVerDate Sep 11 2014 23:49 May 01, 2018 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2746.IS S2746

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1 ownership rate, labor force participation, and edu2 cational attainment; 

3 (2) to extent practicable, a description of the 

4 jobs that will be performed under the job guarantee 

5 program; 

6 (3) the need in the area for jobs to be per7 formed, including for jobs designated as a priority 

8 by the Secretary; 

9 (4) a description of State, local, or philan10 thropic funding, including through coordination and 

11 in-kind or non-financial support, if any, that will be 

12 provided to assist in carrying out the job guarantee 

13 program; 

14 (5) an assurance that the eligible entity will es15 tablish— 

16 (A) a public internet website, in conjunc17 tion with the Secretary, to post all available 

18 jobs under the job guarantee program; and 

19 (B) a process for individuals to apply for 

20 such jobs; 

21 (6) a comprehensive plan to describe how the 

22 funding under the program will leverage existing or 

23 anticipated local, State, and Federal funding; 

24 (7) an assurance that necessary administrative 

25 data systems and information technology infrastrucVerDate Sep 11 2014 23:49 May 01, 2018 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2746.IS S2746

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1 ture are available, or will be available, to provide for 

2 full participation in the evaluation under subsection 

3 (k); and 

4 (8) an assurance that the entity will enter into 

5 an allocation agreement with the Secretary under 

6 subsection (j)(2)(A). 

7 (e) SELECTION.—The Secretary shall award grants 

8 under this section to not more than 15 eligible entities. 

9 In awarding such grants, the Secretary shall ensure that 

10 not less than— 

11 (1) 4 such entities serve predominantly rural 

12 areas under the grant; 

13 (2) 6 such entities serve predominantly urban 

14 areas under the grant; 

15 (3) 1 such entity serve in each of the 6 regions 

16 served by the Regional Offices of the Employment 

17 and Training Administration; and 

18 (4) 1 such entity shall be a Tribal entity. 

19 (f) AMOUNT OF GRANT.— 

20 (1) ESTABLISHMENT OF FUND.—There is es21 tablished in the Treasury of the United States a sep22 arate account to be known as the ‘‘Job Guarantee 

23 Program Trust Fund’’ (referred to in this section as 

24 the ‘‘Fund’’), consisting of— 


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1 (A) amounts deposited in the Fund under 

2 subsection (l); and 

3 (B) any interest earned on investment of 

4 amounts in the Fund. 

5 (2) USE OF AMOUNTS.—The Secretary shall use 

6 amounts in the Fund to make payments to grantees 

7 under grants under this section in accordance with 

8 paragraph (3). 

9 (3) PAYMENTS.— 

10 (A) IN GENERAL.—The Secretary shall de11 termine the annual amount of a grant under 

12 this section based on a formula to be developed 

13 by the Secretary. 

14 (B) PAYMENTS.—The Secretary shall 

15 make payments to grantees under this section 

16 in a manner determined appropriate by the Sec17 retary. The Secretary shall not make subse18 quent payments to a grantee after the initial 

19 payment until the grantee certifies to the Sec20 retary that the grantee has expended, trans21 ferred, or obligated not less than 80 percent of 

22 the most recent payment made under this sub23 section. 

24 (g) LIMITATIONS.—An eligible entity may not use 

25 amounts received under a grant under this section to— 


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1 (1) employ individuals who will replace, or lead 

2 to the displacement of, existing employees, positions, 

3 or individuals who would otherwise perform similar 

4 employment; 

5 (2) perform functions otherwise prohibited by 

6 Federal, State, or local laws; and 

7 (3) carry out other prohibited activities, as de8 termined by the Secretary. 

9 (h) FEDERAL PROVISION OF JOBS IN PILOT

10 SITES.— 

11 (1) GUIDANCE.—Not later than 30 days after 

12 the date on which the Secretary awards the first 

13 grant under this section, the Secretary shall— 

14 (A) provide guidance to the heads of ap15 propriate Federal agencies to notify such agen16 cies of job guarantee programs established 

17 under such grants; and 

18 (B) request that such agencies notify the 

19 Secretary, within 30 days of the date on which 

20 the guidance is received under paragraph (1), 

21 of the number and types of jobs that such agen22 cy would make available through each of the 

23 programs. 

24 (2) APPLICATION OF PROVISIONS.—The re25 quirements of subsection (c) relating to wages and 


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1 benefits provided to participants in jobs provided 

2 under job guarantee programs, and the limitations 

3 in subsection (g), shall apply to Federal agencies 

4 and jobs provided under this subsection, except that 

5 a Federal agency shall employ each individual under 

6 this subsection for up to 3 years. 

7 (3) LISTING OF JOBS ON WEBSITE.—The Sec8 retary shall establish procedures to ensure that jobs 

9 identified under paragraph (1)(B) are listed on the 

10 appropriate public internet website as provided for 

11 under subsection (d)(5)(A). 

12 (4) REIMBURSEMENT.—At the end of each fis13 cal year, the Secretary shall transfer from the Fund 

14 to each Federal agency that employs individuals 

15 under a job guarantee program under this section, 

16 an amount necessary to reimburse such agency for 

17 the cost of employing each such individual during 

18 such fiscal year. 

19 (i) TRAINING.— 

20 (1) IN GENERAL.—The Secretary shall develop 

21 procedures to support up to 8 weeks of paid training 

22 (through publicly or privately financed training pro23 grams) to participants in job guarantee programs 

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1 ing, not to exceed 8 weeks, prior to commencing any 

2 new job under the program. 

3 (2) SPECIFIC POPULATIONS.—With respect to 

4 certain populations, as determined by the Secretary 

5 to include the long-term unemployed and formerly 

6 incarcerated individuals, the 8-week training period 

7 may include specific job-related training and coun8 seling and other general skills training to prepare 

9 such individuals to reenter the workforce. 

10 (j) PRIORITIES AND AUDITS.— 

11 (1) PRIORITIES.—Prior to awarding the initial 

12 grants under this section, the Secretary shall issue 

13 a list of national job priorities relating to jobs to be 

14 carried out under job guarantee programs, that shall 

15 include child care, care for seniors and individuals 

16 with disabilities, infrastructure activities. 

17 (2) AUDITS.— 

18 (A) IN GENERAL.—The Secretary, acting 

19 through the Inspector General of the Depart20 ment of Labor, shall carry out annual audits of 

21 the use of grant funds provided to eligible enti22 ties under this section. 

23 (B) ALLOCATION AGREEMENTS AND MIS24 USE OF FUNDS.— 


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1 (i) ALLOCATION AGREEMENTS.—An 

2 eligible entity shall enter into an allocation 

3 agreement with the Secretary that shall 

4 provide that the Secretary shall recoup any 

5 amounts paid to the entity under a grant 

6 under this section if the results of an audit 

7 under subparagraph (A) include a finding 

8 that there was an intentional or reckless 

9 misuse of such funds by such entity. 

10 (ii) LOSS OF ELIGIBILITY.—An eligi11 ble entity that is determined to have fal12 sified or otherwise misstated data in any 

13 report submitted to the Secretary with the 

14 intent to deceive or mislead the Secretary 

15 shall be ineligible to receive additional 

16 funds under this section. 

17 (k) EVALUATION.—The Chief Evaluation Officer at 

18 the Department of Labor shall provide for the conduct of 

19 an evaluation of the pilot program, using a rigorous design 

20 and evaluation methods to assess the implementation of 

21 the programs and their impact on— 

22 (1) employment; 

23 (2) private sector employment, including wages 

24 and benefits; 

25 (3) poverty rate; 


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1 (4) safety net and other Federal spending in 

2 the area served by the program; 

3 (5) child health and educational outcomes; 

4 (6) health and well-being of those with mental, 

5 emotional, and behavioral health needs; 

6 (7) incarceration rates; and 

7 (8) other economic development and individual 

8 outcome indicators, as determined by the Secretary. 

9 (l) EXPANSION OF WORK OPPORTUNITY CREDIT TO

10 INCLUDE PARTICIPANTS IN JOB GUARANTEE PRO11 GRAMS.— 

12 (1) IN GENERAL.—Subsection (d) of section 51 

13 of the Internal Revenue Code of 1986 is amended— 

14 (A) in paragraph (1)— 

15 (i) in subparagraph (I), by striking 

16 ‘‘or’’ at the end; 

17 (ii) in subparagraph (J), by striking 

18 the period at the end and inserting ‘‘, or’’; 

19 and 

20 (iii) by adding at the end the fol21 lowing new subparagraph: 

22 ‘‘(K) a qualified participant in a job guar23 antee program.’’; and 

24 (B) by adding at the end the following new 

25 paragraph: 


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1 ‘‘(16) QUALIFIED PARTICIPANT IN A JOB GUAR2 ANTEE PROGRAM.—The term ‘qualified participant 

3 in a job guarantee program’ means any individual 

4 who is certified by the designated local agency as 

5 having participated in a job guarantee program 

6 under section 2 of the Federal Jobs Guarantee De7 velopment Act of 2018 for not less than 3 months 

8 during the 6-month period ending on the hiring 

9 date.’’. 

10 (2) EFFECTIVE DATE.—The amendments made 

11 by this subsection shall apply to individuals who 

12 begin work for the employer after December 31, 

13 2018. 

14 (m) APPROPRIATIONS.—From funds in the Treasury 

15 not otherwise appropriated, there are appropriated to the 

16 Secretary such sums as may be necessary to carry out this 

17 section. 

Æ 


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