Expanding Pathways to Employment Act

To establish a fund to provide grants for the operation and expansion of evidence-based workforce development and post-secondary education programs and to support evaluations of these programs, and for other purposes. 1. Short title This Act may be cited as the Expanding Pathways to Employment Act 2. Workforce development and post-secondary education grant program (a) In general The Secretary, in consultation with the Board, shall make grants in accordance with this section to provide long-term funding commitments for eligible workforce development programs and eligible post-secondary education programs as follows: (1) Workforce development programs supported by strong evidence Of the total amount appropriated under section 6, the Secretary shall use 50 percent of such amount to make grants for eligible workforce development programs that have demonstrated a substantial, statistically significant positive impact on worker earnings through one or more well-designed and well-implemented randomized control experimental studies. A grant awarded under this paragraph shall be used for the cost of operating and expanding such program, and may also be used, at the discretion of the grantee, for the cost of conducting a new randomized control experimental study with respect to such program. (2) Workforce development programs supported by moderate and promising evidence Of the total amount appropriated under section 6, the Secretary shall use 25 percent of such amount to make grants for eligible workforce development programs that have demonstrated a substantial, statistically significant positive impact on worker earnings through one or more well-designed and well-implemented quasi-experimental studies or correlational studies. A grant awarded under this paragraph shall be used— (A) for the cost of conducting randomized control experimental studies with respect to such program; and (B) for the cost of operating and expanding such program (but only if a grant under subclause (A) has been concurrently awarded for such program). (3) Discretionary amount Of the total amount appropriated under section 6, the Secretary shall use 20 percent of such amount at the discretion of the Secretary— (A) to make additional grants as described in paragraph (1); (B) to make additional grants as described in paragraph (2); and (C) to make grants for eligible post-secondary education programs that have demonstrated a substantial, statistically significant positive impact on student graduation and degree completion through one or more well-designed and well-implemented randomized control experimental studies, quasi-experimental studies, or correlational studies, to be used— (i) in the case of programs that have demonstrated such positive impact through one or more randomized control experimental studies, for the cost of operating and expanding such program, and, at the discretion of the grantee, for the cost of conducting a new randomized control experimental study with respect to such program; and (ii) in the case of programs that have demonstrated such positive impact through one or more quasi-experimental studies or correlational studies— (I) for the cost of conducting randomized control experimental studies with respect to such program; and (II) for the cost of operating and expanding such program (but only if a grant under subclause (I) has been concurrently awarded for such program). (4) Technical assistance Of the total amount appropriated under section 6, the Secretary shall use 5 percent— (A) to provide technical assistance for eligible workforce development programs and eligible post-secondary education programs, including technical assistance related to the use of administrative data to improve program performance; (B) to conduct feasibility studies and other planning activities; (C) to disseminate best practices; and (D) for staff and other costs related to such activities. (b) Eligible applicants Applicants for a grant under subsection (a) may include— (1) State, local, territorial, or tribal governments, but only if the application includes one or more clearly designated nonprofit organizations, institutions of higher education, or post-secondary vocational institutions that will implement the program using such grant funds; and (2) nonprofit organizations, institutions of higher education, or post-secondary vocational institutions, but only if the application— (A) is supported by a State, local, territorial, or tribal government; and (B) includes a plan to partner with that government, a sustainability plan to ensure the program continues to be delivered after the end of the grant award, and a clearly designated place or places where the program will be administered. (c) Matching requirement The Secretary shall not award any grant under paragraph (1) or paragraph (3)(A) of subsection (a) to an entity unless the entity provides matching funds from Federal or non-Federal sources in an amount equal to not less than 50 percent of such grant, except that the Secretary may, at the request of an applicant or a grantee, grant a waiver reducing this requirement for the purposes of increasing the accessibility or equity of the program design, or in the case of grants awarded to an eligible entity with limited resources. 3. Amount of grants and criteria for awarding grants (a) In general The amount of a grant awarded for an eligible workforce development program or post-secondary education program under section 2 shall be determined by the Secretary, in consultation with the Board, based on the following: (1) The program’s impact on participant earnings or participant graduation and degree completion rates relative to costs (as determined under guidance issued pursuant to subsection (b)). (2) Whether the program was evaluated through a randomized control experimental study, a quasi-experimental study, or a correlational study, and the overall quality of the evidence behind the program, including the sample size and number of evaluations, the statistical quality of the evaluations, the magnitude of the impacts detected, and the strength of the causal connection between the program and key economic outcomes measured. (3) The number of additional participants that the program expects to enroll as a result of receiving such grant. (4) Whether the program has been demonstrated to improve equity, in particular for populations of individuals or communities (which may include rural communities) historically held furthest from opportunity. (b) Impact relative to costs standard The Board shall devise and publish a minimum impact relative to costs standard comparing the impact on worker earnings or student graduation and degree completion rates as a result of an eligible workforce development program or post-secondary education program and the annual cost per participant under such program. Such standard shall— (1) set forth a minimum required demonstrable increase in earnings or graduation and degree completion rates over time (based on previous evaluations) per dollar of program cost per participant; and (2) allow for additional flexibility for programs that specifically or primarily serve individuals with barriers to employment (as defined in section 3(24) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102(24) 4. Independent board (a) Establishment of independent board There is established an independent board (in this Act referred to as the Board (b) Duties The Board shall review applications for grants under this Act and make recommendations to the Secretary with respect to the awarding of such grants. The Board shall, in their recommendation to the Secretary regarding program selection, prioritize programs that have demonstrated a larger impact relative to costs (as determined under guidance issued pursuant to subsection (b)), that have been evaluated by more well-designed and well-implemented studies, and that have been evaluated by randomized control experimental studies rather than quasi-experimental studies or correlational studies. The Board shall, in their recommendation to the Secretary regarding grant size, prioritize higher funding levels to programs that have demonstrated a larger impact relative to costs (as so determined), that have been evaluated by more well-designed and well-implemented studies, that have been evaluated by randomized control experimental studies rather than quasi-experimental studies or correlational studies, and that expect to enroll more participants as a result of receiving such grant. For the purposes of these recommendations, the Board shall devise a quality standard for evaluations to determine which evaluations are more well-designed and well-implemented compared to others. (c) Appointment The Secretary shall appoint individuals to serve on the Board who meet the qualifications described in subsection (d). In making such appointments, the Secretary shall consult and receive recommendations from the Commission of Social Impact Partnerships established under section 2057 of the Social Security Act. (d) Qualifications of members An individual who meets the qualifications described in this subsection is an individual who is an academic, nonprofit, or executive agency official with expertise in workforce development programs or post-secondary education programs and experience in running rigorous evaluations. Such an individual shall— (1) be an expert in program evaluation and evidence-based policy, including evaluation methodologies that are appropriately rigorous and reliant upon independent data; (2) have relevant professional or personal experience in a field related to one or more of the outcomes listed in this division; or (3) have relevant lived or professional experience with underserved communities and under-resourced families that this Act is intended to serve. (e) Staffing In administering the program under this Act, the Secretary may hire such staff as necessary, including by using placement authorities under the Intergovernmental Personnel Act of 1970, and any other direct hire authorities available to the Secretary for any other purpose. In hiring staff to administer such program, the Secretary shall ensure that such staff meet the qualifications described in subsection (d). (f) Reports The Board shall report on progress periodically to the Federal Interagency Council on Social Impact Partnerships established under section 2056 of the Social Security Act, and shall coordinate policies and decisions with relevance to other Federal agencies through such Council. (g) Guidance (1) In general The Board, in consultation with the Commission of Social Impact Partnerships established under section 2057 of the Social Security Act, shall develop and make publicly available guidance regarding best practices for the evaluation of eligible workforce development programs and eligible post-secondary education programs to be used to assess the quality of each evaluation as required under subsection (b). Such guidance shall seek to ensure that— (A) the evaluation accurately models a participant group population that is representative of the overall population served by the program; (B) aggregate shifts that might affect baseline numbers are controlled for by the evaluation; and (C) regardless of any other factors, all possible safeguards are undertaken to avoid statistical creaming, in which the impact of a program is over measured as recruited participants become more highly skilled prior to participation over time. (2) Procedure In issuing the guidance and performance benchmarks defined above, the Board shall release and circulate draft guidance, regulations, and performance benchmarks, which shall be circulated to the Commission, and shall not be adopted unless approved by a majority vote of the Commission at a public meeting, and the Commission shall receive proposed draft guidance or performance benchmarks not less than 30 days prior to voting to approve it. The Board shall use the draft guidance, regulations, and performance benchmarks, once approved by the Commission, to review grant applications under this Act and make recommendations to the Secretary with respect to the awarding of such grants, as described in subsection (b). 5. Definitions For purposes of this Act: (1) Eligible workforce development program The term eligible workforce development program (2) Eligible post-secondary education program The term eligible post-secondary education program (3) Randomized control experimental study The term randomized control experimental study (4) Quasi-experimental study The term quasi-experimental study (5) Correlational study The term correlational study (6) Well-designed and well-implemented The term well-designed and well-implemented (7) Secretary The term Secretary 6. Funding There is appropriated to carry out this Act, out of any funds in the Treasury not otherwise appropriated, $700,000,000 for fiscal year 2021, to remain available for 9 fiscal years.

Summary: Expanding Pathways to Employment Act This bill directs the Department of the Treasury to provide long-term grant funding for workforce development programs that have demonstrated a positive impact on worker earnings and for postsecondary education programs that have demonstrated a positive impact on student graduation.