availability and capacity of existing training 
programs to meet future demand for training 
programs. 
‘‘(2) PRIORITY.—In awarding grants under this 
section, the Secretaries shall give priority to eligible 
entities that— 
‘‘(A) include a partnership with a business 
or industry or sector partnership that— 
‘‘(i) pays a portion of the costs of 
such programs; or 
‘‘(ii) agrees to hire individuals who 
have completed a particular postsecondary 
degree, certificate, or credential resulting 
from the training program of the eligible 
entity; 
‘‘(B) enter into a partnership with a labor 
organization or labor-management training pro-
gram that provides technical expertise for occu-
pationally specific education necessary for a rec-
ognized postsecondary credential leading to a 
skill occupation in an in-demand industry sec-
tor; 
‘‘(C) are focused on serving individuals 
with barriers to employment, low-income, non- 
traditional students, students who are dis-
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located workers, students who are veterans, or 
students who are long-term unemployed; 
‘‘(D) are community colleges serving areas 
with high unemployment rates, including rural 
areas; 
‘‘(E) are eligible entities that include an 
institution of higher education eligible for as-
sistance under title III or V of the Higher Edu-
cation Act of 1965; and 
‘‘(F) include a partnership with a business 
or industry or sector partnership that increases 
domestic production of goods, such as advanced 
manufacturing or clean energy technology. 
‘‘(f) USE OF FUNDS.—Grants awarded under this 
section shall be used for one or more of the following: 
‘‘(1) The development, offering, improvement, 
or provision of academic programs or training pro-
grams, that provide relevant job training for skilled 
occupations that will meet the needs of employers in 
in-demand industries sectors, and which may include 
registered apprenticeship programs, on-the-job train-
ing programs, and programs that support employers 
in upgrading the skills of their workforce. 
‘‘(2) The development and implementation of 
policies and programs to expand opportunities for 
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students to earn a recognized postsecondary creden-
tial or degree in in-demand industry sectors and oc-
cupations, including by— 
‘‘(A) facilitating the transfer of academic 
credits between institutions of higher education, 
including the transfer of academic credits for 
courses in the same field of study; 
‘‘(B) expanding articulation agreements 
and policies that guarantee transfer between 
such institutions, including through common 
course numbering and general core curriculum; 
and 
‘‘(C) developing or enhancing student sup-
port services programs. 
‘‘(3) The creation of workforce programs that 
provide a sequence of education and occupational 
training that leads to a recognized postsecondary 
credential or degree, including programs that— 
‘‘(A) blend basic skills and occupational 
training; 
‘‘(B) facilitate means of transitioning from 
non-credit occupational, basic skills, or develop-
mental coursework to for-credit coursework 
within and across institutions; 
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‘‘(C) build or enhance linkages including 
the development of dual enrollment programs 
and early college high schools between sec-
ondary education or adult education programs 
(including programs established under the Carl 
D. Perkins Career and Technical Education Act 
of 2006 (20 U.S.C. 2301 et seq.) and title II 
of this Act); 
‘‘(D) implement other innovative programs 
designed to increase the provision of training 
for students, including students who are vet-
eran members of the National Guard or Re-
serves, to enter skilled occupations in in-de-
mand industry sectors; and 
‘‘(E) support paid internships that will 
allow students to simultaneously earn credit for 
work-based learning and gain relevant employ-
ment experience in an in-demand industry sec-
tor or occupation, which shall include opportu-
nities that transition individuals into employ-
ment. 
‘‘(4) The support of regional or national in-de-
mand industry sectors to develop skills consortia 
that will identify pressing workforce needs and de-
velop solutions such as— 
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‘‘(A) standardizing industry certifications; 
‘‘(B) developing new training technologies; 
and 
‘‘(C) collaborating with industry employers 
to define and describe how specific skills lead to 
particular jobs and career opportunities. 
‘‘SEC. 199C. PAY-FOR-PERFORMANCE AND PAY-FOR-SUC-
CESS JOB TRAINING PROJECTS. 
‘‘(a) AWARD GRANTS AUTHORIZED.—From funds 
appropriated under section 199F(2), the Secretaries, in 
accordance with the interagency agreement described in 
section 199G, shall award grants on a competitive basis 
to eligible entities described in subsection (b) who meet 
specific performance outcomes and criteria established by 
the Secretaries under subsection (c). Projects funded by 
grants under this section shall be referred to as either 
Pay-for-Performance or Pay-for-Success projects, as set 
forth in subsection (b). 
‘‘(b) ELIGIBLE ENTITY.—To be eligible to receive a 
grant under this section an entity shall be a State or local 
organization (which may be a local workforce organiza-
tion) in partnership with entities such as community col-
leges and other training providers who— 
‘‘(1) in the case of Pay-for-Performance 
projects, agree to be reimbursed primarily on the 
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