I 
119TH CONGRESS 
1ST SESSION H. R. 4049 
To amend the Workforce Innovation and Opportunity Act to establish 
employer-directed skills accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 17, 2025 
Ms. STEFANIK introduced the following bill; which was referred to the 
Committee on Education and Workforce 
A BILL 
To amend the Workforce Innovation and Opportunity Act 
to establish employer-directed skills accounts, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Employer-Directed 
Skills Act’’. 
SEC. 2. EMPLOYER-DIRECTED SKILLS ACCOUNTS. 
(a) DEFINITIONS.— 
(1) EMPLOYER-SPONSORED
SKILLS
DEVELOP-
MENT.—Section 3 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102) is amended— 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(A) by redesignating paragraphs (19) 
through (71) as paragraphs (20) through (72), 
respectively; and 
(B) by inserting after paragraph (18), the 
following: 
‘‘(19) EMPLOYER-SPONSORED
SKILLS
DEVEL-
OPMENT.—The term ‘employer-sponsored skills de-
velopment’ means a skills development program— 
‘‘(A) that is selected by an employer to 
meet the specific skill demands of the employer; 
‘‘(B) that is conducted pursuant to terms 
and conditions which are established under an 
employer-sponsored skills development agree-
ment described in section 134(c)(3)(I)(iv), in-
cluding a commitment by the employer to em-
ploy an individual upon successful completion of 
the program; 
‘‘(C) for which an employer pays a portion 
of the cost of the program, which shall not be 
less than— 
‘‘(i) 10 percent of the cost, in the case 
of an employer with not more than 50 em-
ployees; 
‘‘(ii) 25 percent of the cost, in the 
case of an employer with more than 50 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
employees but not more than 100 employ-
ees; and 
‘‘(iii) 50 percent of the cost, in the 
case of an employer with more than 100 
employees; and 
‘‘(D) for which the Federal share of the 
cost of the program is provided to the employer 
through an employer-directed skills account in 
accordance with section 134(c)(3)(I)(ii).’’. 
(2) ON-THE-JOB TRAINING.—Paragraph (45) of 
section 3 of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3102) is amended, as redesig-
nated by paragraph (1)(A)— 
(A) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(D) in a case in which each of the condi-
tions under section 134(c)(3)(I)(i) are met with 
respect to such training (including the estab-
lishment of an on-the-job training agreement 
described in section 134(c)(3)(I)(iii)), provides 
the Federal share of the cost of training to the 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
employer through an employer-directed skills 
account.’’. 
(3) RELATED
CONFORMING
AMENDMENTS.— 
The Workforce Innovation and Opportunity Act (29 
U.S.C. 3101 et seq.) is amended— 
(A) in section 134(c)(3)(H)(i) (20 U.S.C. 
3174(c)(3)(H)(i)), by striking ‘‘section 3(44)’’ 
and by inserting ‘‘section 3(45)’’; 
(B) in section 211(e)(3) (20 U.S.C. 
3291(e)(3)), by striking ‘‘section 3(45)’’ and in-
serting ‘‘section 3(46)’’; 
(C) in section 181(d)(2) (20 U.S.C. 
3241(d)(2)), by striking ‘‘transitional employ-
ment,’’ and inserting ‘‘transitional employment, 
employer-sponsored skills development’’; and 
(D) in section 194(4) (20 U.S.C. 3254(4)), 
by inserting ‘‘or employer-sponsored skills de-
velopment’’ after ‘‘On-the-job training’’. 
(b) 
EXCEPTIONS
FOR
EMPLOYER-SPONSORED 
SKILLS DEVELOPMENT.—Section 122(h) of the Work-
force Innovation and Opportunity Act (29 U.S.C. 
3152(h)) is amended— 
(1) in paragraph (1), by inserting ‘‘employer- 
sponsored skills development,’’ after ‘‘incumbent 
worker training,’’; and 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(2) in paragraph (2), by inserting ‘‘employer- 
sponsored skills development,’’ after ‘‘incumbent 
worker training,’’. 
(c) CAREER SERVICES.—Section 134(c)(2)(A) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3174(c)(2)(A)) is amended— 
(1) in clause (xii), by striking ‘‘and’’ at the end; 
(2) in clause (xiii), by striking the period and 
inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(xiv) provision of information on em-
ployers in the local areas that are offering 
employer-sponsored skills development or 
on-the-job training programs that may be 
reimbursed through an employer-directed 
skills account established under section 
134(c)(3)(I) and the performance informa-
tion available on such programs; and 
‘‘(xv) provision of assistance, in co-
ordination with employers in the local 
areas that are offering employer-sponsored 
skills development or on-the-job training, 
in establishing employer-sponsored skills 
development 
agreements 
or 
on-the-job 
training agreements.’’. 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(d) ELIGIBILITY FOR TRAINING SERVICES.—Section 
134(c)(3) of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3174(c)(3)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (i), by inserting ‘‘or (iii)’’ 
after ‘‘clause (ii)’’; 
(B) by redesignating clause (iii) as clause 
(iv); and 
(C) by inserting after clause (ii) the fol-
lowing: 
‘‘(iii) PARTICIPANTS
SELECTED
FOR 
ON-THE-JOB
TRAINING
OR
EMPLOYER- 
SPONSORED
SKILLS
DEVELOPMENT.—A 
one-stop operator or one-stop partner shall 
not be required to conduct an interview, 
evaluation, or assessment of a participant 
under clause (i) if such participant is se-
lected by an employer under section 
134(c)(3)(I)(i) to receive on-the-job train-
ing or employer-sponsored skills develop-
ment, and the applicable conditions under 
such section are met for such individual to 
receive such services.’’; and 
(2) in subparagraph (D)— 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(A) in clause (x), by striking ‘‘and’’ at the 
end; 
(B) in clause (xi), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(xii) employer-sponsored skills devel-
opment programs conducted with a com-
mitment by an employer to employ an indi-
vidual upon successful completion of such 
a program.’’. 
(e) EMPLOYER-DIRECTED SKILLS ACCOUNTS.— 
(1) LOCAL PLAN.—Section 108(b)(19) of the 
Workforce Innovation and Opportunity Act (29 
U.S.C. 3123) is amended by inserting ‘‘or employer- 
directed skills accounts’’ after ‘‘individual training 
accounts’’. 
(2) CONSUMER CHOICE REQUIREMENTS.—Sec-
tion 134(c)(3)(F) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3174(c)(3)(F)) is 
amended— 
(A) by redesignating clauses (iv) and (v) as 
clauses (v) and (vi), respectively; 
(B) by inserting after clause (iii), the fol-
lowing: 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(iv) EMPLOYER-DIRECTED
SKILLS 
ACCOUNTS.—In a case in which an indi-
vidual is selected by an employer under 
section 134(c)(3)(I)(i) to receive on-the-job 
training or employer-sponsored skills devel-
opment, and the applicable conditions 
under such section are met for such indi-
vidual to receive such services, the local 
board involved shall arrange for payment 
for such services through an employer-di-
rected skills account in accordance with 
section 134(c)(3)(I)(ii).’’; and 
(C) in clause (v), as redesignated by sub-
paragraph (A), by inserting ‘‘or employer-di-
rected skills accounts’’ after ‘‘individual train-
ing accounts’’. 
(3) ADDITIONAL EXCEPTION TO USE OF INDI-
VIDUAL TRAINING ACCOUNTS.—Section 134(c)(3)(G) 
of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3174(c)(3)(G)) is amended— 
(A) by redesignating clauses (iii) and (iv) 
as clauses (iv) and (v), respectively; 
(B) in clause (i), by striking ‘‘clause (ii)’’ 
and inserting ‘‘clauses (ii) and (iii)’’; 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(C) by inserting after clause (ii), the fol-
lowing: 
‘‘(iii) EMPLOYER-DIRECTED
SKILLS 
ACCOUNTS.—Services 
authorized 
under 
this paragraph may be provided pursuant 
to an employer-directed skills account in 
lieu of an individual training account if 
such services are employer-sponsored skills 
development or on-the-job training and the 
applicable 
conditions 
under 
section 
134(c)(3)(I)(i) are met for an individual to 
receive such services.’’; and 
(D) in clause (v) (as redesignated by sub-
paragraph (A)), by inserting ‘‘, employer-di-
rected skills accounts,’’ after ‘‘individual train-
ing accounts’’. 
(4) ESTABLISHMENT OF EMPLOYER-DIRECTED 
SKILLS ACCOUNTS.—Section 134(c)(3) of the Work-
force Innovation and Opportunity Act (29 U.S.C. 
3174(c)(3)) is amended by adding at the end the fol-
lowing: 
‘‘(I) EMPLOYER-DIRECTED
SKILLS
AC-
COUNTS.— 
‘‘(i) 
IN
GENERAL.—An 
individual 
shall receive on-the-job training or em-
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
ployer-sponsored 
skills 
development 
through the use of an employer-directed 
skills account, if each of the following con-
ditions are met: 
‘‘(I) An employer selects the indi-
vidual, who is not an employee of such 
employer, for on-the-job training or 
employer-sponsored 
skills 
develop-
ment. 
‘‘(II)(aa) In the case of an indi-
vidual selected under subclause (I) to 
receive on-the-job training, an on-the- 
job training agreement that meets the 
requirements of clause (iii) is estab-
lished and signed by the individual 
and the employer; or 
‘‘(bb) in the case of an individual 
selected under subclause (I) to receive 
employer-sponsored 
skills 
develop-
ment, an employer-sponsored skills de-
velopment agreement that meets the 
requirements of clause (iv) is estab-
lished and signed by the individual 
and the employer. 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(III) The employer submits to 
the local board each of the following: 
‘‘(aa) A certification that 
the individual requires an on-the- 
job training or employer-spon-
sored skills development program 
to obtain employment with the 
employer, and has the skills and 
qualifications to successfully par-
ticipate in such a program. 
‘‘(bb) A certification that 
the employer will submit the nec-
essary performance information 
to the local board in accordance 
with section 122(h). 
‘‘(cc) The on-the-job train-
ing agreement or the employer- 
sponsored 
skills 
development 
agreement described in subclause 
(II), as applicable. 
‘‘(IV) The local board involved 
reviews and approves each certifi-
cation and agreement received under 
subclause (III), by considering the fol-
lowing: 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(ii) APPROVAL OF AGREEMENTS.—In 
determining whether to approve an em-
ployer-sponsored skills development agree-
ment or an on-the-job training agreement 
under clause (i)(IV), the local board in-
volved shall consider the following: 
‘‘(I) The characteristics of the 
participants of the on-the-job training 
or employer-sponsored skills develop-
ment that is the subject of the agree-
ment. 
‘‘(II) The size of the employer 
submitting such agreement, with a 
priority on supporting agreements 
submitted by small businesses. 
‘‘(III) The alignment of the 
agreement with the workforce invest-
ment needs identified in the local plan 
of the local area under section 108. 
‘‘(IV) In the case of an employer- 
sponsored skills development agree-
ment, if the employer-sponsored skills 
development offered— 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(aa) is for preparation to 
work in an in-demand industry 
sector or occupation; and 
‘‘(bb) leads to a recognized 
postsecondary credential. 
‘‘(V) Any other factors the local 
board determines appropriate. 
‘‘(iii) PAYMENT TO EMPLOYERS.—The 
local board involved in on-the-job training 
or employer-sponsored skills development 
under clause (i) shall arrange for the ap-
propriate payment of such services through 
an employer-directed skills account as fol-
lows: 
‘‘(I) ON-THE-JOB
TRAINING.— 
For on-the-job training, the local 
board involved shall reimburse the 
employer from funds in the employer- 
directed skills account in accordance 
to the reimbursement requirements of 
section 3(45)(B) and after receipt of 
documentation of the wages earned by 
the individual during such training. 
‘‘(II) 
EMPLOYER-SPONSORED 
SKILLS
DEVELOPMENT.—For 
em-
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
ployer-sponsored skills development 
services, the local board involved shall 
reimburse the employer from funds in 
the employer-directed skills account 
for the Federal share of the costs of 
the program after receipt of docu-
mentation from the employer of pay-
ment of such costs. 
‘‘(iv) ON-THE-JOB TRAINING AGREE-
MENT.—An on-the-job training agreement 
under clause (i) shall— 
‘‘(I) establish— 
‘‘(aa) the length of the on- 
the-job training; 
‘‘(bb) the hourly wage rate 
of the individual; 
‘‘(cc) the skills necessary for 
the job and the individual’s cur-
rent skill level as of the date of 
the agreement; and 
‘‘(dd) the skills to be learned 
during the on-the-job training; 
and 
‘‘(II) include an assurance that 
the employer will provide the local 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB
board involved with documentation of 
the wages earned by the individual 
while engaged in such on-the-job 
training for the purpose of reimburse-
ment to the employer. 
‘‘(v) EMPLOYER-SPONSORED
SKILLS 
DEVELOPMENT
AGREEMENT.—An 
em-
ployer-sponsored skills development agree-
ment referred to in clause (i) shall estab-
lish— 
‘‘(I) the provider of the employer- 
sponsored skills development program; 
‘‘(II) the length of such program; 
‘‘(III) the skills to be learned 
during such program; 
‘‘(IV) a commitment by the em-
ployer to employ the individual upon 
successful completion of the program; 
‘‘(V) the cost of the program; 
‘‘(VI) the amount of such cost 
that will be paid by the employer (the 
non-Federal share), which shall be not 
less than the amount specified in sec-
tion 3(19)(C); and 
VerDate Sep 11 2014 
04:02 Jun 25, 2025
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H4049.IH
H4049
kjohnson on DSK7ZCZBW3PROD with $$_JOB