I 
117TH CONGRESS 
1ST SESSION H. R. 4490 
To direct the Secretary of Labor to award formula and competitive grants 
for layoff aversion activities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2021 
Mr. SMITH of Washington introduced the following bill; which was referred to 
the Committee on Education and Labor 
A BILL 
To direct the Secretary of Labor to award formula and 
competitive grants for layoff aversion activities, 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 ‘‘Emergency Economic 
and Workforce System Resiliency Act’’. 
SEC. 2. DEFINITIONS. 
(a) IN GENERAL.—Except as otherwise provided, the 
terms used in this Act have the meanings given the terms 
in section 3 of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3102). 
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(b) EMPLOYEE OWNERSHIP TRUST.—The term ‘‘em-
ployee ownership trust’’ is an indirect form of employee 
ownership in which a trust holds a controlling stake in 
a company on behalf of all its employees and provides an 
incentive for owners to sell a controlling stake in their 
business. 
(c) EMPLOYEE STOCK OWNERSHIP PLAN.—The term 
‘‘employee stock ownership plan’’ has the meaning given 
the term in section 4975(e)(7) of the Internal Revenue 
Code of 1986. 
(d) JUSTICE IMPACTED.—The term ‘‘justice im-
pacted’’ means an individual that has been arrested or 
convicted of a crime, including an individual who is cur-
rently or formerly incarcerated. 
(e) WORKER COOPERATIVE.—The term ‘‘worker co-
operative’’ means a values-driven business that puts work-
er and community benefit at the core of its purpose, and 
in which— 
(1) workers own the business and they partici-
pate in its financial success on the basis of their 
labor contribution to the cooperative; and 
(2) workers have representation on and vote for 
the board of directors, adhering to the principle of 
one worker, one vote. 
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TITLE I—SUPPLEMENTAL FOR-
MULA GRANTS FOR EMER-
GENCY 
LAYOFF 
AVERSION 
AND WORKFORCE TRAINING 
ACTIVITIES 
SEC. 101. FORMULA GRANTS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of Labor 
shall award 5-year grants in accordance with subsection 
(b), to States to support efforts to— 
(1) reduce and prevent unemployment; and 
(2) limit the impact of disruptions (economic, 
pandemic-related, transitions of retiring business 
owners, automation-related, trade-related, or other 
forces) on labor markets. 
(b) STATE ALLOTMENTS.— 
(1) IN
GENERAL.—From the amount appro-
priated under section 105, the Secretary shall— 
(A) reserve not more than 1⁄4 of 1 percent 
of such amount to provide assistance to the out-
lying areas; and 
(B) make allotments to the States under 
paragraph (2) to— 
(i) make allocations under subsection 
(c); or 
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(ii) carry out the State activities de-
scribed in subsection (d). 
(2) ALLOTMENTS.—The Secretary shall make 
an 
allotment 
in 
accordance 
with 
section 
132(b)(1)(B)(ii) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3172(b)(1)(B)(ii)) to 
each State that submits an State plan under section 
103. 
(c) WITHIN STATE ALLOCATIONS.—The Governor of 
a State shall use not less than 60 percent of the allotment 
received under subsection (b)(2)— 
(1) to allocate funds to each local area in the 
State in accordance with section 133(b)(2)(A)(i) of 
the Workforce Innovation and Opportunity Act (29 
U.S.C. 3173(b)(2)(A)(i)) to carry out the activities 
under section 103, in accordance with the State plan 
under section 102, and in consultation with the 
State board; and 
(2) of which not more than 10 percent may be 
used for administrative purposes. 
(d) STATE ACTIVITIES.—The Governor of a State 
shall use the remaining amount of the allotment received 
under subsection (b)(2)— 
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(1) to carry out the activities under section 103 
in accordance with the State plan under section 102, 
and in consultation with the State board; and 
(2) of which not more than 10 percent may be 
used for administrative purposes. 
SEC. 102. STATE APPLICATIONS. 
(a) IN GENERAL.— 
(1) SUBMISSION BY STATES.—To receive an al-
location under section 101, a State shall submit a 
State Workforce Economic Recovery plan (in this 
Act referred to as a ‘‘State plan’’), developed by or 
in consultation with the State board and approved 
by the Governor, to the Secretary at such time and 
in such manner as the Secretary may reasonably re-
quire, and containing the information described in 
subsection (b). 
(2) SECRETARIAL RESPONSE.—Upon receipt of 
a State plan, the Secretary shall— 
(A) approve the State plan; or 
(B) provide the State— 
(i) with an explanation as to how the 
State plan does not meet the goals and re-
quirements of the grant program under 
this title; and 
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(ii) with an opportunity to submit an 
updated State plan or to appeal the deci-
sion of the Secretary. 
(3) RESUBMISSION.— 
(A) REQUIRED STATE PLAN UPDATES.—At 
the end of the first 2-year period of the grant, 
a State shall— 
(i) update the State plan to reflect 
changes in the labor market and other eco-
nomic conditions affecting the implementa-
tion of the activities funded under the 
grant; and 
(ii) submit to the Secretary such up-
dated State plan modifications to the State 
plan. 
(B) 
AUTHORIZED
STATE
PLAN
UP-
DATES.—A State may submit to the Secretary 
any necessary updates to the State plan at any 
point during the grant period. 
(b) CONTENTS.—A State plan shall include the fol-
lowing: 
(1) A description of how the State plan is 
aligned with, enhances, expands, or fills service gaps 
to the plan submitted by the State under section 
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102 or 103 of the Workforce Innovation and Oppor-
tunity Act 29 U.S.C. 3112, 313). 
(2) A State strategic vision, including — 
(A) a summary of the State’s goals— 
(i) for preparing an educated and 
skilled workforce for meeting the skilled 
workforce needs of employers (particularly 
in existing and emerging in-demand indus-
try sectors and occupations), an identifica-
tion of the median income for in-demand 
sectors and occupations, and how the State 
will work to ensure worker access to jobs 
and industries with higher median wages, 
opportunities for workers to share in the 
ownership or profits of their companies, 
and high quality work environments; 
(ii) for ensuring equitable access to 
quality jobs for all segments of the State’s 
population, and the plan for promoting 
quality career pathways that lead to high 
quality jobs for displaced or incumbent 
workers; and 
(iii) for offering retiring business own-
ers or business owners planning to close 
their businesses opportunities to plan that 
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transition in order to ensure the continuity 
of high quality jobs in the local economy; 
and 
(B) the primary strategies that will be 
used to achieve the State vision and goals, the 
proposed service delivery infrastructure, and the 
timeline for achieving such goals. 
(3) A description of the problems the State’s 
proposed activities aim to solve, and the reason for 
prioritizing selected problem areas. 
(4) A description of how the State will build ca-
pacity within the State’s public higher education sys-
tem (including 2-year and 4-year institutions) to 
support layoff aversion activities, including by dem-
onstrating how such system will be utilized and ex-
panded or enhanced to support new labor force 
needs. 
(5) A description of how the State will collabo-
rate with other relevant State and local government 
entities, non-profit entities, and other relevant 
groups identified by the State to carry out activities 
under section 103, including the roles and respon-
sibilities of each entity that will participate in the 
development, implementation, evaluation, and over-
sight of each component of the State plan. 
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(6) An employer engagement strategy that de-
scribes how employers will be targeted and recruited 
to participate, and any expectations for employer 
participation, such as cash or in-kind contributions, 
wage release time for employees, provision of on-site 
child care or financial support for child care, em-
ployee participation incentives, work-based learning 
opportunities, or loaned instructors. 
(7) A description of the data sources (commer-
cial or public) the State will use to identify growing, 
stable, and declining businesses and industry sectors 
or occupations. 
(8) A description of how the State will prioritize 
individuals with barriers to employment, people of 
color, youth, immigrants, justice impacted adults, 
and individuals experiencing pandemic-related job 
displacement. 
(9) A description of how the State will prioritize 
access to high-quality jobs by establishing the stand-
ards of job quality that an employer is required to 
meet as a condition of receiving funds under this 
title, which— 
(A) are consistent with the minimum 
standards established by the Interagency Task 
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Force under section 304, and a description of 
such standards; and 
(B) include a defined livable wage for the 
State or by subregion of the State. 
(10) Any other requirements as determined by 
the Secretary. 
SEC. 103. USES OF FUNDS. 
(a) IN GENERAL.—A State may use, or ensure that 
a local area uses, the funds awarded under this title for 
any of the following purposes: 
(1) Training and education opportunities. 
(2) Adult basic education. 
(3) Incumbent worker training. 
(4) Dislocated worker training. 
(5) On-the-job training. 
(6) Job seeking assistance. 
(7) Layoff aversion, in advance of the notice re-
quired under the Worker Adjustment and Retraining 
Notification Act (29 U.S.C. 2101 et seq.), which 
may include assisting employers with product diver-
sification, market expansion, and improving produc-
tivity. 
(8) Partnering with a community development 
financial institution or other similar entity to provide 
entrepreneurial development and coaching, low-inter-
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est loans with affordable loan terms, or other assist-
ance with starting up a new business or preserving 
a business in financial distress. 
(9) Developing career pathway opportunities 
(including through industry or sector partnerships) 
to in-demand high quality jobs in coordination with 
employers, 
community-based 
organizations, 
and 
State higher education systems, including the State 
registered apprenticeship system. 
(10) Related instruction for pre-apprenticeship, 
registered apprenticeship, or other work-based train-
ing in an occupational pathway. 
(11) Funding existing or establishing new State 
or nonprofit employee ownership resource centers or 
cooperative development centers that offer edu-
cational and technical assistance to retiring business 
owners, new entrepreneurs, or worker groups for the 
purpose of using broad-based employee share owner-
ship in the form of employee stock ownership plans, 
worker cooperatives, or employee ownership trusts, 
to allow worker groups to buy out retiring business 
owners. 
(12) Capital for revolving loan funds managed 
by State or non-profit entities that offer loans to 
allow worker groups to buy out retiring business 
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owners, worker groups, or entrepreneurs looking to 
save a declining firm through employee-ownership, 
or workers or using broad-based employee share 
ownership in the form of employee stock ownership 
plans, worker cooperatives, or employee ownership 
trusts. 
(13) Providing financial or other assistance to 
participants, which will not reduce unemployment 
benefits, or count towards income limits for other 
Federal or State means-tested programs. 
(b) LIMITATIONS.—No State or local area may use 
funds awarded under this title to— 
(1) recruit businesses, employees, or customers 
from another State; 
(2) assist employers that do not meet the 
standards of job quality under section 102(b)(9); or 
(3) assist proprietary institutions of higher edu-
cation (as defined in section 102(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1002(b)). 
SEC. 104. REPORTING REQUIREMENTS; NATIONAL REPOSI-
TORY. 
(a) REPORTING REQUIREMENTS.— 
(1) STATES.—Each State that receives a grant 
under this title shall submit to the Secretary an an-
nual report that, to the extent practicable integrates 
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