I 
113TH CONGRESS 
2D SESSION 
H. R. 5567 
To carry out pilot programs to improve skills and job training, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2014 
Mr. CARNEY introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To carry out pilot programs to improve skills and job 
training, 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 ‘‘Education and Work-
force Innovation Act’’. 
SEC. 2. COMMUNITY WORKFORCE TRAINING GRANTS. 
(a) PROGRAM AUTHORIZED.—From the amounts ap-
propriated to carry out this section, the Secretary of Edu-
cation, in consultation with the Secretary of Labor and 
the advisory panel, shall carry out a 5-year pilot program 
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to award grants to eligible entities to carry out programs 
that provide direct skills and job training for individuals 
to enter and advance in high-growth, emerging, and in- 
demand industries, such as skilled labor and trade indus-
tries. 
(b) APPLICATION.—To receive a grant under this sec-
tion, an eligible entity shall submit an application, at such 
time, in such manner, and containing such information as 
the Secretary of Education may require. 
(c) USES OF FUNDS.—An eligible entity that receives 
a grant under this section shall use such grant to— 
(1) develop and carry out a multiyear program 
to provide students enrolled in a school or institution 
described in subparagraphs (A) through (C) of sub-
section (g)(1) with education and training to prepare 
such students to enter and advance in high-growth, 
emerging, or in-demand industries by providing— 
(A) customized training that is valuable to 
such industries; 
(B) increased productivity and knowledge 
transfer; 
(C) a stable and predictable pipeline to a 
high-standard of employment (as determined by 
the Secretary of Labor in consultation with the 
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advisory panel) upon graduation from the pro-
gram; 
(D) a proven model of success, as deter-
mined by the Secretary of Labor in consultation 
with the advisory panel; and 
(E) an opportunity for career advance-
ment; and 
(2) cover costs related to developing and car-
rying out the program, which may include— 
(A) covering overhead costs; 
(B) improving program design; 
(C) expanding access to the program; or 
(D) providing tuition subsidies for students 
enrolled, or desiring to enroll, in an institution 
described in subparagraph (A) or (B) of sub-
section (g)(1), if applicable, to participate in 
such program. 
(d) MATCHING FUNDS.—An eligible entity that is 
awarded a grant under this section shall provide matching 
funds from non-Federal sources in an amount equal to not 
less than the Federal funds provided under the grant. 
(e) ADVISORY PANEL.—In carrying out the pilot pro-
gram under this section, the Secretary of Education shall 
establish an advisory panel that is comprised of Federal 
education experts and private sector executives. 
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(f) AVAILABILITY
OF FUNDING.—For fiscal year 
2016 and each of the 4 succeeding fiscal years, not less 
than $50,000,000 shall be available from the amount ap-
propriated for each such fiscal year for the Workforce In-
novation Fund of the Department of Labor for the costs 
of carrying out this section. 
(g) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a private company involved in the manu-
facturing, production, or technology industries, in 
partnership with a— 
(A) junior or community college; 
(B) postsecondary vocational institution; or 
(C) secondary school. 
(2) JUNIOR
OR
COMMUNITY
COLLEGE.—The 
term ‘‘junior or community college’’ has the meaning 
given the term in section 312(f) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1058(f)). 
(3) POSTSECONDARY
VOCATIONAL
INSTITU-
TION.—The term ‘‘postsecondary vocational institu-
tion’’ has the meaning given the term in section 
102(c) of the Higher Education Act of 1965 (20 
U.S.C. 1002(c)). 
(4) SECONDARY
SCHOOL.—The term ‘‘sec-
ondary school’’ has the meaning given the term in 
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section 9101 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7801). 
(5) SKILLED LABOR AND TRADE INDUSTRIES.— 
The term ‘‘skilled labor and trade industries’’ shall 
be defined by the Secretary of Labor. 
SEC. 3. FINANCING A SKILLED 21ST CENTURY WORKFORCE 
GOAL. 
(a) PROGRAM AUTHORIZED.—The Secretaries of 
Education and the Treasury, jointly with the advisory 
panel, shall administer a pay-for-performance pilot pro-
gram for 5 years to raise funds from qualified investors 
to cover the cost of a workforce training program that in-
creases trade certifications or apprenticeships for unem-
ployed individuals or dislocated workers, and that meets 
the requirements of subsection (b). 
(b) PROGRAM
REQUIREMENTS.—The pay-for-per-
formance pilot program carried out under subsection (a) 
shall require that— 
(1) the Secretaries and the advisory panel es-
tablish the goals of increasing trade certifications or 
apprenticeships for unemployed individuals or dis-
located workers, and other social and financial goals 
(such as reducing Federal, State, and local expendi-
tures related to workforce training) for the program; 
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(2) a qualified investor enters into a pay-for- 
performance agreement with the Secretaries under 
which the qualified investor— 
(A) provides funds to a service provider se-
lected by the Secretaries, the advisory panel, 
and the qualified investor to meet the goals es-
tablished under paragraph (1); and 
(B) agrees to the repayment terms de-
scribed in paragraph (4); 
(3) the service provider uses such funds to 
carry out a workforce training program for unem-
ployed adults or dislocated workers to meet such 
goals; 
(4) if the Secretaries and the advisory panel de-
termine that the workforce training program carried 
out by the service provider meets the goals estab-
lished under paragraph (1), the Secretaries will 
repay the qualified investor the amount of funds 
provided by the qualified investor under paragraph 
(2) with financial returns; and 
(5) the Secretaries and the advisory panel as-
sess the feasibility of expanding the pay-for-perform-
ance pilot program on a larger scale. 
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(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $75,000,000 for fiscal 
year 2016 to carry out this section. 
(d) DEFINITIONS.—In this Act: 
(1) ADVISORY
PANEL.—The term ‘‘advisory 
panel’’ means a panel of business representatives se-
lected by the Secretaries. 
(2) DISLOCATED WORKER; UNEMPLOYED INDI-
VIDUAL.—The terms ‘‘dislocated worker’’ and ‘‘un-
employed individual’’ have the meanings given the 
terms in section 3 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102). 
(3) QUALIFIED INVESTOR.—The term ‘‘quali-
fied investor’’ has the meaning given such term in 
section 230.501(a) of title 17, Code of Federal Reg-
ulations (or successor regulations). 
(4) SECRETARIES.—The term ‘‘Secretaries’’ 
means the Secretaries of Education and the Treas-
ury. 
(5) SERVICE
PROVIDER.—The term ‘‘service 
provider’’ means a nonprofit organization that car-
ries out a workforce training program. 
Æ 
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