Education and Workforce Innovation Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Education and Workforce Innovation 
Act''.

SEC. 2. COMMUNITY WORKFORCE TRAINING GRANTS.

    (a) Program Authorized.--From the amounts appropriated to carry out 
this section, the Secretary of Education, in consultation with the 
Secretary of Labor and the advisory panel, shall carry out a 5-year 
pilot program 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 industries.
    (b) Application.--To receive a grant under this section, 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 subsection (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 advisory panel) upon 
                graduation from the program;
                    (D) a proven model of success, as determined by the 
                Secretary of Labor in consultation with the advisory 
                panel; and
                    (E) an opportunity for career advancement; and
            (2) cover costs related to developing and carrying 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 subsection 
                (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 program under this 
section, the Secretary of Education shall establish an advisory panel 
that is comprised of Federal education experts and private sector 
executives.
    (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 appropriated for each such fiscal year for the 
Workforce Innovation 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 entity'' means a 
        private company involved in the manufacturing, 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 Education Act of 1965 (20 U.S.C. 1058(f)).
            (3) Postsecondary vocational institution.--The term 
        ``postsecondary vocational institution'' 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 ``secondary school'' has 
        the meaning given the term in section 9101 of the Elementary 
        and Secondary Education 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 program for 5 years to raise funds from qualified 
investors to cover the cost of a workforce training program that 
increases trade certifications or apprenticeships for unemployed 
individuals or dislocated workers, and that meets the requirements of 
subsection (b).
    (b) Program Requirements.--The pay-for-performance pilot program 
carried out under subsection (a) shall require that--
            (1) the Secretaries and the advisory panel establish the 
        goals of increasing trade certifications or apprenticeships for 
        unemployed individuals or dislocated workers, and other social 
        and financial goals (such as reducing Federal, State, and local 
        expenditures related to workforce training) for the program;
            (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 selected 
                by the Secretaries, the advisory panel, and the 
                qualified investor to meet the goals established under 
                paragraph (1); and
                    (B) agrees to the repayment terms described in 
                paragraph (4);
            (3) the service provider uses such funds to carry out a 
        workforce training program for unemployed adults or dislocated 
        workers to meet such goals;
            (4) if the Secretaries and the advisory panel determine 
        that the workforce training program carried out by the service 
        provider meets the goals established 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 assess the 
        feasibility of expanding the pay-for-performance pilot program 
        on a larger scale.
    (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 selected by the Secretaries.
            (2) Dislocated worker; unemployed individual.--The terms 
        ``dislocated worker'' and ``unemployed 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 ``qualified investor'' 
        has the meaning given such term in section 230.501(a) of title 
        17, Code of Federal Regulations (or successor regulations).
            (4) Secretaries.--The term ``Secretaries'' means the 
        Secretaries of Education and the Treasury.
            (5) Service provider.--The term ``service provider'' means 
        a nonprofit organization that carries out a workforce training 
        program.

Summary: Education and Workforce Innovation Act - Directs the Secretary of Education to carry out a five-year pilot program 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 industries.  Defines an &quot;eligible entity&quot; as a private company involved in the manufacturing, production, or technology industries, in partnership with a junior or community college, postsecondary vocational institution, or secondary school. Authorizes such an entity to use such a grant to develop and carry out a multiyear program to provide students enrolled in such a college, institution, or school with education and training to enter and advance in such industries, by providing: (1) customized training, (2) increased productivity and knowledge transfer, (3) a stable and predictable pipeline to a high-standard of employment upon graduation, (4) a proven model of success, and (5) an opportunity for career advancement. Requires an eligible entity that is awarded a grant to provide matching funds from non-federal sources. Directs the Secretaries of Education and the Treasury to administer a five-year pilot program under which qualified investors enter into a pay-for-performance agreement under which they will provide funds to service providers to carry out workforce training programs that increase trade certifications or apprenticeships for unemployed individuals or dislocated workers.