To amend the Workforce Investment Act of 1998 to create a pilot program to award grants to units of general local government and community-based organizations to create jobs, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jobs Now Act of 2011''.

SEC. 2. GRANTS TO UNITS OF GENERAL LOCAL GOVERNMENT.

    Subtitle D of title I of the Workforce Investment Act of 1998 (29 
U.S.C. 2911 et seq.) is amended by inserting after section 173A (29 
U.S.C. 2918a) the following:

``SEC. 173B. PILOT PROGRAM.

    ``(a) Program Authorized.--From the amounts appropriated under 
subsection (h), the Secretary shall carry out a 2-year pilot program to 
award grants, on a competitive basis, to units of general local 
government or community-based organizations to retain, employ, or train 
employees providing a public service for a unit of general local 
government.
    ``(b) Unit of General Local Government Defined.--For purposes of 
this section, the term `unit of general local government' means any 
general purpose political subdivision of a State, or the United States 
Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern 
Mariana Islands, the freely associated states of the Republic of the 
Marshall Islands, the Federated States of Micronesia, or the Republic 
of Palau, that has the power to levy taxes and spend funds, as well as 
general corporate and police powers.
    ``(c) Uses of Funds.--
            ``(1) Required uses.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                unit of general local government or community-based 
                organization shall use not less than 50 percent of the 
                grant funds received under this section to--
                            ``(i) in the case of a unit, retain 
                        employees of such unit who are providing a 
                        public service for the unit and who would 
                        otherwise be laid off as a consequence of 
                        budget cuts; and
                            ``(ii) in the case of an organization, 
                        retain employees of the organization who are 
                        providing a public service for the unit in 
                        which the organization is located and who would 
                        otherwise be laid off as a consequence of 
                        budget cuts.
                    ``(B) Exception.--In a case in which 50 percent of 
                a grant amount received under this section would exceed 
                the amount needed for a unit or organization to retain 
                the employees described in subparagraph (A), the unit 
                or organization may use only the amount needed to 
                retain such employees for such purpose.
            ``(2) Authorized uses.--After using grant funds received 
        under this section in accordance with paragraph (1), a unit of 
        general local government or community-based organization may 
        use any remaining grant funds provided under this section to--
                    ``(A) in the case of a unit of general local 
                government--
                            ``(i) employ individuals in new positions 
                        providing a public service for the unit; or
                            ``(ii) train individuals for new public 
                        service positions for the unit; and
                    ``(B) in the case of a community-based 
                organization--
                            ``(i) employ individuals in new positions 
                        that would provide a public service for the 
                        unit in which the organization is located or 
                        services in the private sector; or
                            ``(ii) train individuals for any such 
                        positions.
    ``(d) Priority for Certain Individuals.--The Secretary shall 
encourage each unit of general local government and each community-
based organization receiving a grant under this section to use such 
grant funds to retain, employ, or train--
            ``(1) veterans;
            ``(2) individuals with disabilities;
            ``(3) individuals who are receiving unemployment benefits; 
        or
            ``(4) dislocated workers.
    ``(e) Priority for Certain Units and Organizations.--
            ``(1) Units.--In awarding grants to units of general local 
        government under this section, the Secretary shall give 
        priority to units of general local government with high 
        unemployment, foreclosure, and poverty rates as compared to 
        other units of general local government applying to receive a 
        grant under this section.
            ``(2) Organizations.--In awarding grants to units of 
        general local government under this section, the Secretary 
        shall give priority to community-based organization located in 
        units of general local government with high unemployment, 
        foreclosure, and poverty rates as compared to other units of 
        general local government applying to receive a grant under this 
        section.
    ``(f) Application.--Each unit of general local government or 
community-based organization desiring to receive a grant under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
    ``(g) Report.--Not later than 2 years after the first appropriation 
of funds under subsection (h), the Secretary shall submit to Congress, 
a report on--
            ``(1) the number and percentage of individuals hired or 
        trained, and the number and percentage of employees of units 
        retained, as a result of a grant under this section; and
            ``(2) best practices in carrying out a grant program to 
        hire, train, or retain employees of units of general local 
        government.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated $1,000,000,000 to carry out this section for fiscal years 
2012 and 2013.''.

Summary: Jobs Now Act of 2011 - Amends the Workforce Investment Act of 1998 to direct the Secretary of Labor to carry out a two-year pilot program to award competitive grants to general local government units or community-based organizations to retain, employ, or train employees who provide them a public service.

Prescribes program requirements, including that: (1) each unit or organization grantee give priority to the retention, employment, and training of veterans, individuals with disabilities, individuals who receive unemployment benefits, or dislocated workers; and (2) the Secretary give priority to the award of grants to units and organizations with high unemployment, foreclosure, and poverty rates.