21st Century Workforce Partnerships Act
Bill: S.1626 | Sponsor: Sen. Smith, Tina (D-MN)
Policy area: Education

Summary:
21st Century Workforce Partnerships Act
This bill requires the Department of Education (ED) to establish grant programs for educational or career training programs for students.
First, ED must establish a career pathways innovation grant program. Under the program, ED must award grants to address the specialized skill needs of business and industry by carrying out programs that support career pathways in high school or career exploration in the middle grades.
Second, ED must award grants for partnerships—between certain educational entities and employers—that provide educational or career training programs leading to recognized postsecondary credentials.

To award career pathways innovation grants to local educational 
   agencies and consortia of local educational agencies, to provide 
technical assistance within the Office of Career, Technical, and Adult 
 Education to administer the grants and support the local educational 
 agencies with the preparation of grant applications and management of 
   grant funds, to amend the Higher Education Act of 1965 to support 
  community college and industry partnerships, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``21st Century Workforce Partnerships 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) ESEA definitions.--The terms ``elementary school'', 
        ``high school'', ``local educational agency'', ``middle 
        grades'', and ``secondary school'' have the meanings given the 
        terms in section 8101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7801).
            (2) Business or industry partner.--The term ``business or 
        industry partner'' means--
                    (A) a business;
                    (B) an industry or sector partnership, as defined 
                in section 3 of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3102);
                    (C) an association of multiple businesses or other 
                employers in an in-demand industry sector or 
                occupation, as defined in section 3 of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 3102);
                    (D) a community partner;
                    (E) an intermediary organization; or
                    (F) a labor management training partnership.
            (3) Career pathway.--The term ``career pathway'' has the 
        meaning given the term in section 3 of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3102).
            (4) Community partner.--The term ``community partner'' 
        means a nonprofit organization or a State, local, or tribal 
        government entity that has expertise--
                    (A) in the planning and delivery of education, 
                career training, and related programs;
                    (B) in forging coordination and cooperation between 
                educators and other members of the community;
                    (C) in training educators and other deliverers of 
                educational services;
                    (D) in development and implementation of data 
                systems that measure the progress of students, schools, 
                and institutions of higher education, or career 
                pathways programs; or
                    (E) in delivering an increase in earnings, family 
                incomes, or family resources.
            (5) Eligible agency.--The term ``eligible agency'' means--
                    (A) a local educational agency;
                    (B) a consortium of local educational agencies or 
                an agent operating on behalf of the consortium; or
                    (C) a school operated or funded by the Bureau of 
                Indian Education.
            (6) Indian.--The term ``Indian'' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304).
            (7) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (8) Intermediary organization.--The term ``intermediary 
        organization'' means a nonprofit organization that has 
        expertise in training, forging public-private partnerships, 
        systems development, capacity-building, improving scalability, 
        and evaluation.
            (9) Labor management training partnership.--The term 
        ``labor management training partnership'' means an independent 
        organization jointly controlled by employers and unions that 
        supports workforce training and development.
            (10) Native hawaiian.--The term ``Native Hawaiian'' has the 
        meaning given the term in section 6207 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7517).
            (11) Program of study.--The term ``program of study'' means 
        a State approved career and technical education program of 
        courses that articulates between secondary and postsecondary 
        school.
            (12) Registered apprenticeship program.--The term 
        ``registered apprenticeship program'' means a program 
        registered under the Act of August 16, 1937 (commonly known as 
        the ``National Apprenticeship Act''; 50 Stat. 664, chapter 663; 
        29 U.S.C. 50 et seq.).
            (13) School partnership.--The term ``school partnership'' 
        means a partnership that--
                    (A) shall include, at a minimum--
                            (i) an eligible agency; and
                            (ii) one or more business or industry 
                        partners; and
                    (B) may also include one or more of the following 
                partners:
                            (i) A community-based organization.
                            (ii) A joint labor-management partnership.
                            (iii) An institution of higher education.
                            (iv) A State board or local board (as such 
                        terms are defined in section 3 of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3102)).
                            (v) An apprenticeship college that--
                                    (I) is not eligible to receive 
                                funds under title IV of the Higher 
                                Education Act of 1965 (20 U.S.C. 1070 
                                et seq.);
                                    (II) is an institution that 
                                provides instruction related to a 
                                registered apprenticeship program or is 
                                a sponsor of a registered 
                                apprenticeship program; and
                                    (III) meets the requirements of 
                                subsection (a) or (b) of section 101 of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1001).
                            (vi) Any other entity that the Secretary, 
                        after consultation with the Secretary of Labor, 
                        considers appropriate.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.

SEC. 3. SECONDARY SCHOOL TO CAREER PATHWAYS INNOVATION GRANT PROGRAM.

    (a) Career Pathways Innovation Grant Program Established.--
            (1) In general.--From amounts made available to carry out 
        this section, the Secretary, after consultation with the 
        Secretary of Labor, shall establish a career pathways 
        innovation grant program, through which the Secretary shall 
        award grants, on a competitive basis, to eligible agencies for 
        the purpose of addressing the specialized skill needs of 
        business and industry by carrying out programs of study or 
        career pathways programs, featuring school partnerships, that 
        support career pathways in high school or career exploration in 
        the middle grades, leading to higher subsequent employment and 
        job quality.
            (2) Duration.--A grant awarded under this section--
                    (A) shall be for a period of 3 years; and
                    (B) may be renewed for one additional 2-year 
                period, if the eligible agency demonstrates sufficient 
                progress in achieving the goals of the initial grant.
    (b) Application.--
            (1) In general.--An eligible agency desiring a grant under 
        this section shall submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require.
            (2) Contents; partnership agreement.--The application 
        submitted under paragraph (1) shall include--
                    (A) an initial partnership agreement, entered into 
                by the eligible agency and all members of the school 
                partnership, that--
                            (i) specifies the duties and 
                        responsibilities of each partner;
                            (ii) describes the commitment of resources 
                        or materials to be provided by each partner 
                        toward the school partnership, ensuring that 
                        the business or industry partners in the school 
                        partnership provide an amount of resources, in 
                        cash or in-kind, toward the activities 
                        supported under the grant that equals or 
                        exceeds the amount contributed by the eligible 
                        agency and the amount to be provided by the 
                        grant under this section; and
                            (iii) describes how the overall goals of 
                        the school partnership align with any 
                        statewide, regional, or local workforce 
                        development strategies in existence at the time 
                        of the application, including those established 
                        under the Workforce Innovation and Opportunity 
                        Act (29 U.S.C. 3101 et seq.) or the Carl D. 
                        Perkins Career and Technical Education Act of 
                        2006 (20 U.S.C. 2301 et seq.);
                    (B) a description of how the eligible agency and 
                members of the school partnership will collaborate to 
                ensure the quality of the career pathways program 
                offered under the grant, including any program that 
                leads to an industry-recognized credential or 
                postsecondary credit leading to a degree or 
                certification in a career pathway;
                    (C) identification of the goals and measures used 
                to define progress toward student outcomes, which may 
                align with existing goals and measurement provided 
                under the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 6301 et seq.), the Carl D. Perkins 
                Career and Technical Education Act of 2006 (20 U.S.C. 
                2301 et seq.), and the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3101 et seq.); and
                    (D) a strategic plan describing the role and 
                activities of the eligible agency and all members of 
                the school partnership in supporting how the program 
                will be sustained following the end of the grant.
            (3) Methods that measure job quality.--The application 
        submitted under paragraph (1) may include a description of how 
        the school partnership will experiment with methods that 
        measure job quality.
    (c) Award Basis.--In awarding grants under this section, the 
Secretary shall--
            (1) ensure that, to the extent practicable based on the 
        applications received under subsection (b)--
                    (A) not less than 15 percent of the grant funds 
                available to carry out this section are awarded to 
                rural eligible agencies; and
                    (B) not less than 5 percent of the grant funds 
                available to carry out this section are awarded to 
                eligible agencies that serve a substantial percentage 
                of Indian or Native Hawaiian children; and
            (2) except to the extent necessary to comply with paragraph 
        (1), give priority to--
                    (A) any eligible agency whose school partnership 
                includes an institution of higher education offering 
                postsecondary credits, or an entity offering a 
                registered apprenticeship program that is articulated 
                through secondary school programming counting towards 
                the registered apprenticeship requirements, through the 
                career pathways program under the grant;
                    (B) any eligible agency whose career pathways 
                program--
                            (i) in a high school, offers concurrent 
                        enrollment opportunities for postsecondary 
                        credit; or
                            (ii) leads to a recognized postsecondary 
                        credential, as defined in section 3 of the 
                        Workforce Innovation and Opportunity Act (29 
                        U.S.C. 3102); and
                    (C) any eligible agency whose career pathways 
                programs are focused on serving low-income students 
                (defined as eligible for benefits under the free and 
                reduced price school lunch program established under 
                the Richard B. Russell National School Lunch Act (42 
                U.S.C. 1751 et seq.)), out-of-school youth, students 
                with disabilities, students experiencing homelessness, 
                students who are English language learners, students 
                who have low levels of literacy, or youth who are in or 
                have aged out of the foster care system.
    (d) Use of Funds.--
            (1) Required use of funds.--An eligible agency receiving 
        grant funds under this section shall use grant funds to build 
        or expand a career pathways program featuring school 
        partnerships that supports career pathways in high school or 
        career exploration in the middle grades.
            (2) Permissive use of funds.--An eligible agency receiving 
        grant funds under this section may use grant funds either 
        during or outside of the school day or school year--
                    (A) to hire a designated career pathways 
                partnership coordinator to seek out and build 
                relationships with business or industry partners to 
                foster and manage the school partnerships supported 
                under the grant;
                    (B) for the costs of new equipment, infrastructure 
                (such as facilities, technology, and staffing), or 
                transportation related to the career pathways program;
                    (C) to recruit, or assist with State licensure and 
                credential requirements, career and technical education 
                teachers, and others implementing career pathways 
                programs;
                    (D) to train or support the professional 
                development of career and technical education teachers, 
                and others implementing career pathways programs, 
                including providing externship opportunities for 
                educators to spend time in industry;
                    (E) for youth apprenticeship, pre-apprenticeship 
                training, internship, or experiential learning 
                opportunities;
                    (F) to provide, as part of the career pathways 
                program, coursework that awards postsecondary credit at 
                no cost to high school students;
                    (G) to support development of curricula that offer 
                industry-recognized credentials; and
                    (H) to experiment with methods that measure job 
                quality.
    (e) Requirements.--
            (1) Matching funds.--An eligible agency that receives a 
        grant under this section shall provide, toward the cost of the 
        activities assisted under the grant and from non-Federal 
        sources, an amount equal to or greater than the amount of the 
        grant. Such matching amount may be in cash or in-kind 
        (including leveraged staff time) and shall include support from 
        business or industry partners of a school partnership in 
        accordance with the partnership agreement described in 
        subsection (b)(2).
            (2) Participation of business or industry partner.--In any 
        case where a business or industry partner included in an 
        initial partnership agreement described in subsection (b)(2)(A) 
        withdraws from a school partnership supported under a grant 
        under this section, the eligible agency shall notify the 
        Secretary immediately of the withdrawal and of the eligible 
        agency's plan for obtaining a comparable business or industry 
        partner.
    (f) Reports.--
            (1) Eligible agency reports.--
                    (A) Interim reports.--By not later than 18 months 
                after receiving a grant under this section, the 
                eligible agency shall submit a report to the Secretary 
                demonstrating that the eligible agency is achieving 
                sufficient progress toward the goals of the grant.
                    (B) Final reports.--Each eligible agency receiving 
                a grant under this section shall prepare and submit to 
                the Secretary a final report regarding the use of funds 
                for the grant, including the outcomes of the activities 
                assisted under the grant, by not later than 90 days 
                after the end of the grant period.
            (2) Secretary reports.--The Secretary shall prepare and 
        submit to Congress, on an annual basis, a report regarding the 
        grant program under this section that includes a summary of the 
        reports received under paragraph (1) during the preceding year 
        and the outcomes resulting from the use of grant funds.

SEC. 4. CAREER PATHWAYS TECHNICAL ASSISTANCE.

    (a) In General.--The Secretary, acting through the Assistant 
Secretary of Career, Technical, and Adult Education, shall--
            (1) administer and manage the career pathways innovation 
        grants awarded under section 3;
            (2) provide technical assistance to eligible agencies 
        preparing grant applications under section 3(b); and
            (3) support career pathways partnership coordinators, or 
        other personnel of eligible agencies that have received a grant 
        under section 3, in order to ensure that--
                    (A) the eligible agency participates in the 
                required school partnership; and
                    (B) the grant results in positive program outcomes.
    (b) Designated Personnel for Rural and Native-Serving 
Applications.--The Secretary shall designate not less than 1 employee 
of the Office of Career, Technical, and Adult Education who will 
exclusively support rural and native-serving eligible agencies with the 
preparation of grant applications under section 3(b) and the 
development of school partnerships necessary to apply for and implement 
a grant under section 3.

SEC. 5. COLLEGE TO CAREER PATHWAYS INNOVATION GRANT PROGRAM.

    Title III of the Higher Education Act of 1965 (20 U.S.C. 1051 et 
seq.) is amended by adding at the end the following:

     ``PART H--COLLEGE TO CAREER PATHWAYS INNOVATION GRANT PROGRAM

``SEC. 399A. COLLEGE AND INDUSTRY PARTNERSHIPS PROGRAM.

    ``(a) Grants Authorized.--Not later than the end of the first full 
fiscal year after the date of enactment of the 21st Century Workforce 
Partnerships Act, from funds appropriated under section 399B, the 
Secretary (in coordination with the Secretary of Labor) shall award 
competitive grants to eligible entities described in subsection (b) for 
the purpose of developing, offering, improving, and providing 
educational or career training programs for students, including working 
students. The grants shall be awarded for periods of 3 years and may be 
renewed for 1 additional 2-year period, if the eligible entity 
demonstrates sufficient progress in achieving the goals of the initial 
grant period.
    ``(b) Eligible Entity.--
            ``(1) Partnerships with employers or an employer or 
        industry partnership.--
                    ``(A) General definition.--For purposes of this 
                section, an `eligible entity' means any of the entities 
                described in subparagraph (B) (or a consortium of any 
                of such entities) in partnership with employers or an 
                employer or industry partnership representing multiple 
                employers.
                    ``(B) Description of entities.--The entities 
                described in this subparagraph are--
                            ``(i) a community college;
                            ``(ii) a 4-year public institution of 
                        higher education (as defined in section 101(a)) 
                        that offers 2-year degrees, and that will use 
                        funds provided under this section for 
                        activities at the certificate and associate 
                        degree levels;
                            ``(iii) a Tribal College or University (as 
                        defined in section 316(b));
                            ``(iv) an apprenticeship college (as 
                        defined as an institution partnership that is 
                        registered under the Act of August 16, 1937 
                        (commonly known as the `National Apprenticeship 
                        Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 
                        et seq.) and is an institution of higher 
                        education (as defined in section 101(a))); or
                            ``(v) a public or private nonprofit, 2-year 
                        institution of higher education (as defined in 
                        section 102) in the Commonwealth of Puerto 
                        Rico, Guam, the United States Virgin Islands, 
                        American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, the Republic of the 
                        Marshall Islands, the Federated States of 
                        Micronesia, or the Republic of Palau.
            ``(2) Additional partners.--
                    ``(A) Authorization of additional partners.--In 
                addition to partnering with employers or an employer or 
                industry partnership representing multiple employers as 
                described in paragraph (1)(A), an entity described in 
                paragraph (1) may include in the partnership described 
                in paragraph (1) one or more of the organizations 
                described in subparagraph (B). Each eligible entity 
                that includes one or more such organizations shall 
                collaborate with the State board or local board in the 
                area served by the eligible entity.
                    ``(B) Organizations.--The organizations described 
                in this subparagraph are as follows:
                            ``(i) A provider of adult education (as 
                        defined in section 203 of the Adult Education 
                        and Family Literacy Act (29 U.S.C. 3272)) or an 
                        institution of higher education (as defined in 
                        section 101).
                            ``(ii) A community-based organization.
                            ``(iii) A joint labor-management 
                        partnership.
                            ``(iv) A State board or local board.
                            ``(v) A State higher education board.
                            ``(vi) An elementary school or secondary 
                        school, as defined in section 8101 of the 
                        Elementary and Secondary Education Act of 1965.
                            ``(vii) Any other organization that the 
                        Secretaries consider appropriate.
    ``(c) Educational or Career Training Program.--For purposes of this 
section, the Governor of the State in which at least one of the 
entities described in subsection (b)(1)(B) of an eligible entity is 
located shall establish criteria for an educational or career training 
program leading to a recognized postsecondary credential that leads to 
higher subsequent employment and job quality for which an eligible 
entity submits a grant proposal under subsection (d).
    ``(d) Application.--An eligible entity seeking a grant under this 
section shall submit an application containing a grant proposal, for an 
educational or career training program leading to a recognized 
postsecondary credential, to the Secretaries at such time and 
containing such information as the Secretaries determine is required, 
including--
            ``(1) a detailed description of--
                    ``(A) the extent to which the educational or career 
                training program described in the grant proposal aligns 
                with--
                            ``(i) an overall strategic plan developed 
                        by the eligible entity or entities;
                            ``(ii) a statewide, regional, or local 
                        workforce development plan in existence at the 
                        time of the application, including a plan 
                        established under the Workforce Innovation and 
                        Opportunity Act (29 U.S.C. 3101 et seq.) or the 
                        Carl D. Perkins Career and Technical Education 
                        Act of 2006 (20 U.S.C. 2301 et seq.);
                            ``(iii) in-demand industry sectors or 
                        occupations, as defined by the State or 
                        designated governing board, as appropriate, or 
                        postsecondary credit leading to a degree or 
                        certification in a career pathway; and
                            ``(iv) goals and measurement used to define 
                        progress toward student outcomes in existence 
                        on the date of submission, which may align with 
                        the Carl D. Perkins Career and Technical 
                        Education Act of 2006 (20 U.S.C. 2301 et seq.), 
                        and the Workforce Innovation and Opportunity 
                        Act (29 U.S.C. 3101 et seq.);
                    ``(B) the extent to which the program will meet the 
                needs of employers in the area for skilled workers in 
                in-demand industry sectors or occupations;
                    ``(C) the extent to which the program will meet the 
                educational or career training needs of students in the 
                area;
                    ``(D) the specific educational or career training 
                program and how the program meets the criteria 
                established under subsection (e), including the manner 
                in which the grant will be used to develop, offer, 
                improve, and provide the educational or career training 
                program;
                    ``(E) any previous experience of the eligible 
                entity in providing educational or career training 
                programs, the absence of which shall not automatically 
                disqualify an eligible institution from receiving a 
                grant under this section;
                    ``(F) how the program leading to the credential 
                meets the criteria described in subsection (c); and
                    ``(G) how attaining the credential will help 
                participants reach higher subsequent employment and job 
                quality; and
            ``(2) a detailed plan on how the entity will ensure that 
        the program will meet the performance measures described in 
        subsection (g), and an assurance that the entity will annually 
        submit to the Secretary information on the performance of the 
        program on the performance measures described in subsection 
        (g).
    ``(e) Criteria for Award.--
            ``(1) In general.--Grants under this section shall be 
        awarded based on criteria established by the Secretaries, that 
        include the following:
                    ``(A) A determination of the merits of the grant 
                proposal submitted by the eligible entity involved to 
                develop, offer, improve, and provide an educational or 
                career training program to be made available to 
                students.
                    ``(B) An assessment of the likely employment 
                opportunities available in the area to individuals who 
                complete an educational or career training program that 
                the eligible entity proposes to develop, offer, 
                improve, and provide.
                    ``(C) An assessment of prior demand for training 
                programs by individuals eligible for training and 
                served by the eligible entity, as well as availability 
                and capacity of existing (as of the date of the 
                assessment) training programs to meet future demand for 
                training programs.
            ``(2) Priority.--In awarding grants under this section, the 
        Secretaries shall give priority to eligible entities that--
                    ``(A) include a partnership, with employers or an 
                employer or industry partnership, that--
                            ``(i) pays a portion of the costs of 
                        educational or career training programs;
                            ``(ii) agrees to hire individuals who have 
                        attained a recognized postsecondary credential 
                        resulting from the educational or career 
                        training program of the eligible entity; or
                            ``(iii) include an educational entity that 
                        has sought and received bonding authority to 
                        fund partnerships program;
                    ``(B) enter into a partnership with a labor 
                organization or labor-management training program to 
                provide, through the program, technical expertise for 
                occupationally specific education necessary for a 
                recognized postsecondary credential leading to a 
                skilled occupation in an in-demand industry sector or 
                occupation;
                    ``(C) are focused on serving individuals with 
                barriers to employment, students who are veterans, 
                spouses of members of the Armed Forces, individuals who 
                are basic-skills deficient, and first-generation 
                college students;
                    ``(D) include any eligible entities serving areas 
                with high unemployment rates;
                    ``(E) are eligible entities that include an 
                institution of higher education eligible for assistance 
                under this title or title V; and
                    ``(F) ensure geographic diversity, including 
                appropriate representation of rural areas.
    ``(f) Use of Funds.--Grant funds awarded under this section shall 
be used for one or more of the following:
            ``(1) The development, offering, improvement, and provision 
        of educational or career training programs, that provide 
        relevant job training for skilled occupations, that lead to 
        recognized postsecondary credentials, that will meet the needs 
        of employers in in-demand industry sectors or occupations, and 
        that may include registered apprenticeship programs, on-the-job 
        training programs, and programs that support employers in 
        upgrading the skills of their workforce.
            ``(2) The development and implementation of policies and 
        programs to expand opportunities for students to earn a 
        recognized postsecondary credential, including a degree, in in-
        demand industry sectors or occupations, including by--
                    ``(A) facilitating the transfer of academic credits 
                between institutions of higher education, including the 
                transfer of academic credits for courses in the same 
                field of study;
                    ``(B) expanding access to college-level, 
                transferable coursework, which may include coordination 
                related to transfers of credit between institutions or 
                common course numbering or use of a general core 
                curriculum;
                    ``(C) developing or enhancing student support 
                services programs; and
                    ``(D) establishing policies and processes for 
                assessing and awarding course credit for work-related 
                learning.
            ``(3) The creation of career pathways programs that provide 
        a sequence of education and occupational training that leads to 
        a recognized postsecondary credential, including a degree, 
        including programs that--
                    ``(A) blend basic skills and occupational training;
                    ``(B) facilitate means of transitioning 
                participants from non-credit occupational, basic 
                skills, or developmental coursework to for-credit 
                coursework within and across institutions;
                    ``(C) build or enhance linkages, including the 
                development of dual enrollment programs and early 
                college high schools, between secondary education or 
                adult education programs (including programs 
                established under the Carl D. Perkins Career and 
                Technical Education Act of 2006 (20 U.S.C. 2301 et 
                seq.) and title II of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3271 et seq.));
                    ``(D) are innovative programs designed to increase 
                the provision of training for students, including 
                students who are members of the National Guard or 
                Reserves, to enter skilled occupations in in-demand 
                industry sectors or occupations;
                    ``(E) support paid internships that will allow 
                students to simultaneously earn credit for work-based 
                learning and gain relevant employment experience in an 
                in-demand industry sector or occupation, which shall 
                include opportunities that transition individuals into 
                employment; and
                    ``(F) develop competency-based education programs 
                that offer an outcome-oriented approach through which 
                recognized postsecondary credentials are awarded based 
                on successful demonstration of skills and proficiency.
            ``(4) The development and implementation of--
                    ``(A) a Pay-for-Performance program that leads to a 
                recognized postsecondary credential, for which an 
                eligible entity agrees to be reimbursed under the grant 
                primarily on the basis of achievement of specified 
                performance outcomes and criteria agreed to by the 
                Secretary; or
                    ``(B) a Pay-for-Success program that leads to a 
                recognized postsecondary credential, for which an 
                eligible entity--
                            ``(i) enters into a partnership with an 
                        investor, such as a philanthropic organization 
                        that provides funding for a specific project to 
                        address a clear and measurable educational or 
                        career training need in the area to be served 
                        under the grant; and
                            ``(ii) agrees to be reimbursed under the 
                        grant only if the project achieves specified 
                        performance outcomes and criteria agreed to by 
                        the Secretary.
            ``(5) The development of a multiple measures of job quality 
        dashboard that experiments with different metrics to measure 
        job quality.
    ``(g) Performance Measures.--
            ``(1) In general.--The Secretary shall establish 
        performance measures for the programs carried out under this 
        section.
            ``(2)  Measures.--The performance measures shall consist 
        of--
                    ``(A) indicators of performance, including the 
                number of program participants who are in unsubsidized 
                employment during the second quarter after exit from 
                the program;
                    ``(B) a level of performance for each indicator 
                described in subparagraph (A); and
                    ``(C) analysis of the income of program 
                participants during the second quarter after exit from 
                the program compared to the distribution of earnings 
                across the workforce in the State and the region during 
                that same time period.
            ``(3) Monitoring progress.--The Secretary shall monitor the 
        progress of eligible entities that receive grants under this 
        section in ensuring that their programs meet the performance 
        measures.

``SEC. 399B. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated such 
sums as may be necessary to carry out the program established by 
section 399A. Funds appropriated under this subsection shall remain 
available until the end of the 5th full fiscal year after the date of 
enactment of the 21st Century Workforce Partnerships Act.
    ``(b) Administrative Cost.--Not more than 5 percent of the amounts 
made available under subsection (a) may be used by the Secretaries for 
Federal administration the program described in that subsection, 
including providing technical assistance and carrying out evaluations 
for the program described in that subsection.
    ``(c) Period of Availability.--The funds appropriated pursuant to 
subsection (a) for a fiscal year shall be available for Federal 
obligation for that fiscal year and the succeeding 4 fiscal years.

``SEC. 399C. DEFINITIONS.

    ``In this part:
            ``(1) In general.--The terms `basic skills deficient', `in-
        demand industry sector or occupation', `individual with a 
        barrier to employment', `local board', `recognized 
        postsecondary credential', and `State board' have the meanings 
        given the terms in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            ``(2) Community college.--The term `community college' has 
        the meaning given the term `junior or community college' in 
        section 312(f).
            ``(3) Educational or career training program.--The term 
        `educational or career training program' means--
                    ``(A) a career pathways program, as defined in 
                section 3 of the Workforce Innovation and Opportunity 
                Act (29 U.S.C. 3102); or
                    ``(B) a program with an integrated education and 
                training approach, as defined in section 203 of the 
                Adult Education and Family Literacy Act (29 U.S.C. 
                3272).''.
                                 <all>