American Workforce Act
Bill: S.4810 | Sponsor: Sen. Cotton, Tom (R-AR)
Policy area: Labor and Employment

Summary:
American Workforce Act
This bill establishes the American workforce program to provide subsidies to employers who enter contracts to provide on-the-job training to individuals with a high school diploma (or equivalent). The total subsidy per contract may not exceed $9,000.

To establish a program of workforce development as an alternative to 
                college for all, 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 ``American Workforce Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) American workforce contract.--The term ``American 
        workforce contract'' means a contract approved by the Director, 
        and entered into by an employer and a prospective trainee under 
        section 4(b)(6).
            (2) American workforce program.--The term ``American 
        workforce program'' means a program established under section 
        4(a) that provides, for each participating trainee, a paid, 
        full-time position in which the trainee is engaged in--
                    (A) structured on-the-job work, as specified by the 
                American workforce contract involved; and
                    (B) educational workforce training described in 
                section 4(f), as specified by the American workforce 
                contract.
            (3) Competency-based credential.--The term ``competency-
        based credential'' means a credential awarded on the basis of a 
        performance-based test that--
                    (A) is taken to demonstrate proficiency in 
                knowledge and abilities essential to the industry or 
                occupation; and
                    (B) does not place restrictions on how, when, or 
                where the test taker studied and acquired the knowledge 
                and abilities.
            (4) Director.--The term ``Director'' means the Director of 
        the American Workforce Division, appointed under section 3(b).
            (5) Employer.--The term ``employer'' means a for-profit 
        employer, as defined in section 3 of the Fair Labor Standards 
        Act of 1938 (29 U.S.C. 203), other than a public agency, as 
        defined in that section.
            (6) Prospective trainee.--The term ``prospective trainee'' 
        means an individual who--
                    (A) applies to an employer to enter into an 
                American workforce contract; and
                    (B) on the date of application, meets the 
                requirements of paragraph (8)(A).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (8) Trainee.--The term ``trainee'' means any individual 
        who--
                    (A) on the date of application to an employer to 
                enter into an American workforce contract--
                            (i) is a United States citizen;
                            (ii) has a high school diploma or its 
                        generally recognized equivalent; and
                            (iii) has not earned a bachelor's or higher 
                        degree, such as a master's or doctoral degree; 
                        and
                    (B) entered into an American workforce contract, 
                which is still in effect, with the employer.
            (9) Workforce project.--The term ``workforce project'' 
        means a project carried out under an American workforce 
        contract as part of the American workforce program.

SEC. 3. ESTABLISHMENT OF AMERICAN WORKFORCE DIVISION.

    (a) Establishment.--There is established in the Economic 
Development Administration of the Department of Commerce an American 
Workforce Division that administers, subject to the availability of 
appropriations, the American workforce program established under 
section 4(a).
    (b) Director.--
            (1) In general.--The American Workforce Division shall be 
        headed and administered, in accordance with the provisions of 
        this Act, by a Director. The Director shall be appointed by the 
        President, by and with the advice and consent of the Senate. 
        The Director shall report directly to the Secretary and shall 
        perform, in addition to any functions specified in law for or 
        required to be delegated to such officer, such additional 
        functions as the Secretary may prescribe.
            (2) Qualifications.--The Director shall have significant 
        experience in the private sector.
            (3) Authority before confirmation.--Until the initial 
        appointment of an individual to the position of Director, by 
        and with the advice and consent of the Senate, and, thereafter, 
        if the individual serving as the Director dies, resigns, or is 
        otherwise unable to perform the functions and duties of the 
        office of the Director, the Secretary of Commerce shall 
        designate an officer or employee of the Department of Commerce 
        to perform the functions and duties of the Director under this 
        Act temporarily in an acting capacity.
    (c) Responsibilities of the Director.--The Director shall be 
responsible for each of the following:
            (1) Reviewing, and approving or disapproving, each proposed 
        American workforce contract received by the Director not later 
        than 1 month after the date of receipt of the proposed 
        contract.
            (2)(A) Maintaining records of American workforce contracts 
        and ensuring compliance with the contracts.
            (B) Publishing a standardized template for American 
        workforce contracts, which template shall not exceed 3 pages, 
        and shall be used by prospective trainees and employers to 
        draft a proposed American workforce contract to submit to the 
        Director for review and approval.
            (3) In accordance with subsection (d), receiving 
        complaints, carrying out investigations, and taking 
        disciplinary and correction action.
            (4) In accordance with subsection (e), making 
        determinations and taking disciplinary and corrective action.
            (5) Coordinating activities with State governments and 
        local governments to--
                    (A) publicize the opportunity to receive workforce 
                education subsidies for workforce projects, with 
                employers in high-wage, high-demand industries and 
                occupations; and
                    (B) encourage employers to recruit students from 
                secondary schools to participate in the workforce 
                projects.
            (6) Developing and maintaining a comprehensive, publicly 
        accessible, and user-friendly website to allow employers from 
        each State to simply indicate their demand for workers in their 
        industry or occupation, post it online, and accept applications 
        for training from prospective trainees and ensures prospective 
        trainees can easily search and compare options.
            (7) Preparing 5- and 10-year reports under section 6, and 
        submitting the reports to Congress.
            (8)(A) Collecting, on an ongoing basis, up-to-date contact 
        information, including an email, phone number, and mailing 
        address, for each employer participating in a workforce project 
        in the American workforce program.
            (B) Annually collecting the following information about the 
        American workforce program:
                    (i) The total number of new and continuing trainees 
                training in each workforce project under an American 
                workforce contract.
                    (ii) The annual completion rate for trainees, 
                calculated by comparing the number of trainees in a 
                designated American workforce program cohort who 
                successfully completed a workforce project with an 
                employer and were hired as full-time regular employees 
                by the same employer, with the number of trainees in 
                that cohort who began participating in a workforce 
                project.
                    (iii) The annual rate of trainees who successfully 
                completed a workforce project with an employer but were 
                not hired as full-time regular employees by the same 
                employer compared with the number of trainees who began 
                participating in a workforce project.
                    (iv) The median length of time for workforce 
                project completion.
                    (v) A survey conducted by the Director, based on a 
                random sample and designed to generate statistically 
                significant results, to estimate the post-American 
                workforce program employment retention rate for former 
                trainees, calculated 1 and 2 years after completion of 
                a workforce project, broken down by--
                    (I) former trainees who are employed by the 
                employer with whom they completed their workforce 
                project;
                    (II) former trainees employed in the same industry 
                or occupation as the industry or occupation in which 
                they completed that workforce project, but by a 
                different employer; and
                    (III) former trainees who are employed, but in an 
                industry or occupation that is not the industry or 
                occupation described in subclause (II).
                    (vi) The credentials attained by trainees through 
                the American workforce program, broken down by type 
                (such as competency-based credentials, certifications, 
                and licenses) and the number of such credentials 
                attained.
                    (vii) The annualized average earnings of former 
                trainees, calculated over a significant time period 
                after completion of a workforce project.
                    (viii) Median and mean workforce education subsidy 
                provided per trainee.
                    (ix) Basic demographic information, such as age, 
                sex, and area of residence, on trainees.
    (d) Whistleblower Complaints.--
            (1) Complaint.--A trainee (including an employee 
        participating as a trainee) in a workforce project may file a 
        complaint with the Director alleging that the employer involved 
        is not complying with the terms of the American workforce 
        contract involved.
            (2) Preliminary determination.--The Director shall begin an 
        investigation into the complaint within 1 month after the date 
        of receipt of the complaint. Not later than 90 days after the 
        beginning of the investigation, if the Director determines that 
        there is clear and convincing evidence that the complaint is 
        valid, the Director shall make a preliminary determination on 
        disciplinary or corrective action.
            (3) Notice and opportunity to respond.--If the Director 
        makes a preliminary determination under paragraph (2) of 
        noncompliance, the Director shall provide the employer with 
        reasonable notice and opportunity to respond to the preliminary 
        determination.
            (4) Disciplinary or corrective action.--Disciplinary or 
        corrective action under this subsection may consist of--
                    (A) issuing to the employer a warning or temporary 
                suspension, of not more than 5 years, from 
                participation in the American workforce program; and
                    (B) assessing a civil penalty against the employer 
                of not more than the amount of funds received by the 
                employer through workforce education subsidies during 
                the past 2 years.
            (5) Appeal.--If the Director so determines that the 
        appropriate disciplinary or corrective action includes a 
        suspension, the employer shall have 90 days to appeal the 
        validity or the disciplinary or corrective action to the 
        Director, with mandatory review by the Secretary of Commerce.
            (6) Final determination.--After such mandatory review, the 
        Director shall make a final determination on the validity and 
        on the appropriate disciplinary or corrective action, 
        contingent on approval from the Secretary of Commerce.
    (e) Noncompliance Determinations.--
            (1) Accountability.--The Director--
                    (A) may, in order to make a preliminary 
                determination about whether there is clear and 
                convincing evidence that employers participating in 
                workforce projects are complying with the terms of the 
                American workforce contracts involved and meeting the 
                requirements of the American workforce program--
                            (i) demand and review relevant materials 
                        from the employers; and
                            (ii) conduct random, periodic compliance 
                        reviews of workforce projects; and
                    (B) shall review information in public disclosure 
                documents submitted under section 4(g), including 
                reviewing completion rates provided under section 
                4(g)(2)(A) to make a preliminary determination about 
                whether there is clear and convincing evidence that 
                employers are participating in a workforce project with 
                a completion rate below 25 percent over 4 years.
            (2) Notice and opportunity to respond.--If the Director 
        makes a preliminary determination under paragraph (1) of 
        noncompliance or participation in a workforce project described 
        in paragraph (1)(B), the Director shall provide the employer 
        with reasonable notice and opportunity to respond to the 
        preliminary determination.
            (3) Warning or civil penalty.--
                    (A) In general.--The Director may, at the 
                discretion of the Director, issue a warning to or 
                assess a civil penalty against an employer if, after 
                carrying out paragraph (2), the Director makes a final 
                determination that there is clear and convincing 
                evidence that--
                            (i) the employer is participating in a 
                        workforce project described in paragraph 
                        (1)(B); or
                            (ii) the employer is violating the terms of 
                        an American workforce contract or the 
                        requirements of the American workforce program.
                    (B) Calculation of civil penalty.--A civil penalty 
                assessed under subparagraph (A) shall be in an amount 
                that is not more than the amount of funds received by 
                the employer through workforce education subsidies 
                during the past 2 years.
            (4) Suspension.--The Director may, at the discretion of the 
        Director, temporarily suspend an employer from the American 
        workforce program for not more than 5 years if, after carrying 
        out paragraph (2), the Director makes a final determination 
        that there is clear and convincing evidence that--
                    (A) the employer is participating in a workforce 
                project described in paragraph (1)(B); or
                    (B) the employer is consistently or egregiously 
                violating the terms of an American workforce contract 
                or the requirements of the American workforce program.
    (f) Interference With Proceedings or Inquiries.--It shall be 
unlawful for any employer to discharge or in any other manner 
discriminate against any trainee because such trainee--
            (1) has filed any complaint under subsection (d);
            (2) has given, or is about to give, any information in 
        connection with any inquiry or proceeding under this Act 
        (including any inquiry or proceeding under subsection (d) or 
        (e)); or
            (3) has testified, or is about to testify, in any such 
        inquiry or proceeding under this Act.

SEC. 4. AMERICAN WORKFORCE PROGRAM.

    (a) In General.--The Director shall establish, subject to the 
availability of appropriations, an American workforce program, and 
carry out the program by supporting workforce projects with American 
workforce contracts, distributing workforce education subsidies and 
bonuses for hiring, and providing technical and administrative support.
    (b) Contracts.--
            (1) In general.--To be eligible to receive a workforce 
        education subsidy, bonus for hiring, or technical support under 
        this Act for a workforce project, an employer and prospective 
        trainee shall prepare a proposed American workforce contract 
        under this subsection, based on the standardized template 
        created by the Director, and submit the proposed contract to 
        the Director for approval. The page limitation placed on the 
        Director's template under subsection (c)(2)(B) shall not apply 
        to the proposed American workforce contract prepared by the 
        trainee and employer or the final American workforce contract.
            (2) Provisions.--The proposed contract between an 
        individual who is a prospective trainee and the employer shall 
        include each of the following:
                    (A) Parties involved.--The name of the individual, 
                the employer participating in the workforce project, 
                and any third-party entity with whom the employer is 
                partnering to provide the educational workforce 
                training component of the project (referred to in this 
                Act as a ``third-party training entity'').
                    (B) Term.--The term, which shall not be shorter 
                than 6 weeks, of the workforce project (including 
                specifying total time to completion) and the amount of 
                time the individual will spend in structured on-the-job 
                work and in educational workforce training (including 
                specifying hours per week, month, and year).
                    (C) Work and training plan.--A detailed overview of 
                the curriculum for the educational workforce training, 
                a description of the structured on-the-job work, and a 
                description of skills and competencies to be attained 
                through the workforce project.
                    (D) Written workforce agreement.--A proposed 
                written workforce agreement for the individual that 
                outlines each of the following:
                            (i) The terms and conditions of the 
                        individual's work and training.
                            (ii) The wage or salary an individual will 
                        receive as a trainee and the estimated starting 
                        wage or salary, in accordance with the 
                        requirements of subsection (e), for each 
                        position, described in subsection (e), that the 
                        individual is receiving training for and being 
                        considered for.
                            (iii) The technical and professional 
                        standards that will be met by the individual 
                        for successful completion of the workforce 
                        project.
                            (iv)(I) Expected long-term and short-term 
                        outcomes for the individual, including 
                        qualifying positions of the type the individual 
                        is being trained for at the employer and third-
                        party training entities (if applicable), and 
                        the estimated wage or salary range for the 
                        occupation the individual is being trained for.
                            (II) The projected growth of the relevant 
                        industry or occupation, if information on that 
                        growth is available to the employer or 
                        obtainable with such technical assistance as 
                        the Director may provide.
                            (v) The circumstances under which the 
                        individual's wage or salary will increase 
                        during the workforce project.
                            (vi) A description of voluntary mentorship 
                        opportunities that may be available.
                            (vii) A disclosure of the amount of the 
                        payment from a workforce education subsidy that 
                        the employer will receive per payment period 
                        from the Director and any costs or expenses 
                        that will be charged to the trainee or could 
                        reasonably be expected to be charged to the 
                        trainee.
                            (viii) If 1 or more competency-based 
                        credentials exist for the relevant industry or 
                        occupation, a description of the top 1 to 3 
                        such credentials that the individual might earn 
                        on successful completion of the workforce 
                        project.
                            (ix) If no competency-based credential 
                        exists for the industry or occupation, a 
                        description of any other credential, such as a 
                        certification or license, that the individual 
                        might earn in the relevant industry or 
                        occupation due to experience in the workforce 
                        project.
            (3) Review of credentials.--
                    (A) In general.--Not later than 1 month after 
                receiving for review a proposed American workforce 
                contract, the Director shall review the credentials 
                specified in the contract under clause (viii) or (ix) 
                of paragraph (2)(D) and may note any additional 
                credentials the Director determines a trainee should 
                consider earning. Any such credential noted by the 
                Director shall be described in the contract.
                    (B) Rules of construction.--Nothing in this section 
                shall be construed to--
                            (i) permit the Director to reject an entire 
                        proposed American workforce contract solely 
                        because of the Director's view of a credential 
                        described in the proposed contract; or
                            (ii) require a trainee to agree to earn a 
                        competency-based credential or another 
                        credential specified in the American workforce 
                        contract, as a condition of using funding 
                        provided through a workforce education subsidy 
                        under this section.
            (4) Review of contract.--
                    (A) In general.--Not later than 1 month after 
                receiving a proposed American workforce contract, the 
                Director shall review, and approve or disapprove, the 
                proposed contract (including conducting the review 
                under paragraph (3) and determining whether the 
                employer has provided the appropriate written 
                disclosure document under subsection (g)).
                    (B) Presumption of approval.--There shall be a 
                presumption of approval for a proposed American 
                workforce contract, in that such a contract that has 
                not been disapproved by the Director shall be 
                considered to be approved on the 32nd day after the 
                date of that receipt. A proposed American workforce 
                contract may only be disapproved for failing to meet 
                the requirements of this Act. If such a proposed 
                contract is disapproved, the Director shall describe 
                the reason, with a citation to the requirement not met, 
                and a recommendation for how the proposed contract 
                shall be amended to comply with this Act.
            (5) Review of resubmission.--If an employer and individual 
        submit a proposed contract under paragraph (1) that is not 
        approved under paragraph (4), the employer and individual may 
        resubmit the amended proposed contract for review as described 
        in paragraph (4). For purposes of paragraph (4)(B), the 
        reference to the date of receipt shall be considered to be the 
        date of receipt of the resubmitted proposed contract.
            (6) Entry into contract.--Once a proposed contract has been 
        approved under paragraph (4) or (5), the individual and 
        employer involved may enter into the contract and initiate the 
        workforce project.
            (7) Current employees.--A participating employer may enter 
        into an American workforce contract with, and enroll into their 
        workforce project, an employee who holds a position with the 
        employer if the employer agrees to--
                    (A) maintain employment for that employee at the 
                employee's wage or salary on the date of enrollment, or 
                a higher wage or salary; and
                    (B) provide an increase to the employee's annual 
                wage or salary, if the employee successfully completes 
                the workforce project, that is equal to not less than 
                25 percent of the value of the educational workforce 
                subsidy provided for the project.
    (c) Workforce Education Subsidies.--Not earlier than the date on 
which an individual and employer enter into an American workforce 
contract approved by the Director, the Director shall provide an 
education workforce subsidy to the employer operating the workforce 
project. Each of the following rules shall apply to the workforce 
education subsidy and the trainee involved and employer:
            (1) The workforce education subsidy may be used to 
        subsidize the cost of educational workforce training (onsite or 
        with an eligible third-party training entity), not the wage or 
        salary of the trainee.
            (2) The employer shall pay, at regular intervals, the 
        trainee a wage or salary at a rate that is not less than the 
        higher of--
                    (A) the rate in effect under section 6(a)(1) of the 
                Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)); 
                or
                    (B) the rate in effect under a State or local 
                minimum wage law that applies to the State or locality 
                in which the trainee is engaged in labor or service for 
                the employer.
            (3) The employer shall provide a working environment for 
        the trainee that meets all applicable Federal, State, and local 
        safety laws and regulations.
            (4) Neither the Director or any other officer or employee 
        of the executive branch of the Federal Government may make the 
        workforce education subsidy contingent on any requirement not 
        specified in this Act.
            (5) The employer shall not currently be suspended from 
        participating in workforce projects subsection (d) or (e) of 
        section 3.
            (6) Participation in the workforce project involved shall 
        not make the employer subject to the jurisdiction of the Office 
        of Federal Contract Compliance Programs of the Department of 
        Labor as a Federal contractor, including not being subject to 
        Executive Order 11246.
            (7) The employer shall comply with all applicable Federal, 
        State, and local statutory laws pertaining to nondiscrimination 
        in employment.
            (8) The workforce education subsidy may not be used for--
                    (A) diversity, equity, and inclusion training, or 
                culturally responsive training; or
                    (B) any other training that may violate--
                            (i) title VII of the Civil Rights Act of 
                        1964 (42 U.S.C. 2000e et seq.), by contributing 
                        to a hostile work environment; or
                            (ii) title VI of the Civil Rights Act of 
                        1964 (42 U.S.C. 2000d et seq.), including its 
                        prohibition, on the ground of race, color, or 
                        national origin, of discrimination under any 
                        program or activity receiving Federal financial 
                        assistance.
            (9) The workforce education subsidy may not be used for 
        political spending, electioneering, or any other purpose that 
        is not directly related to educational workforce training.
            (10) The Director shall make payments from the workforce 
        education subsidy to the employer--
                    (A) in even installments, following the end of each 
                financial quarter in which the training and on-the-job 
                work specified in the American workforce contract have 
                been completed by the trainee;
                    (B) in sums of not more than $1,500 per month; and
                    (C) for a total amount of not more than $9,000, as 
                determined on the basis of the American workforce 
                contract.
            (11) A State government or locality may supplement the 
        workforce education subsidy with additional funds, if the State 
        government or locality does not make accepting such funds or 
        any conditions attached to the funds a requirement of accepting 
        Federal funding.
            (12) If the trainee chooses to leave a workforce project 
        after the halfway point of the term of the workforce project, 
        the trainee will be considered to have used the entirety of one 
        of the workforce education subsidies through which the trainee 
        is eligible to receive educational workforce training.
            (13) If the employer ceases operations, the trainee shall 
        not be held at fault, meaning that the trainee may receive 
        educational workforce training, funded with the full value of 
        the workforce education subsidy, for a workforce project with a 
        subsequent eligible employer, notwithstanding the time 
        requirement of paragraph (15).
            (14) The maximum period of time for which an employer 
        (including a subsequent employer described in paragraph (13)) 
        may receive payments, provided through the workforce education 
        subsidy for education workforce training of a trainee, shall be 
        3 years.
            (15)(A) In order for a trainee to enroll in a workforce 
        project with a subsequent eligible employer through a second or 
        third such subsidy, the trainee shall receive the related 
        educational workforce training not less than 1 year after the 
        conclusion of the trainee's most recent training through a 
        workforce education subsidy.
            (B) The time limit described in subparagraph (A) shall not 
        apply to a trainee who--
                    (i) completed a workforce project with, but was not 
                hired by, an employer; and
                    (ii) seeks to receive such training through a 
                workforce project with the trainee's next employer.
            (16) The employer shall meet the applicable minimum ratios 
        specified under section 5(d).
            (17) The employer shall use E-Verify for each trainee 
        enrolled and individual hired or employed during the period for 
        which the employer accepts funds through a subsidy provided 
        under this Act, regardless of whether the trainee or individual 
        participated in a workforce project.
            (18) The employer shall publish a public disclosure 
        document, consistent with subsection (g).
    (d) Bonus for Hiring.--
            (1) In general.--If an trainee, on completion of a 
        workforce project, is hired as a full-time, regular employee of 
        the employer participating in the workforce project, with a 
        wage or salary described in subsection (e)(1), the employer 
        shall receive a bonus of $1,000 (in addition to any payment 
        received through a workforce education subsidy). The Director 
        shall pay the bonus not sooner than the date that is 6 months 
        after the trainee is so hired.
            (2) Rules.--Subject to paragraph (3), each of the rules 
        described in paragraphs (5), (6), (8), (9), (11), (16), (17), 
        and (18) shall apply to the bonus, and the trainee hired and 
        employer, except that a reference in those paragraphs--
                    (A) to a workforce educational subsidy shall be 
                considered to be a reference to the bonus; and
                    (B) to a trainee shall be considered to be a 
                reference to the trainee hired.
            (3) Use of bonus.--An employer who receives a bonus under 
        this subsection may use the bonus funds to supplement the wage 
        or salary of the trainee hired.
    (e) Position for the Trainee.--
            (1) Wages.--An employer participating in a workforce 
        project shall be training each trainee and considering each 
        trainee for a position that would have an annual wage or salary 
        of not less than 80 percent of--
                    (A) the annual median household income of the 
                county in which the job involved is located (or an 
                hourly wage based on that income and adjusted for a 
                2,080-hour annual work period), as determined by the 5-
                year estimates of the American Community Survey of the 
                Bureau of the Census; or
                    (B) if the county involved is not in a micropolitan 
                or metropolitan area, the annual median household 
                income for the nearest micropolitan or metropolitan 
                area, as determined by the Bureau of the Census.
            (2) Remote work.--An employer providing remote work for a 
        trainee or employee (in a position referred to in paragraph 
        (1)) shall use the trainee's or employee's location when 
        determining an applicable wage or salary under this Act. Such a 
        trainee or employee engaging in remote work shall live in the 
        United States and file Federal income taxes in the United 
        States.
            (3) Work.--An employer participating in a workforce project 
        shall provide structured on-the-job work for each trainee in a 
        job that requires specialized knowledge and experience and 
        involves the performance of complex tasks, to prepare the 
        trainee for a position referred to in paragraph (1).
    (f) Educational Workforce Training.--In providing for educational 
workforce training through a workforce project to a trainee, an 
employer shall meet each of the following requirements:
            (1) Skills.--The employer shall ensure that the training is 
        designed in a manner that enables trainees to obtain and 
        demonstrate competency and obtain progressively advancing and 
        portable skills that are necessary for the industry or 
        occupation involved.
            (2) Partners.--The employer may partner with any of the 
        following eligible third-party training entities, and may pay 
        such a third-party training entity with funds from a workforce 
        education subsidy, in order to provide the training for 
        trainees in the workforce project:
                    (A) A trade, industry, or employer group or 
                association.
                    (B) A corporation or other related organized 
                entity.
                    (C) An educational institution, such as an 
                institution of higher education, including a community 
                college, or a secondary school.
                    (D) A State or local government agency or entity.
                    (E) A nonprofit organization.
                    (F) A union.
                    (G) A joint labor-management organization.
                    (H) A certification or accreditation body or entity 
                for an industry or occupation.
                    (I) A consortium or partnership of entities such as 
                entities described in any of subparagraphs (A) through 
                (H).
            (3) Credentials.--The employer shall ensure that, in 
        conjunction with that training, the trainee shall be made aware 
        of any widely used competency-based credentials in the 
        employer's industry or occupation. If a competency-based 
        credential is described in the trainee's American workforce 
        contract, the employer shall not forbid the trainee, or provide 
        a disincentive to discourage the trainee, from taking a related 
        competency-based credential exam.
            (4) Definitions.--In this subsection:
                    (A) Community college.--The term ``community 
                college'' means an institution of higher education (as 
                defined in section 101(a) of the Higher Education Act 
                of 1965 (20 U.S.C. 1001(a))) at which the highest 
                degree that is predominately awarded to students is an 
                associate degree.
                    (B) Institution of higher education.--The term 
                ``institution of higher education'' has the meaning 
                given that term in section 102 of the Higher Education 
                Act of 1965 (20 U.S.C. 1002).
    (g) Public Disclosure Document.--
            (1) In general.--The Director shall require each 
        participating employer seeking approval for a proposed American 
        workforce contract to provide a written disclosure document, 
        about the employer's workforce project, that includes each of 
        the following statistics and information:
                    (A) The total expected cost, if any, for a trainee 
                during or at the completion of the workforce project, 
                such as the cost of fees for a certification 
                examination.
                    (B) The expected wage or salary for the position of 
                the employer that the workforce project is designed to 
                train for.
                    (C) The length of the workforce project.
                    (D) The total expected number of hours of 
                structured on-the-job work per week, and of hours of 
                educational workforce training per week, for a trainee 
                during the workforce project.
                    (E) The total expected number of hours for which a 
                trainee will be paid during the course of the workforce 
                project.
                    (F) The hourly wage or salary for a trainee during 
                the course of the workforce project.
                    (G) Information stating any certifications, 
                licenses, or other credentials that trainees in the 
                workforce project might earn on successful completion 
                of the workforce project.
            (2) Additional public disclosure for established workforce 
        projects.--Three years after an employer has completed a 
        workforce project, the Director shall require the employer to 
        include, in its written disclosure document, documentation that 
        includes each of the following statistics:
                    (A) The completion rate for trainees in a workforce 
                project with the employer, calculated over the previous 
                3 years.
                    (B) The percentage of trainees that completed a 
                workforce project with, and were hired by, the employer 
                participating in the project, calculated over the 
                previous 2 years.
                    (C) The average wage or salary of currently 
                employed (as of the date of collection of the wage or 
                salary information) trainees who completed a workforce 
                project, during the last 3 years, presented in a way 
                that does not reveal individually identifiable wage or 
                salary information.
            (3) Availability.--The disclosure documents described in 
        paragraphs (1) and (2) shall be made available to the general 
        public by the Director.

SEC. 5. GENERAL PROVISIONS.

    (a) Workforce Project After Payment Period.--Nothing in this Act 
shall be construed to require a workforce project to end after 3 years, 
the maximum period of time for which an employer may receive payments 
through a workforce education subsidy for a trainee, if the employer 
pays for the cost of the associated educational workforce training for 
the portion of the project after that maximum period.
    (b) Relationship to Other Projects.--Individuals who do not meet 
the criteria described in section 2(8)(A) may participate in projects, 
structured like workforce projects described in this Act, if the 
employer or an organization other than the Federal Government provides 
the necessary funding for wages or salaries, and educational workforce 
training.
    (c) Third-Party Training Entity.--The Secretary may not pressure, 
or provide an incentive or disincentive to, an employer to choose 1 
eligible entity over another as a third-party training entity. The 
choice of a third-party training entity shall be made entirely by an 
employer.
    (d) Regulations on Ratios.--
            (1) Ratios.--Beginning 5 years after the date of enactment 
        of this Act, the Secretary may issue regulations that specify 1 
        or more ratios, based on categories of jobs as defined by the 
        Secretary, between the number of job openings for a prospective 
        position, as a full-time regular employee, related to a 
        workforce project, and the number of trainees in that project.
            (2) Objectives.--In issuing the regulations, the Secretary 
        shall consider the following objectives:
                    (A) Assuring that a trainee has a reasonable 
                opportunity to be hired as a full-time, regular 
                employee by the employer participating in the workforce 
                project.
                    (B) Ensuring that an employer's hiring discretion 
                is not limited in a manner that would incentivize an 
                employer to lower standards for a position that is 
                particularly difficult or dangerous.
    (e) Criteria.--The Secretary may establish criteria regarding 
technical matters and provide technical assistance for meeting the 
requirements of this Act.
    (f) Required Regulations.--Regulations required under this Act 
shall be issued by the corresponding officer within 3 months after the 
date of enactment of this Act, except as otherwise specified.

SEC. 6. EVALUATION REPORTS AND SUNSET.

    (a) 5-Year Report.--Not later than 5 years after the date of 
enactment of this Act, the Secretary shall prepare and submit to 
Congress a report including each of the following information, 
analysis, and recommendations:
            (1) A comparison of the American workforce program to other 
        major career and technical education or apprenticeship programs 
        administered by the Federal Government, including the 
        registered apprenticeship program carried out 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 to the workforce investment activity programs 
        administered under the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3101 et seq.), on the basis of--
                    (A) the completion rate of participants in each 
                program;
                    (B) the average earnings of participants in each 
                program, calculated during--
                            (i) the related career and technical 
                        education, apprenticeship, workforce 
                        investment, or workforce project; and
                            (ii) the period beginning 3 years and 
                        ending 5 years after the participants complete 
                        the related career and technical education, 
                        apprenticeship, workforce investment, or 
                        workforce project;
                    (C) the percentages obtained by dividing--
                            (i) the number of participants and rate of 
                        growth in participants for each program; by
                            (ii) the number of individuals in the labor 
                        force and the rate of growth of the labor 
                        force, respectively;
                    (D) the level of direct engagement by employers 
                with, and satisfaction from employers in, each program; 
                and
                    (E) the diversity of the industries and occupations 
                of the employers who utilize each program.
            (2) The overall completion rate for the American workforce 
        program, the completion rate for workforce projects by industry 
        and occupation, the number of trainees who dropped out of the 
        program entirely, broken down by industry and occupation, and 
        the number who left a workforce project for another workforce 
        project.
            (3) The results of a survey, based on a random sample and 
        designed to generate statistically significant results, of 
        trainees who have participated in the program.
            (4) The results of a survey, based on a random sample and 
        designed to generate statistically significant results, of 
        employers who have participated in the program, including a 
        breakdown by size of employer.
            (5) Data collected under section 3(c)(8)(B).
            (6) Information and technical criteria, other regulations, 
        and guidance issued by the Secretary to administer the program.
            (7) Information on the rate of uptake by individuals and 
        employers that are eligible to participate in the program, and 
        recommendations for ways in which this rate of uptake could be 
        improved.
            (8) Analysis on considerations for Congress about expanding 
        the use of intermediary institutions, such as nonprofits, to 
        better advertise the program.
            (9)(A) Analysis on considerations for Congress in expanding 
        eligibility of the program for United States citizens who do 
        not have a high school diploma or its generally recognized 
        equivalent.
            (B) Analysis on considerations for Congress in encouraging 
        trainees to obtain industry-recognized credentials that help to 
        provide recognition of a portable skill.
            (C) Analysis on considerations for Congress on the effect 
        and necessity of regulations described in section 5(d).
            (D) Recommendations for Congress on encouraging 
        participation in workforce projects by small businesses.
            (10) Analysis on considerations for Congress about how to 
        effectively engage high school students in a workforce project, 
        including--
                    (A) how coursework for a technical high school, or 
                career and technical education in a high school, could 
                qualify towards the completion of a workforce project; 
                and
                    (B) how time spent in structured on-the-job work or 
                educational workforce training for a workforce project 
                could count towards high school graduation.
            (11) Recommendations for improvement and reauthorization of 
        the American workforce program by Congress.
    (b) 10-Year Report.--Not later than 10 years after the date of 
enactment of this Act, the Secretary shall prepare and submit to 
Congress a report containing the information, analysis, and 
recommendations described in subsection (a).
    (c) Sunset.--The program authorized by section 4 and the position 
of the Director shall cease to exist on the earlier of--
            (1) the date on which the Director submits the report 
        described in subsection (b) to Congress; or
            (2) the day that is 11 years after the date of enactment of 
        this Act.

SEC. 7. EXCISE TAX ON CERTAIN LARGE PRIVATE COLLEGE AND UNIVERSITY 
              ENDOWMENTS.

    (a) In General.--Subchapter H of chapter 42 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 4969. EXCISE TAX ON CERTAIN LARGE PRIVATE COLLEGE AND UNIVERSITY 
              ENDOWMENTS.

    ``(a) Tax Imposed.--There is hereby imposed on each specified 
applicable educational institution for the taxable year a tax equal to 
1 percent of the aggregate fair market value of the assets of the 
institution at the end of the preceding taxable year.
    ``(b) Specified Applicable Educational Institution.--For purposes 
of this subchapter, the term `specified applicable educational 
institution' means any applicable educational institution, other than 
an institution which is religious in nature, the aggregate fair market 
value of the assets of which at the end of the preceding taxable year 
(other than those assets which are used directly in carrying out the 
institution's exempt purpose) is at least $2,500,000,000.
    ``(c) Other Terms.--For purposes of this section--
            ``(1) Assets.--The rules of section 4968(d) shall apply.
            ``(2) Student.--The rules of section 4968(b)(2) shall 
        apply.''.
    (b) Clerical Amendment.--The table of sections for subchapter H of 
chapter 42 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 4969. Excise tax on certain large private college and university 
                            endowments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
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