Sponsors
The bill directs more targeted, employer-aligned workforce funding and performance incentives to high‑performing areas and industry partnerships—potentially improving training and job matches—but does so with state matching requirements, added administrative and data burdens, and rules that risk concentrating resources away from struggling or underserved communities.
State governments (governors) can reserve funds for critical industry skills and sector-partnership grants so more training is aligned directly to employer needs and local job opportunities.
High-performing local workforce areas will receive performance-based incentive payments, giving local governments additional resources to expand training and career-pathway programs for jobseekers and youth.
More dislocated workers can access help because states and local areas become eligible for national dislocated worker grants and rapid-response supports, expanding services after layoffs or business closures.
Local governments serving struggling youth and disadvantaged communities risk losing resources because reallocations and incentive eligibility are tied to strict performance thresholds and tight administrative‑compliance rules that concentrate funds in higher‑performing areas.
States, taxpayers, and small employers may face added fiscal pressure because governors' reservations and industry/sector partnership grants require state matches and non‑Federal cost shares, which can reduce funds for other programs or deter small-business participation.
Direct formula funding for local programs could shrink because reserving money for industry partnership and critical-skills funds reduces the pool available for standard local allocations and services.
Based on analysis of 5 sections of legislative text.
Allows Governors to reserve up to 10% of certain WIOA state funds for statewide critical-industry and sector partnership funds, tightens reallocation eligibility, expands statewide activities, and requires a DOL study.
Introduced April 2, 2026 by Mark B. Messmer · Last progress April 2, 2026
Allows Governors to set aside up to 10% of certain WIOA state allotments to create statewide "critical industry skills" funds and industry/sector partnership or career-pathway development funds, subject to matching funds. Tightens rules for how redistributed local WIOA funds can be used, explicitly allows redistributed amounts to be paid as performance-based incentives, expands allowable statewide workforce activities (including training for staff and assistance with performance reporting), requires States to provide extra help when local areas face excess demand for certain dislocated-worker training accounts, and directs the Department of Labor to study how States use the new statewide critical industry skills funds within four years.