Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025

The HERO for Youth Act of 2025 changes the federal work opportunity credit to help teens and young adults get jobs. It would let employers claim the credit for hiring eligible youth year-round, not just in the summer. During the school year (September 16 through April 30), students can work up to 20 hours per week and still count toward the credit. It also raises the amount of the credit for these hires.

The bill adds a new group called “disconnected youth.” This includes 16–24-year-olds who haven’t regularly been in school or employed for the past six months and are not easily employable because they lack basic skills, or certain foster youth ages 16–20 who were in foster care in the past year. The changes would apply to people who start work after the law is enacted.

Key points

• Who is affected: Employers hiring eligible youth, including “disconnected youth” and certain foster youth.
• What changes: Credit allowed for year-round youth employment with a 20-hour weekly cap during the school year; increase in the credit amount .
• When: Applies to new hires after enactment.