Sponsor
Frederica Wilson
Representative · D-FL
Representative · D-FL
The bill provides a targeted, short-term federal investment to preserve and create public-service jobs in high-need areas and for priority populations, at the cost of $2 billion over two years and with program design and duration that may limit flexibility and long-term stability.
Local and state governments, and public-service employees: receive a federal investment of $1 billion per year (FY2026–FY2027) to fund retention, hiring, and training in public services, preserving jobs and supporting continuity of public services.
Low-income and high-unemployment communities: grants are required to prioritize areas with high unemployment, foreclosure, and poverty, directing resources to communities with greater need.
Veterans, people with disabilities, unemployed and dislocated workers: the program encourages prioritizing these groups for hiring and training, improving their employment prospects in public-service roles.
Taxpayers: the program costs $2 billion over two years, adding to federal outlays which could affect deficits or crowd out other spending priorities.
Unemployed workers and local governments: the short two-year pilot period may limit long-term job stability and make sustained planning difficult for recipients and employees.
Local governments and community organizations: the requirement that at least 50% of grant funds be used for retaining existing employees may reduce flexibility to hire or train new workers in places without imminent layoffs.
Based on analysis of 2 sections of legislative text.
Creates a 2-year WIOA pilot granting $1B in FY2026 and $1B in FY2027 to retain, employ, or train public-service workers, with at least 50% for retention.
Creates a two-year competitive pilot grant program under WIOA to provide $1 billion per year in FY2026 and FY2027 for local governments and community-based organizations to retain, employ, or train workers who provide public services. At least half of each grant must be used to retain existing public-service employees (to the extent needed); remaining funds may hire or train new workers, with priority for applicants from high-unemployment, high-poverty, and high-foreclosure areas and for serving veterans, people with disabilities, unemployed people, and dislocated workers. Grantees must apply using forms the Secretary prescribes and must report to Congress within two years after the first appropriation about hires, retentions, and best practices; the bill adds the pilot program into the Workforce Innovation and Opportunity Act and funds it at $1,000,000,000 for each of FY2026 and FY2027.
Official title: To amend the Workforce Innovation and Opportunity Act to create a pilot program to award grants to units of general local government and community-based organizations to create jobs, and for other purposes.
Introduced January 23, 2025 by Frederica Wilson · Last progress January 23, 2025