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American Workforce Act

USA119th CongressS-2987| Senate 
| Updated: 10/8/2025
Tom Cotton

Tom Cotton

Republican Senator

Arkansas

Health, Education, Labor, and Pensions Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
This legislative proposal aims to establish the American Workforce Act , creating a new program designed as an alternative to traditional college education. It mandates the establishment of an American Workforce Division within the Economic Development Administration of the Department of Commerce. This division, headed by a Presidentially-appointed Director, will administer the program, review contracts, ensure compliance, and collect extensive data on program outcomes. The core of the program is the American workforce program , which supports workforce projects through American workforce contracts between employers and prospective trainees. These contracts outline a paid, full-time position involving structured on-the-job work and educational workforce training. Trainees must be U.S. citizens with a high school diploma but no bachelor's degree, and employers must be for-profit entities. Employers participating in the program receive workforce education subsidies , capped at $1,500 per month for up to $9,000 total, to cover the cost of educational training, not trainee wages. They must pay trainees at least the federal or local minimum wage and adhere to safety and non-discrimination laws. Additionally, employers are eligible for a $1,000 bonus if they hire a trainee as a full-time employee upon project completion, provided the position offers a wage of at least 80% of the county's median household income. The Director is responsible for approving these contracts, which must detail the training curriculum, skills to be attained, and expected wages and outcomes. The bill prohibits the use of subsidies for certain types of training, including diversity, equity, and inclusion training or political spending. Employers are also required to use E-Verify for all trainees and employees and to provide public disclosure documents detailing project costs, wages, and completion rates. Significant oversight mechanisms are included, allowing the Director to investigate whistleblower complaints and conduct compliance reviews. Employers found in non-compliance or with low completion rates (below 25% over four years) may face warnings, civil penalties up to the amount of subsidies received, or temporary suspension from the program. The bill also protects trainees from discrimination for filing complaints. The legislation mandates comprehensive 5-year and 10-year evaluation reports to Congress, comparing the program's effectiveness with other federal workforce initiatives. These reports will include data on completion rates, earnings, employer satisfaction, and recommendations for program improvement. The program and the Director's position are set to sunset 11 years after enactment or upon submission of the 10-year report, whichever comes first.
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Timeline

Bill from Previous Congress

S 117-4810
American Workforce Act

Bill from Previous Congress

S 118-4287
American Workforce Act
Oct 8, 2025
Introduced in Senate
Oct 8, 2025
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Oct 17, 2025

Latest Companion Bill Action

HR 119-5779
Introduced in House
  • Bill from Previous Congress

    S 117-4810
    American Workforce Act


  • Bill from Previous Congress

    S 118-4287
    American Workforce Act


  • October 8, 2025
    Introduced in Senate


  • October 8, 2025
    Read twice and referred to the Committee on Health, Education, Labor, and Pensions.


  • October 17, 2025

    Latest Companion Bill Action

    HR 119-5779
    Introduced in House

Labor and Employment

Related Bills

  • HR 119-5779: American Workforce Act

American Workforce Act

USA119th CongressS-2987| Senate 
| Updated: 10/8/2025
This legislative proposal aims to establish the American Workforce Act , creating a new program designed as an alternative to traditional college education. It mandates the establishment of an American Workforce Division within the Economic Development Administration of the Department of Commerce. This division, headed by a Presidentially-appointed Director, will administer the program, review contracts, ensure compliance, and collect extensive data on program outcomes. The core of the program is the American workforce program , which supports workforce projects through American workforce contracts between employers and prospective trainees. These contracts outline a paid, full-time position involving structured on-the-job work and educational workforce training. Trainees must be U.S. citizens with a high school diploma but no bachelor's degree, and employers must be for-profit entities. Employers participating in the program receive workforce education subsidies , capped at $1,500 per month for up to $9,000 total, to cover the cost of educational training, not trainee wages. They must pay trainees at least the federal or local minimum wage and adhere to safety and non-discrimination laws. Additionally, employers are eligible for a $1,000 bonus if they hire a trainee as a full-time employee upon project completion, provided the position offers a wage of at least 80% of the county's median household income. The Director is responsible for approving these contracts, which must detail the training curriculum, skills to be attained, and expected wages and outcomes. The bill prohibits the use of subsidies for certain types of training, including diversity, equity, and inclusion training or political spending. Employers are also required to use E-Verify for all trainees and employees and to provide public disclosure documents detailing project costs, wages, and completion rates. Significant oversight mechanisms are included, allowing the Director to investigate whistleblower complaints and conduct compliance reviews. Employers found in non-compliance or with low completion rates (below 25% over four years) may face warnings, civil penalties up to the amount of subsidies received, or temporary suspension from the program. The bill also protects trainees from discrimination for filing complaints. The legislation mandates comprehensive 5-year and 10-year evaluation reports to Congress, comparing the program's effectiveness with other federal workforce initiatives. These reports will include data on completion rates, earnings, employer satisfaction, and recommendations for program improvement. The program and the Director's position are set to sunset 11 years after enactment or upon submission of the 10-year report, whichever comes first.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

S 117-4810
American Workforce Act

Bill from Previous Congress

S 118-4287
American Workforce Act
Oct 8, 2025
Introduced in Senate
Oct 8, 2025
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Oct 17, 2025

Latest Companion Bill Action

HR 119-5779
Introduced in House
  • Bill from Previous Congress

    S 117-4810
    American Workforce Act


  • Bill from Previous Congress

    S 118-4287
    American Workforce Act


  • October 8, 2025
    Introduced in Senate


  • October 8, 2025
    Read twice and referred to the Committee on Health, Education, Labor, and Pensions.


  • October 17, 2025

    Latest Companion Bill Action

    HR 119-5779
    Introduced in House
Tom Cotton

Tom Cotton

Republican Senator

Arkansas

Health, Education, Labor, and Pensions Committee

Labor and Employment

Related Bills

  • HR 119-5779: American Workforce Act
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted