This legislation, titled the National Workforce Transition Fund Act of 2026, seeks to address the labor market transitions brought about by the increasing adoption of artificial intelligence and emerging technology . Its primary goal is to assist workers, employers, and workforce development systems in navigating these changes by establishing a temporary, targeted National Workforce Transition Fund. The bill creates a National Workforce Transition Board within the Department of Labor, co-chaired by the Secretaries of Labor, Education, and Commerce. This board will comprise representatives from business, labor organizations, and government/education entities. Its functions include developing an annual national strategy, assessing AI's impact on the workforce, identifying affected sectors and skill needs, and recommending federal workforce development plans. A National Workforce Transition Fund is established in the U.S. Treasury to finance these initiatives. The fund's resources are generated by amending the Internal Revenue Code to exempt AI data centers from bonus depreciation , with the resulting increase in tax revenue annually transferred to the fund. The Secretary of the Treasury serves as the trustee for this fund. The funds will be used for several key activities, prioritizing workers experiencing or facing employment loss or labor market disruption. These activities include modernizing federal and state labor market information systems to better measure AI's impact and evaluate interventions. A study will be conducted to identify data gaps and recommend improvements for these systems. Worker transition assistance is a significant component, offering access to training services through individual training accounts and education/training grants for credentials in in-demand industries. The bill also supports sectoral workforce partnership grants to create or expand collaborations that assist workers with career pathways. Additionally, it provides for supportive services such as housing, childcare, and transportation to aid workers during their transition. The legislation also includes grants for employers to support the retention, redeployment, or responsible transitioning of workers . Employers receiving these subgrants must submit workforce transition plans and enter into compacts with the Secretary, outlining accountability, worker consultation, and reporting requirements. Pilot programs are also authorized to support innovative projects that directly assist workers, improve employment outcomes, or modernize labor market data. Both the changes to bonus depreciation for AI data centers and the workforce development activities established by this Act are set to terminate five years after enactment . Before this termination, the Secretary of Labor, in consultation with relevant bodies, is required to conduct a review and submit a report to Congress assessing whether the provisions should be extended, modified, or terminated, based on evolving labor market conditions.