[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3846 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3846
To amend the Workforce Innovation and Opportunity Act regarding
employer-directed skills development, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 11, 2026
Mr. Budd (for himself, Mr. Cassidy, and Mr. Husted) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Workforce Innovation and Opportunity Act regarding
employer-directed skills development, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Employer-Directed Skills Act''.
SEC. 2. EMPLOYER-DIRECTED SKILLS DEVELOPMENT.
(a) Employer-Directed Skills Development.--
(1) In general.--Section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102) is amended--
(A) by striking paragraph (14);
(B) by redesignating paragraphs (15) through (18)
as paragraphs (14) through (17), respectively; and
(C) by inserting after paragraph (17), the
following:
``(18) Employer-directed skills development.--The term
`employer-directed skills development' means a program--
``(A) that is selected or designed to meet the
specific skill demands of an employer (including a
group of employers);
``(B) that is conducted pursuant to the terms and
conditions provided under an employer-directed skills
contract described in section 134(c)(3)(I), including
the commitment by the employer to employ an individual
upon successful completion of the program; and
``(C) for which the employer pays a portion of the
cost of the program that is--
``(i) determined by the local board
involved; and
``(ii) not less than--
``(I) 10 percent of the cost, in
the case of an employer with 50 or
fewer employees;
``(II) 25 percent of the cost, in
the case of an employer with more than
50 but fewer than 100 employees; and
``(III) 50 percent of the cost, in
the case of an employer with 100 or
more employees.''.
(2) Conforming amendment.--Section 108(b)(4)(B) of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3123(b)(4)(B)) is amended by striking ``customized training
programs'' and inserting ``employer-directed skills
development''.
(b) Primary Indicators of Performance.--Section 116(b)(2)(A) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(2)(A)) is
amended--
(1) in clause (i), by striking subclause (VI) and inserting
the following:
``(VI) the ratio of--
``(aa) the number of
program participants who,
before exiting the program
during a program year,
completed on-the-job training
or employer-directed skills
development; to
``(bb) the total number of
program participants who
received training services and
who exited the program during
that program year.''; and
(2) by striking clause (iv).
(c) On the Job Training, Employer-Directed Skills Development,
Incumbent Worker Training, and Other Training Exceptions.--Section
122(h) of the Workforce Innovation and Opportunity Act (29 U.S.C.
3152(h)) is amended--
(1) in the heading, by striking ``Customized Training'' and
inserting ``Employer-Directed Skills Development'';
(2) in paragraph (1), by striking ``customized training''
and inserting ``employer-directed skills development''; and
(3) in paragraph (2), by striking the first sentence and
inserting ``A one-stop operator in a local area shall collect
the minimum amount of information from providers of on-the-job
training, employer-directed skills development, incumbent
worker training, internships, paid or unpaid work experience
opportunities, and transitional employment as is necessary to
enable the use of State administrative data to generate such
performance information as the Governor may require.''.
(d) Statewide Employment and Training Activities.--Section
134(a)(2)(B)(v)(II) of the Workforce Innovation and Opportunity Act (29
U.S.C. 3174(a)(2)(B)(v)(II)) is amended by striking ``customized
training'' and inserting ``employer-directed skills development''.
(e) Allowable Statewide Employment and Training Activities.--
Section 134(a)(3)(A)(i) of the Workforce Innovation and Opportunity Act
(29 U.S.C. 3174(a)(3)(A)(i)) is amended by striking ``customized
training'' and inserting ``employer-directed skills development''.
(f) Employer Referral.--Section 134(c)(3) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), in the matter preceding
subclause (I), by striking ``clause (ii)'' and
inserting ``clauses (ii) and (iii)'';
(B) by redesignating clause (iii) as clause (iv);
and
(C) by inserting after clause (ii) the following:
``(iii) Employer referral.--
``(I) In general.--A one-stop
operator or one-stop partner shall not
be required to conduct an interview,
evaluation, or assessment of an
individual under clause (i)(I) if such
individual--
``(aa) is referred by an
employer to receive on-the-job
training or employer-directed
skills development in
connection with that employer;
and
``(bb) has been certified
by the employer as being in
need of training services to
obtain unsubsidized employment
with such employer and having
the skills and qualifications
to successfully participate in
the selected program of
training services.
``(II) Priority.--A one-stop
operator or one-stop partner shall
follow the priority described in
subparagraph (E) to determine whether
an individual that meets the
requirements of subclause (I) of this
clause is eligible to receive training
services.'';
(2) in subparagraph (D), by striking clause (xi) and
inserting the following:
``(xi) employer-directed skills
development.'';
(3) in subparagraph (G)(ii)(II), by striking ``customized
training'' and inserting ``employer-directed skills
development''; and
(4) by adding at the end the following:
``(I) Employer-directed skills development.--An
employer may receive a contract from a local board to
provide employer-directed skills development to a
participant if the employer submits to the local board
an application that provides--
``(i) the provider of the skills
development program, which may be the employer;
``(ii) the length of the skills development
program;
``(iii) the recognized postsecondary
credential that will be awarded to, or any
occupational skill that will be gained by, the
program participant;
``(iv) the cost of the skills development
program;
``(v) the amount of such cost that will be
paid by the employer (as described in section
3(19)(C)); and
``(vi) a commitment by the employer to
employ the participating individual upon
successful completion of the program.''.
<all>
Employer-Directed Skills Act
#3846 | S Congress #119
Policy Area: Labor and Employment
Subjects:
Last Action: Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (2/11/2026)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text