This bill would amend the Workforce Innovation and Opportunity Act by adding Subtitle E—Youth Employment Opportunities—to create two competitive grant programs that provide subsidized employment for youth aged 14 through 24. It designates definitions for eligible youth, tribal entities, and other terms, and it establishes dedicated federal funding for summer (176B) and year-round (176C) employment opportunities.
The act would allocate funds, set grant types and requirements, and create required partnerships with schools, workforce agencies, and employers.
At a Glance
What It Does
It allocates funds to subsidized youth employment programs and creates two grant programs—one for summer and one for year-round opportunities—with planning and implementation grants. It also sets the program structure, partnership requirements, and permissible uses of funds.
Who It Affects
States, local governments, Indian tribes and tribal organizations, and community-based organizations that partner with local educational agencies, workforce boards, juvenile/criminal justice agencies, child welfare, and employers.
Why It Matters
It creates a large-scale, federally funded framework to subsidize youth employment, with explicit rural and tribal set-asides, defined participant definitions, and performance tracking to drive program delivery and accountability.
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What This Bill Actually Does
The bill injects a new subtitle into the Workforce Innovation and Opportunity Act (WIOA) focused on youth employment. It defines who counts as an eligible youth (ages 14-24; in-school, out-of-school, or unemployed), and it adds a framework for funding, administering, and evaluating subsidized youth employment programs.
Two grant streams are created: a Summer Employment Competitive Grant Program and a Year-Round Employment Competitive Grant Program. Each program has planning and implementation stages, with specific funding caps and durations.
The Five Things You Need to Know
Up to $1.8 billion is set aside for subsidized summer opportunities and up to $2.4 billion for subsidized year-round opportunities (176A).
Planning grants can be up to $250,000 for one year; implementation grants can be up to $6 million for three years.
Program shares: 100% for planning grants; 50% for implementation grants (tribal entities may receive up to 95%).
Grantees must form partnerships with schools, workforce development agencies, juvenile/criminal justice and child welfare agencies, and employers.
Notable set-asides require at least 20% of funds for rural areas and at least 5% for tribal areas.
Section-by-Section Breakdown
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Allocation of funds
This section allocates the appropriated funds between the two subtitle programs: up to $1.8 billion for subsidized summer employment and up to $2.4 billion for subsidized year-round employment, with up to 10 percent reserved for technical assistance and oversight. It establishes the framework for distributing funds after any reservations are made and directs that funds be used to support planning and implementation as outlined in the subtitle.
Summer employment competitive grant program
This section creates a summer program administered through competitive grants. It details planning grants (up to $250,000 for one year) and implementation grants (up to $6,000,000 for three years). Eligible entities include states, local governments, Indian tribes/tribal organizations, and community-based organizations, each required to form partnerships with educational agencies, workforce boards, juvenile/criminal justice agencies, child welfare agencies, and employers. The section also outlines program priorities, use of funds (including wages and support services), and the program share mechanics.
Year-round employment competitive grant program
This section mirrors 176B but for year-round employment opportunities. It provides planning and implementation grants on similar terms, defines eligible entities, and requires partnerships with the same ecosystem of educational, workforce, justice, and community organizations. It also governs the use of funds, including wages, supports, and data management, and sets program-share rules, including tribal preferences.
Evaluation and administration
This section establishes performance measures (quarterly and annual reviews) to assess outcomes such as education/training engagement, credential attainment, and employment gains. It requires a system of continuous quality improvement and annual reporting to Congress, detailing program participants, activities, and outcomes, as well as the development and implementation of improvement plans.
Authorization of appropriations
This section authorizes the specific annual appropriations for the two grant programs: $375 million per year for 176B (summer) and $500 million per year for 176C (year-round) for fiscal years 2026 through 2030.
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Explore Employment in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- In-school youth (ages 14-18) who gain access to structured, subsidized summer employment opportunities that fit school schedules.
- Out-of-school youth and unemployed young adults (ages 18-24) who gain subsidized, work-based learning and employment opportunities, including year-round options.
- State, local, and tribal workforce development agencies that partner with schools, justice systems, child welfare, and employers to deliver coordinated programs.
- Community-based organizations with a track record of serving low-income or marginalized youth gain access to planning and implementation grants to scale services.
- Employers participating in subsidized opportunities benefit from a pipeline of prepared workers and enhanced workforce development through mentoring and structured programs.
Who Bears the Cost
- Grantees must furnish non-program shares (cash or in-kind) to cover costs beyond the federal program share, with the exact requirements varying by grant type.
- States, local governments, and tribal entities bear the non-program shares and any associated administrative or operational costs not covered by the grant.
- Employers may incur or contribute costs beyond wage subsidies, including supervision, training, and placement activities as part of the program.
- The Administration reserves up to 10 percent of grant funds for program administration and oversight, which shifts some administrative costs to grantees.
Key Issues
The Core Tension
The central dilemma is balancing aggressive nationwide expansion of subsidized youth employment with the capacity and quality controls needed to ensure equal access, effective placements, and meaningful outcomes across diverse communities (urban, rural, tribal) and partner networks.
The act creates a substantial expansion of federally funded youth employment programs, but implementation will hinge on the availability of robust partnerships, administrative capacity, and clear state/tribal engagement. The reliance on competitive grants means outcomes will vary by region and by the strength of local consortia.
There are definitional considerations around marginalized youth and the scope of eligible participants that could affect who qualifies in practice. The bill also requires significant reporting, data collection, and compliance activities to monitor performance, which could impose administrative burdens on grantees.
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