H.R. 2506

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2506 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 2506

To amend the Workforce Innovation and Opportunity Act to provide 
funding, on a competitive basis, for summer and year-round employment 
opportunities for youth ages 14 through 24.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 31, 2025

Ms. Kelly of Illinois introduced the following bill; which was referred 
to the Committee on Education and Workforce

_______________________________________________________________________

A BILL

To amend the Workforce Innovation and Opportunity Act to provide 
funding, on a competitive basis, for summer and year-round employment 
opportunities for youth ages 14 through 24.

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 ``Assisting In Developing Youth 
Employment Act'' or the ``AID Youth Employment Act''.

SEC. 2. YOUTH EMPLOYMENT OPPORTUNITIES.

Title I of the Workforce Innovation and Opportunity Act is 
amended--
(1) by redesignating subtitle E (29 U.S.C. 3241 et seq.) as 
subtitle F; and
(2) by inserting after subtitle D (29 U.S.C. 3221 et seq.) 
the following:

``Subtitle E--Youth Employment Opportunities

``SEC. 176. DEFINITIONS.

``In this subtitle:
``(1) Eligible youth.--The term `eligible youth' means an 
individual who--
``(A) is not younger than age 14 or older than age 
24; and
``(B) is--
``(i) an in-school youth;
``(ii) an out-of-school youth; or
``(iii) an unemployed individual.
``(2) Indian tribe; tribal organization.--The terms `Indian 
tribe' and `tribal organization' have the meanings given the 
terms in section 4 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5304).
``(3) In-school youth; out-of-school youth.--The terms `in-
school youth' and `out-of-school youth' have the meanings given 
the terms in section 129(a)(1).
``(4) Institution of higher education.--The term 
`institution of higher education' has the meaning given the 
term in section 101 of the Higher Education Act of 1965 (20 
U.S.C. 1001).
``(5) Marginalized.--The term `marginalized', used with 
respect to an individual, includes individuals who are 
homeless, in foster care, involved in the juvenile or criminal 
justice system, or are not enrolled in or at risk of dropping 
out of an educational institution and who live in an 
underserved community that has faced trauma through acute or 
long-term exposure to substantial discrimination, historical or 
cultural oppression, intergenerational poverty, civil unrest, a 
high rate of violence, or a high rate of drug overdose 
mortality.
``(6) Subsidized employment.--The term `subsidized 
employment' means employment for which the employer receives a 
total or partial subsidy to offset costs of employing an 
eligible youth under this subtitle.
``(7) Tribal area.--The term `tribal area' means--
``(A) an area on or adjacent to an Indian 
reservation;
``(B) land held in trust by the United States for 
Indians;
``(C) a public domain Indian allotment;
``(D) a former Indian reservation in Oklahoma; and
``(E) land held by an incorporated Native group, 
Regional Corporation, or Village Corporation under the 
provisions of the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.).
``(8) Tribal college or university.--The term `tribal 
college or university' has the meaning given the term `Tribal 
College or University' in section 316(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1059c(b)).
``(9) Tribally designated housing entity.--The term 
`tribally designated housing entity', used with respect to an 
Indian tribe (as defined in this section), has the meaning 
given in section 4 of the Native American Housing Assistance 
and Self-Determination Act of 1996 (25 U.S.C. 4103).

``SEC. 176A. ALLOCATION OF FUNDS.

``(a) Allocation.--Of the funds appropriated under section 176E 
that remain available after any reservation under subsection (b), the 
Secretary may make available--
``(1) not more than $1,800,000,000 in accordance with 
section 176B to provide eligible youth with subsidized summer 
employment opportunities; and
``(2) not more than $2,400,000,000 in accordance with 
section 176C to provide eligible youth with subsidized year-
round employment opportunities.
``(b) Reservation.--The Secretary may reserve not more than 10 
percent of the funds appropriated under section 176E to provide 
technical assistance and oversight, in order to assist eligible 
entities in applying for and administering grants awarded under this 
subtitle.

``SEC. 176B. SUMMER EMPLOYMENT COMPETITIVE GRANT PROGRAM.

``(a) In General.--
``(1) Grants.--Using the amounts made available under 
176A(a)(1), the Secretary shall award, on a competitive basis, 
planning and implementation grants.
``(2) General use of funds.--The Secretary shall award the 
grants to assist eligible entities by paying for the program 
share of the cost of--
``(A) in the case of a planning grant, planning a 
summer youth employment program to provide subsidized 
summer employment opportunities; and
``(B) in the case of an implementation grant, 
implementation of such a program, to provide such 
opportunities.
``(b) Periods and Amounts of Grants.--
``(1) Planning grants.--The Secretary may award a planning 
grant under this section for a 1-year period, in an amount of 
not more than $250,000.
``(2) Implementation grants.--The Secretary may award an 
implementation grant under this section for a 3-year period, in 
an amount of not more than $6,000,000.
``(c) Eligible Entities.--
``(1) In general.--To be eligible to receive a planning or 
implementation grant under this section, an entity shall--
``(A) be a--
``(i) State, local government, or Indian 
tribe or tribal organization, that meets the 
requirements of paragraph (2); or
``(ii) community-based organization that 
meets the requirements of paragraph (3); and
``(B) meet the requirements for a planning or 
implementation grant, respectively, specified in 
paragraph (4).
``(2) Government partnerships.--An entity that is a State, 
local government, or Indian tribe or tribal organization 
referred to in paragraph (1) shall demonstrate that the entity 
has entered into a partnership with State, local, or tribal 
entities--
``(A) that shall include--
``(i) a local educational agency or tribal 
educational agency (as defined in section 6132 
of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7452));
``(ii) a local board or tribal workforce 
development agency;
``(iii) a State, local, or tribal agency 
serving youth under the jurisdiction of the 
juvenile justice system or criminal justice 
system;
``(iv) a State, local, or tribal child 
welfare agency;
``(v) a State, local, or tribal agency or 
community-based organization, with--
``(I) expertise in providing 
counseling services, and trauma-
informed and gender-responsive trauma 
prevention, identification, referral, 
and support (including treatment) 
services; and
``(II) a proven track record of 
serving low-income vulnerable youth and 
out-of-school youth;
``(vi) if the State, local government, or 
Indian tribe or tribal organization is seeking 
an implementation grant, and has not 
established a summer youth employment program, 
an entity that is carrying out a State, local, 
or tribal summer youth employment program; and
``(vii) an employer or employer 
association; and
``(B) that may include--
``(i) an institution of higher education or 
tribal college or university;
``(ii) a representative of a labor or 
labor-management organization;
``(iii) an entity that carries out a 
program that receives funding under the 
Juvenile Justice and Delinquency Prevention Act 
of 1974 (42 U.S.C. 5601 et seq.) or section 212 
of the Second Chance Act of 2007 (42 U.S.C. 
17532);
``(iv) a collaborative applicant as defined 
in section 401 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11360) or a private 
nonprofit organization that serves homeless 
individuals and households (including such an 
applicant or organization that serves 
individuals or households that are at risk of 
homelessness in tribal areas) or serves foster 
youth;
``(v) an entity that carries out a program 
funded under the Carl D. Perkins Career and 
Technical Education Act of 2006 (20 U.S.C. 2301 
et seq.), including Native American programs 
funded under section 116 of that Act (20 U.S.C. 
2326) and tribally controlled postsecondary 
career and technical institution programs 
funded under section 117 of that Act (20 U.S.C. 
2327);
``(vi) a local or tribal youth committee;
``(vii) a State or local public housing 
agency or a tribally designated housing entity; 
and
``(viii) another appropriate State, local, 
or tribal agency.
``(3) Community-based organization partnerships.--A 
community-based organization referred to in paragraph (1) shall 
demonstrate that the organization has entered into a 
partnership with State, local, or tribal entities--
``(A) that shall include--
``(i) a unit of general local government or 
tribal government;
``(ii) an agency described in paragraph 
(2)(A)(i);
``(iii) a local board or tribal workforce 
development agency;
``(iv) a State, local, or tribal agency 
serving youth under the jurisdiction of the 
juvenile justice system or criminal justice 
system;
``(v) a State, local, or tribal child 
welfare agency;
``(vi) if the organization is seeking an 
implementation grant, and has not established a 
summer youth employment program, an entity that 
is carrying out a State, local, or tribal 
summer youth employment program; and
``(vii) an employer or employer 
association; and
``(B) that may include one or more entities 
described in paragraph (2)(B).
``(4) Entities eligible for particular grants.--
``(A) Entities eligible for planning grants.--The 
Secretary may award a planning grant under this section 
to an eligible entity that--
``(i) is preparing to establish or expand a 
summer youth employment program that meets the 
minimum requirements specified in subsection 
(d); and
``(ii) has not received a grant under this 
section.
``(B) Entities eligible for implementation 
grants.--
``(i) In general.--The Secretary may award 
an implementation grant under this section to 
an eligible entity that--
``(I) has received a planning grant 
under this section; or
``(II) has established a summer 
youth employment program and 
demonstrates a minimum level of 
capacity to enhance or expand the 
summer youth employment program 
described in the application submitted 
under subsection (d).
``(ii) Capacity.--In determining whether an 
entity has the level of capacity referred to in 
clause (i)(II), the Secretary may include as 
capacity--
``(I) the entity's staff capacity 
and staff training to deliver youth 
employment services; and
``(II) the entity's existing youth 
employment services (as of the date of 
submission of the application submitted 
under subsection (d)) that are 
consistent with the application.
``(d) Application.--
``(1) In general.--Except as provided in paragraph (2), an 
eligible entity desiring to receive a grant under this section 
for a summer youth employment program shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require, 
including, at a minimum, each of the following:
``(A) With respect to an application for a planning 
or implementation grant--
``(i) a description of the eligible youth 
for whom summer employment services will be 
provided;
``(ii) a description of the eligible 
entity, and a description of the expected 
participation and responsibilities of each of 
the partners in the partnership described in 
subsection (c);
``(iii) information demonstrating 
sufficient need for the grant in the State, 
local, or tribal population, which may include 
information showing--
``(I) a high level of unemployment 
among youth (including young adults) 
ages 14 through 24;
``(II) a high rate of out-of-school 
youth;
``(III) a high rate of 
homelessness;
``(IV) a high rate of poverty;
``(V) a high rate of adult 
unemployment;
``(VI) a high rate of community or 
neighborhood crime;
``(VII) a high rate of violence; or
``(VIII) a high level or rate on 
another indicator of need;
``(iv) a description of the strategic 
objectives the eligible entity seeks to achieve 
through the program to provide eligible youth 
with core work readiness skills, which may 
include--
``(I) financial literacy skills, 
including providing the support 
described in section 129(b)(2)(D);
``(II) sector-based technical 
skills aligned with employer needs;
``(III) skills that--
``(aa) are soft employment 
skills, early work skills, or 
work readiness skills; and
``(bb) include social 
skills, communications skills, 
higher-order thinking skills, 
self-control, and positive 
self-concept; and
``(IV) (for the marginalized 
eligible youth) basic skills like 
communication, math, and problem 
solving in the context of training for 
advancement to better jobs and 
postsecondary training; and
``(v) information demonstrating that the 
eligible entity has obtained commitments to 
provide the non-program share described in 
paragraph (2) of subsection (h).
``(B) With respect to an application for a planning 
grant--
``(i) a description of the intermediate and 
long-term goals for planning activities for the 
duration of the planning grant;
``(ii) a description of how grant funds 
will be used to develop a plan to provide 
summer employment services for eligible youth;
``(iii) a description of how the eligible 
entity will carry out an analysis of best 
practices for identifying, recruiting, and 
engaging program participants, in particular 
the marginalized eligible youth;
``(iv) a description of how the eligible 
entity will carry out an analysis of best 
practices for placing youth participants--
``(I) in opportunities that--
``(aa) are appropriate 
subsidized employment 
opportunities with employers 
based on factors including age, 
skill, experience, career 
aspirations, work-based 
readiness, and barriers to 
employment; and
``(bb) may include 
additional services for 
participants, including core 
work readiness skill 
development and mentorship 
services;
``(II) in summer employment that--
``(aa) is not less than 6 
weeks;
``(bb) follows a schedule 
of not more than 20 hours per 
week;
``(cc) pays wages at rates 
not less than the applicable 
Federal, State, or local 
minimum wage rate; and
``(dd) for employment 
involving construction, pays 
wages at rates not less than 
those previously on similar 
construction in the locality as 
determined by the Secretary in 
accordance with subchapter IV 
of chapter 31 of title 40, 
United States Code (commonly 
known as the `Davis-Bacon 
Act'); and
``(v) a description of how the eligible 
entity plans to develop a mentorship program or 
connect youth with positive, supportive 
mentorships, consistent with paragraph (3).
``(C) With respect to an application for an 
implementation grant--
``(i) a description of how the eligible 
entity plans to identify, recruit, and engage 
program participants, in particular the 
marginalized eligible youth;
``(ii) a description of the manner in which 
the eligible entity plans to place eligible 
youth participants in subsidized employment 
opportunities, and in summer employment, 
described in subparagraph (B)(iv);
``(iii) (for a program serving the 
marginalized eligible youth), a description of 
workplaces for the subsidized employment 
involved, which may include workplaces in the 
public, private, and nonprofit sectors;
``(iv) a description of how the eligible 
entity plans to provide or connect eligible 
youth participants with positive, supportive 
mentorships, consistent with paragraph (3);
``(v) a description of services that will 
be available to employers participating in the 
youth employment program, to provide 
supervisors involved in the program with 
coaching and mentoring on--
``(I) how to support youth 
development;
``(II) how to structure learning 
and reflection; and
``(III) how to deal with youth 
challenges in the workplace;
``(vi) a description of how the eligible 
entity plans to offer structured pathways back 
into employment and a youth employment program 
under this section for eligible youth who have 
been terminated from employment or removed from 
the program;
``(vii) a description of how the eligible 
entity plans to engage eligible youth beyond 
the duration of the summer employment 
opportunity, which may include--
``(I) developing or partnering with 
a year-round youth employment program;
``(II) referring eligible youth to 
other year-round programs, which may 
include--
``(aa) programs funded 
under section 176C or the Carl 
D. Perkins Career and Technical 
Education Act of 2006 (20 
U.S.C. 2301 et seq.);
``(bb) after school 
programs;
``(cc) secondary or 
postsecondary education 
programs;
``(dd) training programs;
``(ee) cognitive behavior 
therapy programs;
``(ff) apprenticeship 
programs; and
``(gg) national service 
programs;
``(III) employing a full-time, 
permanent staff person who is 
responsible for youth outreach, 
followup, and recruitment; or
``(IV) connecting eligible youth 
with job development services, 
including career counseling, resume and 
job application assistance, interview 
preparation, and connections to job 
leads;
``(viii) evidence of the eligible entity's 
capacity to provide the services described in 
this subsection; and
``(ix) a description of the quality of the 
summer youth employment program, including a 
program that leads to a recognized 
postsecondary credential.
``(2) Indian tribe; tribal organizations.--An eligible 
entity that is an Indian tribe or tribal organization and 
desires to receive a grant under this section for a summer 
youth employment program may, in lieu of submitting the 
application described in paragraph (1), submit an application 
to the Secretary that meets such requirements as the Secretary 
develops after consultation with the tribe or organization.
``(3) Mentor.--For purposes of subparagraphs (B)(iv), 
(B)(v), and (C)(iv) of paragraph (1), a mentor--
``(A) shall be an individual who has been matched 
with an eligible youth based on the youth's needs;
``(B) shall make contact with the eligible youth at 
least once each week;
``(C) shall be a trusted member of the local 
community; and
``(D) may include--
``(i) a mentor trained in trauma-informed 
care (including provision of trauma-informed 
trauma prevention, identification, referral, or 
support services to youth that have experienced 
or are at risk of experiencing trauma), 
conflict resolution, and positive youth 
development;
``(ii) a job coach trained to provide youth 
with guidance on how to navigate the workplace 
and troubleshoot problems;
``(iii) a supervisor trained to provide at 
least two performance assessments and serve as 
a reference; or
``(iv) a peer mentor who is a former or 
current participant in the youth employment 
program involved.
``(e) Awards for Populations and Areas.--
``(1) Populations.--The Secretary shall reserve, from the 
amounts made available under section 176A(a)(1)--
``(A) 50 percent to award grants under this section 
for planning or provision of subsidized summer 
employment opportunities for in-school youth; and
``(B) 50 percent to award such grants to plan for 
planning or provision of such opportunities for out-of-
school youth.
``(2) Areas.--
``(A) In general.--In awarding the grants, the 
Secretary shall consider the regional diversity of the 
areas to be served, to ensure that urban, suburban, 
rural, and tribal areas are receiving grant funds.
``(B) Rural and tribal area inclusion.--
``(i) Rural areas.--Not less than 20 
percent of the amounts made available under 
section 176A(a)(1) for each fiscal year shall 
be made available for activities to be carried 
out in rural areas.
``(ii) Tribal areas.--Not less than 5 
percent of the amounts made available under 
section 176A(a)(1) for each fiscal year shall 
be made available for activities to be carried 
out in tribal areas.
``(f) Program Priorities.--In allocating funds under this section, 
the Secretary shall give priority to eligible entities--
``(1) who propose to coordinate their activities--
``(A) with local or tribal employers; and
``(B) with agencies described in subsection 
(c)(2)(A)(i) to ensure the summer youth employment 
programs provide clear linkages to remedial, academic, 
and occupational programs carried out by the agencies;
``(2) who propose a plan to increase private sector 
engagement in, and job placement through, summer youth 
employment; and
``(3) who have, in their counties, States, or tribal areas 
(as compared to other counties in their State, other States, or 
other tribal areas, respectively), a high level or rate 
described in subsection (d)(1)(A)(iii).
``(g) Use of Funds.--
``(1) In general.--An eligible entity that receives a grant 
under this section may use the grant funds for services 
described in subsection (d).
``(2) Discretionary uses.--The eligible entity may also use 
the funds--
``(A) to provide wages to eligible youth in 
subsidized summer employment programs;
``(B) to provide eligible youth with support 
services, including case management, child care 
assistance, child support services, and transportation 
assistance; and
``(C) to develop data management systems to assist 
with programming, evaluation, and records management.
``(3) Administration.--An eligible entity may reserve not 
more than 10 percent of the grant funds for the administration 
of activities under this section.
``(4) Carry-over authority.--Any amounts provided to an 
eligible entity under this section for a fiscal year may, at 
the discretion of the Secretary, remain available to that 
entity for expenditure during the succeeding fiscal year to 
carry out programs under this section.
``(h) Program Share.--
``(1) Planning grants.--The program share for a planning 
grant awarded under this section shall be 100 percent of the 
cost described in subsection (a)(2)(A).
``(2) Implementation grants.--
``(A) In general.--The program share for an 
implementation grant awarded under this section shall 
be 50 percent of the cost described in subsection 
(a)(2)(B).
``(B) Exception.--Notwithstanding subparagraph (A), 
the Secretary--
``(i) may increase the program share for an 
eligible entity; and
``(ii) shall increase the program share for 
an Indian tribe or tribal organization to not 
less than 95 percent of the cost described in 
subsection (a)(2)(B).
``(C) Non-program share.--The eligible entity may 
provide the non-program share of the cost--
``(i) in cash or in-kind, fairly evaluated, 
including plant, equipment, or services; and
``(ii) from State, local, tribal or private 
(including philanthropic) sources and, in the 
case of an Indian tribe or tribal organization, 
from Federal sources.

``SEC. 176C. YEAR-ROUND EMPLOYMENT COMPETITIVE GRANT PROGRAM.

``(a) In General.--
``(1) Grants.--Using the amounts made available under 
176A(a)(2), the Secretary shall award, on a competitive basis, 
planning and implementation grants.
``(2) General use of funds.--The Secretary shall award the 
grants to assist eligible entities by paying for the program 
share of the cost of--
``(A) in the case of a planning grant, planning a 
year-round youth employment program to provide 
subsidized year-round employment opportunities; and
``(B) in the case of an implementation grant, 
implementation of such a program to provide such 
opportunities.
``(b) Periods and Amounts of Grants.--The planning grants shall 
have the periods and amounts described in section 176B(b)(1). The 
implementation grants shall have the periods and grants described in 
section 176B(b)(2).
``(c) Eligible Entities.--
``(1) In general.--To be eligible to receive a planning or 
implementation grant under this section, an entity shall, 
except as provided in paragraph (2)--
``(A) be a--
``(i) State, local government, or Indian 
tribe or tribal organization, that meets the 
requirements of section 176B(c)(2); or
``(ii) community-based organization that 
meets the requirements of section 176B(c)(3); 
and
``(B) meet the requirements for a planning or 
implementation grant, respectively, specified in 
section 176B(c)(4).
``(2) Year-round youth employment programs.--For purposes 
of paragraph (1), any reference in section 176B(c)--
``(A) to a summer youth employment program shall be 
considered to refer to a year-round youth employment 
program; and
``(B) to a provision of section 176B shall be 
considered to refer to the corresponding provision of 
this section.
``(d) Application.--
``(1) In general.--Except as provided in paragraph (2), an 
eligible entity desiring to receive a grant under this section 
for a year-round youth employment program shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require, 
including, at a minimum, each of the following:
``(A) With respect to an application for a planning 
or implementation grant, the information and 
descriptions specified in section 176B(d)(1)(A).
``(B) With respect to an application for a planning 
grant, the descriptions specified in section 
176B(d)(1)(B), except that the description of an 
analysis for placing youth in employment described in 
clause (iv)(II)(bb) of that section shall cover 
employment that follows a schedule--
``(i) that consists of--
``(I) not more than 15 hours per 
week for in-school youth; and
``(II) not less than 20 and not 
more than 40 hours per week for out-of-
school youth; and
``(ii) that depends on the needs and work-
readiness level of the population being served.
``(C) With respect to an application for an 
implementation grant, the descriptions and evidence 
specified in section 176B(d)(1)(C)--
``(i) except that the reference in section 
176B(d)(1)(C)(ii) to employment described in 
section 176B(d)(1)(B) shall cover employment 
that follows the schedule described in 
subparagraph (B); and
``(ii) except that the reference to 
programs in clause (vii)(II)(aa) of that 
section shall be considered to refer only to 
programs funded under the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 
U.S.C. 2301 et seq.).
``(D) With respect to an application for an 
implementation grant--
``(i) a description of how the eligible 
entity plans to provide mental health services, 
as needed, to eligible youth participants; and
``(ii) a description of how the eligible 
entity plans to address barriers to 
participation among eligible youth, including 
provding transportation and child care.
``(2) Indian tribe; tribal organizations.--An eligible 
entity that is an Indian tribe or tribal organization and 
desires to receive a grant under this section for a year-round 
youth employment program may, in lieu of submitting the 
application described in paragraph (1), submit an application 
to the Secretary that meets such requirements as the Secretary 
develops after consultation with the tribe or organization.
``(3) Mentor.--For purposes of paragraph (1), any reference 
in subparagraphs (B)(iv), (B)(v), and (C)(iv) of section 
176B(d)(1) to a mentor shall be considered to refer to a mentor 
who--
``(A) shall be an individual described in 
subparagraphs (A) and (C) of section 176B(d)(3);
``(B) shall make contact with the eligible youth at 
least twice each week; and
``(C) may be an individual described in section 
176B(d)(3)(D).
``(4) Year-round employment.--For purposes of this 
subsection, any reference in section 176B(d)--
``(A) to summer employment shall be considered to 
refer to year-round employment; and
``(B) to a provision of section 176B shall be 
considered to refer to the corresponding provision of 
this section.
``(e) Awards for Populations and Areas; Priorities.--
``(1) Populations.--The Secretary shall reserve, from the 
amounts made available under section 176A(a)(2)--
``(A) 50 percent to award grants under this section 
for planning or provision of subsidized year-round 
employment opportunities for in-school youth; and
``(B) 50 percent to award such grants to plan for 
planning or provision of such opportunities for out-of-
school youth.
``(2) Areas; priorities.--In awarding the grants, the 
Secretary shall--
``(A) carry out section 176B(e)(2); and
``(B) give priority to eligible entities--
``(i) who--
``(I) propose the coordination and 
plan described paragraphs (1) and (2) 
of section 176B(f), with respect to 
year-round youth employment; and
``(II) meet the requirements of 
section 176B(f)(3); or
``(ii) who--
``(I) propose a plan to coordinate 
activities with entities carrying out 
State, local, or tribal summer youth 
employment programs, to provide 
pathways to year-round employment for 
eligible youth who are ending summer 
employment; and
``(II) meet the requirements of 
section 176B(f)(3).
``(f) Use of Funds.--An eligible entity that receives a grant under 
this section may use the grant funds--
``(1) for services described in subsection (d);
``(2) as described in section 176B(g)(2), with respect to 
year-round employment programs;
``(3) as described in section 176B(g)(3), with respect to 
activities under this section; and
``(4) at the discretion of the Secretary, as described in 
section 176B(g)(4), with respect to activities under this 
section.
``(g) Program Share.--
``(1) Planning grants.--The provisions of section 
176B(h)(1) shall apply to planning grants awarded under this 
section, with respect to the cost described in subsection 
(a)(2)(A).
``(2) Implementation grants.--The provisions of section 
176B(h)(2) shall apply to implementation grants awarded under 
this section, with respect to the cost described in subsection 
(a)(2)(B).

``SEC. 176D. EVALUATION AND ADMINISTRATION.

``(a) Performance Measures.--
``(1) Establishment.--The Secretary shall establish 
performance measures for purposes of carrying out annual 
reviews under subsection (b) and of developing and implementing 
a system of continuous quality improvement under subsection 
(c).
``(2) Components.--The performance measures for the 
eligible entities shall consist of--
``(A) the indicators of performance described in 
paragraph (3); and
``(B) an adjusted level of performance for each 
indicator described in subparagraph (A).
``(3) Indicators of performance.--
``(A) In general.--The indicators of performance 
shall consist of--
``(i) the percentage of youth employment 
program participants who are in education or 
training activities, or in employment, during 
the second quarter after exit from the program;
``(ii) the percentage of youth employment 
program participants who are in education or 
training activities, or in employment, during 
the fourth quarter after exit from the program;
``(iii) the percentage of youth employment 
program participants who obtain a recognized 
postsecondary credential, or a secondary school 
diploma or its recognized equivalent (subject 
to subparagraph (B)), during participation in 
or within 1 year after exit from the program; 
and
``(iv) the percentage of youth employment 
program participants who, during a program 
year, are in a youth employment program that 
includes an education or training program that 
leads to an outcome specified by the Secretary, 
which may include--
``(I) obtaining a recognized 
postsecondary credential or employment; 
or
``(II) achieving measurable skill 
gains toward such a credential or 
employment.
``(B) Indicator relating to credential.--For 
purposes of subparagraph (A)(iii), youth employment 
program participants who obtain a secondary school 
diploma or its recognized equivalent shall be included 
in the percentage counted as meeting the criterion 
under such subparagraph only if such participants, in 
addition to obtaining such diploma or its recognized 
equivalent, have obtained or retained employment or are 
in a youth employment program that includes an 
education or training program leading to a recognized 
postsecondary credential within 1 year after exit from 
the program.
``(4) Levels of performance.--
``(A) In general.--For each eligible entity, there 
shall be established, in accordance with this 
paragraph, levels of performance for each of the 
corresponding indicators of performance described in 
paragraph (3).
``(B) Identification in application.--Each eligible 
entity shall identify, in the application submitted 
under subsection (d) of section 176B or 176C, expected 
levels of performance for each of those indicators of 
performance for each program year covered by the 
application.
``(C) Agreement on adjusted levels of 
performance.--The eligible entity shall reach agreement 
with the Secretary on levels of performance for each of 
those indicators of performance for each such program 
year. The levels agreed to shall be considered to be 
the adjusted levels of performance for the eligible 
entity for such program years and shall be incorporated 
into the application prior to the approval of such 
application.
``(b) Annual Review.--The Secretary shall carry out an annual 
review of each eligible entity receiving a grant under this subtitle. 
In conducting the review, the Secretary shall review the performance of 
the entity on the performance measures under this section and determine 
if the entity has used any practices that shall be considered best 
practices for purposes of this subtitle.
``(c) Continuous Quality Improvement.--
``(1) In general.--The Secretary shall, in addition to 
conducting the annual review, develop and implement a system of 
continuous quality improvement designed to improve the quality 
of activities carried out under this subtitle.
``(2) Activities.--In implementing the system, the 
Secretary shall carry out activities including--
``(A) using the performance measures established 
under this section, to assess the quality of employment 
programs funded under sections 176B and 176C and 
providing the eligible entities carrying out those 
programs with continuing feedback on their performance 
on those measures;
``(B) creating improvement plans to address quality 
issues concerning the employment programs;
``(C) providing targeted support (including 
technical assistance and training) to staff of the 
eligible entities on improving the quality of the 
employment programs in areas where the system 
demonstrates that improvements are needed; and
``(D) publishing and disseminating information on 
the quality of the employment programs.
``(d) Report to Congress.--
``(1) Preparation.--The Secretary shall prepare a report on 
the grant programs established by this subtitle, which report 
shall include a description of--
``(A) the eligible entities receiving funding under 
this subtitle;
``(B) the activities carried out by the eligible 
entities;
``(C) how the eligible entities were selected to 
receive funding under this subtitle;
``(D) an assessment of the results achieved by the 
grant programs including findings from the annual 
reviews conducted under subsection (b); and
``(E) a description of the development and 
implementation of, and outcomes from, the system of 
continuous quality improvement described in subsection 
(c).
``(2) Submission.--Not later than 3 years after the date of 
enactment of the AID Youth Employment Act, and annually 
thereafter, the Secretary shall submit a report described in 
paragraph (1) to the appropriate committees of Congress.
``(e) Application to Indian Tribes and Tribal Organizations.--The 
Secretary may issue regulations that clarify the application of all the 
provisions of this subtitle to Indian tribes and tribal organizations.

``SEC. 176E. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated--
``(1) to carry out section 176B, $375,000,000 for each of 
fiscal years 2026 through 2030; and
``(2) to carry out section 176C, $500,000,000 for each of 
fiscal years 2026 through 2030.''.

SEC. 3. CONFORMING AMENDMENTS.

(a) References.--
(1) Section 121(b)(1)(C)(ii)(II) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 
3152(b)(1)(C)(ii)(II)) is amended by striking ``subtitles C 
through E'' and inserting ``subtitles C through F''.
(2) Section 503(b) of such Act (29 U.S.C. 3343(b)) is 
amended by inserting before the period the following: ``(as 
such subtitles were in effect on the day before the date of 
enactment of this Act)''.
(b) Table of Contents.--The table of contents in section 1(b) of 
such Act is amended by striking the item relating to the subtitle 
heading for subtitle E of title I and inserting the following:

``Subtitle E--Youth Employment Opportunities

``Sec. 176. Definitions.
``Sec. 176A. Allocation of funds.
``Sec. 176B. Summer employment competitive grant program.
``Sec. 176C. Year-round employment competitive grant program.
``Sec. 176D. Evaluation and administration.
``Sec. 176E. Authorization of appropriations.''.
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