H.R. 7566

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7566 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7566

To require the Secretary of Labor to establish a pilot program to 
provide grants for job guarantee programs.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 12, 2026

Mrs. Watson Coleman (for herself, Ms. Omar, Ms. Lee of Pennsylvania, 
and Mrs. McIver) introduced the following bill; which was referred to 
the Committee on Education and Workforce, and in addition to the 
Committee on Ways and Means, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as 
fall within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To require the Secretary of Labor to establish a pilot program to 
provide grants for job guarantee programs.

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 ``Federal Jobs Guarantee Development 
Act of 2026''.

SEC. 2. JOB GUARANTEE PILOT PROGRAM.

(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means an 
entity that--
(A) is a political subdivision of a State, Tribal 
entity, or a combination of contiguous political 
subdivisions or Tribal entities; and
(B) has an unemployment rate that is not less than 
150 percent of the national unemployment rate, as 
determined by the Bureau of Labor Statistics (except in 
the case of Tribal entities which may submit their own 
employment data where no such Federal data is available 
for such entities) based on the most recent data 
available at the time the Secretary solicits 
applications for grants under this section.
(2) Job guarantee program.--The term ``job guarantee 
program'' means a program that meets the requirements of 
subsection (c).
(3) Rural area.--The term ``rural area'' means an area that 
is located outside of an urban area.
(4) Tribal entity.--The term ``Tribal entity'' means an 
Indian tribe or tribal organization as such terms are defined 
in section 4 of the Indian Self-Determination Act (25 U.S.C. 
5304).
(5) Urban area.--The term ``urban area'' means an urbanized 
area (a region of 50,000 or more residents) and an urbanized 
cluster (and area encompassing between 2,500 and 50,000 
residents), according to the Census Bureau's urban-rural 
classification in the 2010 census.
(6) Secretary.--The term ``Secretary'' means the Secretary 
of Labor.
(7) WIOA definitions.--The terms ``adult education and 
literacy activities'', ``career planning'', ``individual with a 
barrier to employment'', ``in-demand industry sector or 
occupation'', ``local board'', ``recognized postsecondary 
credential'', ``State board'', ``supportive services'', and 
``workplace learning advisor'' have the meanings given such 
terms in section 3 of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3102).
(b) Establishment.--
(1) In general.--The Secretary shall establish a pilot 
program to provide competitive grants to eligible entities to 
establish programs to ensure that any individual within the 
area served by the entity who applies for a job through the 
program will be provided with employment as provided for in 
this section.
(2) Termination.--Federal funding for a job guarantee 
program established under a grant under this section shall 
terminate on the earlier of--
(A) the end of the 3-year period beginning on the 
date of the grant; or
(B) the date of any revocation of the grantee as an 
eligible entity.
(c) Job Guarantee Programs.--A job guarantee program meets the 
requirements of this subsection if the jobs provided under such 
program--
(1) are available to all individuals who--
(A) are 18 years of age or older; and
(B) reside in the area served under the program at 
the time the area became an eligible entity,
except that participants in the program may be disciplined, 
released, or suspended from further participation in jobs under 
this program if they are found to be negligent, or generally 
disruptive to the workplace involved under procedures 
established by the Secretary that provide for an opportunity 
for a review of such determinations;
(2) are, with respect to individual participants, included 
as part of an established bargaining unit and covered by any 
applicable collective bargaining agreement in effect if 
similarly situated employees are part of such unit and 
represented by an exclusive bargaining representative;
(3) are available for the duration of the pilot program;
(4) provide a wage of not less than the greater of--
(A) the hourly wage provided for under the 
provisions of S. 2488 (118th Congress), if enacted, or 
the hourly wage otherwise required to be paid to 
employees in the area to be served under the pilot 
program, whichever is greater;
(B) the prevailing wage in the area involved for a 
similar job as required by chapter 67 of title 41, 
United States Code, and other related laws; or
(C) the applicable wage under an applicable 
collective bargaining agreement as provided for under 
paragraph (2);
(5) provide for coverage of the worker under a health 
insurance program that is comparable to that offered to Federal 
employees under the Federal Employee Health Benefits Program; 
and
(6) provide at a minimum--
(A) paid family leave consistent with the 
provisions of S. 1714 (118th Congress), if enacted, and 
applicable State law; and
(B) paid sick leave consistent with the provision 
of S. 1664 (118th Congress), if enacted, and applicable 
State law.
(d) Other Uses.--Funds may be used to provide workers in a job 
guarantee program with--
(1) supportive services, which can include transportation, 
child care, dependent care, housing, and needs-related 
payments, that are necessary to enable an individual to 
participate in activities authorized under this Act;
(2) access to a workplace learning advisor to support the 
education, skill development, job training, career panning, and 
credentials required to progress toward career goals of such 
employees in order to meet employer requirements related to job 
openings and career advancements that support economic self-
sufficiency;
(3) adult education and literacy activities, including 
those provided by public libraries;
(4) activities that assist justice involved individuals, 
formerly incarcerated individuals, and individuals with 
criminal records in reentering the workforce; and
(5) financial literacy activities including those described 
in section 129(b)(2)(D) of the Workforce Innovation and 
Opportunity Act.
(e) Applications.--An eligible entity seeking a grant under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require. Such application shall include--
(1) a description of the geographic area and population 
that the entity intends to serve under the job guarantee 
program established under the grant, including the area 
unemployment rate, underemployment rate, unemployment rate for 
individuals with disabilities, poverty rate, housing vacancy 
rate, crime rate, household income, home-ownership rate, labor 
force participation rate, and educational attainment;
(2) to extent practicable, a description of the jobs that 
will be offered under the job guarantee program, including--
(A) a description of supports provided to 
individuals with disabilities and accommodations 
required under the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.); and
(B) a description of supports and procedures to 
ensure job access and opportunities for individuals 
with criminal records, including information on 
physical and programmatic accessibility, in accordance 
with section 188 of the Workforce Innovation and 
Opportunity Act, if applicable, and the Americans with 
Disabilities Act of 1990, for individuals with 
disabilities;
(3) the need in the area for jobs to be performed, 
including for jobs designated as a high-skill, high-wage, or 
in-demand industry sector or occupation by the Secretary, State 
board, or local board;
(4) a description of State, local, or philanthropic 
funding, including through coordination and in-kind or non-
financial support, if any, that will be provided to assist in 
carrying out the job guarantee program;
(5) an assurance that the eligible entity will establish--
(A) a public internet website, in conjunction with 
the Secretary, to post all available jobs under the job 
guarantee program; and
(B) a process for individuals to apply for such 
jobs;
(6) a comprehensive plan to describe how the funding under 
the program will leverage existing or anticipated local, State, 
and Federal funding;
(7) an assurance that necessary administrative data systems 
and information technology infrastructure are available, or 
will be available, to provide for full participation in the 
evaluation under subsection (m);
(8) a description of how the eligible entity will comply 
with the requirements described in subsection (c)(6);
(9) an assurance that the entity will enter into an 
allocation agreement with the Secretary under subsection 
(k)(2)(B); and
(10) an assurance that energy and infrastructure jobs 
provided under the program will not exacerbate the impacts of 
climate change.
(f) Selection.--The Secretary, after reviewing applications from 
eligible entities, shall award grants under this section to not more 
than 15 such eligible entities. In awarding such grants, the Secretary 
shall consider diversity in geographic location, urban-rural 
composition, and political entity, including the representation of 
Tribal entities.
(g) Amount of Grant.--
(1) Establishment of fund.--There is established in the 
Treasury of the United States a separate account to be known as 
the ``Job Guarantee Program Trust Fund'' (referred to in this 
section as the ``Fund''), consisting of--
(A) amounts deposited in the Fund under subsection 
(o); and
(B) any interest earned on investment of amounts in 
the Fund.
(2) Use of amounts.--The Secretary shall use amounts in the 
Fund to make payments to grantees under grants under this 
section in accordance with paragraph (3).
(3) Payments.--
(A) In general.--The Secretary shall determine the 
annual amount of a grant under this section based on a 
formula to be developed by the Secretary.
(B) Payments.--The Secretary shall make payments to 
grantees under this section in a manner determined 
appropriate by the Secretary. The Secretary shall not 
make subsequent payments to a grantee after the initial 
payment until the grantee certifies to the Secretary 
that the grantee has expended, transferred, or 
obligated not less than 80 percent of the most recent 
payment made under this subsection.
(h) Limitations.--An eligible entity may not use amounts received 
under a grant under this section to--
(1) employ individuals who will replace, or lead to the 
displacement of, existing employees, positions, or individuals 
who would otherwise perform similar employment, or disrupt 
existing contracts and collective bargaining agreements, as 
defined in section 181(b) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3241(b));
(2) perform functions otherwise prohibited by Federal, 
State, or local laws; and
(3) carry out other prohibited activities, as determined by 
the Secretary.
(i) Federal Provision of Jobs in Pilot Sites.--
(1) Guidance.--Not later than 30 days after the date on 
which the Secretary awards the first grant under this section, 
the Secretary shall--
(A) provide guidance to the heads of appropriate 
Federal agencies to notify such agencies of job 
guarantee programs established under such grants; and
(B) request that such agencies notify the 
Secretary, within 30 days of the date on which the 
guidance is received under paragraph (1), of the number 
and types of jobs that such agency would make available 
through each of the programs.
(2) Application of provisions.--The requirements of 
subsection (c) relating to wages and benefits provided to 
participants in jobs provided under job guarantee programs, and 
the limitations in subsection (h), shall apply to Federal 
agencies and jobs provided under this subsection, except that a 
Federal agency shall employ each individual under this 
subsection for up to three years.
(3) Listing of jobs on website.--The Secretary shall 
establish procedures to ensure that jobs identified under 
paragraph (1)(B) are listed on the appropriate public internet 
website as provided for under subsection (e)(5)(A).
(4) Reimbursement.--At the end of each fiscal year, the 
Secretary shall transfer from the Fund to each Federal agency 
that employs individuals under a job guarantee program under 
this section, an amount necessary to reimburse such agency for 
the full cost of employing each such individual during such 
fiscal year.
(j) Training.--
(1) In general.--The Secretary shall develop procedures to 
support up to 8 weeks of paid training (through privately or 
publicly funded training programs, such as those provided by 
the public workforce system) to participants in order to 
perform duties required by job guarantee programs under this 
section, including a new period of training, not to exceed 8 
weeks, prior to commencing any new job under the program.
(2) Specific populations.--With respect to certain 
individuals with barriers to employment, the 8-week training 
period may include specific job-related training and counseling 
and other general skills training to prepare such individuals 
to reenter the workforce.
(k) Priorities and Audits.--
(1) Priorities.--Prior to awarding the initial grants under 
this section, the Secretary shall issue a list of national job 
priorities relating to jobs that may be carried out under job 
guarantee programs, that shall include child care, care for 
seniors and individuals with disabilities, clean energy jobs, 
and sustainable infrastructure activities. The Secretary shall 
take State board and local board suggestions into consideration 
when issuing such list.
(2) Audits.--
(A) In general.--The Secretary, acting through the 
Inspector General of the Department of Labor, shall 
carry out annual audits of the use of grant funds 
provided to eligible entities under this section.
(B) Allocation agreements and misuse of funds.--
(i) Allocation agreements.--An eligible 
entity shall enter into an allocation agreement 
with the Secretary that shall provide that the 
Secretary shall recoup any amounts paid to the 
entity under a grant under this section if the 
results of an audit under subparagraph (A) 
include a finding that there was an intentional 
or reckless misuse of such funds by such 
entity.
(ii) Loss of eligibility.--An eligible 
entity that is determined to have falsified or 
otherwise misstated data in any report 
submitted to the Secretary with the intent to 
deceive or mislead the Secretary shall be 
ineligible to receive additional funds under 
this section.
(l) Reports.--Not later than 90 days after the end of each calendar 
year for which an eligible entity obligates or expends any amounts made 
available under a grant under this section, the eligible entity shall 
submit to the Secretary a report that--
(1) specifies the amount of grant funds obligated or 
expended for the preceding fiscal year;
(2) specifies any purposes for which the funds were 
obligated or expended; and
(3) includes any other information that the Secretary may 
require to more effectively administer the grant program under 
this section, including the indicators of performance under 
section 116(b)(2)(A)(i) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3141(b)(2)(A)(i)), with the 
performance data disaggregated by race, ethnicity, sex, age, 
and membership in a population specified in section 3(24) of 
such Act (29 U.S.C. 3102(24)).
(m) Evaluation.--The Chief Evaluation Officer at the Department of 
Labor shall provide for the conduct of an evaluation of the pilot 
program, using a rigorous design and evaluation methods to assess the 
implementation of the programs and their impact on--
(1) overall employment, public-sector employment, and 
private-sector employment;
(2) private-sector employment, wages, and benefits;
(3) poverty rate;
(4) public assistance spending and other Federal spending 
in the area served by the program;
(5) child health and educational outcomes;
(6) health and well-being of those with mental, emotional, 
and behavioral health needs;
(7) incarceration rates;
(8) the environment, including air quality and water 
quality;
(9) the indicators of performance as described in 
subsection (l)(3); and
(10) other economic development and individual outcome 
indicators, as determined by the Secretary.
(n) Expansion of Work Opportunity Credit To Include Participants in 
Job Guarantee Programs.--
(1) In general.--Subsection (d) of section 51 of the 
Internal Revenue Code of 1986 is amended--
(A) in paragraph (1)--
(i) in subparagraph (I), by striking ``or'' 
at the end;
(ii) in subparagraph (J), by striking the 
period at the end and inserting ``, or''; and
(iii) by adding at the end the following 
new subparagraph:
``(K) a qualified participant in a job guarantee 
program.''; and
(B) by adding at the end the following new 
paragraph:
``(16) Qualified participant in a job guarantee program.--
The term `qualified participant in a job guarantee program' 
means any individual who is certified by the designated local 
agency as having participated in a job guarantee program under 
section 2 of the Federal Jobs Guarantee Development Act of 2026 
for not less than 3 months during the 6-month period ending on 
the hiring date.''.
(2) Effective date.--The amendments made by this subsection 
shall apply to individuals who begin work for the employer 
after December 31, 2026.
(o) Appropriations.--From funds in the Treasury not otherwise 
appropriated, there are appropriated to the Secretary such sums as may 
be necessary to carry out this section, including to deposit amounts in 
the Fund established under subsection (g).
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