AID Youth Employment Act
- Bill Number
- H.R. 2506
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2025-03-31: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2026-06-11T23:41:26Z
AI-Generated Summary
Purpose of the Legislation
The Assisting In Developing Youth Employment Act (AID Youth Employment Act), H.R. 2506, aims to expand access to subsidized employment and training opportunities for youth aged 14 through 24. It seeks to build work readiness skills, reduce barriers to employment (such as poverty or trauma), and connect young people—particularly those who are in-school, out-of-school, or unemployed—to summer and year-round jobs. By amending the Workforce Innovation and Opportunity Act (WIOA), a federal law that funds job training and employment programs, the bill promotes partnerships among governments, communities, and employers to address youth unemployment in underserved areas.
Key Provisions
The bill adds a new Subtitle E to Title I of WIOA, focusing on youth employment opportunities. Core elements include:
- Definitions (Section 176):
- Eligible youth: Individuals aged 14–24 who are in-school (attending secondary education), out-of-school (not attending but eligible for services), or unemployed.
- Marginalized youth: A subset facing challenges like homelessness, foster care, justice system involvement, or living in communities with high poverty, violence, discrimination, or drug issues; they receive targeted support.
- Subsidized employment: Jobs where employers get federal funds to offset hiring costs for eligible youth.
- Other terms cover Indian tribes, tribal areas, institutions of higher education, and tribally designated housing entities (groups managing Native American housing).
- Fund Allocation (Section 176A):
- From appropriated funds, up to $1.8 billion for summer programs and $2.4 billion for year-round programs.
- Up to 10% reserved for technical assistance and oversight by the Secretary of Labor (head of the Department of Labor, or DOL).
- Actual authorizations: $375 million annually for summer programs (FY 2026–2030) and $500 million for year-round (same period).
- Summer Employment Competitive Grant Program (Section 176B):
- Competitive grants for planning (up to $250,000 for 1 year) or implementation (up to $6 million for 3 years).
- Eligible applicants: States, local governments, Indian tribes/tribal organizations, or community-based organizations (non-profits serving local needs), but only if they form partnerships with entities like schools, workforce boards, justice/child welfare agencies, employers, and support service providers (e.g., for trauma counseling or homeless services).
- Applications must detail needs (e.g., high youth unemployment or poverty rates), program goals (e.g., teaching financial literacy, soft skills like communication, or technical skills), recruitment strategies, and mentorship plans.
- Employment requirements: At least 6 weeks, up to 20 hours/week, at minimum wage (or Davis-Bacon Act rates for construction, which ensure fair pay on federal projects).
- Funds can cover wages, support services (e.g., transportation, child care), mentorship, data systems, and up to 10% for administration.
- Matching requirements: 100% federal for planning; 50% federal for implementation (up to 95–100% for tribes; non-federal share from cash, in-kind contributions, or other sources).
- Reservations and priorities: 50% of funds for in-school youth, 50% for out-of-school; at least 20% for rural areas, 5% for tribal areas; priority for high-need regions and programs linking to education/employers.
- Year-Round Employment Competitive Grant Program (Section 176C):
- Mirrors the summer program structure but adapted for ongoing jobs.
- Employment: Up to 15 hours/week for in-school youth; 20–40 hours/week for out-of-school, based on readiness.
- Additional application elements: Plans for mental health services, addressing barriers (e.g., child care), and pathways from summer to year-round work.
- Mentorship: At least twice-weekly contact.
- Same funding, matching, reservations, and priorities as summer program, with emphasis on coordination with other training (e.g., career-technical education).
- Evaluation and Administration (Section 176D):
- Performance measures: Track youth in education/training/employment 6 and 12 months post-program; credential attainment (e.g., high school diploma plus job/training, or postsecondary certificate); skill gains.
- Annual reviews of grantees; system for quality improvement (e.g., feedback, training, improvement plans).
- DOL reports to Congress every 3 years initially, then annually, covering grantees, activities, results, and best practices.
- Special rules for tribes, developed via consultation.
- Conforming Amendments (Section 3):
- Updates WIOA references (e.g., redesignates existing Subtitle E as F) and table of contents.
Significant Changes to Existing Law
- Introduces a dedicated subtitle in WIOA for competitive youth employment grants, which did not previously exist in this form; prior WIOA youth programs focused more broadly on training without specific summer/year-round subsidies.
- Expands eligibility to younger youth (down to age 14) and emphasizes marginalized/out-of-school groups, with new priorities for rural/tribal areas and partnerships (e.g., mandatory inclusion of justice/welfare agencies).
- Shifts to competitive, performance-based funding with detailed application and evaluation requirements, unlike some formula-based WIOA allocations.
- Authorizes new appropriations ($875 million total annually for 2026–2030), potentially increasing federal investment in youth jobs beyond current WIOA levels.
Potential Impacts
- On Citizens: Could create thousands of subsidized jobs, skill-building opportunities, and mentorships, helping youth gain experience, credentials, and pathways to long-term employment or education. Benefits marginalized youth by addressing trauma, poverty, and barriers, potentially reducing unemployment, crime, and dropout rates in high-need communities.
- On Government Agencies: DOL gains responsibilities for grant administration, evaluations, technical assistance (using 10% of funds), and reporting, increasing workload but enabling oversight of program quality. State/local/tribal agencies must partner and match funds, fostering collaboration but requiring new resources.
- On International Relations: No direct impacts; the bill is domestic-focused on U.S. youth and workforce development.
Main Stakeholders Affected
- Youth (Ages 14–24): Primary beneficiaries, especially in-school/out-of-school, unemployed, or marginalized individuals in urban, rural, suburban, or tribal areas.
- Governments and Organizations: States, local governments, Indian tribes/tribal organizations, community-based organizations, schools, workforce development boards, child welfare/justice agencies, and housing entities as grantees or partners.
- Employers and Businesses: Private/public/nonprofit employers receiving subsidies; employer associations for job placements.
- Support Providers: Groups offering counseling, trauma services, or homeless/foster care aid.
- Federal Government: DOL for funding and oversight; Congress for appropriations and reports.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes enforceable performance standards and matching requirements, with flexibility for tribes (e.g., customized applications via consultation), aligning with federal grant laws. References other statutes (e.g., Davis-Bacon for wages, Higher Education Act for credentials) ensure compliance with labor and education rules.
- Constitutional: Supports federal spending power for workforce development; tribal provisions respect sovereignty under laws like the Indian Self-Determination Act, avoiding mandates on tribes.
- Political: Promotes equity by targeting underserved (e.g., high-poverty, violence-affected) areas, potentially bridging partisan divides on youth opportunity and economic mobility. Could face debates over funding levels (authorizations vs. actual appropriations) and administrative burdens on local entities, but emphasizes measurable outcomes to justify costs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Case, Ed [D-HI-1], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Grijalva, Adelita S. [D-AZ-7]
Recent Actions
- 2025-03-31: Referred to the House Committee on Education and Workforce.
- 2025-03-31: Introduced in House
- 2025-03-31: Introduced in House
Bill Versions
- Assisting In Developing Youth Employment Act — issued 2025-03-31 — PDF (40 pages)