Leveraging Educational Opportunity Networks Act

Bill Number

H.R. 3681

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Labor and Employment

Status

Introduced

Latest Action

2025-06-03: Referred to the House Committee on Education and Workforce.

Last Updated

2025-11-21T12:04:06Z

AI-Generated Summary

Purpose of the Legislation

The Leveraging Educational Opportunity Networks Act (H.R. 3681) aims to address labor shortages and economic disparities by funding short-term workforce training programs. It targets workers without college degrees, particularly the working poor, formerly incarcerated individuals, and underserved communities, to help them gain skills for high-demand jobs in sectors like manufacturing, technology, and healthcare. The bill emphasizes practical, job-focused training to boost employment, wages, and economic mobility while breaking cycles of poverty and inequality.

Key Provisions

• Grant Authorization: The Secretary of Labor awards competitive grants to eligible entities (consortia including nonprofits under section 501(c)(3) of the tax code, national training organizations operating in at least 10 states, accredited non-higher education institutions, or networks of post-secondary career and technical schools). Grants prioritize geographic diversity across the U.S.

• Uses of Grant Funds:
• Develop and implement career and technical education (CTE) programs tailored to local employer needs (at least 70% of funds must go to training and need-based stipends).
• Provide pre-training support, such as team-building, tutoring, job readiness coaching, and cognitive behavioral techniques to help participants adjust to learning.
• Offer supportive services like transportation, childcare, housing assistance, and monthly employer check-ins for conflict resolution.
• Partner with employers who pay a "living wage" (enough to cover basic needs for a worker and family in their area), provide career advancement, and engage in training (e.g., advisory roles, internships, hiring events).
• Conduct assessments of local job demands, identify growing sectors, and analyze required skills and credentials.
• Recruit and screen participants, prioritizing those with low literacy (6th-grade reading level or below).

• CTE Program Requirements:
• At least 12 weeks long, leading to a recognized post-secondary credential (a verifiable qualification valued by employers, as defined in the Workforce Innovation and Opportunity Act, or WIOA).
• Ensures graduates earn a living wage.
• Operates in at least 10 states.
• At least 50% of enrollees must be offenders (as defined in WIOA), low-income individuals from isolated or disadvantaged communities (rural, urban, or historically underserved), or those affected by persistent poverty/inequality.

• Application and Priority: Entities submit applications to the Secretary. Priority goes to programs in industries like construction, disaster relief, manufacturing (industrial and food), supply chain, IT, financial services, shipbuilding/defense, and healthcare.

• Reporting Requirements: Grantees must report annually to the Secretary on participant outcomes, including pre- and post-training earnings (at 6 months), employment rates (at 30-90 days and 280-365 days post-program), starting wages, and credential attainment rates (during or within 1 year after the program).

• Funding: Authorizes $30 million annually from fiscal years 2026 through 2029.

Significant Changes to Existing Law

This bill introduces a new grant program under the Department of Labor, building on but not directly amending existing laws like WIOA (which funds workforce development) or the Carl D. Perkins Career and Technical Education Act (defining CTE). It expands federal support for short-term, sectoral training with wraparound services (e.g., stipends, behavioral support), emphasizing consortia partnerships and equity-focused enrollment. Unlike broader WIOA programs, it mandates living wages, multi-state operations, and specific reporting on underserved groups, while prioritizing non-degree pathways over traditional college routes.

Potential Impacts

• On Government Agencies: The Department of Labor gains responsibility for administering grants, reviewing applications, ensuring geographic diversity, and analyzing reports, potentially increasing administrative workload but aligning with existing workforce goals under WIOA.

• On Citizens: Could benefit up to millions of non-degree holders (about 60% of the workforce), the working poor (over 50 million earning under $15/hour), formerly incarcerated individuals (facing 27% unemployment), and underserved communities by providing accessible training, credentials, and jobs with living wages. This may reduce poverty, boost labor participation amid shortages (10.1 million job openings vs. 5.7 million seekers as of 2023), and increase earnings (e.g., past studies show 18% income gains from similar credentials).

• On International Relations: No direct impacts; the bill focuses on domestic workforce development without foreign policy elements.

Main Stakeholders Affected

• Eligible Entities and Partners: Nonprofits, training organizations, accredited vocational institutions, and employer consortia, who receive funding and must collaborate on program design and implementation.
• Workers and Enrollees: Low-income, low-literacy, formerly incarcerated, and disadvantaged individuals (e.g., from rural/urban poverty areas, including racial minorities like African Americans facing high incarceration and unemployment barriers), who gain training access and support.
• Employers: Businesses in priority sectors, required to offer living wages, career paths, and active involvement (e.g., internships), potentially filling 12 million projected jobs (2020-2030), especially in STEM fields growing 8% by 2029.
• Government: Department of Labor (oversight and funding), with indirect benefits to agencies like Commerce (referenced in findings for similar initiatives).

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on established frameworks like WIOA and tax code definitions, ensuring compliance with federal grant rules. Mandates for equity (e.g., 50% underserved enrollment) promote anti-discrimination goals under civil rights laws but require careful implementation to avoid challenges over quotas. The living wage requirement (tied to local costs) could intersect with minimum wage debates but is not a federal mandate.

• Constitutional: Aligns with Congress's spending power (Article I) to promote general welfare through workforce programs. No apparent free speech, due process, or equal protection issues, as it voluntarily targets disparities without restricting rights.

• Political: Highlights bipartisan workforce priorities (introduced by Reps. Evans and Edwards) amid labor shortages and demographic shifts ("Demographic Drought"). It advances social equity by addressing racial/economic disparities (e.g., incarceration's employment effects) and non-college pathways, potentially influencing debates on poverty reduction, skills gaps, and federal education spending without expanding higher education mandates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Evans, Dwight [D-PA-3]

Cosponsors (5)

Rep. Edwards, Chuck [R-NC-11], Rep. Ross, Deborah K. [D-NC-2], Rep. Davis, Donald G. [D-NC-1], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Van Drew, Jefferson [R-NJ-2]

Recent Actions

• 2025-06-03: Referred to the House Committee on Education and Workforce.
• 2025-06-03: Introduced in House
• 2025-06-03: Introduced in House

Bill Versions

• Leveraging Educational Opportunity Networks Act — issued 2025-06-03 — PDF (13 pages)