DEMO Act
- Bill Number
- H.R. 5372
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2025-09-16: Referred to the House Committee on Ways and Means.
- Last Updated
- 2025-09-25T14:21:09Z
AI-Generated Summary
Purpose
The Demonstrating that Empowerment Makes Opportunities Act (DEMO Act), H.R. 5372, aims to expand access to education and training in the health professions for low-income individuals who have arrest or conviction records. It funds demonstration projects to help these individuals pursue career pathways in high-demand or labor-shortage occupations, such as allied health or behavioral health roles, thereby addressing employment barriers and workforce needs.
Key Provisions
- Grant Program: The U.S. Secretary of Health and Human Services (HHS), in consultation with the Secretaries of Labor and Education, and the Attorney General, will award grants to eligible entities to run demonstration projects. These projects provide education, training, credentials, and support services to help participants enter and advance in health careers.
- Project Duration and Requirements: Projects must last at least 3 years. Grant applications must include:
- Evidence that the state allows people with certain arrest or conviction records to obtain necessary health credentials (including appeals for rehabilitation).
- Plans for career pathways, recruitment of participants, and post-employment support like ongoing training.
- Demonstrated experience working with low-income or justice-involved populations, or partnerships to gain such expertise.
- Research on suitable high-demand jobs and innovative training practices.
- Preferences for Applicants: Priority goes to entities with proven success in prior similar projects (based on graduation rates, job placement, retention, and addressing shortages) and those offering emergency financial aid funds.
- Required and Allowed Support Services: Projects must provide legal assistance to address criminal record barriers. They may also include emergency financial reserves and other services to overcome employment obstacles.
- Technical Assistance and Evaluations: HHS will offer tailored guidance to applicants and grantees. Independent evaluations will assess project effectiveness, focusing on workforce development, wages, benefits, and accessibility for low-income participants with records. Evaluations may use randomized trials but are not required to do so.
- Definitions:
- Eligible Entities: Include local workforce boards, state or local governments, tribal organizations, colleges, hospitals, skilled nursing facilities, federally qualified health centers, nonprofits with health training experience, labor unions, and opioid treatment programs—provided they can administer the project.
- Eligible Individuals: Low-income people (income at or below 138% of the federal poverty level) with arrest or conviction records.
- Funding: $10 million appropriated for fiscal year 2026 to implement the program.
- Effective Date: October 1, 2025.
Significant Changes to Existing Law
This bill amends Section 2008 of the Social Security Act (which established the Health Profession Opportunity Grant program) by adding a new subsection (d) focused on justice-involved individuals and redesignating the existing subsection (d) as (e). It introduces targeted demonstration grants within the existing program framework, emphasizing criminal record barriers, career pathways in shortage areas, and specific supports like legal aid—features not previously detailed in the original law.
Potential Impacts
- On Citizens: Could improve job opportunities, wages, and stability for low-income individuals with criminal records, potentially reducing recidivism and poverty. It addresses health workforce shortages by expanding the talent pool for in-demand roles.
- On Government Agencies: HHS will manage grants, evaluations, and technical assistance, increasing administrative workload but building evidence for future policies. Collaborations with Labor, Education, and Justice departments may enhance interagency coordination on workforce and rehabilitation efforts.
- On International Relations: No direct impacts, as the bill focuses on domestic U.S. workforce development.
- Broader Effects: May help alleviate labor shortages in health professions, improving access to care in underserved areas, though limited funding ($10 million) suggests modest scale initially.
Main Stakeholders Affected
- Primary Beneficiaries: Low-income individuals with arrest or conviction records seeking health careers.
- Grant Recipients and Partners: Eligible entities such as nonprofits, workforce boards, educational institutions, health providers (e.g., hospitals, clinics), tribal organizations, and labor groups.
- Employers: Health sector organizations facing labor shortages, who may hire more diverse workers.
- Government Entities: HHS (lead agency), state licensing boards, and other federal departments involved in consultations.
- Communities: Low-income and justice-involved populations, potentially gaining from reduced unemployment and better health services.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces rehabilitation-focused policies by requiring state laws to allow credentialing for those with records (via appeals), potentially challenging overly restrictive licensing rules without mandating changes. Ensures compliance with existing anti-discrimination laws by addressing barriers tied to criminal history.
- Constitutional: Aligns with equal protection principles by promoting access to employment for marginalized groups, but raises no apparent conflicts (e.g., no infringement on states' rights, as projects depend on supportive state policies).
- Political: Supports "second chance" initiatives, which enjoy bipartisan appeal in addressing mass incarceration's economic fallout and health workforce gaps. The demonstration model allows testing without broad mandates, providing data for future expansions, though funding limits may spark debates on scale and equity.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-09-16: Referred to the House Committee on Ways and Means.
- 2025-09-16: Introduced in House
- 2025-09-16: Introduced in House
Bill Versions
- Demonstrating that Empowerment Makes Opportunities Act — issued 2025-09-16 — PDF (9 pages)