Federal Jobs Guarantee Development Act of 2026
- Bill Number
- H.R. 7566
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-02-12: 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.
- Last Updated
- 2026-03-09T18:35:18Z
AI-Generated Summary
Purpose of the Legislation
The Federal Jobs Guarantee Development Act of 2026 aims to create a pilot program through the Department of Labor (DOL) to test job guarantee initiatives in areas with high unemployment. It provides grants to local governments, Tribal entities, or combinations thereof to offer jobs to any qualifying adult resident who applies, focusing on improving employment access in economically distressed regions.
Key Provisions
- Eligible Entities and Program Setup: Grants go to political subdivisions of states, Tribal entities (as defined under federal Indian law), or groups of contiguous areas with unemployment at least 150% of the national rate (using Bureau of Labor Statistics data, or Tribal-submitted data if federal data is unavailable). Up to 15 entities receive competitive grants for 3-year programs. Rural areas are defined as outside urban zones (per Census Bureau classifications of areas with 2,500+ residents).
- Job Guarantee Requirements: Programs must offer jobs to adults (18+) living in the served area at the time of eligibility determination. Jobs are available throughout the pilot, respect existing union agreements, and include:
- Wages at the higher of: a proposed federal minimum (referencing unrelated bills if enacted), local prevailing wage (under federal law requiring fair pay for similar work), or union rates.
- Health coverage similar to federal employee benefits.
- Paid family and sick leave (aligning with proposed federal bills if enacted, or state laws).
- Discipline procedures with review rights for negligence or disruption.
- Additional Supports: Funds can cover supportive services (e.g., transportation, child care, housing aid), workplace advisors for career planning and training, adult education (including library programs), reentry help for justice-involved individuals, and financial literacy training (drawing from existing workforce laws).
- Application and Selection Process: Entities submit detailed plans covering local needs (e.g., unemployment, poverty rates), job descriptions (with accommodations for disabilities under the Americans with Disabilities Act, which requires accessibility for people with disabilities), funding coordination, a public job-posting website, and climate-friendly infrastructure assurances. Selection prioritizes diversity in urban/rural, geographic, and political types, including Tribes.
- Funding Mechanism: Establishes a "Job Guarantee Program Trust Fund" in the U.S. Treasury, funded by appropriations. Grants are formula-based, with payments released after grantees spend 80% of prior funds. Federal agencies can contribute jobs (listed online), reimbursed from the fund, with employees limited to 3 years.
- Training and Priorities: Up to 8 weeks of paid training (public or private) for participants, including tailored support for those with employment barriers (e.g., counseling). DOL issues national job priorities (e.g., child care, elder/disability care, clean energy, sustainable infrastructure), incorporating state/local input.
- Limitations and Oversight: No funds for displacing existing jobs, violating laws, or disrupting contracts (per Workforce Innovation and Opportunity Act rules). Annual audits by DOL's Inspector General; misuse leads to fund recovery and ineligibility. Grantees submit yearly reports on spending, performance (disaggregated by race, ethnicity, sex, age, etc.), and outcomes.
- Evaluation: DOL's Chief Evaluation Officer conducts rigorous assessments of program impacts on employment, wages, poverty, public assistance, health/education outcomes, incarceration, environment, and economic indicators.
- Tax Incentives: Expands the Work Opportunity Tax Credit (a federal tax break for hiring certain workers) to include participants who work 3+ months in the program within 6 months of hiring, effective for jobs starting after December 31, 2026.
- Appropriations: Provides necessary Treasury funds for implementation, including the trust fund.
Significant Changes to Existing Law
- New Pilot Program and Fund: Introduces a dedicated 3-year grant program and trust fund not previously in federal labor law, building on but distinct from the Workforce Innovation and Opportunity Act (a 2014 law funding job training).
- Tax Code Amendment: Modifies Section 51 of the Internal Revenue Code to add job guarantee participants as a qualifying group for the Work Opportunity Tax Credit, previously limited to groups like veterans or long-term unemployed.
- Federal Agency Integration: Requires coordination with other agencies to offer jobs, with reimbursement, which is a novel federal-local partnership for employment guarantees.
Potential Impacts
- On Citizens: Could provide immediate job access and supports for unemployed or underemployed adults in high-need areas, potentially reducing poverty, improving health/education outcomes, and aiding reentry for those with criminal records or disabilities. May lower reliance on public assistance and boost local economies through training and sustainable jobs.
- On Government Agencies: DOL gains administrative duties for grants, audits, evaluations, and guidance; other federal agencies must identify and provide jobs, with fiscal reimbursements. Local/Tribal entities handle program operations, leveraging existing data systems.
- On International Relations: No direct impacts mentioned; focus is domestic employment.
Main Stakeholders Affected
- Eligible Entities: Local governments, Tribal organizations, and coalitions in high-unemployment areas, responsible for program design and execution.
- Individuals: Unemployed or underemployed adults (especially in rural, urban, or Tribal communities; those with disabilities, criminal records, or barriers to work), gaining job guarantees, training, and benefits.
- Employers and Unions: Benefit from tax credits for hiring participants; unions protected via bargaining inclusions.
- Federal Government: DOL and other agencies involved in oversight, job provision, and funding; taxpayers fund the program.
- Communities: Residents in served areas may see reduced crime, better environmental quality, and economic development.
Notable Legal, Constitutional, or Political Implications
- Legal: Ensures alignment with existing laws like the Americans with Disabilities Act (for accessibility), federal wage rules (e.g., prevailing wage laws), and anti-displacement provisions in workforce statutes. Audit and recoupment mechanisms strengthen accountability but require robust data systems to avoid disputes over misuse.
- Constitutional: Involves federal spending power (under Article I) for economic welfare; inclusivity for Tribes and diverse groups supports equal protection principles. No overt challenges noted, but program termination after 3 years limits long-term commitments.
- Political: Represents an expansion of federal job creation efforts, potentially controversial as a step toward broader "job guarantee" policies; emphasizes equity (e.g., disaggregated data, climate safeguards) and local control, which could appeal across partisan lines in distressed areas.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Watson Coleman, Bonnie [D-NJ-12]
Cosponsors (4)
Rep. Omar, Ilhan [D-MN-5], Rep. Lee, Summer L. [D-PA-12], Rep. McIver, LaMonica [D-NJ-10], Rep. Tlaib, Rashida [D-MI-12]
Recent Actions
- 2026-02-12: 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.
- 2026-02-12: 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.
- 2026-02-12: Introduced in House
- 2026-02-12: Introduced in House
Bill Versions
- Federal Jobs Guarantee Development Act of 2026 — issued 2026-02-12 — PDF (18 pages)