Federal Jobs Guarantee Development Act of 2026
- Bill Number
- S. 3864
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-02-12: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-03-02T18:10:34Z
AI-Generated Summary
Purpose
The Federal Jobs Guarantee Development Act of 2026 aims to address high unemployment in targeted areas by directing the Secretary of Labor to create a pilot program. This program provides competitive grants to local governments, Tribal entities, or combinations thereof in regions with elevated unemployment rates, enabling them to establish "job guarantee programs." These programs ensure that any qualifying adult resident who applies will receive a job, focusing on public benefit work while supporting economic development and workforce inclusion.
Key Provisions
- Eligibility and Definitions:
- Eligible entities include 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 entity-submitted data for Tribes). Urban areas are defined as regions with 2,500+ residents per Census Bureau classifications; rural areas are outside these.
- Job guarantee programs must offer jobs to adults (18+) residing in the area, respecting existing union agreements, with wages at the highest of federal minimum, state/local minimum, prevailing wage (standard rate for similar work under federal law), or union rates. Benefits include health coverage comparable to federal employee plans, paid family leave (aligned with proposed federal standards), and paid sick time.
- Exceptions allow for discipline or removal for negligence or disruption, with due process.
- Program Setup and Operations:
- The pilot lasts up to 3 years per grant, with up to 15 entities selected for diversity in geography, urban/rural mix, and inclusion of Tribal areas.
- Grants fund jobs in areas like child care, senior/disability care, clean energy, and sustainable infrastructure (national priorities set by the Secretary, incorporating state/local input).
- Additional uses include supportive services (e.g., transportation, child care), training (up to 8 weeks paid, prioritized for those with employment barriers like disabilities or criminal records), adult education, reentry support for justice-involved individuals, and financial literacy.
- Entities must create public websites for job postings, ensure accessibility under the Americans with Disabilities Act (a federal law requiring accommodations for people with disabilities), and avoid jobs that displace existing workers or violate laws.
- Funding and Oversight:
- A "Job Guarantee Program Trust Fund" is established in the Treasury, funded by appropriations (as needed) and interest.
- Grant amounts are formula-based; payments require certification of 80% prior fund use.
- Federal agencies can provide jobs (listed online), with reimbursement from the fund, but limited to 3 years per participant.
- Annual audits by the Department of Labor's Inspector General; misuse leads to fund recoupment and ineligibility. Entities submit yearly reports on fund use and performance metrics (e.g., employment rates, disaggregated by race, gender, age).
- Evaluation:
- The Department of Labor's Chief Evaluation Officer will assess impacts using rigorous methods, measuring effects on employment, wages, poverty, public assistance costs, child outcomes, health, incarceration, environment, and economic indicators.
Significant Changes to Existing Law
- Expands the Work Opportunity Tax Credit (a federal tax incentive for hiring certain groups, like veterans or long-term unemployed) under the Internal Revenue Code to include "qualified participants" in these job guarantee programs. Eligibility requires 3+ months participation within 6 months before private-sector hiring, effective for hires after December 31, 2026.
- References and incorporates elements from the Workforce Innovation and Opportunity Act (a law funding job training and employment services) for terms like "supportive services" and performance indicators.
- Draws on proposed bills for wage calculations (assuming enactment of a $15 minimum wage bill) and leave policies, effectively embedding these standards into the pilot without standalone passage.
Potential Impacts
- On Citizens: Could increase job access for unemployed or underemployed adults in high-need areas, potentially reducing poverty, reliance on public assistance, and incarceration rates while improving health, education, and environmental quality through community-focused work.
- On Government Agencies: The Department of Labor gains responsibilities for grant administration, guidance to other federal agencies (e.g., for job provision), audits, and evaluation, with costs covered by the new trust fund. May lower overall federal spending on welfare if employment rises.
- On International Relations: No direct impacts; the bill is domestically focused on U.S. workforce and economic issues.
Main Stakeholders Affected
- Eligible Entities: Local governments, Tribal organizations, and coalitions in high-unemployment areas, who apply for and manage grants.
- Individuals: Unemployed or underemployed adults (especially those with barriers like disabilities, criminal records, or low skills), gaining job guarantees, training, and benefits.
- Employers and Unions: Private and public sector employers may benefit from tax credits for hiring program participants; unions are protected via bargaining inclusion.
- Federal Agencies: Department of Labor (oversight), other agencies (job provision), and Treasury (fund management).
- Communities: Residents in targeted urban/rural/Tribal areas, potentially seeing improved local services like child care and infrastructure.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces anti-discrimination laws (e.g., Americans with Disabilities Act, nondisplacement rules from workforce laws) and prevailing wage requirements, ensuring compliance with labor standards. Audits and recoupment provisions strengthen accountability for federal funds.
- Constitutional: Relies on Congress's spending power to appropriate funds and direct executive action, with no apparent challenges to federalism as it partners with state/local/Tribal entities.
- Political: As a pilot for a "job guarantee" concept (a policy idea for government-backed employment), it could spark debates on fiscal costs, program effectiveness, and equity in job prioritization (e.g., clean energy focus). Selection criteria promote geographic and demographic diversity, potentially broadening bipartisan support in underserved areas.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Sen. Merkley, Jeff [D-OR], Sen. Warren, Elizabeth [D-MA]
Recent Actions
- 2026-02-12: Read twice and referred to the Committee on Finance.
- 2026-02-12: Introduced in Senate
Bill Versions
- Federal Jobs Guarantee Development Act of 2026 — issued 2026-02-12 — PDF (19 pages)