[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2651 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2651
To amend the Workforce Innovation and Opportunity Act to establish a
State innovation demonstration authority.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2025
Mr. Owens introduced the following bill; which was referred to the
Committee on Education and Workforce
_______________________________________________________________________
A BILL
To amend the Workforce Innovation and Opportunity Act to establish a
State innovation demonstration authority.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``One Door to Work Act''.
SEC. 2. STATE INNOVATION DEMONSTRATION AUTHORITY.
Section 190 of the Workforce Innovation and Opportunity Act (29
U.S.C. 3250) is amended to read as follows:
``SEC. 190. STATE INNOVATION DEMONSTRATION AUTHORITY.
``(a) Purpose.--The purpose of this section is to--
``(1) authorize States to apply under this section on
behalf of the entire State, or on behalf of a local area or a
consortium of local areas in the State, to receive the
allotments or allocations of the State or the local areas,
respectively, for youth workforce investment activities and
adult and dislocated worker employment and training activities
under this Act, as a consolidated grant for 5 years for the
purpose of carrying out a demonstration project to pursue
innovative reforms to achieve better outcomes for jobseekers,
employers, and taxpayers; and
``(2) require that rigorous evaluations be conducted to
demonstrate if better outcomes and associated innovative
reforms were achieved as a result of such demonstration
projects.
``(b) General Authority.--
``(1) Waivers and demonstration grant amounts.--
Notwithstanding any other provision of law, during the
demonstration period applicable to a demonstration project
approved for a State pursuant to subsection (d)(3), the
Secretary shall comply with each of the following:
``(A) Waivers.--Subject to paragraph (2), waive for
the State as a whole, or for the local area or the
consortium of local areas in such State selected by the
State to carry out such demonstration project, all the
statutory and regulatory requirements of subtitle A and
subtitle B.
``(B) Demonstration grant amounts.--For each fiscal
year applicable to such demonstration period:
``(i) State as a whole.--In a case of a
State approved to carry out a demonstration
project under this section on behalf of the
State as a whole, distribute as a consolidated
sum to the State, for purposes of carrying out
the project, the State's total allotment for
such fiscal year under--
``(I) subsections (b)(1)(C) and
subsection (c) of section 127;
``(II) paragraphs (1)(B) and (2)(B)
of section 132(b); and
``(III) section 132(c).
``(ii) Local area.--In a case of a local
area selected by a State to carry out a
demonstration project under this section,
require the State to--
``(I) distribute as a consolidated
sum to the local board for such local
area, for purposes of carrying out the
project, the local area's allocation
for such fiscal year under--
``(aa) subsections (b) and
(c) of section 128; and
``(bb) subsections (b) and
(c) of section 133; or
``(II) if the local board of the
local area enters into a written
agreement with the State for the State
to serve as the fiscal agent for the
local board during the demonstration
project, use the funds described in
subclause (I) for purposes of carrying
out the project on behalf of the local
board.
``(iii) Consortium of local areas.--In a
case of a consortium of local areas selected by
a State to carry out a demonstration project
under this section, require the State to--
``(I) distribute as a consolidated
sum to the consortium, for purposes of
carrying out the project, the total
amount of the allocations for the local
areas in such consortium for such
fiscal year under--
``(aa) subsections (b) and
(c) of section 128; and
``(bb) subsections (b) and
(c) of section 133; or
``(II) if the consortium enters
into a written agreement with the State
for the State to serve as the fiscal
agent for the consortium during the
demonstration project, use the funds
described in subclause (I) for purposes
of carrying out the project on behalf
of such consortium.
``(2) Exceptions.--
``(A) In general.--A State, local area, or
consortium of local areas carrying out a demonstration
project under this section shall comply with statutory
or regulatory requirements of this Act relating to--
``(i) performance accountability and
reporting, except as otherwise provided in this
section;
``(ii) the membership of local or State
boards in instances where a State carrying out
a demonstration project will maintain the use
of such boards during the demonstration period;
and
``(iii) the priority of service described
in section 134(c)(3)(E).
``(B) Applicability of defined terms.--In carrying
out a demonstration project under this section, a
State, local area, or consortium of local areas may
only use a term defined in section 3 to describe an
activity carried out under such demonstration project
if the State, local area, or consortium of local areas
gives such term the same meaning as such term is given
under such section.
``(3) Authority for third-party evaluation.--
``(A) In general.--Not later than 180 days after
the first demonstration project is approved under this
section, the Secretary shall contract with a third-
party evaluator to conduct a rigorous evaluation of
each demonstration project approved under this section.
The evaluation shall--
``(i) cover the 5-year period of each
demonstration project;
``(ii) compare the employment and earnings
outcomes of participants in activities carried
out under the demonstration project to--
``(I) the outcomes of similarly
situated individuals that do not
participate in such activities who are
located in such State, local area, or a
local area in such consortium; and
``(II) the outcomes of participants
in activities under this chapter in the
State, local area, or a local area in
the consortium that was awarded a
waiver prior to the award of such
waiver;
``(iii) conduct a qualitative analysis that
identifies any promising practices or
innovative strategies that--
``(I) would not have been conducted
without the waiving of statutory or
regulatory provisions through the
demonstration project; and
``(II) lead to positive employment
and earnings outcomes for the
participants; and
``(iv) compare the outcomes for subclauses
(I) and (II) of clause (ii) with respect to the
subpopulations described in section
116(d)(2)(B).
``(B) Report.--Not later than 2 years after the
fifth year of each demonstration project approved under
this section, the Secretary shall submit to the
Committee on Education and the Workforce of the House
of Representatives and the Committee on Health,
Education, Labor, and Pensions, the results of the
evaluation of such conducted under this paragraph.
``(c) Demonstration Period; Limitations.--
``(1) In general.--A demonstration project approved under
this section for a State, local area, or consortium--
``(A) shall be carried out for a 5-year
demonstration period; and
``(B) may be renewed for an additional 5-year
demonstration period, if the State, local area, or
consortium--
``(i) for each of the final 3 years of the
preceding 5-year demonstration period, meets
its expected levels of performance established
under subsection (f)(1)(C); and
``(ii) on the final year of the preceding
5-year demonstration period, achieves a
performance improvement of not less than an
average of a 5-percent increase across all of
the indicators of performance described in
clauses (i) and (ii) of subsection (f)(1)(A),
compared with--
``(I) the highest level of
performance for the corresponding
indicators of performance, as described
in subsection (f)(1)(B)(i) with respect
to such State, for the most recent
program year that ended prior to the
beginning of the first year of the
preceding 5-year demonstration period;
or
``(II) the alternate baseline level
of performance for the corresponding
indicators of performance that is
agreed upon between the State and the
Secretary under subsection
(f)(1)(B)(ii).
``(2) Limitations.--
``(A) Demonstration period limitations.--For each
5-year demonstration period (including renewals of such
period) the Secretary may not approve--
``(i) more than 8 demonstration projects
for States to carry out a demonstration project
described in subsection (b)(1)(B)(i); and
``(ii) more than 8 demonstration projects
for local areas (or consortia of local areas)
to carry out a demonstration project described
in clause (ii) or (iii) of subsection
(b)(1)(B).
``(B) State limitations.--No more than 1
demonstration project may be approved under this
section per State. For purposes of this subparagraph, a
demonstration project described in clause (ii) or (iii)
of subsection (b)(1)(B) approved for a local area or a
consortium of local areas, respectively, in a State
shall be considered a demonstration project approved
under this section for the State.
``(d) Application.--
``(1) In general.--To be eligible to carry out a
demonstration project under this section, a State shall submit
to the Secretary an application at such time and in such manner
as the Secretary may reasonably require, and containing the
information described in paragraph (2).
``(2) Content.--Each application submitted by a State under
this subsection shall include the following:
``(A) A description of the demonstration project to
be carried out under this section, including--
``(i) whether the project will be carried
out--
``(I) by the State as a whole;
``(II) by a local area, and if so--
``(aa) an identification
of--
``(AA) such local
area;
``(BB) whether the
local board for such
local area is the
fiscal agent for the
project, or whether the
local board has entered
into a written
agreement with the
State for the State to
serve as the fiscal
agent during the
project; and
``(bb) written verification
from the local board for such
local area that such local
board agrees--
``(AA) to carry out
such project; and
``(BB) to the
fiscal agent identified
in item (aa)(BB); and
``(III) by a consortium of local
areas in the State, and if so--
``(aa) an identification
of--
``(AA) each local
area that comprises the
consortium; and
``(BB) the local
area that will serve as
the fiscal agent for
the consortium during
the project, or whether
the consortium has
entered into a written
agreement with the
State for the State to
serve as the fiscal
agent; and
``(bb) written verification
from each local board of each
local area identified in item
(aa)(AA) that such local board
agrees--
``(AA) to carry out
such project as a
consortium; and
``(BB) to the
fiscal agent for the
consortium identified
in item (aa)(BB);
``(ii) a description of the activities to
be carried out under the project; and
``(iii) the goals the State, local area, or
consortium intends to achieve through such
activities, which shall be aligned with the
purpose described in subsection (a).
``(B) A description of the performance outcomes the
State, the local area, or consortium expects to achieve
for such activities for each year of the demonstration
period as described in subsection (f)(1).
``(C) A description of how the State, local area,
or consortium consulted with employers, the State
board, and the local boards in the State in determining
the activities to carry out under the demonstration
project.
``(D) A description of how the State will make such
activities available to jobseekers and employers in
each of the local areas in the State or, in a case of a
project that will be carried out by a local area or a
consortium, a description of how such services will be
made available to jobseekers and employers in such
local area or each of the local areas in the
consortium.
``(E) A description, if appropriate, of how the
State, local area, or consortium will integrate the
funds received, and the activities carried out, under
the demonstration project under this section with State
workforce development programs and other Federal,
State, or local workforce, education, or social service
programs (including the programs and activities listed
in section 103(a)(2), the program of adult education
and literacy activities authorized under title II, and
the program authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.)).
``(F) An assurance that the State, local area, or
consortium will meet the requirements of this section.
``(3) Secretarial approval.--
``(A) In general.--Not later than 60 days after the
date on which a State submits an application under this
subsection, the Secretary shall--
``(i) in a case in which the application
meets the requirements of this section and is
not subject to the limitations described in
subsection (c)(2), approve such application and
the demonstration project described in such
application; or
``(ii) provide to the State a written
explanation of initial disapproval that meets
the requirements of subparagraph (C).
``(B) Default approval.--With respect to an
application submitted by a State under this subsection
that is not subject to the limitations described in
subsection (c), if the Secretary fails to approve such
application or provide an explanation of initial
disapproval for such application as required under
subparagraph (A), the application and the demonstration
project described in such application shall be deemed
approved by the Secretary.
``(C) Initial disapproval.--An explanation of
initial disapproval provided by the Secretary to a
State under subparagraph (A)(ii) shall provide the
State--
``(i) a detailed explanation of why the
application does not meet the requirements of
this section; and
``(ii) if the State is not subject to the
limitations described in subsection (c), an
opportunity to revise and resubmit the State's
application under this section.
``(e) State Demonstration Project Requirements.--A State, local
area, or consortium that has been approved to carry out a demonstration
project under this section shall meet each of the following
requirements:
``(1) Use of funds.--Use the funds received pursuant to
subsection (b)(1)(B) solely to carry out the activities of the
demonstration project to achieve the goals described in
subsection (d)(2)(A).
``(2) Administrative costs limitation.--Use not more than
10 percent of the funds received pursuant to subsection
(b)(1)(B) for a fiscal year for the administrative costs of
carrying out the demonstration project.
``(3) Priority for services.--Give priority for services
under the project to veterans and their eligible spouses in
accordance with the requirements of section 4215 of title 38,
United States Code, recipients of public assistance, low-income
individuals, and individuals who are basic skills deficient.
``(4) Number of participants.--Serve a number of
participants under the activities of the demonstration project
for each year of the demonstration period that--
``(A) is greater than the number of participants
served by such State, local area, or consortium under
the programs described in subparagraph (A) of the
definition of the term `core program provision' under
section 3 for the most recent program year that ended
prior to the beginning of the first year of the
demonstration period; or
``(B) is not less than the number of participants
to be served under the activities of the demonstration
project that is agreed upon between the State, local
area, or consortium, and the Secretary--
``(i) prior to the Secretary's approval of
the application submitted under subsection (d);
and
``(ii) after the Secretary takes into
account--
``(I) the goals the State, local
area, or consortium intends to achieve
through the demonstration project; and
``(II) the participants the State,
local area, or consortium intends to
serve under such project; and
``(iii) prior to approval of the
application submitted under subsection (d).
``(5) Reporting outcomes.--Submit, on an annual basis, to
the Secretary a report, with respect to such State, local area,
or consortium, on--
``(A) participant outcomes for each indicator of
performance described in subsection (f)(1)(A) for the
activities carried out under the project; and
``(B) the applicable requirements of section
116(d)(2), including subparagraphs (B) through (G) and
subparagraph (J), as such subparagraphs are applicable
to activities under the demonstration project.
``(6) Compliance with certain existing requirements.--
Comply with the statutory or regulatory requirements listed in
subsection (b)(2).
``(f) Performance Accountability.--
``(1) Establishment of baseline level for performance.--
``(A) In general.--Each State shall describe in the
application submitted under subsection (d), for each
year of the demonstration period--
``(i) with respect to participants who are
at least 25 years old, the expected levels of
performance for each of the indicators of
performance under section 116(b)(2)(A)(i) for
the activities carried out under the project
under this section, which shall meet the
requirements of subparagraph (B); and
``(ii) with respect to participants who are
at least 16 years old and no older than 24
years old, the expected levels of performance
for each of the indicators of performance under
section 116(b)(2)(A)(ii) for the activities
carried out under the project under this
section, which shall meet the requirements of
subparagraph (B).
``(B) 5th year.--Each of the expected levels of
performance established pursuant to subparagraph (A)
for each of the indicators of performance for the 5th
year of the demonstration period shall be higher than--
``(i) the highest level of performance for
the corresponding indicator of performance for
the programs described in subparagraph (A) of
the definition of the term `core program
provisions' under section 3 for the most recent
program year for such State that ended prior to
the beginning of the first year of the
demonstration period; or
``(ii) an alternate baseline level of
performance that is agreed upon between the
State and the Secretary--
``(I) prior to the Secretary's
approval of the application submitted
under subsection (d); and
``(II) after the Secretary takes
into account--
``(aa) the goals the State
intends to achieve through the
demonstration project; and
``(bb) the participants the
State intends to serve under
such project.
``(C) Agreed level for performance on expected
levels of performance.--Prior to approving an
application for a demonstration project submitted by a
State, and using the expected levels of performance
described in such application, the Secretary shall
reach an agreement with such State on the expected
levels of performance for each of the indicators of
performance. In reaching an agreement on such expected
levels of performance, the Secretary and the State may
consider the factors described in section
116(b)(3)(A)(v).
``(2) Sanctions.--
``(A) In general.--The sanctions described in
section 116(f)(1)(B) shall apply to a State, local
area, or consortium beginning on the 3rd year of the
demonstration period for such State, local area, or
consortium, except that the levels of performance
established under subsection (f)(1)(C) of this section
shall be--
``(i) deemed to be the State negotiated
levels of performance for purposes of this
paragraph; and
``(ii) adjusted at the end of each program
year to reflect the actual characteristics of
participants served and the actual economic
conditions experienced using a statistical
adjustment model similar to the model described
in section 116(b)(3)(A)(viii).
``(B) Ineligibility for renewal.--A State, local
area, or consortium that is subject to such sanctions
shall be ineligible to renew its demonstration period
under subsection (c).
``(3) Impact of local or consortium demonstrations on
statewide accountability.--With respect to a State with an
approved demonstration project for a local area or consortium
of local areas in the State--
``(A) the performance of such local area or
consortium for the programs described in subparagraph
(A) of the definition of the term `core program
provision' under section 3 shall not be included in the
levels of performance for such State for any of such
programs for purposes of section 116 for any program
year that is applicable to any year of the
demonstration period; and
``(B) with respect to any local areas of the State
that are not part of the demonstration project, the
State shall reach a new agreement with the Secretary,
for purposes of section 116(b)(3)(A), on levels of
performance for such programs for such program
years.''.
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