Sec. 174. Evaluations and research
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Section 169 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3224 ) is amended— in subsection (a)— in paragraph (2)— by redesignating subparagraph
(G)as subparagraph (H); in subparagraph (F)— by striking ; and at the end; and by inserting , including individuals with barriers to employment after demographic groups ; and by inserting the following after subparagraph (F): the extent to which such programs or activities are using emerging technology to— collect, analyze, use, and disseminate accurate and transparent local and State level labor market information; integrate administrative data, in accordance with Federal and State privacy laws, to more comprehensively understand and improve education and workforce outcomes; and identify and address deficiencies in existing Federal, State, and local workforce data infrastructure and related source systems; and ; in paragraph (3)— by striking The Secretary and inserting the following: The Secretary ; and by adding at the end the following new subparagraph: The Secretary may not use the authority described in subparagraph
(A)if the evaluations required under paragraph
(1)have not been initiated or completed in the time period required. ; and in paragraph (4), in the second sentence— by striking The Secretary and inserting Beginning after the date of enactment of the ; and A Stronger Workforce for America Act of 2026 , the Secretary by striking 2019 and inserting 2028 ; and in subsection (b)— by amending paragraph
(4)to read as follows: The Secretary, in coordination with other heads of Federal agencies, as appropriate, may conduct a study examining the nature of participants’ unsubsidized employment after exit from programs carried out under this Act— including with respect to factors such as the availability of paid time off in the employment, health and retirement benefits provided through the employment, workplace safety standards at the place of employment, the predictability and stability of the work schedule for the employment, the ability to obtain through the employment credentials that may permit articulation into a higher level or other degree or credential program, and advancement opportunities in the employment; and that includes a description of the feasibility of Congress establishing, through future legislation, an indicator of performance under section 116 related to such factors. The Secretary of Labor, in coordination with the Secretary of Health and Human Services, may conduct studies that analyze the access to services by individuals with disabilities, including whether an individual who is unable to receive services under title IV due to a wait list for such services is able to receive services under titles I through III. The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026 , conduct a study that— compares the effectiveness of the pay-for-performance strategies used under sections 129, 134, and 172 after such date of enactment to the awarding of grants and contracts under such sections as in effect on the day before the date of enactment of such Act; and examines, with respect to grants under sections 129, 134, and 172 after such date of enactment— the competition structure of pay-for-performance grants and contracts under such sections; the quality of applications received for grants and contracts under such sections; and whether individuals with barriers to employment were effectively served under the pay-for-performance strategies for grants and contracts under such sections. The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026 , conduct a study that compares the usage of individual training accounts for dislocated workers after such date of enactment to the usage of such accounts prior to such date of enactment, including a comparison of— the types of training services and occupations targeted by dislocated workers when using their individual training accounts; and the effectiveness of the skills development funded through individual training accounts in helping such individuals attain credentials and secure unsubsidized employment. The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026 , conduct a study that will review the usage of statewide critical industry skills funds established by States under section 134(a)(4) and identify, for purposes of measuring the overall effectiveness of the program— the industries targeted by the funds under section 134(a)(4); the occupations for which workers are being upskilled; how frequently skills development is provided to prospective workers and incumbent workers, and the reported performance outcomes. The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026 , conduct a study that will review the usage of industry or sector partnership and career pathways development funds established by States under section 134(a)(5) and identify, for purposes of measuring the overall effectiveness of the program— the industries targeted by the funds under section 134(a)(5) and the growth in employment opportunities in such industries over the period of the study; the occupations workers are receiving skills development for and how frequently such skills development is occurring through the funds under section 134(a)(5); the States where such funds were used to establish new industry or sector partnerships, the States where such funds were used to expand existing industry or sector partnerships, and an overview of the types of partners participating in such partnerships; and the reported performance outcomes. The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026 , conduct a study that measures the effectiveness of on-the-job training, employer-directed skills training, apprenticeship, and incumbent worker training under this title in preparing jobseekers and workers, including those with barriers to employment, for unsubsidized employment. Such study shall include the cost per participant and wage and employment outcomes, as compared to other methods of training. The Secretary shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026 , conduct a study that— measures the effectiveness of emerging technology (including artificial intelligence and machine learning) and other advanced computational methods, in improving State workforce development system service delivery, labor market data system performance, data collection and integration to understand participant and program outcomes, and end-user tools for facilitating career exploration or related data insights; measures the extent to which States have adopted and implemented such technology and methods in their workforce development systems, including by describing how the technology or method is being used, analyzing the accuracy of such technology or method, and identifying any exhibited bias by any such technology or method; and includes an analysis of the consequences of advances in automation technology on employment opportunities, skills development, including digital literacy skills development, and worker dislocation. The Secretary of Labor, shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026 , conduct a study on the alignment of workforce development programs under this Act with elementary and secondary education and postsecondary education. The study shall examine— State efforts to integrate data related to career and technical education programs, dual enrollment programs, pre-apprenticeships and apprenticeships, and other work-based learning programs to inform decisionmaking and improve educational opportunities and outcomes; challenges related to and strategies that promote such alignment to facilitate student participation in high-quality college and career pathways; and governance structures and funding sources to promote such alignment. The Secretary of Labor shall, not later than 4 years after the date of enactment of the A Stronger Workforce for America Act of 2026 , conduct an evaluation that— uses the most rigorous available methods that are appropriate and feasible to evaluate program effectiveness; measures the effect of the Job Corps program on participating individuals on outcomes related to the purposes described in section 141(1), including educational attainment, employment, earnings, and other related outcomes, compared with the non-participant peers of those individuals, to determine if the program has a statistically significant effect (including long-term effects) on such outcomes; and evaluates the cost-effectiveness of the program. The Secretary shall prepare and disseminate to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Workforce of the House of Representatives, and on the publicly available website of the Department, reports containing the results of the studies conducted under this paragraph. ; and in paragraph (5), by adding at the end the following: For each grant or contract awarded under this paragraph, the Secretary shall conduct a rigorous evaluation of the multistate project to determine the impact of the activities supported by the project, including the impact on the employment and earnings of program participants. The Secretary shall prepare and disseminate to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Workforce of the House of Representatives, and to the public, including through electronic means, reports containing the results of evaluations conducted under this subparagraph. . Section 169 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3224 ) is further amended by adding at the end the following: Of the amount made available pursuant to section 132(a)(2)(A) for any program year, the Secretary shall use not less than 5 percent and not more than 10 percent of such amount, and may also use funds authorized for purposes of carrying out this section, to award grants to eligible entities to create workforce longitudinal data systems, talent marketplaces, and associated resources for the purposes of assisting States to— improve program quality; produce evidence for decision making; meet performance reporting requirements; protect the privacy of users; and improve transparency in relation to labor market trends and changes in job skills needed to obtain employment. To be eligible to receive a grant under this subsection, an eligible entity shall submit an application to the Secretary, at such time and in such manner as the Secretary may require, which shall include— a description of the activities the eligible entity is proposing, including a description of the need for such activities and a detailed budget; a description of the expected outcomes and outputs (such as systems or products) that will result from the proposed activities and the proposed uses of such outputs; a description of how the proposed activities will support the reporting of performance data for the performance accountability requirements under section 116, including outcomes for eligible training providers; a description of the methods and procedures the eligible entity will use to ensure the security and privacy of the collection, storage, and use of all data involved in the systems and resources supported through the grant, including compliance with State and Federal privacy and confidentiality law; a plan for how the eligible entity will continue the activities or sustain the use of the outputs created with the grant funds after the grant period ends; and a description of how the eligible entity will ensure interoperability and portability between the talent marketplace maintained by the eligible entity and other talent marketplaces through the use of open standards. In awarding grants under the subsection, the Secretary shall give priority to eligible entities that— are— State agencies of States that have not previously received a grant from the Secretary for the purposes of this subsection and demonstrate a substantial need to improve its data infrastructure, including for the development of a talent marketplace; or consortia of State agencies that are comprised of State agencies from multiple States and include at least one State agency described in clause
(i)and have the capacity to make significant contributions toward building interoperable and portable interstate data infrastructure; and will use grant funds to— expand the adoption and use of linked, publicly available, and interoperable data on knowledge, skills, and abilities represented through credentials, occupational job descriptions, and learning assertions, including through the development of a talent marketplace or other tools and services designed to help learners and workers make informed decisions; participate in and contribute data to a multistate data collaborative, including data that provides participating States the ability to better understand— earnings and employment outcomes of individuals who work out-of-State; and interstate earnings and employment trends; enhance collaboration with private sector workforce and labor market data entities and the end-users of workforce and labor market data, including individuals, employers, economic development agencies, and workforce development providers; leverage the use of non-Federal contributions to improve workforce data infrastructure, including staff capacity building; or expand existing statewide integrated longitudinal data systems, including such systems receiving assistance under section 208 of the Educational Technical Assistance Act of 2002 ( 20 U.S.C. 9607 ). In addition to the activities described in paragraph (3)(B) , an eligible entity awarded a grant under this subsection may use funds to carry out any of the following activities: Developing or enhancing a State’s workforce longitudinal data system, including by participating and contributing data to the State’s data system, if applicable, that links with elementary and secondary school and postsecondary data. Accelerating the replication and adoption of data systems, projects, products, or practices already in use in one or more States to other States. Research and labor market data improvement activities to improve the timeliness, relevance, and accessibility of such data through pilot projects that are developed locally but designed to scale to other regions or States. Establishing or enhancing a talent marketplace. Developing policies, guidelines, and security measures for data collection, storing, and sharing to ensure compliance with relevant Federal and State privacy laws and regulations. Increasing local board access to and integration with the State’s workforce longitudinal data system in a secure manner. Creating or participating in a data exchange for collecting and using standards-based jobs and employment data including, at a minimum, job titles or occupation codes. Improving State and local staff capacity to understand, use, and analyze data to improve decision-making and improve participant outcomes. A grant awarded under this subsection may be for a period of up to 3 years. Funds made available under this subsection shall be used to supplement, and not supplant, other Federal, State, or local funds used for development of State data systems. Each eligible entity that receives a grant under this subsection shall submit a report to the Secretary not later than 180 days after the conclusion of the grant period on the activities supported through the grant and improvements in the use of workforce and labor market information that have resulted from such activities. In this subsection— The term ‘eligible entity’ means a State agency, including a State workforce agency or a consortium of State agencies, including a multistate data collaborative, that is or includes the State agency responsible for— State employer wage records used by the State’s unemployment insurance programs in labor market information reporting and analysis and for fulfilling the reporting requirements under section 116(d); the production of labor market information; and the direct administration of one or more of the core programs. The term multistate data collaborative means a partnership among two or more States to coordinate the governance and standards for workforce related data maintained by such States in order to facilitate interoperability and the secure exchange of such data between such States. .
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