PolicyBrief
H.R. 1633
119th CongressFeb 26th 2025
Workforce Reentry Act
IN COMMITTEE

The "Workforce Reentry Act" establishes grants and pay-for-performance contracts to improve workforce reentry programs for ex-offenders, prioritizing partnerships that lead to credentials in high-demand occupations.

Lloyd Smucker
R

Lloyd Smucker

Representative

PA-11

LEGISLATION

Workforce Reentry Act: New Grant Program Aims to Connect Ex-Offenders with Jobs, But Limits Support Services

The "Workforce Reentry Act" sets up a new grant program focused on helping individuals recently released from prison or jail (within the last two years) find jobs. The goal is to smooth the transition back into society and, ideally, reduce the chances of re-offending. The program prioritizes getting people into training for high-demand jobs or directly into positions where employers commit to hiring them. SEC. 2

Breaking Down the Barriers

The Act directs the Secretary of Labor to fund programs run by a variety of organizations – from nonprofits and local governments to businesses and colleges. At least 30% of the funding will be tied to "pay-for-performance" contracts, meaning organizations get fully paid based on achieving specific results. The rest will be competitive grants, focusing on skills training, help with job placement, and mentoring. SEC. 2

For example, a local nonprofit could partner with a construction company to train former inmates in welding, with the company agreeing to hire graduates. Or, a community college could offer a program leading to a certificate in healthcare, a field known for its job openings. These partnerships are key, and the bill gives preference to applications that include them. SEC. 2

The Fine Print – and Potential Roadblocks

While the bill aims to boost employment, there are some strings attached. For instance, organizations applying for grants need to come up with their own matching funds – 25% for the first round, and 50% after that. This could be tough for smaller, community-based groups. SEC. 2

Also, while the program can coordinate with services for substance abuse, mental health, housing, and transportation, it can't directly fund most of them. The bill specifically states that grant money cannot be used for direct substance abuse treatment, mental health treatment, or housing (except for coordination efforts). This is a big deal because these are often major hurdles for people trying to rebuild their lives after incarceration. Administrative costs are capped at 5%, participant stipends at 15%, and emergency assistance at just 5%. SEC. 2

Measuring Success – and Avoiding Pitfalls

The Act puts a lot of emphasis on tracking results, including things like job placement rates and, importantly, recidivism (whether people return to prison). The Secretary of Labor will also conduct an independent evaluation and report to Congress on how well the program is working. SEC. 2 While this accountability is good, it could also create pressure to focus on the "easiest" cases – those individuals who are already most likely to succeed – to make the numbers look good. This is known as 'creaming'.

Ultimately, the Workforce Reentry Act is trying to tackle a real problem: the difficulty ex-offenders face in finding work, which often leads them back to crime. This bill offers a potential path forward, but its success will hinge on how well it's implemented and whether it can truly address the complex needs of this population.