Workforce Boards Must Now Support Entrepreneurs: Federal Training Funds Open Up for Business Startups

If you’ve ever tried to get job training through a government program, you know the system is heavily focused on getting you into a traditional W-2 job. But a new bill aims to change that by formally integrating support for entrepreneurs and micro-businesses into the federal workforce development system.

This legislation amends the Workforce Innovation and Opportunity Act (WIOA) to explicitly require state and local workforce development boards to prioritize planning for entrepreneurial skills development and microenterprise services alongside traditional job training (SEC. 1). What this means on the ground is that if you’re looking to start your own business—whether it’s a side hustle or a full-time operation—your local workforce center must now provide information and referrals for that path, not just for open positions at the local factory (SEC. 3).

The Training Provider Lineup Gets an Upgrade

One of the biggest practical changes is who qualifies to offer federally funded training. Previously, the list of eligible training providers was tailored heavily toward traditional vocational and academic institutions. This bill updates the law to ensure that organizations focused on teaching entrepreneurial skills—think business planning, financing, and self-employment logistics—are explicitly included as eligible providers of training services under WIOA (SEC. 2). For a person currently working a skilled trade who wants to branch out and start their own contracting business, this could mean accessing funding for a specialized business management course instead of just another certification course.

Putting the Data to Work: The Three-Year Study

It’s one thing to fund training, but it’s another to know if that training actually works. The bill mandates a crucial new element: a comprehensive, three-year study on entrepreneurial skills development programs across multiple states (SEC. 4). This isn't just a quick check-in; the study is required to track specific outcomes, including the average earnings of program graduates three years after they finish. It will also look at identifying best practices for mentoring, measuring participant readiness, and assessing the overall economic impact these programs have on local job creation. After the study wraps up, the Secretary must issue recommendations to states on how to make these programs more accessible and effective. This is the government’s way of saying, “We’ll fund the training, but we also need the data to prove it’s a smart investment.”

The Real-World Impact on Your Local Economy

For local economies, this is a signal that the federal government is recognizing that not everyone needs or wants a traditional job. By expanding the definition of “workforce demand” to include entrepreneurship, the bill opens up WIOA resources to foster self-employment and small business creation. While this is largely positive—it legitimizes the path of the small business owner within the federal system—it does raise a potential concern: existing WIOA funds are limited. If a significant amount of resources shifts to funding entrepreneurial training, it could potentially divert funds away from traditional job placement services for those who truly need immediate employment. However, the bill primarily expands the scope of services rather than mandating a funding shift, relying on local boards to balance the two needs. Overall, this legislation is a clear attempt to modernize the workforce system to better reflect how many people earn a living today.