The "New Collar Jobs Act of 2025" aims to boost cybersecurity expertise and employment through tax credits for employee training, student loan repayment assistance, expanded cybersecurity scholarship programs, increased funding for advanced technology education, and incentives for cybersecurity training in government contracts.
Ted Lieu
Representative
CA-36
The New Collar Jobs Act of 2025 aims to expand the cybersecurity workforce through various initiatives. It creates a tax credit for businesses that invest in cybersecurity education for their employees, offers student loan repayment assistance for cybersecurity professionals working in economically distressed areas, and seeks to increase cybersecurity scholarships. The act also incentivizes cybersecurity training for government contractors and encourages increased funding for cybersecurity education programs.
New Bill Offers Tax Credits, $25K Loan Relief to Grow US Cybersecurity Workforce
The New Collar Jobs Act of 2025 lays out a multi-pronged strategy aimed squarely at boosting the number of cybersecurity professionals across the country. It proposes using tax incentives for businesses, student loan relief for workers in specific areas, expanded scholarship programs, and nudges for government contractors to invest in cyber skills, responding to findings of increased cyber threats targeting industrial systems.
Tax Breaks and Better Bids: What's In It for Employers?
Two key provisions target businesses. First, Section 3 introduces a new tax credit, allowing companies to claim back 50% of the costs for employee cybersecurity education, capped at $5,000 per employee per year. This covers expenses for degrees, certificates, or industry-recognized credentials listed in the standard NICE Cybersecurity Workforce Framework. Think of it like this: if a local factory spends $8,000 to get an IT staffer certified in industrial control system security, they could potentially get a $4,000 tax credit.
Second, for businesses chasing government contracts over $5 million, Section 7 offers a potential edge. If a company has used the employee education tax credit (mentioned above) within the last three years, their competitive proposal score gets a 5% bump. This aims to reward companies investing in their cyber workforce when they bid on federal projects.
From Campus to Career: Help for Cyber Workers and Students
The bill also includes direct support for individuals pursuing cybersecurity careers. Section 4 introduces a student loan repayment program targeting specific geographic areas. If you work in a cybersecurity role (as defined by the NICE framework) located in an officially designated "economically distressed area" for at least three years (making consecutive loan payments during that time), you could have up to $25,000 of your federal Direct Loans forgiven. This is designed to draw skilled workers to places needing economic revitalization.
For those still studying, Section 5 signals a push to expand the existing CyberCorps Scholarship-for-Service program, urging the National Science Foundation (NSF) to double the scholarships awarded annually from 2026 onwards compared to 2024 levels. It also broadens the program to explicitly include cybersecurity course instructors and removes the previous requirement prioritizing federal government job placements for scholarship recipients, potentially opening up more pathways into academia or state/local/tribal government roles.
Investing in the Future: More Training on Tap
Recognizing the need for more training pathways, Section 6 encourages Congress to significantly increase funding for the NSF's Advanced Technological Education (ATE) program, specifically its Information Technology and Cybersecurity Division. The recommendation is for FY 2026 funding to be at least 110% of the FY 2024 level. More funding here typically translates to better resources and more program availability at community colleges and technical schools that train the hands-on tech workforce, including future cybersecurity technicians.