New AID Youth Employment Act Authorizes $875 Million Annually for Subsidized Jobs Targeting 14-24 Year-Olds

The new Assisting In Developing Youth Employment Act (AID Youth Employment Act) is setting up a massive federal push to get young people into subsidized jobs. This bill amends the existing Workforce Innovation and Opportunity Act (WIOA) to create two brand-new, federally funded grant programs: one for summer jobs and one for year-round employment, specifically targeting eligible youth aged 14 to 24. It authorizes $375 million annually for summer programs and $500 million annually for year-round programs from 2026 through 2030, totaling $875 million per year in authorized funding to expand the youth workforce pipeline.

The New Pipeline: Subsidized Jobs and Support

This isn't just about handing out minimum-wage jobs; the bill mandates structure and support. The core idea is subsidized employment, meaning the government helps pay the employer to hire the eligible youth. The bill specifically defines "eligible youth" as those aged 14 to 24 who are in school, out of school, or unemployed. It also focuses heavily on "marginalized" youth—a broad group including those who are homeless, involved with the justice system, in foster care, or living in high-poverty, underserved communities.

For those running the programs, the bill is strict about what must be included. Every job placement must teach core work skills, financial literacy, and sector-specific skills. For summer jobs, youth must work at least six weeks, no more than 20 hours a week, and be paid at least the minimum wage. For year-round jobs, in-school youth are capped at 15 hours per week, while out-of-school youth can work between 20 and 40 hours per week.

The Partnership Requirement: Building a Local Team

To get a piece of the funding—which can be up to $6 million for an implementation grant—state and local governments, tribal organizations, and community groups must prove they aren't going it alone. The bill requires extensive local partnerships. For governments, this means teaming up with local school agencies, workforce boards, juvenile justice agencies, and child welfare agencies. They also must involve an employer or employer association. This requirement is designed to ensure that the programs are integrated into the existing local support system, making it easier for a young person leaving foster care, for example, to get connected to a job and the necessary support services like transportation and childcare.

Crucially, the bill mandates mentorship. Summer job mentors must check in weekly, and year-round mentors must check in at least twice a week. All mentors must be trained in things like trauma-informed care, acknowledging that many of the youth targeted by this program are dealing with complex personal challenges. For year-round programs, grantees must also describe how they will provide mental health services, recognizing that stable employment requires stability outside of work, too.

Who Benefits and Where the Money Goes

This legislation is designed to reach youth everywhere. The Secretary must ensure that grants go to urban, suburban, rural, and tribal areas. Specifically, at least 20 percent of the summer and year-round funds must go to rural areas, and at least 5 percent must go to tribal areas. This is a significant win for organizations in less populated areas that often struggle to compete for federal grants.

For the organizations applying, there’s a catch: implementation grants require a cost-sharing component, with the federal government covering 50 percent of the costs. This means local organizations have to come up with the other half, either through cash or in-kind services. The bill makes an important exception for Indian tribes and tribal organizations, where the federal share must be increased to at least 95 percent, recognizing the often limited resources in those communities.

Finally, the bill puts a heavy emphasis on accountability. Grant recipients will be judged on performance measures—specifically, what percentage of youth are employed or in education/training six and twelve months after leaving the program, and how many earn a recognized credential. This ensures that the massive investment isn't just about temporary summer jobs, but about creating genuine, long-term career pathways for young adults.