DEMO Act Funds $10 Million Grant Program to Train People with Records for Healthcare Jobs, Starting 2026

The Demonstrating that Empowerment Makes Opportunities Act, or the DEMO Act, sets up a new $10 million federal grant program starting in Fiscal Year 2026. This money is earmarked for demonstration projects designed to put people with arrest or conviction records into high-demand, well-paying careers in the health professions. Essentially, the government is funding local programs that create a clear, supported path from having a record to holding a health care credential.

The Health Career Pathway: From Record to Registered

This bill targets two major problems at once: high unemployment among formerly incarcerated individuals and critical labor shortages in healthcare, specifically allied health and behavioral health. To get one of these grants, organizations—which can range from hospitals and colleges to non-profits and labor unions—must show they have a detailed plan for a "career pathway." This pathway isn’t just a training course; it must lead to credentials, licenses, and actual job placement in fields where there’s a proven need (SEC. 2).

Crucially, applicants must prove that the state where they operate already has policies allowing people with certain conviction records to get licensed in these health fields. This provision ensures the money goes to projects that can actually deliver on the promise of a job, rather than training people for positions they can’t legally hold. For a low-income individual (defined as earning below 138% of the Federal poverty level) seeking a fresh start, this program offers job training plus the essential support needed to make that transition stick.

Mandatory Legal Help: Clearing the Roadblocks

One of the biggest hurdles for people with records is, well, the record itself. The DEMO Act tackles this head-on by mandating that every grant recipient must provide participants with access to legal help (SEC. 2). This isn’t optional; it’s a required service to help participants deal with their records and clear legal barriers to employment. Think of it as a built-in legal clinic focused on expungement, sealing, or mitigation—a service that can cost thousands of dollars and often blocks otherwise qualified candidates.

Beyond the mandatory legal aid, grantees can also use the funds for other necessary services, including setting up an emergency cash fund. This is the street-smart provision: it recognizes that if a participant’s car breaks down or they face an unexpected medical bill, they might drop out of training. Allowing grants to cover these small, unexpected financial emergencies helps keep participants on track toward stable employment.

Who Gets the Money and When

Funding for this program is set at $10 million for Fiscal Year 2026, and none of the changes in the bill will take effect until October 1, 2025 (SEC. 3). When the government decides who gets the grant money, there are clear preferences. Organizations that have already run a successful project under this section—meaning they have high graduation, credentialing, and job placement rates—will get priority funding. While this rewards proven success, it also means new organizations with innovative ideas might find it harder to secure initial funding, potentially limiting the program's reach and ability to adapt.

Finally, the Secretary must conduct thorough evaluations of these projects. This isn't just checking boxes; the evaluations must determine which activities successfully lead to accessible entry points into the health workforce for low-income people with records, ensuring those jobs offer good wages and benefits. The goal here is to use the initial $10 million to figure out what actually works, so successful models can be scaled up later.