New Workforce Program Offers $9,000 Training Subsidies to Employers, But Only for Workers Without a Bachelor's Degree

The new American Workforce Act sets up a federally subsidized training system run out of the Commerce Department. Think of it as a massive, government-backed internship program, but specifically for people looking to skip the four-year degree track and jump straight into a high-paying job.

This bill creates the American Workforce Division, run by a Senate-confirmed Director, which will oversee contracts between for-profit employers and trainees. If you’re a U.S. citizen with a high school diploma but no bachelor’s degree, you could be eligible for a training contract that includes a paid job and structured educational training. The federal government sends the employer up to $9,000 per trainee—paid out quarterly over a maximum of three years—to cover the cost of that training.

The $9,000 Question: Who Gets In?

The biggest catch in the eligibility rules is the education cap (Sec. 2). To be a trainee, you must not have a bachelor’s degree or higher. This means the program is strictly focused on upskilling the non-degreed workforce, potentially leaving out people with degrees who might need to pivot careers or gain specific technical certifications. If you’re a mid-career professional with a liberal arts degree trying to switch into IT, you’re out of luck here. If you’re a high school grad or someone who completed an associate’s degree, you’re exactly who this program is designed for.

For employers, the incentive doesn't stop at the subsidy. If they hire the trainee full-time after the project ends, they get an extra $1,000 hiring bonus (Sec. 4). However, the employer must commit to training the worker for a job that pays at least 80% of the median household income in that county. For example, if the median income in your area is $75,000, the employer has to train you for a job that pays at least $60,000, creating a strong financial incentive for employers to aim high.

The Fine Print: What Employers Must Do

This program isn't just free money for employers; it comes with serious strings attached and heavy oversight from the new Director. Every contract must detail the curriculum, the expected competency-based credentials (Sec. 2), and the expected salary range. The Director has the power to review and approve or reject every single contract within 32 days (Sec. 4).

More importantly, the bill mandates intense data collection and public disclosure (Sec. 3 & Sec. 4). Employers must track and report: completion rates, how many trainees they hire full-time, and the average salary of those hired. If an employer’s completion rate drops below 25% over four years, the Director is required to launch an investigation. This level of transparency means that if an employer is just using the subsidy for cheap labor and not actually hiring people, the public—and the Director—will know about it.

The Director’s Big Stick

The Director has significant power to enforce compliance (Sec. 3). If an employer violates the contract terms or runs a consistently failing project, the Director can issue a warning, impose a civil penalty equal to the funds received over the previous two years, or suspend the employer from the program for up to five years. This is a massive penalty—if a large company receives millions in subsidies, they could face millions in fines.

The bill also includes specific whistleblower protections for trainees. If you file a complaint about your employer not following the contract, they cannot legally fire or punish you for it. This is a critical protection for workers who might otherwise fear retaliation when raising issues about their training quality or pay.

What the Money Can’t Buy

There are also explicit restrictions on how the federal subsidy funds can be spent (Sec. 4). The money cannot be used for diversity, equity, and inclusion training, culturally responsive training, or anything that could be considered political spending. The funds are strictly earmarked for technical training and instruction that leads to a portable skill or credential.

Crucially, the Act also states that participating employers are not subject to the rules of the Office of Federal Contract Compliance Programs (OFCCP), like Executive Order 11246 (Sec. 4). For businesses that accept these federal training subsidies, this exemption could be a major shift, potentially reducing existing equal opportunity and affirmative action requirements for those specific projects.

This program is set to automatically end 11 years after it starts (Sec. 6), meaning Congress will have to actively renew it if the progress reports show it’s worth keeping around.