The "AID Youth Employment Act" allocates funds for subsidized summer and year-round employment programs for youth ages 14-24, prioritizing in-school and out-of-school youth, and those in rural and tribal areas.
Richard Durbin
Senator
IL
The AID Youth Employment Act aims to increase employment opportunities for youth aged 14-24 by amending the Workforce Innovation and Opportunity Act to allocate funds for subsidized summer and year-round employment programs. The Act establishes competitive grant programs for states, local governments, Indian tribes/organizations, and community-based organizations to create or expand these employment opportunities, with a focus on both in-school and out-of-school youth, as well as those in rural and tribal areas. It also requires the Secretary of Labor to evaluate program performance and report to Congress, authorizing appropriations for these programs through 2030.
This bill, the AID Youth Employment Act, aims to pump significant funding into getting young people into the workforce by amending the existing Workforce Innovation and Opportunity Act (WIOA). It proposes authorizing up to $1.8 billion for summer jobs and $2.4 billion for year-round positions, specifically targeting youth aged 14 to 24. The core idea is to create competitive grant programs that fund 'subsidized employment' – basically, jobs where part or all of the wages are covered by the grant – helping young people gain experience and earn money.
The legislation sets up two main pathways for funding: a Summer Employment Competitive Grant Program and a Year-Round counterpart. States, local governments, tribal organizations, and community-based groups can apply for planning grants (up to $250k) or larger implementation grants (up to $6M for summer, potentially similar for year-round, though not explicitly capped in the summary) to run these programs. Think of it like this: a local non-profit could get funds to partner with area businesses to hire high school students for the summer, with the grant helping cover their paychecks. The bill requires a 50/50 split of funds between serving in-school youth and those who are out-of-school or unemployed. It also specifically earmarks funds for rural (at least 20%) and tribal areas (at least 5%), ensuring opportunities reach beyond major cities.
The target is broad: 'eligible youth' are defined as anyone aged 14-24, whether they're currently students, have left school, or are unemployed. Applicants for grants need to detail who they plan to serve and how they'll tackle barriers that might prevent young people from participating – think transportation issues, childcare needs, or lack of professional clothing. The year-round program specifically requires grantees to describe how they'll connect participants with mental health services if needed. While aiming for wide reach, the success will depend on how well grantees identify and support the young people who need these opportunities most, particularly those defined as 'marginalized'.
Recognizing that big spending needs oversight, the bill tasks the Secretary of Labor with setting performance goals for these programs. Grant recipients will face annual reviews, and there's a mandate for 'continuous quality improvement'. Essentially, the government wants to track whether these programs are actually leading to good outcomes for participants – like improved skills or future job prospects – and not just funding temporary positions. A report to Congress is also required, providing transparency on how the funds, authorized at $375 million annually for summer and $500 million annually for year-round programs from fiscal years 2026 to 2030, are being used and what results they're achieving.