New American Workforce Act Funds $9,000 Training for Non-College Grads, Mandates E-Verify for Employers

The new American Workforce Act sets up a federal program offering employers up to $9,000 in subsidies per trainee to run structured, paid training programs. It’s a major push to create a new pipeline of skilled workers, but it comes with some very specific rules about who can participate and how the money can be used.

This bill creates the American Workforce Division within the Commerce Department to manage these new “American Workforce Contracts.” Essentially, a business and a prospective trainee agree to a contract that outlines paid on-the-job work and formal educational training. If the Director approves the contract—which happens automatically if they don't respond within 32 days—the employer starts receiving quarterly subsidy payments, capped at $1,500 per month, up to $9,000 total (SEC. 4).

The Strict Eligibility Filter: No College Diploma, Please

If you’re thinking this sounds like a great way to pivot careers, check the fine print on eligibility. To be a “Trainee,” you must be a U.S. citizen, have a high school diploma or equivalent, and—here’s the kicker—you cannot have a bachelor’s degree or higher (SEC. 2). This means if you’re a recent college graduate struggling to find work, or an experienced professional with a master’s degree looking to retrain in a skilled trade, this federally subsidized program is explicitly closed off to you. It’s laser-focused on creating pathways for those without higher education, but it draws a hard line that excludes millions of others who might need training.

The Real-World Wage Floor

One of the most impactful parts of this bill is the required compensation structure. Trainees must be paid at least the federal, state, or local minimum wage during the project (SEC. 4). But the job they are training for must be expected to pay an annual salary of at least 80% of the median household income in the county where the job is located (SEC. 4). For example, if the median household income in your county is $75,000, the job you’re training for must be slated to pay at least $60,000. This provision aims to ensure these programs aren't just training people for low-wage jobs, directly linking federal subsidies to jobs that offer a solid living wage in that specific area.

The Cost of Compliance for Employers

Employers get a financial boost—up to $9,000 in subsidies and a $1,000 bonus if they hire the trainee full-time (SEC. 4). But that money comes with serious strings attached. First, the subsidy can only be used for educational training costs, not the trainee’s salary (SEC. 4). Second, the employer must use E-Verify for every single trainee enrolled and every person hired while they are accepting these funds (SEC. 4). For a small business owner, implementing E-Verify for their entire hiring process just to get a subsidy for one or two trainees is a significant administrative hurdle.

Perhaps the most restrictive clause is the rule that the subsidy absolutely cannot be used for “diversity, equity, and inclusion (DEI) training or culturally responsive training” (SEC. 4). This means employers who want to use the federal funds for training must ensure their curriculum strictly adheres to these content limitations, which could affect how they structure their mandatory workplace education.

Oversight and the Sunset Clause

The new Director of the American Workforce Division has significant power, including the authority to approve contracts, investigate complaints, and even suspend employers for up to five years or issue fines if they find “clear and convincing evidence” of rule-breaking (SEC. 3). The bill also mandates robust reporting on completion rates, trainee earnings, and employer satisfaction every five and ten years.

Crucially, this entire program is temporary. It includes a “sunset” provision, meaning the program and the Division will automatically expire 11 years after the bill is enacted, unless Congress reauthorizes it (SEC. 6). This makes the program a structured, decade-long experiment in workforce development, forcing a formal review before it can continue.