Although it’s still early in the 119th Congress, both the House and Senate appear ready to move forward with significant workforce-development legislation. Specifically, Democrats and Republicans have started to consider reauthorizing the Workforce Innovation and Opportunity Act (WIOA) and have introduced other legislation to expand access to training funds from existing tax-advantaged resources.

A Stronger Workforce for America Act
On March 5, the House Education & Workforce Subcommittee on Higher Education and Workforce Development held a hearing titled, “Strengthening WIOA: Improving Outcomes for America’s Workforce.” The hearing focused on congressional efforts to reauthorize WIOA, which serves as the nation’s primary federal workforce-
development law.

Democrats and Republicans generally agree that WIOA reauthorization is a necessary step to enhancing the workforce system at the state and local levels. During the 118th Congress, the House introduced and passed the bipartisan A Stronger Workforce for America Act (H.R. 6655). That act would have reauthorized WIOA funding and modernized workforce-development programs to strengthen connections between employers and the workforce system, equipping workers with in-demand skills for jobs in critical industries. Negotiations between the House and Senate resulted in a bill that appeared likely to pass both chambers and be signed into law, and the text was included in a draft of the end-of-year continuing resolution (CR) to extend government funding through March 2025. But the bill was ultimately dropped from consideration in the CR and did not pass both chambers before the last Congress adjourned.

In the subcommittee hearing, it was apparent that Democrats and Republicans alike are still supportive of the A Stronger Workforce for America Act. The witnesses at the hearing all shared strong support for various provisions of it. Burgess Owens (R-UT), chair of the subcommittee, and Ranking Member Alma Adams (D-NC) used their opening statements and questions to highlight important changes the A Stronger Workforce for America Act would make for WIOA and workforce programs nationwide.

Though the hearing focused on the A Stronger Workforce for America Act, the bill has not yet been reintroduced in the 119th Congress. Regardless, hearings like this will likely continue in both the House Education & Workforce Committee and Senate Health, Education, Labor, and Pensions (HELP) Committee. Whether Congress chooses to reintroduce the same bill from the 118th Congress or introduce a new bill to reauthorize WIOA remains to be seen, but WIOA reauthorization will almost certainly remain a priority.

Freedom to Invest in Tomorrow’s Workforce Act
In addition to WIOA, Congress is also considering legislation that TCIA has previously advocated for. The Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1151) seeks to amend the Internal Revenue Code to expand the use of 529 savings plans for postsecondary training and credentialing. The Internal Revenue Code currently only allows for funds saved through 529 plans to be used for qualified education expenses at eligible educational institutions, which the IRS considers to be any college, university, vocational school or other postsecondary educational institution that may participate in a
student-aid program administered by the U.S. Department of Education.

The bill has been introduced in both the House and Senate this Congress. In the House, the bill was introduced by Rep. Robert Wittman (R-VA) and has garnered support from 65 additional co-sponsors – 35 Republican and 30 Democrat. In the Senate, Sens. Amy Klobuchar (D-MN) and Roger Marshall (R-KS) have two additional co-sponsors on the bill – Sens. Peter Welch (D-VT) and Susan Collins (R-ME). Neither the House nor Senate have announced plans to mark up the legislation or otherwise move it forward at this time.

TCIA will continue to monitor and advocate for workforce-development legislation to help address workforce-
shortage and skills-gap issues faced by employers nationwide.

Bailey Graves is a senior associate with Ulman Public Policy, TCIA’s Washington, D.C.-based advocacy and lobbying partner.