H.R. 1859: Apprenticeship Opportunity Act

This bill, known as the Apprenticeship Opportunity Act, proposes changes to how income from apprenticeships is treated for the purposes of determining eligibility for financial assistance under a federal program called Temporary Assistance for Needy Families (TANF). The key points of the bill are as follows:

Disregarding Apprenticeship Income

The bill mandates that states must disregard all income earned during the first year of an apprenticeship that is registered under the National Apprenticeship Act when assessing an individual’s eligibility for TANF assistance. This change aims to encourage participation in apprenticeship programs by allowing apprentices to earn income without affecting their eligibility for vital assistance programs.

Impact on State Funding

To enforce this requirement, the bill introduces a penalty system for states that do not comply. If a state fails to disregard the income from apprenticeships as required, the Secretary of the Department of Health and Human Services can reduce the state's TANF grant for the following fiscal year by 1% of its family assistance grant. This financial penalty serves as an incentive for states to adopt the new rule regarding apprenticeship income.

Implementation Timeline

The changes introduced by this bill would take effect on the first day of the federal fiscal year that begins after the bill becomes law. This allows for some time for state agencies to prepare for the changes in policy and ensure compliance.

Objective of the Bill

The overarching aim of this legislation is to support individuals pursuing apprenticeships by ensuring that their income from these jobs does not impact their access to essential financial support. By encouraging more people to enter apprenticeship programs, the bill seeks to promote workforce development and help individuals gain valuable skills without the immediate worry of losing assistance.

Relevant Companies

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