H.R. 5806: Pre-Apprenticeship Wrap-around Support Services Fund Act of 2025

This bill, titled the Pre-Apprenticeship Wrap-around Support Services Fund Act of 2025, aims to provide financial assistance to individuals participating in pre-apprenticeship programs by granting stipends to help cover related costs. The key components of the bill are as follows:

Grants for Stipends

The Secretary of Labor is authorized to award grants to eligible organizations to offer stipends for individuals enrolled in pre-apprenticeship programs. These stipends are intended to support participants financially while they undergo training designed to prepare them for registered apprenticeship programs.

Definition of Pre-Apprenticeship Programs

A pre-apprenticeship program, as defined in the bill, involves:

• Preparing individuals for entry into registered apprenticeship programs by equipping them with necessary skills and competencies.
• Being operated by eligible applicants who have formal agreements with sponsors of registered apprenticeship programs.
• Including both theoretical education and practical training that aligns with industry standards without displacing existing employees.

Grant Application Process

Eligible applicants must submit a detailed application to the Secretary of Labor to qualify for grant funding. They will be required to provide various pieces of information as determined by the Secretary.

Performance Indicators and Reporting

Recipients of the grants (grantees) must establish metrics to track the success of the pre-apprenticeship programs they run. These metrics include:

• The percentage of participants who enroll in registered apprenticeship programs within a year of completing the pre-apprenticeship.
• The employment rate of participants in relevant industries within a year of completion.
• The median earnings of participants who join an apprenticeship program.
• The number of participants who earn a recognized credential or diploma during or shortly after the program.

Grantees are also obligated to collect annual data on these performance indicators, the number of stipends distributed, and the stipend amounts.

Priority and Stipend Usage

The bill emphasizes that stipends should be prioritized for individuals who face barriers to employment, which may include various economic or social challenges. The stipends are designated to cover specific costs, such as:

• Transportation expenses related to attending the pre-apprenticeship program.
• Lost wages if participation requires reduced work hours.
• Costs associated with obtaining certifications that are necessary for the industry.

Annual Reporting Requirements

Grantees must report annually to the Secretary of Labor on the collected data. Additionally, the Secretary must provide an annual report to congressional committees on the outcomes of the funded programs.

Eligible Applicants

Eligible applicants for grants include a wide range of entities such as:

• Organizations operating or sponsoring pre-apprenticeship programs (e.g., community-based organizations, educational institutions, or industry partnerships).

Funding Authorization

The bill authorizes the appropriation of necessary funds to implement its provisions.

Relevant Companies

None found