H.R. 7566: Federal Jobs Guarantee Development Act of 2026

The Federal Jobs Guarantee Development Act of 2026 aims to establish a pilot program managed by the Secretary of Labor to support job guarantee programs in areas with high unemployment rates. Here are the key components of the bill:

Establishment of the Pilot Program

The Secretary will set up a competitive grant program to help eligible entities create job guarantee programs. These grants will be available for political subdivisions or Tribal entities in regions where unemployment is significantly higher than the national average.

Eligibility Criteria

• Eligible Entities: Must be a political subdivision of a State, Tribal entity, or a combination serving areas with unemployment rates at least 150% of the national average.
• Job Guarantee Programs: Must guarantee employment for individuals who apply for jobs through the program.

Job Program Requirements

To qualify as a job guarantee program, it must:

• Be open to individuals aged 18 and older residing in the area served.
• Comply with existing collective bargaining agreements if applicable.
• Offer jobs available for the duration of the pilot program.
• Provide wages that meet or exceed the area’s prevailing wage or set minimums.
• Include health insurance coverage comparable to that for Federal employees.
• Offer paid family and sick leave.

Use of Funds

Funds can also be used for:

• Supportive services such as transportation and childcare.
• Access to workplace learning advisors for skill development.
• Programs for justice-involved individuals re-entering the workforce.
• Financial literacy programs.

Application Process

Entities applying for grants must describe their service area, unemployment metrics, types of jobs, and how they will include diverse populations, including those with disabilities or criminal records in their job offerings.

Grant Selection and Management

The Secretary will award grants to no more than 15 eligible entities, considering geographic diversity and other factors. The funding will establish a Job Guarantee Program Trust Fund to facilitate grant disbursements.

Limitations on Use of Grant Funds

Grants cannot be used to replace existing employees or to disrupt current employment contracts.

Job Creation and Training

Federal agencies will also create jobs under this program. They are required to list available jobs publicly and provide training (up to 8 weeks) to participants. Specific populations facing barriers to employment will receive tailored training.

Evaluation and Reporting

The Department of Labor will conduct regular evaluations of the program to assess its impact on employment, wages, poverty rates, and other societal outcomes. Recipients of the grants must report their expenditures and outcomes annually.

Expansion of Work Opportunity Credit

The bill amends the tax code to expand qualifying criteria for tax credits to include participants from these job guarantee programs.

Funding

The bill authorizes necessary appropriations for the Secretary of Labor to carry out the provisions, including the establishment of the Job Guarantee Program Trust Fund.

Relevant Companies

• None found