S. 3864: Federal Jobs Guarantee Development Act of 2026

This bill, known as the Federal Jobs Guarantee Development Act of 2026, proposes the establishment of a pilot program to create job guarantee programs in areas with high unemployment rates. Here are the key components of the legislation:

Definitions

• Eligible Entities: These include political subdivisions of a state, tribal entities, or a combination of these, that have an unemployment rate of at least 150% of the national rate.
• Job Guarantee Program: A program aimed at ensuring that anyone in the designated area who seeks a job through the initiative will be offered employment.
• Urban and Rural Areas: Definitions provided for urban and rural contexts based on population metrics.

Establishment of the Program

The Secretary of Labor will create this pilot program which will offer competitive grants to eligible entities to establish job guarantee programs. The goal is to provide work for all individuals in the targeted areas who apply for jobs through the program.

Job Guarantee Features

Programs must ensure that jobs:

• Are accessible to individuals aged 18 or older residing in the service area.
• Follow established collective bargaining agreements where applicable.
• Provide a living wage, including minimum wage, prevailing wage in the area, or wages specified in union agreements.
• Offer health insurance comparable to federal employee benefits.
• Include paid family leave and sick time consistent with federal and state laws.

Funding and Grant Details

Grants will be made available for a duration of three years or until an entity stops being eligible. The Secretary will determine grant amounts based on specific criteria. Use of funds will include support services for participants, job training, and employment for those with barriers to work.

Application Requirements

Entities applying for grants must provide detailed information on:

• The demographics and economic situation of the area, including unemployment rates and poverty levels.
• The types of jobs to be created.
• Plans for leveraging other financial resources.

Selection Criteria

A maximum of 15 grants will be awarded, with attention to a diverse geographic and demographic representation.

Restrictions on Use of Funds

Grants cannot be used to replace existing employees or disrupt current contracts. Entities must comply with all applicable laws and regulations.

Program Oversight

Annual audits will assess how grant funds are utilized and ensure accountability. Eligible entities must report on their funding use and outcomes from the programs.

Evaluation and Reporting

The program will undergo regular evaluation to analyze its effects on employment rates, public spending, and overall community health and education outcomes.

Expansion of the Work Opportunity Tax Credit

The bill proposes updating tax credit provisions to include individuals participating in job guarantee programs.

Funding Appropriations

The necessary funds for these programs will be appropriated to the Secretary as required.

Relevant Companies

None found.