Sen. Budd Introduces Legislation To Improve Access To Employer-Directed Skills Program
Last week, Sen. Ted Budd (R-NC), along with Sen. Bill Cassidy (R-LA), the Chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee, reintroduced the Employer-Directed Skills Act. The legislation streamlines businesses’ access to skills programs under the Workforce Innovation and Opportunity Act (WIOA). The proposed legislation would increase opportunity for prospective employees to participate in programs and select or design the training that best meet their needs, while accessing WIOA funds to offset training costs.
“The stability of America’s workforce depends upon investing in a modern approach to employee development, but outdated rules and red tape in the workforce system discourage businesses from accessing federal resources to close the skills gap to fill in-demand jobs. As companies continue to innovate, we cannot afford to delay providing our workforce with the necessary training to compete in today’s rapidly changing economy. The Employer-Directed Skills Act would unlock access for American businesses to take advantage of valuable skills development programs to recruit and retain qualified personnel to strengthen our workforce,” said Senator Budd.
Under WIOA, too few unemployed Americans have access to the skills necessary to advance in the workforce. This failure holds back the American economy.
The Employer-Directed Skills Act specifically would:
Allow employers to identify prospective employees to participate in skills development programs selected by the employer;
Provide partial reimbursements to employers for the costs of employer-directed skills development programs;
Establish performance indicators to ensure trainees receive high-quality instruction and are well-prepared for employment;
Encourage local workforce development boards to connect with employers that offer employer-directed skills development programs.
The Employer-Directed Skills Act is endorsed by Air Conditioning Contractors of America (ACCA), Floor Covering Education Foundation, Plumbing-Heating-Cooling Contractors Association, Plumbing-Heating-Cooling Contractors of North Carolina, and the Skills First Coalition which includes: IBM Corporation, Cengage Group, American Trucking Associations, Ampere Computing, Autos Drive America, Chegg, CompTIA, Coursera, HP Inc., Indeed, ITI International Paper, LinkedIn, Presidents Forum, RILA Salesforce, Inc., Semiconductor Industry Association, Society for Human Resource Management (SHRM), and U.S. Chamber of Commerce.
Read the full bill text HERE.
What They Are Saying:
“Washington bureaucrats need to stop blocking good job opportunities. This bill cuts red tape and empowers workers with skills to succeed in a 21st century economy,” said Dr. Cassidy.
“Our members consistently tell us that attracting and retaining skilled workers is their top priority. The Employer Directed Skills Act addresses this challenge by making WIOA funds more accessible, flexible, and effective for employers and workers alike. We are immensely grateful to Senator Budd and his team for their work on this bill and their commitment to strengthening and modernizing the skilled trades workforce,” said Barton James, President and CEO, Air Conditioning Contractors of America.
“The labor shortage in our industry continues to be a major barrier to growth and meeting customer demand. We’re encouraged to see legislation like the Employer-Directed Skills Act taking meaningful steps to connect education and workforce training directly with employer needs. At USA Flooring and through the Floor Covering Education Foundation, we’re committed to developing skilled talent and supporting good-paying careers in flooring and construction across North Carolina. This bill represents an important collaboration between policymakers, employers, and workforce organizations, and we’re proud to support these efforts,” said Kris Lloyd, President, USA Flooring.
“The Floor Covering Education Foundation strongly supports the Employer-Directed Skills Act and its focus on empowering employers to play a direct role in workforce training and skills development. This legislation recognizes what industries like flooring have long known—employers are best positioned to identify skill needs and invest in training that leads directly to employment. By reducing barriers and encouraging employer-led partnerships, the Employer-Directed Skills Act strengthens career pathways, supports job seekers, and helps build a more responsive and sustainable workforce. FCEF is proud to support policies that align education, industry demand, and long-term career success,” said Kaye Whitener, Executive Director, Floor Covering Education Foundation.
“We thank Senator Budd for reintroducing the Employer-Directed Skills Act, demonstrating his commitment to ensuring jobseekers have a pathway to sustained work in high-demand job fields such as plumbing and HVAC. The Employer-Directed Skills Act enhances WIOA by allowing employers such as plumbing and HVAC contractors to assess jobseekers under WIOA to ensure they command the skillsets needed to succeed in the workforce. The plumbing and HVAC contractors of the PHCC in North Carolina and across the country are grateful for Senator Budd’s recognition of the value employers can provide in skills assessment to make the WIOA process more efficient and effective,” said Jason Pritchard, President, PHCC National Association, and Chris Wilson, President, PHCC of North Carolina.
“The Skills First Coalition welcomes the introduction of the Employer-Directed Skills Act. This is a critical step in realigning the nation’s public workforce system to work more closely with employers, prioritize high-quality work-based learning and on-the-job training programs, and prepare Americans for in-demand jobs. We encourage the Senate to incorporate this critical bill as part of any WIOA modernization legislation advancing this year,” said Rosemary Lahasky, Co-Chair, Skills First Coalition, and Josh Connolly, Co-Chair, Skills First Coalition.
