Congress·In Committee·S. 3846

Employer-Directed Skills Act

Sen. Budd's Employer-Directed Skills Act Would Let Businesses Design, Fund Job Training Programs

Feb 11·View on Congress.gov·Read full text

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Legislative Progress

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How we got here

This bill’s path across every version that has carried it.

Reintroduced
Reintroduced from S. 4670 (118th), which died when its Congress ended.
S. 4670 (118th) →

Key Points

This bill, introduced by Mr. Budd, changes how the government funds job training by letting businesses design programs that teach the specific skills they need. It replaces older training rules with a system where employers take the lead in preparing workers for open positions.
To participate, an employer must promise to hire the person once they successfully finish the training program. This ensures that the time spent learning leads directly to a steady paycheck and a guaranteed job.
Businesses would be required to help pay for the training costs. Small companies with 50 or fewer workers would pay 10% of the cost, while large companies with 100 or more employees would have to pay 50% of the training expenses.
The policy allows employers to refer people they want to hire directly to these training programs. This cuts through government red tape by skipping some of the usual interviews and assessments required by federal workforce offices.
The goal of the bill is to make sure job training matches the actual needs of the local economy. By involving businesses directly, the government hopes to reduce the number of unfilled jobs and help workers gain skills that are in high demand.

Labor EmploymentEducation

Impact Analysis

Personal Impact

Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works

The shift to employer-directed training design could reduce workers' collective input into how training programs are structured. While the bill doesn't directly target unions, giving employers more control over skills development — including the ability to refer workers directly and skip assessments — could weaken the role that organized labor plays in shaping workforce development standards.

-1

ImpactCertaintyScopeDurationSentiment

-1

ImpactCertaintyScopeDurationSentiment

Broader Impacts

DomainScoreShort-termLong-termReversibilityConfidence

Score

Scores: -5 (harmful) to +5 (beneficial)Short-term: 0-2 yearsLong-term: 10-30 years

Milestones

2 milestones2 actions

Feb 11, 2026Senate

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Feb 11, 2026

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

Related News

3 articles

Ripon Advance·Feb 18

Two bills introduced by Cassidy, GOP colleagues address workforce shortages

U.S. Sen. Bill Cassidy and Sen. Ted Budd reintroduced the Employer-Directed Skills Act to streamline access to skills programs under the Workforce Innovation and Opportunity Act (WIOA). The bill allows businesses to design training programs and access federal funds to offset costs.

Center Right

ACHR News·Feb 13

New Bipartisan Bill Could Cover 50% of HVACR Workforce Training

The Employer-Directed Skills Act would reimburse companies with 50 or fewer employees for 50% of training costs. The bill shifts control to employers, allowing them to select candidates and direct training toward critical skills, with a requirement to hire successful trainees.

Center

Sun Community News·Jun 19, 2023

Stefanik introduces workforce development bills

Rep. Elise Stefanik reintroduced the Employer-Directed Skills Act, which empowers job creators to determine the skills their workforce needs and leverages private sector investments to make employers stakeholders in the reskilling process.

Center

No votes or related bills recorded for this bill yet.