Congress Proposes $40M Annual Fund to Retrain Workers Displaced by AI

Gig workers and other non-traditional workers in industries being reshaped by automation could access new training programs to learn digital skills like coding, IT security, and systems engineering. These workers are often among the first displaced by technology and would benefit from funded retraining and transition assistance into in-demand careers.

Small businesses could participate in eligible partnerships to retrain and upskill their workers as an alternative to layoffs caused by automation. The bill also funds a staff position to coordinate training, and encourages backfilling pre-training positions with new hires, helping small employers adapt to technological change without losing their workforce.

The bill expands the National Dislocated Worker Grants program under the Workforce Innovation and Opportunity Act to explicitly cover workers displaced by advances in automation technology. This means workers who lose jobs to robots or AI would have a clearer path to federally supported retraining and job search assistance, potentially reducing time spent on unemployment.

The bill creates new training and education opportunities for workers transitioning into tech-oriented careers. Participants can receive integrated education and training, including digital literacy, coding, and IT security skills. Training stipends and supportive services like childcare and transportation help make these programs accessible to people who couldn't otherwise afford to retrain.

Union workers in manufacturing, transportation, and other sectors facing heavy automation could benefit from the grant-funded retraining programs. The bill requires compliance with labor standards and protections under the Workforce Innovation and Opportunity Act, ensuring training programs respect workers' rights and existing labor agreements.

People with physical disabilities are explicitly included as a covered population under the bill's reference to the Workforce Innovation and Opportunity Act's barrier-to-employment definitions. Grant applicants must describe how they will support covered populations, and priority goes to areas with high percentages of people facing employment barriers, improving training access for disabled workers.

People with criminal records are included as a covered population under the Workforce Innovation and Opportunity Act's barrier-to-employment categories, which this bill references. The grant program gives priority to partnerships located in areas with high percentages of covered populations, meaning communities with many formerly incarcerated people could see more training resources directed their way.

Workers displaced from their jobs due to automation-related injuries or displacement could benefit from the retraining and transition assistance funded by these grants. The bill's focus on dislocated workers broadly captures those who have lost employment, including workers previously on workers' compensation who need new career paths.