American Apprenticeship Act
- Sponsor
- Rep. DeLauro, Rosa L. [D-CT-3]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Mar 3, 2025
Bottom line
The American Apprenticeship Act aims to expand access to and support for pre-apprenticeship and apprenticeship programs in underrepresented, high-demand industries by providing federal grants to states.
What it actually does
This bill establishes a competitive grant program for States to cover the federal share of costs associated with pre-apprenticeships or related instruction for "qualified apprenticeship programs." It defines these programs as those registered under the National Apprenticeship Act and concentrated in industry sectors or occupations representing less than 10% of existing apprenticeable occupations. The bill also mandates the Secretary of Labor to identify and report on in-demand occupations lacking apprenticeship use.
Proponents argue
Supporters argue this bill will address critical workforce shortages in emerging and non-traditional sectors by making apprenticeship pathways more accessible and affordable. They contend it will help diversify the apprenticeship system, promote economic mobility for underserved populations, and ensure the U.S. workforce has the skills needed for future economic growth.
Opponents contend
Critics might argue that the bill creates another layer of federal bureaucracy and funding that could overlap with existing workforce development programs, potentially leading to inefficiencies. Some might also question the focus on "less than 10 percent" sectors, suggesting it could divert resources from established, successful apprenticeship models or that the federal share might not be sufficient to incentivize states effectively.
The bill is relatively short and clearly structured, allowing a reader to understand its core provisions within a reasonable timeframe.
Section 2(a)(1) and 2(a)(3)
Defining Eligible Apprenticeship and Pre-Apprenticeship Programs
This section precisely defines which apprenticeship and pre-apprenticeship programs are eligible for federal assistance under this Act. A "qualified apprenticeship" must be registered under the National Apprenticeship Act and be in an industry sector or occupation that currently represents less than 10% of all apprenticeable occupations. A "pre-apprenticeship" must prepare individuals for such qualified programs, involve hands-on training, and have a formal agreement with a qualified apprenticeship sponsor for direct entry and potential college credit.
Supporters argue
Supporters argue that these definitions are crucial for targeting federal resources to expand apprenticeships into new, high-demand sectors where they are currently underutilized, thereby diversifying the workforce and addressing skill gaps in emerging industries.
Critics contend
Critics might argue that the "less than 10 percent" criterion is overly restrictive and could exclude valuable apprenticeship programs in more traditional, yet still vital, sectors. They might contend it creates unnecessary barriers or administrative burdens for programs that could otherwise benefit from support.
Tradeoffs
The tension lies between targeting resources to foster growth in new apprenticeship areas versus providing broad support for all registered apprenticeships, including those in established sectors.
Section 2(b)
Establishment of Competitive State Grant Program
This section authorizes the Secretary of Labor to award competitive grants to States. These grants are intended to help States cover the federal share of costs for pre-apprenticeship programs or related instruction associated with qualified apprenticeship programs. States must submit an application outlining their strategic plan, collaboration efforts, coordination with existing workforce acts, strategies to elevate apprenticeships in non-traditional industries, and plans to increase opportunities for underserved populations.
Section 2(c)
Federal and Non-Federal Cost Share
This provision specifies that the federal share of the costs covered by the grant will be between 20% and 50%. States are responsible for the remaining non-Federal share, which can be provided in cash or in-kind contributions, including plant, equipment, or services, either directly or through donations from public or private entities.
Section 3
Identifying In-Demand Occupations
This section mandates the Secretary of Labor to identify in-demand occupations nationally and regionally that currently lack the use of qualified apprenticeship programs. The Secretary must then analyze the use of the qualified apprenticeship model in these identified occupations and submit a report containing this analysis to States and Congress.
States applying for grants must describe how they will coordinate activities and leverage funds from the Carl D. Perkins Career and Technical Education Act of 2006 and the Workforce Innovation and Opportunity Act (WIOA). They must also encourage participants to utilize other available federal and state financial assistance, including WIOA benefits, veterans' education assistance, and Federal Pell Grants, prior to using assistance from this Act.
Section 2(b)(2)(C)
Why it matters:This is standard legislative practice to ensure efficient use of existing resources and prevent duplication, rather than being evasive.
Case for: Proponents argue this ensures fiscal responsibility by maximizing the use of existing federal and state funding streams before tapping into new appropriations, preventing "supplanting" and promoting integrated workforce development strategies.
Case against: Critics might argue that requiring participants to exhaust other aid first could create administrative hurdles or delays, potentially discouraging participation for individuals who need immediate support.
Estimated impact: Potentially significant, as it could shift the effective cost burden and administrative process for participants and states.
A "qualified apprenticeship" must be concentrated in an industry sector or occupation that represents less than 10 percent of apprenticeable occupations or of the programs under the national apprenticeship system.
Section 2(a)(1)(B)
Why it matters:This is a deliberate policy choice to target specific sectors, not necessarily evasive, but its implications might not be immediately obvious.
Case for: Supporters argue this ensures the bill's funds are directed towards expanding apprenticeships into new, underutilized, and often high-growth sectors, rather than subsidizing existing, well-established programs. This helps diversify the apprenticeship ecosystem.
Case against: Critics might argue this arbitrary threshold could exclude valuable apprenticeship programs in sectors that are slightly above the 10% mark but still have significant unmet demand or could benefit from expansion. It could also create administrative challenges in determining and verifying this percentage.
Estimated impact: This criterion fundamentally shapes the types of programs and industries that can receive federal support, potentially redirecting significant resources.