CREATES Act
- Sponsor
- Rep. McBath, Lucy [D-GA-6]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Apr 15, 2026
Bottom line
The CREATES Act establishes a federal grant program to help states create transparent, interoperable databases of educational and occupational credentials, aiming to improve workforce development and individual career planning.
What it actually does
This bill, known as the CREATES Act, requires the Secretary of Labor, in consultation with the Secretary of Education, to establish a competitive grant program for states. The grants are intended to help states establish, expand, or improve publicly accessible credential repositories. These repositories will collect and share comprehensive information on all credentials offered, their quality, associated education and career pathways, and training providers within each state, aiming to empower individuals to make informed education and career choices.
Proponents argue
Supporters argue that this bill will significantly enhance transparency in the education and workforce landscape, allowing individuals to make more informed decisions about their career paths and investments in training. By providing clear data on credential quality, costs, and employment outcomes, the bill can reduce wasted time and resources on ineffective programs, ultimately strengthening the national workforce and economy.
Opponents contend
Critics might raise concerns about the administrative burden and potential costs for states to establish and continuously maintain these comprehensive repositories, especially given the diverse array of credentials and training providers. There could also be debates about the extent of federal involvement in state-level education and workforce data collection, and whether the benefits outweigh the implementation challenges and potential for inconsistent data quality across states.
The bill is concise and clearly structured, allowing for a quick and thorough understanding of its provisions and objectives.
Section 3(a)
Grant Program Authorization and Limitations
This section authorizes the Secretary of Labor, in consultation with the Secretary of Education, to award competitive grants to states. These grants are specifically for establishing, expanding, or improving state credential repositories. Each grant will be for a period of 3 years, with a maximum award of $10,000,000, and states can only receive one grant. The Secretary must make a determination on applications within 90 days.
Supporters argue
Supporters contend that providing federal grants is essential to incentivize and support states in developing robust credential repositories, as many states lack the resources or infrastructure to do so independently. The competitive nature ensures that funds are directed to states with the most promising plans.
Critics contend
Some critics might argue that a federal grant program could lead to inconsistent state-level implementation or that states should fund such initiatives themselves. Concerns could also be raised about the potential for federal overreach into state workforce development policies.
Tradeoffs
The provision balances the need for federal support to kickstart state initiatives with the desire to maintain state autonomy in implementation. The competitive nature aims for efficiency but might exclude states with greater needs but less developed initial proposals.
Section 3(c)(1)
Mandatory Uses of Grant Funds
States receiving a grant must use the funds to establish a publicly accessible credential repository, create a data policy for it, assist training providers in collecting performance data, guide counselors on using the repository, and develop tools or resources using the repository's information. These activities are central to the bill's purpose of improving transparency and access to credential information.
Section 3(d)
Credential Repository Requirements
This section details the specific content and functional requirements for the state credential repositories. They must identify all credentials and training providers, include information on program quality indicators, competencies, costs, assessments, transfer values, and outcomes (like earning and employment status). The repositories must also align with existing workforce programs, be continuously updated, use transparent and interoperable data formats, and offer search, discovery, and comparison functions.
Section 3(e)
Privacy Protections
This section explicitly prohibits states from collecting or including any personally identifiable information in the credential repositories. This ensures that while data on credentials and outcomes is made public, individual privacy is protected.
Requires the credential repository to use data formats that are transparent, linked, open, and interoperable with other State credential repositories, aligned with widely recognized and adopted standards, including credential transparency description language specifications, and allow for open access across State and national borders and industry sectors.
Section 3(d)(5)
Why it matters:This is standard legislative practice for technical specifications, but its importance for the long-term utility and scalability of the system makes it a 'buried treasure'.
Case for: Supporters argue that this technical interoperability is paramount for the system's success, enabling seamless data exchange and comparison across states and industries, which is vital for a mobile workforce and national economic planning. Without it, states could develop siloed systems.
Case against: Critics might suggest that mandating specific technical standards could be challenging for states with legacy systems or limited IT resources, potentially increasing implementation costs and complexity. It could also limit future technological flexibility.
Estimated impact: This provision ensures the national utility and scalability of the state credential repositories, allowing for a broader impact on workforce development and individual career navigation beyond state borders.
Requires the credential repository to align with, complement, and enhance eligibility lists or criteria for training providers, such as those established under the Workforce Innovation and Opportunity Act (WIOA), the Carl D. Perkins Career and Technical Education Act of 2006, or chapter 33 of title 38, United States Code (Post 9/11 Education Assistance Program).
Section 3(d)(3)
Why it matters:This is a technical integration requirement, often placed within detailed specifications. Its placement is standard but its impact on streamlining existing systems is substantial.
Case for: Proponents argue that this integration prevents duplication of effort, leverages existing data infrastructure, and ensures that the new credential repositories enhance, rather than complicate, current workforce and education programs. It creates a more cohesive system for individuals and providers.
Case against: Critics might express concern that aligning with existing, potentially complex, federal program criteria could add layers of bureaucracy or limit the flexibility of states to design repositories optimized for their unique needs, rather than federal mandates.
Estimated impact: This provision ensures the new repositories are not isolated systems but are integrated into the broader federal framework for workforce development and veteran education benefits, potentially streamlining processes for individuals accessing these programs.