AID Youth Employment Act

Bill Summary: AID Youth Employment Act (HR 2506)

Overview

The Assisting In Developing Youth Employment Act (also known as the AID Youth Employment Act) proposes a significant expansion of the Workforce Innovation and Opportunity Act to create structured, subsidized employment opportunities for young people. The bill establishes two primary grant programs: one focused on summer employment and another on year-round employment, with a heavy emphasis on supporting "marginalized" youth and tribal communities.

Main Purpose and Intent

The primary goal of this legislation is to reduce youth unemployment and poverty by providing financial subsidies to employers who hire young people. By combining paid work with mentorship and skill development, the bill aims to create clear pathways from entry-level subsidized work toward permanent employment or postsecondary education.

Key Provisions

1. Target Population

The bill defines "eligible youth" as individuals aged 14 to 24, including:
* In-school youth.
* Out-of-school youth.
* Unemployed individuals.
* Marginalized Youth: Special focus is given to those experiencing homelessness, foster care, involvement in the justice system, or those living in underserved communities facing historical oppression or high rates of violence/drug overdose.

2. Grant Programs

The bill creates two competitive grant tracks for States, local governments, Indian tribes, and community-based organizations:

• Summer Employment Program:
  • Planning Grants: Up to $250,000 (1-year term).
  • Implementation Grants: Up to $6,000,000 (3-year term).
  • Requirements: Jobs must last at least 6 weeks, not exceed 20 hours/week, and pay at least the minimum wage.
• Year-Round Employment Program:
  • Mirroring the summer structure, this program provides continuous employment.
  • Hours: Up to 15 hours/week for in-school youth; 20–40 hours/week for out-of-school youth.
  • Includes additional requirements for providing mental health services and addressing barriers like childcare and transportation.

3. Support and Mentorship

A cornerstone of the bill is the requirement for mentorship. Mentors (who can be community members, job coaches, or peer mentors) must:
* Match with a youth based on specific needs.
* Maintain contact at least once a week (twice a week for year-round programs).

4. Funding and Allocations

• Total Appropriations: Authorized funding from 2026 through 2030 includes:
  • $375 million annually for summer employment.
  • $500 million annually for year-round employment.
• Distribution: Funds are split 50/50 between in-school and out-of-school youth.
• Geographic Protections: At least 20% of funds must go to rural areas and 5% to tribal areas.

Who is Affected?

• Young Adults (14-24): Gain access to paid work, mentorship, and vocational training.
• Employers: Receive subsidies to offset the cost of hiring and training youth.
• Tribal Governments: Receive streamlined application processes and a higher federal cost-share (at least 95% for implementation grants).
• Community Organizations: Can apply for grants if they partner with local government and educational agencies.

Accountability and Oversight

The Secretary of Labor is tasked with implementing a Continuous Quality Improvement system, including:
* Performance Measures: Tracking the percentage of participants who remain employed or in education two and four quarters after leaving the program.
* Reporting: A comprehensive report to Congress must be submitted every year starting three years after enactment.