American Apprenticeship Act

Bill Summary: HR 1783 - American Apprenticeship Act

Overview

The American Apprenticeship Act is designed to expand the use of apprenticeship models in the United States, specifically targeting "nontraditional" industries and underserved populations. The bill establishes a competitive grant program to help States fund pre-apprenticeship programs and the "related instruction" (classroom or web-based learning) required for qualified apprenticeship programs.

Main Purpose and Intent

The primary goal of the bill is to increase the availability of apprenticeships in high-demand occupations that have historically seen low apprenticeship adoption (specifically those representing less than 10% of the national apprenticeship system). By providing financial assistance for tuition and training, the Act aims to create clearer pathways from education to employment in sectors such as information technology, health care, and advanced manufacturing.

Key Provisions

1. Grant Program for Tuition Assistance

The Secretary of Labor may award competitive grants to States to cover the federal share of costs associated with:
* Pre-apprenticeships: Initiatives designed to prepare individuals (through training and hands-on experience) to enter a qualified apprenticeship.
* Related Instruction: The theoretical and technical classroom instruction required for a qualified apprenticeship.
* Allowable Expenses: Funds can be used for tuition, fees, textbooks, equipment, and curriculum development. Up to 10% of grant funds may be used for administrative costs.

2. Qualified Apprenticeship Criteria

To qualify for support under this Act, a program must:
* Be registered under the National Apprenticeship Act.
* Be concentrated in an industry or occupation that constitutes less than 10% of the current national apprenticeship system.

3. Strategic Requirements for States

To receive funding, States must submit a strategic plan that includes:
* Collaborations with industry representatives and postsecondary institutions.
* Coordination with existing laws (e.g., the Perkins Act and the Workforce Innovation and Opportunity Act).
* Strategies to increase opportunities for minority groups, youth, individuals with disabilities, veterans, and those with barriers to employment.
* Proof that qualified programs have existed for at least six months prior to application.

4. Federal Funding and Oversight

• Cost Share: The Federal government will cover between 20% and 50% of the costs; the remainder must be provided by the State (cash or in-kind).
• Evaluation: The Department of Labor and Department of Education will jointly review applications and establish performance measures.
• Reporting: The Secretary must submit a comprehensive evaluation report to Congress by September 30, 2030.

Who is Affected?

• Students and Job Seekers: Specifically those in underserved communities or those pursuing careers in nontraditional high-demand fields.
• State Governments: Which must apply for and manage the grants.
• Educational Institutions: Secondary schools, community colleges, and vocational schools acting as "sponsors" for pre-apprenticeships.
• Employers: Businesses in high-growth sectors (IT, Health Care, etc.) looking to build a skilled workforce.

Financials and Timeline

• Appropriations: The bill authorizes $15,000,000 per year for each fiscal year from 2026 through 2031.
• Implementation: If passed, the program would begin funding cycles in FY 2026.