HR714-119

What This Bill Does

The Jobs Now Act of 2025 adds a new section 173 to the Workforce Innovation and Opportunity Act. The Secretary of Labor must run a two-year competitive grant pilot for units of general local government and community-based organizations. At least 50 percent of each grant must be used to retain public-service employees who would otherwise be laid off because of budget cuts, unless less is needed for retention. Remaining funds may be used by local governments to hire or train individuals for new public-service positions, and by community-based organizations to hire or train individuals for public-service positions or private-sector service positions. The bill encourages use of funds for veterans, individuals with disabilities, unemployment-benefit recipients, and dislocated workers. Grant priority goes to localities with high unemployment, foreclosure, and poverty rates. Applicants must submit materials required by the Secretary, and Labor must report to Congress within two years on hiring, training, retention, and best practices. The bill authorizes $1 billion for fiscal years 2026 and 2027.

Who Benefits and How

Local governments benefit from grant funding that can prevent layoffs and expand public-service staffing. Community-based organizations benefit when they can retain staff serving local public needs or train and hire workers for public-service or private-sector service positions. Public-service employees facing layoffs, veterans, workers with disabilities, unemployment-benefit recipients, dislocated workers, and residents of distressed communities benefit from retained jobs, new jobs, and training opportunities. The Department of Labor benefits from a clear pilot structure and required outcome report.

Who Bears the Burden and How

Federal taxpayers bear the authorized $1 billion cost. Department of Labor grant staff must design the competition, evaluate local unemployment, foreclosure, and poverty priority factors, review applications, monitor uses of funds, and report outcomes to Congress. Local governments and community-based organizations must apply, document budget-cut layoffs, track the 50 percent retention rule, report hiring and training outcomes, and manage federal grant compliance. Communities not selected for grants may receive no direct benefit despite similar economic distress.

Key Provisions

• Creates a two-year competitive Department of Labor grant pilot under WIOA section 173.
• Requires at least 50 percent of grant funds to retain public-service workers who would otherwise be laid off.
• Allows remaining funds to hire or train workers for new public-service positions and certain service jobs.
• Prioritizes localities with high unemployment, foreclosure, and poverty rates.
• Encourages grants to serve veterans, workers with disabilities, unemployment-benefit recipients, and dislocated workers.
• Authorizes $1 billion for fiscal years 2026 and 2027 and requires a two-year congressional report.