Senators introduce bills aiming at modernizing U.S. workforce development

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Bill Cassidy - Chairman of the Senate HELP Committee | Official U.S. Senate headshot

Senators introduce bills aiming at modernizing U.S. workforce development

U.S. Senators Bill Cassidy (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and Ted Budd (R-NC), have introduced two bills aimed at improving workforce development in the United States. The Workforce Development Modernization Act and the Employer-Directed Skills Act are designed to reduce administrative barriers, increase flexibility, and update current workforce systems.

“In Louisiana, there are workers looking for work and employers looking for employees,” said Dr. Cassidy. “These common sense bills cut red tape and empowers workers with skills and flexibility to succeed in a 21st century economy.”

The Workforce Development Modernization Act is co-sponsored by Senators Pete Ricketts (R-NE) and Thom Tillis (R-NC). The bill would allow local Workforce Development Boards to create virtual One-Stop Centers, share resources across regions, or partner with community colleges. This aims to expand access to employment resources online for job seekers while addressing labor shortages.

“Strengthening our workforce starts with meeting people where they are and modernizing our approach to employment support,” said Senator Budd. “American Job Centers provide valuable services such as training referrals, job listings, and career counseling, but requiring in-person access to these resources leaves many Americans behind. My Workforce Development Modernization Act creates a virtual option so job seekers with transportation challenges, childcare responsibilities, demanding schedules, or rural addresses can still access the benefits they’ve earned as taxpayers.”

“Nebraska’s workforce needs modern solutions to meet today’s labor demands,” said Senator Ricketts. “The Workforce Development Modernization Act provides essential flexibility for our states. Local boards can now choose between physical or virtual centers. This bill helps Nebraskans find great jobs more efficiently. It’s a win for our workers and our economy.”

“Our workforce development system should be flexible enough to serve workers in today’s economy,” said Senator Tillis. “Allowing virtual One-Stop Centers and shared partnerships with community colleges will help more North Carolinians gain the skills they need to fill open jobs, strengthen local economies, and address ongoing workforce shortages.”

The Employer-Directed Skills Act seeks to streamline how businesses use programs under the Workforce Innovation and Opportunity Act (WIOA). The legislation would let businesses identify prospective employees for training programs that match their needs while using WIOA funds for training costs.

The act has received endorsements from several industry groups including Air Conditioning Contractors of America (ACCA), Floor Covering Education Foundation, Plumbing-Heating-Cooling Contractors Association of North Carolina, Skills First Coalition members such as IBM Corporation and LinkedIn among others.

“The stability of America’s workforce depends upon investing in a modern approach to employee development, but outdated rules and red tape in the workforce system discourage businesses from accessing federal resources to close the skills gap to fill in-demand jobs,” said Senator Budd. “As companies continue to innovate, we cannot afford to delay providing our workforce with the necessary training to compete in today’s rapidly changing economy. The Employer-Directed Skills Act would unlock access for American businesses to take advantage of valuable skills development programs to recruit and retain qualified personnel to strengthen our workforce.”

“Our members consistently tell us that attracting and retaining skilled workers is their top priority. The Employer Directed Skills Act addresses this challenge by making WIOA funds more accessible, flexible, and effective for employers and workers alike. We are immensely grateful to Senator Budd and his team for their work on this bill and their commitment to strengthening and modernizing the skilled trades workforce,” said Barton James, President & CEO of Air Conditioning Contractors of America.

“The labor shortage in our industry continues to be a major barrier to growth and meeting customer demand. We’re encouraged to see legislation like the Employer-Directed Skills Act taking meaningful steps to connect education and workforce training directly with employer needs. At USA Flooring and through the Floor Covering Education Foundation, we’re committed to developing skilled talent and supporting good-paying careers in flooring and construction across North Carolina. This bill represents an important collaboration between policymakers, employers, and workforce organizations, and we’re proud to support these efforts,” said Kris Lloyd, President of USA Flooring.

“The Floor Covering Education Foundation strongly supports the Employer-Directed Skills Act and its focus on empowering employers to play a direct role in workforce training and skills development. This legislation recognizes what industries like flooring have long known—employers are best positioned to identify skill needs and invest in training that leads directly to employment. By reducing barriers and encouraging employer-led partnerships, the Employer-Directed Skills Act strengthens career pathways, supports job seekers, and helps build a more responsive and sustainable workforce. FCEF is proud to support policies that align education, industry demand, and long-term career success,” said Kaye Whitener of Floor Covering Education Foundation.

“We thank Senator Budd for reintroducing the Employer-Directed Skills Act... The plumbing & HVAC contractors of PHCC in North Carolina & across country are grateful...for recognition of value employers can provide in skills assessment...” said Jason Pritchard (PHCC National Association) & Chris Wilson (PHCC NC).

“The Skills First Coalition welcomes introduction of Employer-Directed Skills Act...a critical step realigning nation’s public workforce system...prepare Americans for in-demand jobs...” said Rosemary Lahasky & Josh Connolly (Skills First Coalition).

The Senate Health, Education, Labor & Pensions Committee oversees policy related not only to health but also education & labor issues nationwide (official website). In this Congress Bill Cassidy serves as chair (official website). The committee shapes regulations affecting worker rights & provides oversight over relevant federal agencies (official website).

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