H.R. 1642: Connecting Small Businesses with Career and Technical Education Graduates Act of 2025

Summary

The Connecting Small Businesses with Career and Technical Education Graduates Act of 2025 is a bill that aims to strengthen the pipeline between career and technical education (CTE) programs and small businesses. The main purpose of the bill is to help small businesses access a skilled workforce by connecting them with CTE graduates.

Key Provisions

1. CTE Graduate Database: The bill requires the Department of Labor to establish a national database of CTE graduates, including their areas of study, credentials, and contact information. This database would be accessible to small businesses.

2. Small Business Engagement: The bill directs the Department of Education to provide grants to CTE programs to develop and strengthen partnerships with local small businesses. These partnerships would facilitate internships, apprenticeships, and direct hiring of CTE graduates.

3. Tax Credits for Hiring CTE Graduates: The bill introduces a new tax credit for small businesses that hire CTE graduates. Businesses would be eligible for a credit of up to $5,000 per CTE graduate hired, with a maximum of 10 credits per year.

4. CTE Program Funding: The bill authorizes an additional $100 million in annual funding for the Carl D. Perkins Career and Technical Education Act, which supports the development and improvement of CTE programs nationwide.

Affected Stakeholders

• Small Businesses: The bill is designed to help small businesses (defined as those with fewer than 500 employees) find qualified workers to fill skill gaps and support their growth.

• Career and Technical Education (CTE) Programs: CTE programs at both the secondary and postsecondary levels would benefit from the increased funding and partnerships with local small businesses.

• CTE Graduates: Graduates of CTE programs would have enhanced job opportunities and a clearer pathway to employment with small businesses.

Timeline and Procedure

The bill was introduced in the House of Representatives on February 26, 2025 and has been referred to the Committee on Small Business and Entrepreneurship in the Senate. If passed, the provisions of the bill would go into effect within one year of the date of enactment.