Bill
HR 7566
Creates a federal pilot program to fund job guarantee initiatives ensuring applicants receive eligible, paid, benefits-covered employment in their area.
DateIntroduced: February 12, 2026
Sponsors: Reps. Bonnie Watson Coleman, Ilhan Omar, Summer Lee, Rashida Tlaib, and LaMonica McIver (co-sponsors)
Jurisdiction: United States Congress (House of Representatives)
Official Title: Federal Jobs Guarantee Development Act of 2026
Purpose and intent
- Establish a federal pilot program to provide competitive grants to eligible local entities to run job guarantee programs.
- The goal is to ensure that any individual within the served area who applies for a job through the program is provided with employment opportunities, with wages, benefits, and supports designed to promote economic self-sufficiency.
Key provisions and how the bill would work
1) Definitions and scope (Section 2, subsections)
- Eligible Entity: A political subdivision of a state, a tribal entity, or a combination of contiguous subdivisions or tribal entities, with an area unemployment rate at least 150% of the national rate (data from BLS, with tribal data allowed to use their own data when BLS data are not available).
- Urban vs. Rural: Definitions align with 2010 Census urban-rural classifications.
- Tribal Entity: Indian tribes or tribal organizations as defined by the Indian Self-Determination Act.
- Job Guarantee Program: A program meeting the requirements set forth in subsection (c).
- WIOA references: Several terms align with Workforce Innovation and Opportunity Act definitions (e.g., workforce development terms and concepts).
2) Pilot program establishment (Section 2, subsection (b))
- The Secretary of Labor would establish a pilot program to award competitive grants to eligible entities.
- Purpose: Ensure individuals who apply for a job through the program receive employment under the program’s framework.
- Funding termination: Federal funding for a given grant ends at the earlier of a 3-year grant period or the date of revocation of the grantee’s eligibility.
3) Job Guarantee Program requirements (Section 2, subsection (c))
- Eligibility to participate: Jobs must be available to all individuals aged 18 and older residing in the program’s service area.
- Union coverage: Participants’ jobs would be included in an established bargaining unit and covered by applicable collective bargaining agreements for similarly situated employees.
- Duration: Jobs must be available for the entire pilot period.
- Wages: Participants must be paid at least the greater of:
- The wage that would be paid under proposed S. 2488 (116th/118th Congress if enacted) or the local wage for the job, whichever is greater;
- Prevailing wage in the area for similar work (as per 41 U.S.C. chapter 67 and related laws);
- The applicable wage under any relevant collective bargaining agreement.
- Benefits: Health insurance comparable to Federal Employees Health Benefits Program.
- Paid leave: Minimum paid family leave and paid sick leave in line with related proposed measures and state law.
- Other employee benefits: Support for a broad range of benefits consistent with workforce programs.
4) Supportive services and other uses (Section 2, subsection (d))
- Funds can cover:
- Supportive services (e.g., transportation, child care, housing, needs-related payments) to enable participation.
- Workplace learning advisors for career planning and credentialing.
- Adult education and literacy activities.
- Reentry supports for justice-involved individuals or those with criminal records.
- Financial literacy activities.
5) Applications and selection (Section 2, subsections (e) and (f))
- Eligible entities apply with information about service area, unemployment, job types, and partnerships.
- Applications must describe job designs, accommodations for disabilities, and reentry support for those with criminal records.
- The Secretary would select up to 15 eligible entities, aiming for geographic and demographic diversity (including tribal representation).
6) Funding mechanism (Section 2, subsection (g))
- Establishes a dedicated “Job Guarantee Program Trust Fund” in the U.S. Treasury.
- Grants are funded from the Fund, with a formula determined by the Secretary.
- Payment cadence: Grantees receive initial payments and subsequent payments only after certifying that at least 80% of the prior payment has been expended or obligated.
7) Limitations and compliance (Section 2, subsections (h) and (k))
- Prohibits using grant funds to displace existing workers or breach contracts; compliance with applicable laws.
- Federal job pilot sites must receive guidance within 30 days after the first grant; jobs must be listed on a public site; funds can be reimbursed to agencies employing participants.
- Annual audits by the Inspector General; recoupment of funds for misuse; ineligibility for misreporting data.
8) Training and data (Section 2, subsections (j) and (l))
- Up to 8 weeks of paid training for participants, with a focus on barriers to employment and reentry needs for certain populations.
- Annual reporting by grantees, including expenditures, purposes, and performance metrics (disaggregated by race, ethnicity, sex, age, etc.).
9) Evaluation and outcomes (Section 2, subsection (m))
- A rigorous evaluation by the Department of Labor’s Chief Evaluation Officer to assess impacts on:
- Overall employment (public and private sector)
- Wages, poverty, and public assistance spending
- Child health and education outcomes
- Health and well-being of individuals with mental/behavioral health needs
- Incarceration rates
- Environmental factors (air and water quality)
- Other economic development indicators
10) Tax credits expansion (Section 2, subsection (n))
- Expands the Earned Income Tax Credit (EITC) to include qualified participants in job guarantee programs, with definitions and effective date clarifications:
- Adds “qualified participant in a job guarantee program” as a recognized category.
- Defines such a participant as someone certified by a local agency after at least 3 months in a job guarantee program within a 6-month window ending on hiring.
- Effective date: Applies to individuals starting work after December 31, 2026.
11) Appropriations (Section 2, subsection (o))
- Authorizes appropriations from the Treasury as necessary to carry out the section, including funding for the Job Guarantee Program Trust Fund.
Potential impact and considerations
Note: The summary reflects the bill text as introduced and does not account for amendments or changes that may occur during the legislative process.
Compiled from official sources — confirm details with the bill’s official record.
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