House committee advances job training measures, attacks joint employer status

The House Committee on Education and the Workforce recently passed two bills related to workforce training and two regarding labor rights.

The committee approved a bipartisan measure to reauthorize the Workforce Innovation and Opportunity Act (WIOA), which funds federal job training programs. A separate bill would extend Pell Grant eligibility to certain short-term workforce training programs.

Pell Grants: The Bipartisan Workforce Pell Act would expand Pell Grants to career training programs lasting 8-14 weeks. Lawmakers have been wrangling over whether to add these shorter courses for years, with for-profit college programs and quality control at issue.

The House bill allows for-profit and online programs to participate, unlike a similar proposal in the Senate. Critics say this could expose more students to predatory actors. There is concern that an influx of Pell Grants going to short-term, for-profit training will disproportionately draw in low-income students seeking quick career solutions. If the programs prove low quality or the credentials have poor labor market value, those students lose time and money that could have gone to more effective training or education.

To combat those concerns, the bill sets strict quality standards for short-term programs, like requiring positive returns on investment and better earnings outcomes for graduates.

To offset costs, however, the House bill controversially cuts federal student loans to around 60 private institutions subject to an endowment tax, including Ivy League and other elite schools. Higher ed groups strongly oppose this, saying it undermines student choice and need-based aid.

WIOA reauthorization: The WIOA funds and guides the nation’s public workforce development system. Originally enacted in 2014, the act’s current authorization expires in September 2024, and policymakers are at odds over whether the $3 billion program provides an effective return on investment. Of those funds, only about $550 million went directly to skills training, while another $1.3 billion went to ancillary services to help job seekers.

Proponents argue that the WIOA has played a valuable role in providing training, job placement, and support services to millions of Americans, particularly those facing barriers to employment. Critics say the program is administratively bloated and stymied by overly prescriptive requirements.

Labor issues: The committee approved a resolution seeking to nullify the National Labor Relation Board’s (NLRB) newly revised joint employer rule. The controversial rule broadens the definition of joint employer, potentially exposing multiple businesses to shared liability for labor law violations and mandatory collective bargaining with employee unions.

Another bill would raise the revenue threshold for small businesses subject to NLRB jurisdiction. Under the act, only businesses with retail revenues over $5,000,000 and non-retail businesses with revenues over $500,000 would fall under NLRB auspices.

The WIOA reauthorization and Pell Grant bills gained bipartisan support to enhance skills training, while the NLRB bills split along party lines. All four bills still require passage in both the House and Senate to become law.