PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Congressional Research Service
No official summary is available in the imported record yet.
People & committees
Rep. Casar, Greg [D-TX-35] · D–TX
Legislative record
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Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Sep 22, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-08-06 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The bill would tax certain AI developers, access sellers, and model modifiers for providing AI access or using AI to reduce their workforce. Tax rates would rise with a specified unemployment measure. After determining that unemployment above 5% resulted from war, a pandemic, or another massive economic shock unrelated to AI, the Secretary could disregard the portion attributed to that cause when applying higher rates. A new Labor Department administration would oversee competitive grants for jobs serving public needs. Grant-funded workers would receive required wages, health coverage, and paid leave. These are proposals in the introduced bill.
The term covered person means a person that— (A) develops a foundation model, sells access to a foundation model, or modifies an existing open-weight foundation model, and (B) generates revenue from a covered transaction or uses the foundation model to reduce the workforce of such person.
in the case of a taxable year with respect to which the applicable unemployment rate exceeds 7 percent, the sum of— (i) 2 percent, plus (ii) twice the percentage by which such rate exceeds 5 percent.
Upon a determination by the Secretary may, in consultation with the Secretary of Labor, that an unemployment rate in excess of 5 percent occurred by reason of a war, pandemic, or any other massive economic shock unrelated to the use of artificial intelligence, the Secretary may apply paragraphs (3) and (4) of subsection (b) without regard to so much of the unemployment rate as the Secretary determines is the result of such unrelated cause.
the Secretary of Labor shall establish a Work Protection Administration (in this Act referred to as the WPA) within the Department of Labor
the Director shall establish a grant program to award funds to eligible entities on a competitive basis to create employment opportunities for individuals under section 402.
Job creation to support other activities as determined by the Director and the advisory committee established under section 404 to address public needs.
a wage of not less than the greater of
coverage under a health insurance benefits plan comparable to the health insurance benefits plan offered to Federal employees
the ability to earn 1 hour of paid leave for every 30 hours worked
2026-08-06: Introduced in House
The proposed annual tax would apply to a person who develops a covered AI model, sells access to one, or modifies an open-weight foundation model, and either earns revenue from a covered transaction or uses the model to reduce that person's workforce. Open-weight foundation models are models whose trained parameters are publicly available for downloading and use.
There is hereby imposed a tax on each covered person for each taxable year equal to the applicable amount.
The term covered person means a person that— (A) develops a foundation model, sells access to a foundation model, or modifies an existing open-weight foundation model, and (B) generates revenue from a covered transaction or uses the foundation model to reduce the workforce of such person.
A foundation model the trained model parameters of which are made publicly available for others to download and use, allowing developers and researchers to run, fine-tune, or adapt the model.
Covered foundation models would be AI models trained on broad data, generally using self-supervision, usable across many contexts, and meeting a training-computation threshold. The supplied threshold is written as “1025” operations; the Secretary could set a threshold achieving comparable capability for the year. A token means a discrete unit of data, such as text, code, image, audio, or video data, used to measure model input or output.
The term foundation model means an artificial intelligence model— (A) is trained on broad data, (B) generally uses self supervision, (C) which is trained— (i) using a quantity of computing power equal to or greater than 1025 integer or floating-point operations, or (ii) using such quantity of integer or floating-point operations as the Secretary determines necessary to achieve comparable model capability for the calendar year, and (D) is applicable across a wide range of contexts.
The term token means a discrete unit of data, such as text, code, image, audio, or video data, that an artificial intelligence model processes, used for the purpose of measuring the volume of model input or output.
Covered transactions would include providing model use or access to an unrelated party in the taxpayer's business, whether or not that transaction reduces employment. A taxpayer's own model use, or a sale, license, or exchange of access with a related party, would be covered if the use enables or causes workforce reductions. Related-party status would depend on referenced tax-law rules treating parties as one employer; those rules are not reproduced in the supplied sources.
The term covered transaction means— (i) the provision of use or access to a foundation model to an unrelated party in the course of the trade or business of the taxpayer, or (ii) the use of a foundation model by the taxpayer or a sale, license, or exchange of such use or access to a foundation model to a related party if such use enables or results in a reduction in the workforce of the taxpayer or of such related party.
a person is a related party to another person if such sons are treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414.
The tax would exclude model use, sales or licenses of use, or access for research and development by federal, state, or local governments, qualifying higher-education institutions, federally funded research and development centers, and tax-exempt organizations described in section 501(c)(3).
Such term does not include any use, sale or license of use, or access to a foundation model for the purpose of research and development by any of the following entities: (i) A Federal, State, or local government. (ii) An institution of higher education (as such term is used in section 101(a) of the Higher Education Act of 1965). (iii) A Federally Funded Research and Development Center (as defined in section 2.101 of title 48, Code of Federal Regulations or any successor regulation thereto). (iv) An organization that is described in section 501(c)(3) and is exempt from taxation under section 501(a).
The annual tax would be the larger of two calculations: the fair market value of tokens processed in covered transactions multiplied by the token rate; or the total value received for AI services in covered transactions plus the fair market value of all covered related-party transactions, multiplied by the transaction rate.
The term applicable amount means the greater of— (A) the product of— (i) the fair market value of the tokens processed by the taxpayer in covered transactions during the taxable year, multiplied by (ii) the applicable token percentage, or (B) the product of— (i) the sum of— (I) the value of all consideration received by the taxpayer in exchange for artificial intelligence services in covered transactions, plus (II) the fair market value of all covered transactions with a related party, multiplied by (ii) the applicable transaction percentage.
At an applicable unemployment rate of 5% or less, the token rate would be 2% and the transaction rate 3%. Above 5% through 7%, each tax rate would increase by the number of percentage points unemployment exceeds 5%. Above 7%, each base rate would increase by twice the number of percentage points unemployment exceeds 5%.
The term applicable token percentage means— (A) in the case of a taxable year with respect to which the applicable unemployment rate does not exceed 5 percent, 2 percent, (B) in the case of a taxable year with respect to which the applicable unemployment rate exceeds 5 percent and does not exceed 7 percent, the sum of— (i) 2 percent, plus (ii) the percentage by which such rate exceeds 5 percent, or (C) in the case of a taxable year with respect to which the applicable unemployment rate exceeds 7 percent, the sum of— (i) 2 percent, plus (ii) twice the percentage by which such rate exceeds 5 percent.
The term applicable transaction percentage means— (A) in the case of a taxable year with respect to which the applicable unemployment rate does not exceed 5 percent, 3 percent, (B) in the case of a taxable year with respect to which the applicable unemployment rate exceeds 5 percent and does not exceed 7 percent, the sum of— (i) 3 percent, plus (ii) the percentage by which such rate exceeds 5 percent, or (C) in the case of a taxable year with respect to which the applicable unemployment rate exceeds 7 percent, the sum of— (i) 3 percent, plus (ii) twice the percentage by which such rate exceeds 5 percent.
The unemployment calculation would use the Bureau of Labor Statistics measure called U-4 for the highest-rate calendar year among the three years preceding a covered transaction. Calendar years beginning before enactment would be excluded. The text does not clearly explain how monthly observations would become a calendar-year measure or provide a fallback if no prior year qualifies.
The term applicable unemployment rate means, with respect to a covered transaction, the U-4 defined measure as published in the monthly Employment Situation release by the Bureau of Labor Statistics for the calendar year for which such measure was highest during the 3 calendar years preceding the year in which such covered transaction occurs, determined without regard to any calendar year which began before the date of the enactment of this section.
After determining, in consultation with the Labor Secretary, that unemployment above 5% resulted from war, a pandemic, or another massive economic shock unrelated to AI, the Secretary could disregard the portion attributed to that cause when applying the higher tax rates. This adjustment would be discretionary.
Upon a determination by the Secretary may, in consultation with the Secretary of Labor, that an unemployment rate in excess of 5 percent occurred by reason of a war, pandemic, or any other massive economic shock unrelated to the use of artificial intelligence, the Secretary may apply paragraphs (3) and (4) of subsection (b) without regard to so much of the unemployment rate as the Secretary determines is the result of such unrelated cause.
The Secretary would issue and annually revise implementing rules or guidance, including token valuation in consultation with the Commerce Secretary. The tax amendments would apply to covered transactions occurring after the date one year after enactment. The effective-date clause cites section 4491(c), although the supplied text defines covered transactions in section 4491(b)(2).
The Secretary shall issue and annually revise such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including determining, in consultation Secretary of Commerce, the fair market value of a token for purposes of subsection (b)(1)(A)(i).
The amendments made by this section shall apply to covered transactions (as defined in section 4491(c) of such Code, as added by this section) which occur after the date which is 1 year after the date of the enactment of this Act.
(2) Covered transaction (A) In general The term covered transaction means
The bill would establish a Treasury trust fund—a designated account for these programs—with amounts to be appropriated equal to 100% of the new tax imposed for fiscal year 2027 and each later fiscal year. Appropriated trust-fund money would support the new administration and jobs program.
There is established in the Treasury of the United States a trust fund consisting of such amounts (to be appropriated out of any moneys in the Treasury not otherwise appropriated) equivalent to 100 percent of the taxes imposed by section 4491 of the Internal Revenue Code of 1986 for the fiscal year 2027, and for each fiscal year thereafter.
Such funds appropriated to the trust fund established under section 201 shall be used to carry out titles III and IV.
Within 90 days after enactment, the Labor Secretary would establish a Work Protection Administration led by its director. It would develop and implement the jobs grant program. The bill uses inconsistent office names: section 407 defines “Director” as the Director of the Office of Job Creation.
Not later than 90 days after the date of the enactment of this Act, the Secretary of Labor shall establish a Work Protection Administration (in this Act referred to as the WPA) within the Department of Labor, to be headed by the Director of the Work Protection Administration.
The WPA established under section 301 shall develop and implement a jobs program under title IV to award grants to eligible entities.
The term Director means the Director of the Office of Job Creation.
Eligible grant applicants would include state, local, and tribal governments; elementary and secondary schools supported entirely or primarily by public funds; local and state education agencies; higher-education institutions; and qualifying tax-exempt section 501(c) organizations. Some eligibility terms depend on referenced laws not reproduced in the supplied sources.
The term an entity eligible means— (A) a State government; (B) a unit of general local government, as defined in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102); (C) a tribal government; (D) an elementary school or a secondary school, as defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801), that derive their support entirely or primarily from public funds; (E) a local or State educational agency, as defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801); (F) an institution of higher education; or (G) an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code.
The term institution of higher education has the meaning given such term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
Grants would be competitive and depend on available trust-fund money. Priority would go to permanent, full-time jobs and, for work typically performed by state or local governments, to those governments. Full-time means averaging at least 30 hours a week in a calendar month; permanent employees must not be designated temporary and their employment must not terminate within one year after starting. Awards would also consider advisory-committee recommendations and labor-market information from the Bureau of Labor Statistics.
Subject to the availability of funds in the trust fund established under title II, the Director shall establish a grant program to award funds to eligible entities on a competitive basis
give priority to eligible entities that plan to use such grant funds to create jobs to be filled by permanent and full-time employees; and (B) in the case of eligible entities that plan to use such grant funds for functions typically performed by State governments or units of general local government, give priority to eligible entities that are State governments or units of general local government.
the Director shall take into consideration— (A) any recommendations of the advisory committee established in section 404; and (B) any information, including reports provided pursuant to section 405, from the Bureau of Labor Statistics on the impacts of artificial intelligence on the labor market.
The term full-time employee means an employee who is employed, on average, at least 30 hours a week in a calender month.
The term permanent employee means an employee who is not designated as a temporary employee and whose employment does not terminate after 1 year or less after the date on which such employee began work at such job.
Applicants would submit information required by the director and assurances about required employment policies. A task force of federal agencies selected by the director would help review applications.
an eligible entity shall submit to the Director an application— (1) at such time, in such manner, and containing such information as the Director may require; and (2) which shall include such assurances as may be necessary to ensure that such entity has the policies described in subsection (e).
The Director shall establish an interagency task force to assist the Director in reviewing any applications submitted under subsection (c), which shall include Federal agencies selected by the Director.
Except for tribal-government recipients, applicants would need an agreement or written policy protecting grant-funded employees' rights under section 7 of the National Labor Relations Act. They would also need workplace rights notices, initial notice of required pay and benefits, and a policy recognizing an exclusive employee representative when more than 50% of employees want that representative.
A collective bargaining agreement, or written policy, not to prevent employees from exercising the rights guaranteed to employees under section 7 of the National Labor Relations Act (29 U.S.C. 157).
Policies that require— (A) the posting and maintenance of notices that contain information regarding the rights of such employees under the National Labor Relations Act (29 U.S.C. 151 et seq.) in any workplace of an eligible entity in which employees described in section 402(c) work; (B) that such employees are provided with notice and information regarding the benefits and pay required for each job created under this Act in section 402(d) at the start of employment; and (C) such eligible entity to recognize the exclusive representative selected by the employees in the case that more than 50 percent of the employees indicate the desire to be represented by such exclusive representative.
An eligible entity that is a tribal government shall not be subject to the requirements of this subsection.
Recipients would need a hiring preference for people in the same metropolitan area as the job, as determined by the recipient, consistent with federal law and Labor Department rules. Tribal governments would be exempt from this requirement and the other employment-policy conditions in section 401(e).
Policies that provide a preference for hiring employees in the same metropolitan area as the site of employment, as determined by the eligible entity, consistent with applicable Federal law and subject to rules issued by the Secretary of Labor.
An eligible entity that is a tribal government shall not be subject to the requirements of this subsection.
Recipients would have to spend grants on employees whose primary job duties are carried out by individual people. Jobs would serve the geographic area where the recipient is located and carry the bill's required benefits.
Each eligible entity awarded a grant under section 401 shall use such funds to hire employees for jobs for which the primary duties are to be carried out by a natural person and that provide— (1) the support described in subsection (b); and (2) the benefits described in subsection (d).
An eligible entity shall use such grant funds to hire employees for jobs that provide job creation and support for any of the following in the geographic area in which such grant recipient is located
Allowed jobs would include child care and early education, public education, health services, elder care and disability support, housing construction and rehabilitation, homelessness services, and violence prevention and public safety.
Job creation to expand child care and early childhood education programs
Job creation to support public education programs
Job creation to support health initiatives and programs
Job creation to support elder care and disability support services
Job creation to support housing construction and rehabilitation
Job creation to support housing-insecure or homeless individuals, including homelessness outreach and supportive housing services.
Job creation to support community violence prevention and public safety
Other allowed work would include scientific research, public infrastructure, arts and historical preservation, conservation and climate resilience, wildfire and disaster preparation, improvements and staffing at community public facilities, and maintenance of parks, tribal lands, and other public spaces.
Job creation to support scientific research and innovation
Job creation to support the construction, repair, maintenance, modernization, and inspection of roads, bridges, rail systems, airports, ports, public buildings, drinking water systems, wastewater facilities, broadband infrastructure, sidewalks, bicycle facilities, parks, and other public infrastructure.
Job creation to support the commissioning of public art projects, museum support, archival preservation, library services, digitization of historical records, cultural programming, preservation of historic sites, documentation of local history, and community arts education.
Job creation to support strengthening environmental conservation and climate resilience
Job creation to support wildfire prevention and disaster preparedness programs
Job creation to support the repair, remodeling, and beautification of schools, community centers, libraries, and other community-based public facilities, and the increase in the number of workers at such schools, community centers, libraries, and other community-based public facilities.
Job creation to support the renovation, enhancement, and maintenance of parks, playgrounds, public and tribal lands, trails, and other public spaces.
Grants could also support local journalism, Workforce Innovation and Opportunity Act programs and training, and other public-need activities selected by the director and advisory committee.
Job creation to support local news and journalism, including local news funds, local news and community information organizations, journalism fellowship programs, and the maintenance and expansion of local, nonprofit, and public-interest news gathering and reporting capacity.
Job creation to support programs and training activities under the Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et seq.).
Job creation to support other activities as determined by the Director and the advisory committee established under section 404 to address public needs.
Grant-funded workers would have to be at least 18 and qualify as employees. As written, any one of three conditions would exclude a worker from employee status: freedom from control and direction both contractually and in practice; work outside the recipient's usual business; or an independently established business or occupation doing the same kind of work.
To be eligible to be an employee hired by an eligible entity with grant funds awarded under this title, an individual shall— (A) be 18 years or older; and (B) subject to paragraph (2), be hired to perform any service for an eligible entity as an employee of such entity.
An individual hired to perform any service for an eligible entity shall not be considered an employee of such entity if— (A) such individual is free from control and direction in connection with the performance of such service, both under any contract for the performance of such service and in fact; (B) the service performed by such individual is outside the usual course of the business of the entity; or (C) such individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in such service.
Grant-funded employees would receive at least the highest applicable wage floor: the federal minimum wage, the state or local minimum wage, or the local prevailing wage for similar work determined by the Labor Secretary. The prevailing-wage requirement would also have to meet the highest applicable federal, state, or local statutory prevailing wage.
a wage of not less than the greater of— (A) the minimum wage rate as established under section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206); (B) the minimum wage rate as established under applicable State or local law; or (C) the prevailing wage rate paid to workers in the same locality for similar work, as determined by the Secretary of Labor, and not less than the greater of the prevailing wage required under applicable Federal, State, or local prevailing wage statute
Grant-funded employees would receive health insurance coverage comparable to the plan offered to federal employees through the Federal Employees Health Benefits Program.
coverage under a health insurance benefits plan comparable to the health insurance benefits plan offered to Federal employees under the Federal Employees Health Benefits Program established under chapter 89 of title 5, United States Code
Employees would receive at least 12 workweeks of family and medical leave in any 12-month period under the cited federal leave provision, paid at their regular rate. The supplied sources do not reproduce that provision's full scope. Employees would also earn one hour of paid leave for any purpose per 30 hours worked, capped at 56 hours annually unless the employer chose a higher cap.
at least 12 workweeks of family and medical leave benefits during any 12-month period under section 102(a) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)) except that such employee shall be paid at a rate equal to their regular rate of pay for each week of such leave
the ability to earn 1 hour of paid leave for every 30 hours worked, but not greater than 56 hours of such leave in a year unless such entity chooses to set a higher limit, to be used by such employee for any purpose.
Grant-funded hiring could not cause existing employees to lose jobs, hours, wages, or benefits, or replace their work during a strike. The bill would also bar hiring for the same or substantially similar work at the same site when an existing worker was displaced by grant-funded hiring and had not been offered restoration. Existing employees would be those employed the day before the grant-funded hire.
An eligible entity may not use grant funds awarded under section 401 to hire an employee that meets the requirements of subsection (c) for a job created under this section if— (A) employing such employee will result in the layoff or partial displacement of an existing employee of such entity; (B) such employee will assume any of the duties or responsibilities of an existing employee of such entity who is on strike; or (C) such employee will perform work that is the same or substantially similar to the work performed by any existing employee at the same site of employment, and if such existing employee— (i) has been laid off or partially displaced as a result of such employee hired from grant funds awarded under section 401; and (ii) has not been offered to be restored to the position such existing employee had immediately prior to being laid off or partially displaced.
The term existing employee, when used with respect to an eligible entity, means an employee who was an employee of the eligible entity on the date prior to the date an individual was hired using grant funds under this title.
The term partial displacement means any reduction in hours, wages, or employment benefits of an employee.
The director would report to the named House and Senate committees within one year after the first grant and annually afterward. Reports would include grant counts, jobs created per grant, and average, median, and range of wages.
Not later than one year after the first grant is awarded under section 401, and annually thereafter, the Director shall submit a report to the Committees on Education and Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate, including— (1) the number of grants awarded under section 401; and (2) data on the jobs created under section 402 as a result of such grants, including— (A) the number of jobs created for each grant awarded under section 401; and (B) the average and median wage and the wage range paid by eligible entities for such jobs.
The director would establish a grant-program advisory committee by the earlier of 180 days after enactment or 90 days after establishment of the title III office. The director would choose its chair.
Not later than 180 days after the date of enactment of this Act, or 90 days after the establishment of the Office under title III, whichever is sooner, the Director shall establish an advisory committee (in this section referred to as the Committee) to advise the Office regarding the grant program established under section 401.
The Chairperson of the Committee shall be designated by the Director.
The advisory committee would include representatives of eight named federal bodies, every state governor or a designee, two economists studying economy-wide labor trends, and union representation subject to a threshold of more than 50,000 members and at least two branches in U.S. states or territories.
The Committee shall be composed of the following members: (1) A designee of the Secretary of Labor. (2) A designee of the Secretary of Commerce. (3) A designee of the Secretary of Education. (4) A designee of the Chair of the Federal Reserve. (5) A designee of the Chair of the National Labor Relations Board. (6) One representative from the National Science Foundation. (7) One representative from the Council of Economic Advisors of the Executive Office of the President. (8) One representative from the Office of Science and Technology Policy of the Executive Office of the President. (9) Not less than one representative from any union with two or more branches located in the States or territories of the United States and whose membership exceeds 50,000 members. (10) The governor of each State or their designee. (11) Two economists studying macroeconomic labor trends.
The committee would have to meet with the office within 30 days after enactment and quarterly afterward to advise on the jobs program. This first-meeting deadline precedes the latest permitted establishment dates. The bill would exempt the committee from the Federal Advisory Committee Act; the supplied sources do not reproduce the requirements being waived.
Not later than 30 days after the date of enactment of this Act, and on a quarterly basis thereafter, the Committee shall meet with the Office to advise the Director on the development and implementation of the jobs program under this title.
Not later than 180 days after the date of enactment of this Act, or 90 days after the establishment of the Office under title III, whichever is sooner
Not later than 90 days after the date of the enactment of this Act, the Secretary of Labor shall establish a Work Protection Administration
Chapter 10 of title 5, United States Code (commonly known as the Federal Advisory Committee Act), shall not apply to the Committee.
The Bureau of Labor Statistics would collect, compile, and report information about AI's workforce effects, including effects beyond job displacement and deterioration in pay, hours, or job stability. The bill would authorize $20 million annually for fiscal years 2027–2031 for this work; the text authorizes appropriations rather than supplying that money.
The Bureau of Labor Statistics shall collect, collate, and report on the impacts of artificial intelligence on the workforce, including impacts beyond— (1) job displacement as a result of artificial intelligence; and (2) the degradation of existing jobs, including employees receiving lower pay or fewer hours or such jobs becoming temporary as a result of artificial intelligence.
There is authorized to be appropriated to the Bureau of Labor Statistics 20 million dollars for each fiscal year beginning fiscal year 2027 and ending fiscal year 2031 to carry out this section.
For fiscal year 2027 and each later year, the bill would authorize additional appropriations for Workforce Innovation and Opportunity Act programs and training, capped at 20% of the money appropriated to the trust fund. It would not require spending the full 20%.
For the fiscal year 2027, and for each fiscal year thereafter, there is authorized to be appropriated not greater than 20 percent of the funds appropriated to the trust fund established under section 201 to fund programs and training activities under the Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et seq.).
The supplied official-actions snapshot, updated September 22, 2026, records introduction in the House on August 6, 2026, and referral that day to the Education and Workforce and Ways and Means committees for matters within their respective jurisdictions.
Source snapshot updated 2026-09-22T08:05:49Z.
2026-08-06: Introduced in House
2026-08-06: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
A closer look
Reviewed version: Introduced in House · 2026-08-06. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated rider was identified after reviewing the complete supplied introduced-text version. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials; no amendment attachment history is established.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for a particular recipient or place was identified after reviewing the complete supplied introduced-text version. General program funding and competitive grants do not alone establish earmarks. This conclusion does not establish absence in other versions or accompanying materials; formal earmark disclosures were not supplied.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied text contains specific exclusions, exemptions, and preferences warranting scrutiny. These classifications describe differential treatment, not a judgment about its justification.
The research-and-development exclusion benefits specified governmental, educational, research, and charitable entities by excluding qualifying model transactions for their research and development from covered transactions. It is a carve-out within the main AI-tax policy.
Such term does not include any use, sale or license of use, or access to a foundation model for the purpose of research and development by any of the following entities: (i) A Federal, State, or local government. (ii) An institution of higher education (as such term is used in section 101(a) of the Higher Education Act of 1965). (iii) A Federally Funded Research and Development Center (as defined in section 2.101 of title 48, Code of Federal Regulations or any successor regulation thereto). (iv) An organization that is described in section 501(c)(3) and is exempt from taxation under section 501(a).
State governments and units of general local government would receive priority over other eligible applicants when proposed grant-funded work involves functions typically performed by those governments. This is an express preference within the competitive jobs-grant program, not a guaranteed award or a named-recipient appropriation.
Subject to the availability of funds in the trust fund established under title II, the Director shall establish a grant program to award funds to eligible entities on a competitive basis to create employment opportunities for individuals under section 402.
in the case of eligible entities that plan to use such grant funds for functions typically performed by State governments or units of general local government, give priority to eligible entities that are State governments or units of general local government.
People in the same metropolitan area as the job would receive an express hiring preference for grant-funded employment, as determined by the recipient and subject to federal law and Labor Department rules. This geographic preference narrows access within the jobs program. Tribal-government recipients would be exempt from the requirement.
To be eligible to receive a grant under this section, an eligible entity shall be required to have each of the following policies with respect to any employee hired using grant funds awarded under this title
Policies that provide a preference for hiring employees in the same metropolitan area as the site of employment, as determined by the eligible entity, consistent with applicable Federal law and subject to rules issued by the Secretary of Labor.
An eligible entity that is a tribal government shall not be subject to the requirements of this subsection.
Tribal-government grant recipients would be exempt from section 401(e)'s employment-policy conditions, including labor-rights policies, notices, majority-supported representative recognition, and local hiring preferences. The exemption is limited to that subsection; it does not expressly waive section 402's pay and benefits requirements.
To be eligible to receive a grant under this section, an eligible entity shall be required to have each of the following policies with respect to any employee hired using grant funds awarded under this title
A collective bargaining agreement, or written policy, not to prevent employees from exercising the rights guaranteed to employees under section 7 of the National Labor Relations Act (29 U.S.C. 157).
Policies that require— (A) the posting and maintenance of notices that contain information regarding the rights of such employees under the National Labor Relations Act (29 U.S.C. 151 et seq.) in any workplace of an eligible entity in which employees described in section 402(c) work; (B) that such employees are provided with notice and information regarding the benefits and pay required for each job created under this Act in section 402(d) at the start of employment; and (C) such eligible entity to recognize the exclusive representative selected by the employees in the case that more than 50 percent of the employees indicate the desire to be represented by such exclusive representative.
Policies that provide a preference for hiring employees in the same metropolitan area as the site of employment, as determined by the eligible entity, consistent with applicable Federal law and subject to rules issued by the Secretary of Labor.
An eligible entity that is a tribal government shall not be subject to the requirements of this subsection.
An eligible entity awarded a grant under section 401 shall provide each employee described under subsection (c) hired for the purpose of providing support under subsection (b) with
The specified union representation on the advisory committee would be reserved for unions with more than 50,000 members and at least two branches in U.S. states or territories. This gives a defined subset of unions designated access to advising on the jobs-grant program. It establishes a limited advisory role, without guaranteeing a grant or a particular policy outcome.
Not less than one representative from any union with two or more branches located in the States or territories of the United States and whose membership exceeds 50,000 members.
the Director shall establish an advisory committee (in this section referred to as the Committee) to advise the Office regarding the grant program established under section 401.
In awarding grants under this title, the Director shall take into consideration— (A) any recommendations of the advisory committee established in section 404;
The new advisory committee would receive a committee-specific exemption from the Federal Advisory Committee Act. This is a special exception within the program's administration; the supplied text does not reproduce the requirements being waived.
Chapter 10 of title 5, United States Code (commonly known as the Federal Advisory Committee Act), shall not apply to the Committee.
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