Expanding Pathways to Employment Act
This bill directs the Department of the Treasury to provide long-term grant funding for workforce development programs that have demonstrated a positive impact on worker earnings and for postsecondary education programs that have demonstrated a positive impact on student graduation.
To establish a fund to provide grants for the operation and expansion 
 of evidence-based workforce development and post-secondary education 
 programs and to support evaluations of these programs, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Pathways to Employment 
Act''.

SEC. 2. WORKFORCE DEVELOPMENT AND POST-SECONDARY EDUCATION GRANT 
              PROGRAM.

    (a) In General.--The Secretary, in consultation with the Board, 
shall make grants in accordance with this section to provide long-term 
funding commitments for eligible workforce development programs and 
eligible post-secondary education programs as follows:
            (1) Workforce development programs supported by strong 
        evidence.--Of the total amount appropriated under section 6, 
        the Secretary shall use 50 percent of such amount to make 
        grants for eligible workforce development programs that have 
        demonstrated a substantial, statistically significant positive 
        impact on worker earnings through one or more well-designed and 
        well-implemented randomized control experimental studies. A 
        grant awarded under this paragraph shall be used for the cost 
        of operating and expanding such program, and may also be used, 
        at the discretion of the grantee, for the cost of conducting a 
        new randomized control experimental study with respect to such 
        program.
            (2) Workforce development programs supported by moderate 
        and promising evidence.--Of the total amount appropriated under 
        section 6, the Secretary shall use 25 percent of such amount to 
        make grants for eligible workforce development programs that 
        have demonstrated a substantial, statistically significant 
        positive impact on worker earnings through one or more well-
        designed and well-implemented quasi-experimental studies or 
        correlational studies. A grant awarded under this paragraph 
        shall be used--
                    (A) for the cost of conducting randomized control 
                experimental studies with respect to such program; and
                    (B) for the cost of operating and expanding such 
                program (but only if a grant under subclause (A) has 
                been concurrently awarded for such program).
            (3) Discretionary amount.--Of the total amount appropriated 
        under section 6, the Secretary shall use 20 percent of such 
        amount at the discretion of the Secretary--
                    (A) to make additional grants as described in 
                paragraph (1);
                    (B) to make additional grants as described in 
                paragraph (2); and
                    (C) to make grants for eligible post-secondary 
                education programs that have demonstrated a 
                substantial, statistically significant positive impact 
                on student graduation and degree completion through one 
                or more well-designed and well-implemented randomized 
                control experimental studies, quasi-experimental 
                studies, or correlational studies, to be used--
                            (i) in the case of programs that have 
                        demonstrated such positive impact through one 
                        or more randomized control experimental 
                        studies, for the cost of operating and 
                        expanding such program, and, at the discretion 
                        of the grantee, for the cost of conducting a 
                        new randomized control experimental study with 
                        respect to such program; and
                            (ii) in the case of programs that have 
                        demonstrated such positive impact through one 
                        or more quasi-experimental studies or 
                        correlational studies--
                                    (I) for the cost of conducting 
                                randomized control experimental studies 
                                with respect to such program; and
                                    (II) for the cost of operating and 
                                expanding such program (but only if a 
                                grant under subclause (I) has been 
                                concurrently awarded for such program).
            (4) Technical assistance.--Of the total amount appropriated 
        under section 6, the Secretary shall use 5 percent--
                    (A) to provide technical assistance for eligible 
                workforce development programs and eligible post-
                secondary education programs, including technical 
                assistance related to the use of administrative data to 
                improve program performance;
                    (B) to conduct feasibility studies and other 
                planning activities;
                    (C) to disseminate best practices; and
                    (D) for staff and other costs related to such 
                activities.
    (b) Eligible Applicants.--Applicants for a grant under subsection 
(a) may include--
            (1) State, local, territorial, or tribal governments, but 
        only if the application includes one or more clearly designated 
        nonprofit organizations, institutions of higher education, or 
        post-secondary vocational institutions that will implement the 
        program using such grant funds; and
            (2) nonprofit organizations, institutions of higher 
        education, or post-secondary vocational institutions, but only 
        if the application--
                    (A) is supported by a State, local, territorial, or 
                tribal government; and
                    (B) includes a plan to partner with that 
                government, a sustainability plan to ensure the program 
                continues to be delivered after the end of the grant 
                award, and a clearly designated place or places where 
                the program will be administered.
    (c) Matching Requirement.--The Secretary shall not award any grant 
under paragraph (1) or paragraph (3)(A) of subsection (a) to an entity 
unless the entity provides matching funds from Federal or non-Federal 
sources in an amount equal to not less than 50 percent of such grant, 
except that the Secretary may, at the request of an applicant or a 
grantee, grant a waiver reducing this requirement for the purposes of 
increasing the accessibility or equity of the program design, or in the 
case of grants awarded to an eligible entity with limited resources.

SEC. 3. AMOUNT OF GRANTS AND CRITERIA FOR AWARDING GRANTS.

    (a) In General.--The amount of a grant awarded for an eligible 
workforce development program or post-secondary education program under 
section 2 shall be determined by the Secretary, in consultation with 
the Board, based on the following:
            (1) The program's impact on participant earnings or 
        participant graduation and degree completion rates relative to 
        costs (as determined under guidance issued pursuant to 
        subsection (b)).
            (2) Whether the program was evaluated through a randomized 
        control experimental study, a quasi-experimental study, or a 
        correlational study, and the overall quality of the evidence 
        behind the program, including the sample size and number of 
        evaluations, the statistical quality of the evaluations, the 
        magnitude of the impacts detected, and the strength of the 
        causal connection between the program and key economic outcomes 
        measured.
            (3) The number of additional participants that the program 
        expects to enroll as a result of receiving such grant.
            (4) Whether the program has been demonstrated to improve 
        equity, in particular for populations of individuals or 
        communities (which may include rural communities) historically 
        held furthest from opportunity.
    (b) Impact Relative to Costs Standard.--The Board shall devise and 
publish a minimum impact relative to costs standard comparing the 
impact on worker earnings or student graduation and degree completion 
rates as a result of an eligible workforce development program or post-
secondary education program and the annual cost per participant under 
such program. Such standard shall--
            (1) set forth a minimum required demonstrable increase in 
        earnings or graduation and degree completion rates over time 
        (based on previous evaluations) per dollar of program cost per 
        participant; and
            (2) allow for additional flexibility for programs that 
        specifically or primarily serve individuals with barriers to 
        employment (as defined in section 3(24) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3102(24)) or post-
        secondary education, individuals in communities that have 
        historically or currently been underserved by workforce 
        development and post-secondary education programs, and 
        individuals in rural areas.

SEC. 4. INDEPENDENT BOARD.

    (a) Establishment of Independent Board.--There is established an 
independent board (in this Act referred to as the ``Board'') consisting 
of 5 members appointed by the Secretary in accordance with subsection 
(c).
    (b) Duties.--The Board shall review applications for grants under 
this Act and make recommendations to the Secretary with respect to the 
awarding of such grants. The Board shall, in their recommendation to 
the Secretary regarding program selection, prioritize programs that 
have demonstrated a larger impact relative to costs (as determined 
under guidance issued pursuant to subsection (b)), that have been 
evaluated by more well-designed and well-implemented studies, and that 
have been evaluated by randomized control experimental studies rather 
than quasi-experimental studies or correlational studies. The Board 
shall, in their recommendation to the Secretary regarding grant size, 
prioritize higher funding levels to programs that have demonstrated a 
larger impact relative to costs (as so determined), that have been 
evaluated by more well-designed and well-implemented studies, that have 
been evaluated by randomized control experimental studies rather than 
quasi-experimental studies or correlational studies, and that expect to 
enroll more participants as a result of receiving such grant. For the 
purposes of these recommendations, the Board shall devise a quality 
standard for evaluations to determine which evaluations are more well-
designed and well-implemented compared to others.
    (c) Appointment.--The Secretary shall appoint individuals to serve 
on the Board who meet the qualifications described in subsection (d). 
In making such appointments, the Secretary shall consult and receive 
recommendations from the Commission of Social Impact Partnerships 
established under section 2057 of the Social Security Act.
    (d) Qualifications of Members.--An individual who meets the 
qualifications described in this subsection is an individual who is an 
academic, nonprofit, or executive agency official with expertise in 
workforce development programs or post-secondary education programs and 
experience in running rigorous evaluations. Such an individual shall--
            (1) be an expert in program evaluation and evidence-based 
        policy, including evaluation methodologies that are 
        appropriately rigorous and reliant upon independent data;
            (2) have relevant professional or personal experience in a 
        field related to one or more of the outcomes listed in this 
        division; or
            (3) have relevant lived or professional experience with 
        underserved communities and under-resourced families that this 
        Act is intended to serve.
    (e) Staffing.--In administering the program under this Act, the 
Secretary may hire such staff as necessary, including by using 
placement authorities under the Intergovernmental Personnel Act of 
1970, and any other direct hire authorities available to the Secretary 
for any other purpose. In hiring staff to administer such program, the 
Secretary shall ensure that such staff meet the qualifications 
described in subsection (d).
    (f) Reports.--The Board shall report on progress periodically to 
the Federal Interagency Council on Social Impact Partnerships 
established under section 2056 of the Social Security Act, and shall 
coordinate policies and decisions with relevance to other Federal 
agencies through such Council.
    (g) Guidance.--
            (1) In general.--The Board, in consultation with the 
        Commission of Social Impact Partnerships established under 
        section 2057 of the Social Security Act, shall develop and make 
        publicly available guidance regarding best practices for the 
        evaluation of eligible workforce development programs and 
        eligible post-secondary education programs to be used to assess 
        the quality of each evaluation as required under subsection 
        (b). Such guidance shall seek to ensure that--
                    (A) the evaluation accurately models a participant 
                group population that is representative of the overall 
                population served by the program;
                    (B) aggregate shifts that might affect baseline 
                numbers are controlled for by the evaluation; and
                    (C) regardless of any other factors, all possible 
                safeguards are undertaken to avoid statistical 
                creaming, in which the impact of a program is over 
                measured as recruited participants become more highly 
                skilled prior to participation over time.
            (2) Procedure.--In issuing the guidance and performance 
        benchmarks defined above, the Board shall release and circulate 
        draft guidance, regulations, and performance benchmarks, which 
        shall be circulated to the Commission, and shall not be adopted 
        unless approved by a majority vote of the Commission at a 
        public meeting, and the Commission shall receive proposed draft 
        guidance or performance benchmarks not less than 30 days prior 
        to voting to approve it. The Board shall use the draft 
        guidance, regulations, and performance benchmarks, once 
        approved by the Commission, to review grant applications under 
        this Act and make recommendations to the Secretary with respect 
        to the awarding of such grants, as described in subsection (b).

SEC. 5. DEFINITIONS.

    For purposes of this Act:
            (1) Eligible workforce development program.--The term 
        ``eligible workforce development program'' means a program 
        operated by a nonprofit organization that provides skills 
        training and education to existing and potential workers with 
        the objective of increasing the wage level and chance of 
        employment of those workers.
            (2) Eligible post-secondary education program.--The term 
        ``eligible post-secondary education program'' means a program 
        operated by a nonprofit organization, an institution of higher 
        education (as defined in section 101 of the Higher Education 
        Act of 1965), or a postsecondary vocational institution (as 
        defined in section 102(c) of such Act) that provides education 
        and support services to post-secondary students with the 
        objective of increasing the rate at which these individuals 
        graduate or obtain a post-secondary credential from the post-
        secondary program in which they are enrolled.
            (3) Randomized control experimental study.--The term 
        ``randomized control experimental study'' means a study 
        conducted by an independent organization utilizing a randomized 
        control trial methodology that compares the earnings, or 
        graduation and degree completion rates, of participant group 
        and control group members, and measures the causal impact of an 
        eligible workforce development program, or eligible post-
        secondary education program, on participants' earnings, or 
        graduation and degree completion rates, at least two years 
        after participants enroll in the program.
            (4) Quasi-experimental study.--The term ``quasi-
        experimental study'' means a study conducted by an independent 
        organization that uses a non-randomized methodology and model 
        to measure the causal impact of an eligible workforce 
        development program, or eligible post-secondary education 
        program, on participants' earnings, or graduation and degree 
        completion rates, at least two years after participants enroll 
        in the program.
            (5) Correlational study.--The term ``correlational study'' 
        means a study conducted by an independent organization using a 
        non-randomized methodology with statistical controls for 
        selection bias that has found a correlational impact of an 
        eligible workforce development program, or eligible post-
        secondary education program, on participants' earnings, or 
        graduation and degree completion rates, and has demonstrated a 
        rationale based on high-quality research findings that the 
        program is likely to improve those participant outcomes at 
        least two years after participants enroll in the program but 
        has not yet demonstrated a causal relationship.
            (6) Well-designed and well-implemented.--The term ``well-
        designed and well-implemented'', as applied to a study, means a 
        study that is replicable, uses programmatic and control groups 
        that are representative of the type of population served by the 
        program, uses controls for aggregate shifts that might affect 
        baseline numbers, does not have problems with attrition from 
        the program, and takes measures to avoid statistical creaming.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.

SEC. 6. FUNDING.

    There is appropriated to carry out this Act, out of any funds in 
the Treasury not otherwise appropriated, $700,000,000 for fiscal year 
2021, to remain available for 9 fiscal years.
                                 <all>
Expanding Pathways to Employment Act
To establish a fund to provide grants for the operation and expansion of evidence-based workforce development and post-secondary education programs and to support evaluations of these programs, and for other purposes.
Expanding Pathways to Employment Act
Rep. Sherrill, Mikie