The AID Youth Employment Act adds two new competitive grant programs to federal workforce law, targeting Americans ages 14 through 24 who are in school, out of school, or unemployed. The summer program can award planning grants of up to $250,000 and implementation grants of up to $6 million over three years, with the federal government covering half the cost (and up to 95 percent for tribal entities). The year-round program follows the same grant structure. Funding authorized totals $375 million per year for summer jobs and $500 million per year for year-round jobs, running from fiscal years 2026 through 2030 — nearly $4.4 billion over five years. All participating youth must be paid at least the applicable minimum wage, and construction work must meet Davis-Bacon prevailing wage rates. At least 20 percent of summer funds must reach rural areas and at least 5 percent must go to tribal areas. Grantees — which can be state or local governments, tribal nations, or community-based organizations — must partner with schools, workforce boards, child welfare agencies, and employers, and are subject to annual federal performance reviews and a congressional report due three years after enactment.
Average Household Impact
- Subsidized employment access — low-income and marginalized youth ages 14–24 gain federally funded job placements and support services
- Wage floor requirement — all participating youth must be paid at least the applicable federal, state, or local minimum wage
- Rural and tribal set-asides — at least 20% of summer funds and 5% reserved for rural and tribal areas, expanding reach beyond urban centers
Transparency & Accountability
- Annual performance reviews — Secretary of Labor must assess each grantee annually against established employment and credential-attainment indicators
- Congressional reporting — Secretary must submit a public report to Congress beginning three years after enactment and annually thereafter
Congressional Summary
Assisting In Developing Youth Employment Act or the AID Youth Employment ActThis bill directs the Department of Labor to award grants, on a competitive basis, to assist states, local governments, Indian tribes, and community-based organizations in providing subsidized summer and year-round employment opportunities to certain youth who are not younger than 14 or older than 24, including individuals who are subject to the justice system, homeless, pregnant, or parenting.Specifically, grants must be used to support employment for eligible individuals and may be used to provide wages, provide associated support services (e.g., case management or child care), and develop data management systems to assist such programs.The bill also requires Labor to establish performance measures and annually review the performance of each grant recipient.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-03-31
- Date Added
- 2026-06-02
- Source
- Congress.gov →
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