Senators Michael Bennet (D-CO) and Rob Portman (R-OH) reintroduced the Careers Through Responsive, Efficient and Effective Retraining (CAREER) Act in 2013. The CAREER Act supports initiatives that will help achieve that goal by providing flexibility to improve outcomes for youth; aligning job training with regional and State workforce needs; holding providers accountable for results; and maximizing taxpayer dollars.
Opportunity Nation was pleased that the concept of the CAREER Act was incorporated into the Workforce Innovation and Opportunity Act, introduced in May 2014.
In the fall of 2013, Opportunity Nation hosted a policy forum with Senators Bennet and Portman to discuss the CAREER Act and the Opportunity Index. In order to expand opportunity for the 5.8 million young Americans who are currently out of school or out of work, we must change the way we do business. We need to ensure maximum results for our investments.
- The CAREER Act establishes a pilot program for up to five states to receive flexibility to spend up to 25 percent of their WIA funds on pay-for-performance models. Job training providers in this pilot program will only be reimbursed for their services if they deliver outcomes such as job placement and retention. This will ensure greater accountability and produce measurable results.
- Requires the President to report to Congress within twelve months of enactment a “reorganization plan” to increase efficiency among the federal training programs without decreasing services or access to services. The Administration is required to seek broad input from local workforce investment boards, businesses, labor organizations and educational groups.
- Requires state and local workforce areas to give priority consideration to training programs that provide workers with credentials that are in-demand by industry, relevant regionally and recognized on a national scale.