SenateS. 5518119th Congress

Make AI Work for Americans Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5518 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
  2d Session
                                S. 5518

 To establish the Artificial Intelligence Horizon Fund, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 24, 2026

   Mr. Kelly introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To establish the Artificial Intelligence Horizon Fund, 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 ``Make AI Work for Americans Act''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
             TITLE I--ARTIFICIAL INTELLIGENCE HORIZON FUND

Sec. 101. Artificial Intelligence Horizon Fund; Artificial Intelligence 
                            Advisory Council.
     TITLE II--ARTIFICIAL INTELLIGENCE INDUSTRY-GENERATED REVENUES

Sec. 201. Digital advertising tax.
Sec. 202. Artificial intelligence usage tax.
Sec. 203. Artificial intelligence excess profits tax.
                TITLE III--NATIONAL SERVICE FOR AMERICA

Sec. 301. National Service for America's Future program.
                 TITLE IV--ENTREPRENEURSHIP FOR AMERICA

Sec. 401. Entrepreneurs of the Future Program.
Sec. 402. Small Business Futures Program.
Sec. 403. Other small business resources.
Sec. 404. Access to capital and technical assistance for emerging 
                            entrepreneurs.
        TITLE V--NEW ECONOMY UNEMPLOYMENT INSURANCE FOR AMERICA

Sec. 501. Floor on the number of weeks.
Sec. 502. Floor on the minimum replacement of wages.
Sec. 503. Floor on the maximum benefit.
Sec. 504. Base period.
Sec. 505. Modernization.
Sec. 506. Unemployment insurance compensation administration.
Sec. 507. Program expansion study and report.
Sec. 508. Wage insurance and short-time compensation grants.
                 TITLE VI--TRAINING WORKERS FOR AMERICA

Sec. 601. Unified State plan.
Sec. 602. Combined State plan.
Sec. 603. Functions of local board.
Sec. 604. Individual training accounts.
Sec. 605. Strengthening community colleges workforce development grants 
                            program.
Sec. 606. Service of midcareer workers.
         TITLE VII--BETTER ARTIFICIAL INTELLIGENCE FOR AMERICA

Sec. 701. Accessibility.
Sec. 702. National workforce competency initiative.
Sec. 703. National clearinghouse for artificial intelligence education.
Sec. 704. Artificial intelligence in the workplace.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Artificial intelligence.--The term ``artificial 
        intelligence'' has the meaning given the term in section 5002 
        of the National Artificial Intelligence Initiative Act of 2020 
        (15 U.S.C. 9401).
            (2) Artificial intelligence horizon fund.--The term 
        ``Artificial Intelligence Horizon Fund'' means the fund 
        established under section 101(b)(1).
            (3) Artificial intelligence advisory council.--The term 
        ``Artificial Intelligence Advisory Council'' means the council 
        established by section 101(c)(1).

             TITLE I--ARTIFICIAL INTELLIGENCE HORIZON FUND

SEC. 101. ARTIFICIAL INTELLIGENCE HORIZON FUND; ARTIFICIAL INTELLIGENCE 
              ADVISORY COUNCIL.

    (a) Definitions.--In this section:
            (1) Council.--The term ``Council'' means the Artificial 
        Intelligence Advisory Council.
            (2) Fund.--The term ``Fund'' means the Artificial 
        Intelligence Horizon Fund.
    (b) Artificial Intelligence Horizon Fund.--
            (1) Establishment.--There is established within the 
        Treasury of the United States a fund to be known as the 
        ``Artificial Intelligence Horizon Fund'', which shall be 
        administered by the Secretary of Labor to carry out the 
        purposes described in paragraph (2).
            (2) Purposes.--The Fund is established to receive and 
        maintain funds as may be deposited or appropriated to the Fund 
        to invest in programs, initiatives, projects, and other 
        endeavors to expand economic security, quality jobs, and 
        community benefits, while mitigating harms associated with 
        increased adoption of artificial intelligence, including to--
                    (A) train workers for jobs that provide family-
                sustaining pay and benefits in high-demand careers that 
                are resilient to projected future economic disruptions 
                caused by technological change, including artificial 
                intelligence and automation;
                    (B) help workers transition into entrepreneurial 
                projects;
                    (C) promote wealth-building and business ownership 
                for working families;
                    (D) engage individuals in service and job-training 
                opportunities;
                    (E) ensure responsible development, deployment, and 
                use of artificial intelligence; and
                    (F) mitigate large-scale job loss from rapid 
                artificial intelligence adoption.
            (3) Transfer authority.--To carry out the purposes of the 
        Fund under paragraph (2) and in accordance with the allocations 
        under paragraph (5), the Secretary of Labor may--
                    (A) transfer or merge amounts in the Fund with 
                accounts of the Department of Labor; and
                    (B) transfer amounts in the Fund to the accounts of 
                other agencies.
            (4) Appropriations.--
                    (A) In general.--In addition to amounts otherwise 
                available to the Fund, there are appropriated, out of 
                amounts in the Treasury not otherwise appropriated, to 
                the Fund--
                            (i) for each fiscal year beginning after 
                        the date of enactment of this Act, the amount 
                        equivalent to the taxes received in the 
                        Treasury under chapter 50B of subtitle D the 
                        Internal Revenue Code of 1986, as added by 
                        title II of this Act; and
                            (ii) $30,000,000,000, as a repayable 
                        advance, to remain available until expended.
                    (B) Repayment of advance.--
                            (i) In general.--The Secretary shall 
                        deposit in the general fund of the Treasury the 
                        amount described in clause (ii) for each fiscal 
                        year that begins after the date of enactment of 
                        this Act until the aggregate amount deposited 
                        under this subparagraph equals the amount that 
                        was appropriated to the Fund under subparagraph 
                        (A)(ii).
                            (ii) Repayment amount.--The amount 
                        described in this clause for a fiscal year is 
                        the lesser of--
                                    (I) 10 percent of the amount 
                                appropriated to the Fund under 
                                subparagraph (A)(i) for the fiscal 
                                year; or
                                    (II) the difference between the 
                                amount appropriated under subparagraph 
                                (A)(ii) minus the cumulative amount of 
                                all deposits to the general fund of the 
                                Treasury under this subparagraph.
                            (iii) Repayment timing.--Each deposit under 
                        this subparagraph shall be made before the 
                        submission of the recommendations of the 
                        Council under subsection (c)(4) for the fiscal 
                        year.
            (5) Allocation authority.--
                    (A) Submission of cost estimates.--The President 
                shall submit to Congress as part of the annual budget 
                submission of the President under section 1105(a) of 
                title 31, United States Code, detailed allocations, by 
                account, program, and project, of the full amount 
                available in the Fund as of the date of such submission 
                in accordance with the recommendations of the Council 
                under subsection (c)(4).
                    (B) Alternate allocation.--
                            (i) In general.--The Committee on 
                        Appropriations of the Senate and the Committee 
                        on Appropriations of the House of 
                        Representatives may, in any Act making full-
                        year appropriations for the Departments of 
                        Labor, Health and Human Services, and 
                        Education, and related agencies, for a fiscal 
                        year, provide for alternate allocations of 
                        amounts available in the Fund, including by 
                        account, program, and project, for that fiscal 
                        year consistent with the purposes described in 
                        paragraph (2) and the recommendations submitted 
                        under subsection (c)(3)(A).
                            (ii) Allocation by president.--
                                    (I) No alternate allocations.--If 
                                Congress has not enacted legislation 
                                establishing alternate allocations, 
                                including by account, program, and 
                                project, by the date on which the Act 
                                making full-year appropriations for the 
                                Departments of Labor, Health and Human 
                                Services, Education, and Related 
                                Agencies for the applicable fiscal year 
                                is enacted into law, the President 
                                shall allocate, by account, program, 
                                and project, the full amount available 
                                in the Fund as of the date of such 
                                submission in accordance with detailed 
                                allocations submitted to Congress under 
                                subparagraph (A).
                                    (II) Insufficient alternate 
                                allocation.--If Congress enacts 
                                legislation establishing alternate 
                                allocations, including by account, 
                                program, and project, for amounts 
                                available in the Fund that are less 
                                than the full amount available in the 
                                Fund as of the enactment of such 
                                legislation, the difference between the 
                                amount appropriated and the alternate 
                                allocation shall be allocated by the 
                                President, consistent with the purposes 
                                described in paragraph (2) and the 
                                recommendations under subsection 
                                (c)(4).
            (6) Inspector general.--Out of the amounts available in the 
        Fund in any fiscal year, $7,500,000 for the fiscal year shall 
        be transferred to the Office of Inspector General of the 
        Department of Labor to oversee expenditures from the Fund.
    (c) Artificial Intelligence Advisory Council.--
            (1) Establishment.--There is established an Artificial 
        Intelligence Advisory Council.
            (2) Mission.--The Council shall provide independent 
        oversight and guidance to the President and the Secretary of 
        Labor for purposes of ensuring amounts from the Fund are 
        allocated in accordance with paragraph (4)(B) and the purposes 
        described in subsection (b)(2).
            (3) Determination of significant labor market disruption.--
                    (A) In general.--The Council shall--
                            (i) regularly consider economic conditions 
                        and labor market indicators to determine if a 
                        significant labor market disruption has 
                        occurred or is likely to occur in a given 
                        fiscal year; and
                            (ii) make a declaration if the Council 
                        determines that such a disruption has occurred 
                        or is likely to occur and publish such 
                        declaration in the Federal Register.
                    (B) Conditions for consideration.--In order to make 
                a determination described in subparagraph (A), the 
                Council shall consider--
                            (i) changes, or projected changes, in the 
                        unemployment rate and labor force participation 
                        rate;
                            (ii) unemployment compensation claims and 
                        exhaustion of such benefits;
                            (iii) notices filed under the Worker 
                        Adjustment and Retraining Notification Act (29 
                        U.S.C. 2101 et seq.);
                            (iv) job openings, hiring, separations, 
                        involuntary part-time work, and other measures 
                        of labor market turnover;
                            (v) changes in real wages;
                            (vi) sectors experiencing, or projected to 
                        experience, accelerated contraction;
                            (vii) changes, or projected changes, in the 
                        demand for labor, including changes related to 
                        artificial intelligence, automation, or 
                        technological change; and
                            (viii) other changes in economic or labor 
                        market conditions that the Council determines 
                        appropriate to consider.
                    (C) Sources for consideration.--The consideration 
                of the sources of information described in subparagraph 
                (B) shall include the use of timely--
                            (i) Federal data available, including data 
                        available from the Department of Labor, the 
                        Bureau of Economic Analysis, the Bureau of 
                        Labor Statistics, the Census Bureau, and other 
                        relevant Federal sources;
                            (ii) State data;
                            (iii) employer-provided data; and
                            (iv) information, data, and projections 
                        provided by any source the Council determines 
                        appropriate.
            (4) Recommendations for allocation of artificial 
        intelligence horizon fund.--
                    (A) In general.--Not later than 60 days before the 
                date on which the President submits an annual budget 
                under section 1105(a) of title 31, United States Code, 
                the Council shall submit to the President a 
                recommendation of how the amounts in the Fund should be 
                allocated for the upcoming fiscal year.
                    (B) Requirements.--In making a recommendation under 
                subparagraph (A), the Council--
                            (i) shall, if a determination has been made 
                        in accordance with paragraph (3)(A)--
                                    (I) include in such recommendation 
                                a copy of the declaration made under 
                                clause (ii) of such paragraph; and
                                    (II) provide in such recommendation 
                                that, at a minimum, the recommended 
                                allocation fully funds increased 
                                payments to States under section 903(k) 
                                of the Social Security Act, as added by 
                                502(b) of this Act, and section 505 of 
                                this Act before allocating any amounts 
                                under clause (ii); and
                            (ii) may include in such recommendation 
                        amounts (in addition to the amounts described 
                        in clause (i) if the determination described in 
                        such clause has been made) for--
                                    (I) the workforce training programs 
                                described in the Workforce Innovation 
                                and Opportunity Act (29 U.S.C. 3101 et 
                                seq.), as amended by titles IV and VI;
                                    (II) transfers to the Corporation 
                                for National and Community Service for 
                                grants under the National Service for 
                                America's Future program established 
                                under section 199P of the National and 
                                Community Service Act of 1990 (as added 
                                by title III) and for awarding 
                                completion awards in accordance with 
                                section 199R(c)(1)(B)(i) of such Act;
                                    (III) the entrepreneurship programs 
                                under the amendments made by title IV;
                                    (IV) the programs under title V 
                                (other than the provisions of such 
                                title included in the recommendation 
                                under clause (i)(II));
                                    (V) the initiatives under title 
                                VII;
                                    (VI) transfers to the National 
                                Science Foundation for education and 
                                research, including for research and 
                                development or STEM education programs 
                                related to artificial intelligence, 
                                including the National Artificial 
                                Intelligence Research Resource;
                                    (VII) transfers to the National 
                                Telecommunications and Information 
                                Administration for broadband 
                                deployment, and for programs to expand 
                                access to internet service, devices, 
                                and digital skills, in unserved and 
                                underserved communities;
                                    (VIII) transfers to the Creating 
                                Helpful Incentives to Produce 
                                Semiconductors (CHIPS) for America Fund 
                                under section 102(a) of the CHIPS Act 
                                of 2022 (Public Law 117-167) or the 
                                Creating Helpful Incentives to Produce 
                                Semiconductors (CHIPS) for America 
                                Workforce and Education Fund under 
                                section 102(d) of such Act;
                                    (IX) transfers to the National 
                                Institute of Standards and Technology 
                                for work carried out by the Center for 
                                AI Standards and Innovation to provide 
                                for the safe, ethical, and responsible 
                                development, deployment, and use of 
                                artificial intelligence;
                                    (X) transfers to the Department of 
                                Education for grants related to career 
                                and technical education, STEM 
                                education, higher education programs, 
                                educator preparation programs, digital 
                                infrastructure, data interoperability, 
                                foundational literacy as it relates to 
                                artificial intelligence, and the 
                                implementation of resources, best 
                                practices, and guidance hosted by the 
                                National Clearinghouse for Artificial 
                                Intelligence Education described in 
                                section 703;
                                    (XI) transfers to the Department of 
                                Energy for financing through programs 
                                under title 17 of the Energy Policy Act 
                                of 2005 (42 U.S.C. 16511 et seq.) or 
                                programs under section 2602 of the 
                                Energy Policy Act of 1992 (25 U.S.C. 
                                3502);
                                    (XII) transfers to the Department 
                                of Energy for research, development, 
                                education, or workforce training 
                                programs related to artificial 
                                intelligence;
                                    (XIII) transfers to the National 
                                Labor Relations Board or the National 
                                Mediation Board;
                                    (XIV) transfers, for the 
                                collection, analysis, and publication 
                                of data related to the impacts of 
                                artificial intelligence on the labor 
                                market, wages, business formation, or 
                                economic output, to--
                                            (aa) the Bureau of Labor 
                                        Statistics;
                                            (bb) the Bureau of the 
                                        Census; and
                                            (cc) the Bureau of Economic 
                                        Analysis;
                                    (XV) transfers to the National 
                                Institutes of Health for research and 
                                development, clinical infrastructure, 
                                and workforce training related to 
                                health and artificial intelligence; and
                                    (XVI) transfers to the National 
                                Institute on Aging of the National 
                                Institutes of Health for research on 
                                the impact of artificial intelligence 
                                on older adults; and
                            (iii) may not--
                                    (I) permit more than 3 percent of 
                                the Fund to be used for administrative 
                                expenses;
                                    (II) recommend funding activities 
                                that supplant funds otherwise available 
                                for such activities, or that displace 
                                an existing employee or position;
                                    (III) recommend an allocation with 
                                respect to which a member of the 
                                Council has a financial interest that 
                                has not been disclosed and from which 
                                the member has not recused;
                                    (IV) recommend funding any 
                                research, development, or deployment of 
                                artificial intelligence technologies 
                                that violate the privacy rights, civil 
                                rights, or civil liberties of an 
                                individual, or that discriminate 
                                against an individual on the basis of a 
                                protected characteristic;
                                    (V) recommend funding for any 
                                program or any activity that would 
                                prevent compliance with, or result in 
                                the violation of, any Federal, State, 
                                or local labor, occupational safety and 
                                health, employment, or disability law 
                                or any other law;
                                    (VI) recommend funding for any 
                                program that uses artificial 
                                intelligence systems, without the 
                                involvement of a human, to make 
                                determinations of benefits or 
                                eligibility, or that prevents an 
                                individual from exercising professional 
                                judgment to override an automated 
                                determination or subjects an individual 
                                to retaliation for doing so;
                                    (VII) recommend funding the 
                                development or deployment of artificial 
                                intelligence systems designed to 
                                displace workers, rather than to 
                                augment the capabilities of workers, 
                                improve job quality, or improve 
                                workplace health and safety; or
                                    (VIII) recommend funding the 
                                development or deployment of artificial 
                                intelligence systems or data collection 
                                activities used to surveil workers or 
                                to interfere with the rights of 
                                individuals, including the rights to 
                                organize and collectively bargain or 
                                discourage or prevent individuals from 
                                exercising any right under the National 
                                Labor Relations Act (29 U.S.C. 151 et 
                                seq.).
                    (C) Considerations.--The Council shall consider any 
                findings by the Office of Inspector General of the 
                Department of Labor (acting using funding provided 
                under subsection (b)(6)) in making recommendations for 
                funding under subparagraph (B)(ii) for any fiscal year 
                after such findings are made.
                    (D) Review and modification by the president.--
                            (i) In general.--The President shall review 
                        the recommended allocations from the Council 
                        under subparagraph (A) and may modify the 
                        recommendations of the Council if--
                                    (I) the modification complies with 
                                subparagraph (B);
                                    (II) the modification is necessary 
                                to meet the purposes of the Fund 
                                described in subsection (b)(2); and
                                    (III) the President provides the 
                                Council with a written justification 
                                explaining how the modification meets 
                                such a purpose.
                            (ii) Modification.--Any modified 
                        recommendations under clause (i) shall be 
                        considered the recommendations of the Council 
                        for purposes of this section.
            (5) Role for the office of management and budget.--In 
        supporting the development of the Council's recommendations 
        under paragraph (4) and oversight of fund allocations under 
        subsection (b), the Director of the Office of Management and 
        Budget shall--
                    (A) provide the Council with quarterly reports on 
                the revenue projections of taxes received in the 
                Treasury under chapter 50B of subtitle D the Internal 
                Revenue Code of 1986 for purposes of determining the 
                amount appropriated to the Fund under subsection 
                (b)(4);
                    (B) provide the Council with quarterly reports 
                detailing expenditures from the Fund, as allocated in 
                prior fiscal years;
                    (C) assist the Council and the Secretary of Labor 
                in developing annual implementation and performance 
                plans to ensure consistent implementation of Fund 
                allocations across the agencies and programs which are 
                allocated funding; and
                    (D) provide the Council with any other 
                documentation, technical assistance, or requests for 
                information related to the Fund.
            (6) Membership.--
                    (A) In general.--The Council shall consist of 15 
                individuals appointed in accordance with this 
                paragraph.
                    (B) Expertise.--Each member of the Council shall 
                have particular expertise, knowledge, and experience in 
                matters relating to the mission of the Council.
                    (C) Composition.--The Council shall be comprised of 
                the following individuals and representatives:
                            (i) The Secretary of Labor or a designee.
                            (ii) The Secretary of Education or a 
                        designee.
                            (iii) The Administrator of the Small 
                        Business Administration or a designee.
                            (iv) The Chief Executive Officer of 
                        AmeriCorps.
                            (v) The Head of the Directorate for 
                        Computer and Information Science and 
                        Engineering of the National Science Foundation.
                            (vi) 10 members who are not officials of 
                        the Federal Government, including--
                                    (I) 2 individuals who represent 
                                labor organizations, of whom--
                                            (aa) 1 shall be appointed 
                                        by the Majority Leader of the 
                                        Senate; and
                                            (bb) 1 shall be appointed 
                                        by the Speaker of the House of 
                                        Representatives; and
                                    (II) 8 individuals--
                                            (aa) who have advanced 
                                        qualifications and are widely 
                                        recognized as scholarly experts 
                                        on artificial intelligence, K-
                                        12 education, higher education 
                                        (including as representatives 
                                        of a minority-serving 
                                        institution (as defined in 
                                        section 115(d)(2)(B) of the 
                                        Mutual Educational and Cultural 
                                        Exchange Act of 1961 (22 U.S.C. 
                                        2465(d)(2)(B)))), community 
                                        service, civil rights, digital 
                                        equity, or workforce 
                                        development (including with 
                                        respect to delivering workforce 
                                        development programs at scale 
                                        in areas related to or affected 
                                        by artificial intelligence); 
                                        and
                                            (bb) of whom--

                                                    (AA) 2 shall be 
                                                appointed by the 
                                                Majority Leader of the 
                                                Senate;

                                                    (BB) 2 shall be 
                                                appointed by the 
                                                Minority Leader of the 
                                                Senate;

                                                    (CC) 2 shall be 
                                                appointed by the 
                                                Speaker of the House of 
                                                Representatives; and

                                                    (DD) 2 shall be 
                                                appointed by the 
                                                Minority Leader of the 
                                                House of 
                                                Representatives.

            (7) Terms of non-federal officials.--
                    (A) In general.--The non-Federal officials 
                appointed under paragraph (6)(C)(vi) shall serve a term 
                of 2 years beginning on the date of the start of each 
                new Congress.
                    (B) Continuation of term.--Such a non-Federal 
                official shall continue to serve on the Council if a 
                new individual is not appointed to take their place on 
                the Council after the start of a new Congress until the 
                new individual is appointed.
                    (C) Removal.--A non-Federal official may not be 
                removed from the Council before the end of their term 
                unless \3/4\ of the Council votes to remove the 
                individual from the Council for cause.
            (8) Chair; co-chair.--
                    (A) Chair.--The President shall designate a chair 
                of the Council, who shall--
                            (i) be an individual appointed under clause 
                        (i), (ii), (iii), (iv), or (v) of paragraph 
                        (6)(C); and
                            (ii) serve for a term of 2 years.
                    (B) Co-chair.--The non-Federal officials on the 
                Council shall select from amongst themselves an 
                individual to serve as co-chair for a term of 2 years.
            (9) Regular meetings.--
                    (A) In general.--The Council shall hold regular 
                meetings to solicit input from the public and relevant 
                stakeholders to inform the Council's recommended 
                allocations under paragraph (4).
                    (B) Regional meetings.--The Council shall hold not 
                fewer than 4 meetings per year in geographically 
                diverse regions of the United States.
                    (C) Public participation.--The Council shall take 
                appropriate steps to allow members of the public to 
                participate and share concerns relating to the mission 
                of the Council.
                    (D) Quorum.--Each meeting of the Council shall be 
                attended by the chair or co-chair and not less than 1 
                out of every 3 members of the Council.
                    (E) Voting.--
                            (i) In general.--The Council shall vote on 
                        the allocations recommended by the Council to 
                        the President under paragraph (3).
                            (ii) Voting by proxy.--Members of the 
                        Council may vote by proxy.
            (10) Reports.--Not later than 180 days after the date of 
        enactment of this Act, and every 90 days thereafter, the 
        Council shall--
                    (A) publish all grants and disbursements using 
                amounts from the Fund on a Federal Government website 
                accessible to the general public;
                    (B) publish a report summarizing the feedback 
                provided to the Council at each regular meeting;
                    (C) submit a report on the accounting of all 
                assessments, collections, and disbursements from the 
                Fund for the reporting period to--
                            (i) the Committee on Health, Education, 
                        Labor, and Pensions and the Committee on 
                        Appropriations of the Senate; and
                            (ii) the Committee on Education and 
                        Workforce and the Committee on Appropriations 
                        of the House of Representatives;
                    (D) publish an annual performance report 
                identifying data and evidence as to whether and how the 
                expenditures made out of the Fund contributed to or 
                accomplished the purposes of the Fund under subsection 
                (b)(2); and
                    (E) submit the report required under subparagraph 
                (B) to the Comptroller General of the United States, 
                which report shall include accounting information as 
                the Comptroller General may request.

     TITLE II--ARTIFICIAL INTELLIGENCE INDUSTRY-GENERATED REVENUES

SEC. 201. DIGITAL ADVERTISING TAX.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

                 ``CHAPTER 50B--ARTIFICIAL INTELLIGENCE

``Sec. 5000E-1. Digital advertising revenue.

``SEC. 5000E-1. DIGITAL ADVERTISING REVENUE.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed on any covered taxpayer a tax equal to 5 
percent of the amount of any digital advertising revenue received by 
such covered taxpayer during any taxable year which is derived from 
digital advertisements displayed to United States users.
    ``(b) Covered Taxpayer.--
            ``(1) In general.--For purposes of this section, the term 
        `covered taxpayer' means, with respect to any taxable year, any 
        taxpayer for which--
                    ``(A)(i) total revenue from sources within and 
                without the United States during such taxable year 
                exceeded $50,000,000,000, or
                    ``(ii) total revenue from sources within the United 
                States during such taxable year exceeded 
                $1,000,000,000, and
                    ``(B) digital advertising revenue during such 
                taxable year which is derived from digital 
                advertisements displayed to United States users 
                exceeded $50,000,000.
            ``(2) Aggregation rules.--
                    ``(A) In general.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414, shall be treated 
                as 1 taxpayer for purposes of this subsection.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this paragraph, section 
                1563 shall be applied without regard to subsection 
                (b)(2)(C) thereof.
    ``(c) Other Definitions.--In this section--
            ``(1) Digital advertising revenue.--The term `digital 
        advertising revenue' means gross revenue derived from, or 
        directly related to, the sale of a digital advertising service.
            ``(2) Digital advertising service.--The term `digital 
        advertising service' means a service, provided for a fee, to 
        deliver an advertisement or promotional message to a user 
        through a digital interface, including services such as--
                    ``(A) placing, displaying, transmitting, serving, 
                delivering, selecting, ranking, targeting, optimizing, 
                or otherwise distributing such advertisement or 
                promotional message,
                    ``(B) selling, licensing, allocating, or auctioning 
                digital advertising inventory,
                    ``(C) operating an advertising exchange, demand-
                side platform, supply-side platform, advertising 
                network, retail-media network, or substantially similar 
                system to the extent consideration is attributable to 
                the placement, auction, delivery, or distribution of 
                such advertisement or promotional message, or
                    ``(D) any other similar service for the placement 
                or delivery of such advertisement or promotional 
                message, as may be designated by the Secretary for 
                purposes of this section.
            ``(3) Digital interface.--The term `digital interface' 
        includes a website, mobile application, online application, 
        streaming service, and other electronically accessed interface 
        operating on the internet.
            ``(4) United states user.--The term `United States user' 
        means a user based in the United States, as determined based 
        on--
                    ``(A) reliable device geolocation, as used in the 
                ordinary course of business, for determining the 
                location of a user,
                    ``(B) operation of a user's device through an 
                Internet Protocol address based in the United States,
                    ``(C) billing address,
                    ``(D) business customer location,
                    ``(E) location in which an digital advertising 
                service was used, or
                    ``(F) such other methods as may be prescribed by 
                the Secretary.
    ``(d) Payment of Tax.--
            ``(1) In general.--The tax imposed by this section shall be 
        paid by the covered taxpayer that received the digital 
        advertising revenue.
            ``(2) Rule of construction with regard to certain 
        penalties.--The penalties imposed under section 6652 for 
        failure to make deposits of tax and under section 6662 for 
        underpayment of tax shall apply with respect to the tax imposed 
        under this section in the same manner as such sections are 
        applied to other excise taxes imposed under this title.
    ``(e) Privacy Rule.--No provision of this section shall be deemed 
to require a person to collect precise geolocation, communications 
content, or other sensitive personal information that such person does 
not otherwise collect in the ordinary course of business.
    ``(f) Return Requirements.--
            ``(1) In general.--The Secretary shall require any 
        applicable entity to file a return (in such manner as the 
        Secretary may prescribe) with respect to each taxable year that 
        includes the following:
                    ``(A) Total revenue.
                    ``(B) Total digital advertising revenue that was 
                attributable to United States users.
                    ``(C) Methods of determination for United States 
                users for purposes of subsection (c)(4).
                    ``(D) Any entities included pursuant to subsection 
                (b)(2).
                    ``(E) Any other information, as identified by the 
                Secretary pursuant to regulations issued pursuant to 
                subsection (g).
            ``(2) Applicable entity.--For purposes of this subsection, 
        the term `applicable entity' means an entity which satisfies 
        the requirements under subparagraphs (A) and (B) of subsection 
        (b)(1), except that subparagraph (B) of such subsection shall 
        be applied by substituting `$40,000,000' for `$50,000,000'.
    ``(g) Regulations.--Not later than 18 months after the date of 
enactment of this section, the Secretary, in consultation with the 
Secretary of Commerce, shall issue such regulations as may be necessary 
or appropriate to carry out the purposes of this section.''.
    (b) Clerical Amendment.--The table of chapters for subtitle D of 
the Internal Revenue Code of 1986 is amended by inserting after the 
item relating to chapter 50A the following new item:

               ``Chapter 50B--Artificial Intelligence''.

    (c) Effective Date.--The amendments made by this section shall 
apply with respect to any taxable year beginning after December 31, 
2026.

SEC. 202. ARTIFICIAL INTELLIGENCE USAGE TAX.

    (a) In General.--Chapter 50B of subtitle D of the Internal Revenue 
Code of 1986, as added by this Act, is amended by adding at the end the 
following new section:

``SEC. 5000E-2. ARTIFICIAL INTELLIGENCE SERVICES.

    ``(a) Imposition of Tax.--
            ``(1) In general.--There is hereby imposed a tax on any 
        covered artificial intelligence processing service which is 
        utilized by a covered user for the generation of content.
            ``(2) Rate of tax.--The rate of tax imposed by this 
        subsection with respect to any content generated by a covered 
        artificial intelligence processing service shall be $1.10 per 
        1,000,000 units of computational processing with respect to 
        such content.
            ``(3) Exemption.--With respect to each covered user, this 
        subsection shall not apply to the first 1,000,000 units of 
        computational processing for any content generated by a covered 
        artificial intelligence processing service which is utilized by 
        such covered user during a calendar year.
    ``(b) Liability and Collection.--
            ``(1) Liability.--Subject to paragraph (3), the tax imposed 
        by subsection (a) shall be paid by the covered user.
            ``(2) Collection.--The provider of the covered artificial 
        intelligence processing service for which a tax is imposed 
        under subsection (a) shall--
                    ``(A) subject to paragraph (3), collect the amount 
                of the tax from the covered user, and
                    ``(B) remit such tax quarterly to the Secretary at 
                such time and in such manner as provided by the 
                Secretary.
            ``(3) Election to pay tax on behalf of covered users.--At 
        the election of the provider (in such form and such manner as 
        the Secretary may provide), the tax imposed by subsection (a) 
        with respect to any content generated by a covered artificial 
        intelligence processing service shall be paid by such provider.
    ``(c) Credit Against Tax.--
            ``(1) In general.--In the case of a provider that makes an 
        election under subsection (b)(3) with respect to any content 
        generated by a covered artificial intelligence processing 
        service which is utilized by a qualified covered user for non-
        commercial purposes, there shall be allowed as a credit against 
        any of the taxes imposed by this chapter an amount equal to the 
        tax paid by such provider pursuant to the election under such 
        subsection, with such credit to be allocated by the taxpayer 
        against such taxes--
                    ``(A) in such respective amount as is determined 
                appropriate by the taxpayer, and
                    ``(B) in compliance with paragraph (3).
            ``(2) Qualified covered user.--For purposes of this 
        subsection, the term `qualified covered user' means--
                    ``(A) an institution of higher education (as 
                defined in section 101(a) of the Higher Education Act 
                of 1965 (20 U.S.C. 1001(a))), and
                    ``(B) a research organization described in section 
                501(c)(3) and exempt from tax under section 501(a).
            ``(3) Limitation on credit.--
                    ``(A) Taxes on digital advertising revenue and 
                excess profits from artificial intelligence 
                development.--With respect to the tax imposed under 
                section 5000E-1 or section 5000E-3, the amount of the 
                credit allowable to a taxpayer under paragraph (1) 
                against the tax imposed under either such section for 
                any taxable year shall not exceed an amount equal to 10 
                percent of the tax imposed under such section for such 
                taxable year.
                    ``(B) Tax on artificial intelligence services.--
                With respect to the tax imposed under subsection (a), 
                the amount of the credit allowable to a taxpayer under 
                paragraph (1) against such tax for any calendar year 
                shall not exceed 10 percent of the tax imposed under 
                such subsection during such calendar year.
    ``(d) Definitions.--In this section--
            ``(1) Covered artificial intelligence processing service.--
        The term `covered artificial intelligence processing service' 
        means any service that--
                    ``(A) utilizes a machine learning model capable of 
                generating, transforming, or analyzing content, and
                    ``(B) processes user-provided inputs to produce an 
                output.
            ``(2) Covered user.--The term `covered user' means any 
        person who utilizes a covered artificial intelligence 
        processing service.
            ``(3) Provider.--The term `provider' means the person 
        providing access to covered users for utilization of the 
        covered artificial intelligence processing service.
            ``(4) Unit of computational processing.--The term `unit of 
        computational processing' means a unit of digital information 
        defined as 10 kilobytes of binary data.
    ``(e) Regulations and Guidance.--Not later than 12 months after the 
date of enactment of this section, the Secretary shall issue such 
regulations or other guidance as may be necessary or appropriate to 
carry out the purposes of this section, including any regulations or 
guidance as may be necessary to--
            ``(1) standardize measurement of computational processing 
        units across types of artificial intelligence models,
            ``(2) prevent avoidance through pricing structures or 
        technical definitions,
            ``(3) ensure administrability and compliance, and
            ``(4) define non-commercial purposes with respect to 
        subsection (c).''.
    (b) Penalties.--Section 6672 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Special Rule for Failure To Collect and Pay Excise Tax on 
Content Generated by Artificial Intelligence.--In the case of any 
failure described in subsection (a) which relates to the tax imposed 
under section 5000E-2(a), the penalty under subsection (a) shall be 
increased by an amount equal to 200 percent of the amount of such 
tax.''.
    (c) Clerical Amendment.--The table of sections for chapter 50B of 
subtitle D of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 5000E-2. Content generated by artificial intelligence.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to any covered artificial intelligence processing service (as 
defined in section 5000E-2(d) of the Internal Revenue Code of 1986) 
utilized after December 31, 2026.

SEC. 203. ARTIFICIAL INTELLIGENCE EXCESS PROFITS TAX.

    (a) In General.--Chapter 50B of subtitle D of the Internal Revenue 
Code of 1986, as added by this Act, is amended by adding at the end the 
following new section:

``SEC. 5000E-3. EXCESS PROFITS FROM ARTIFICIAL INTELLIGENCE 
              DEVELOPMENT.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed on any covered taxpayer a tax of 50 
percent of the excess (if any) of--
            ``(1) the taxable income of such covered taxpayer for any 
        taxable year, over
            ``(2) an amount equal to 40 percent of the gross receipts 
        of such covered taxpayer for such taxable year.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Covered taxpayer.--
                    ``(A) In general.--The term `covered taxpayer' 
                means, with respect to any taxable year, any taxpayer--
                            ``(i) for which total revenue during such 
                        taxable year exceeded $100,000,000, and which--
                                    ``(I) was engaged in--
                                            ``(aa) developing and 
                                        training an artificial 
                                        intelligence model that is 
                                        machine learning, deep 
                                        learning, or generative 
                                        artificial intelligence, or
                                            ``(bb) developing 
                                        artificial intelligence 
                                        technology based on a trained 
                                        artificial intelligence model, 
                                        or
                                    ``(II) was a covered AI electricity 
                                user for the taxable year preceding 
                                such taxable year, or
                            ``(ii) which, during such taxable year, 
                        derived greater than $100,000,000 in revenue 
                        from providing computing for--
                                    ``(I) the development and training 
                                of an artificial intelligence model,
                                    ``(II) the development of 
                                artificial intelligence technology 
                                based on a trained artificial 
                                intelligence model, or
                                    ``(III) the deployment or use of--
                                            ``(aa) an artificial 
                                        intelligence model, or
                                            ``(bb) technologies based 
                                        on an artificial intelligence 
                                        model, including autonomous 
                                        systems that can perceive, 
                                        understand, perform, or 
                                        orchestrate complex actions in 
                                        the physical world.
                    ``(B) Aggregation rules.--
                            ``(i) In general.--All persons treated as a 
                        single employer under subsection (a) or (b) of 
                        section 52 or subsection (m) or (o) of section 
                        414, shall be treated as 1 person for purposes 
                        of this paragraph.
                            ``(ii) Inclusion of foreign corporations.--
                        For purposes of clause (i), in applying 
                        subsections (a) and (b) of section 52 to this 
                        paragraph, section 1563 shall be applied 
                        without regard to subsection (b)(2)(C) thereof.
            ``(2) Covered ai electricity user.--
                    ``(A) In general.--The term `covered AI electricity 
                user' means any person which, for any taxable year--
                            ``(i) consumed electricity for any of the 
                        activities described in subclause (I) or (II) 
                        of subparagraph (A)(i), and
                            ``(ii) with respect to such activities--
                                    ``(I) had an average electrical 
                                load of greater than 50 megawatts 
                                during any period of 30 consecutive 
                                days during such taxable year, or
                                    ``(II) consumed greater than 
                                400,000,000 kilowatt hours of 
                                electricity.
                    ``(B) Additional aggregation rules.--Pursuant to 
                such rules as are prescribed by the Secretary, any 
                electricity consumed for any of the activities 
                described in subclause (I) or (II) of subparagraph 
                (A)(i)--
                            ``(i) by any entities under common control 
                        (within the meaning of subsections (a) and (b) 
                        of section 52), or
                            ``(ii) through a data center, cloud 
                        computing service, colocation agreement, or 
                        other third-party computing arrangement,
                shall be aggregated for purposes of subparagraph (A).
    ``(c) Regulations and Guidance.--The Secretary shall issue such 
regulations or other guidance as may be necessary or appropriate to 
carry out the purposes of this section, including any regulations or 
guidance with respect to the filing of the return of tax imposed by 
this section.''.
    (b) Clerical Amendment.--The table of sections for chapter 50B of 
subtitle D of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 5000E-3. Excess profits from artificial intelligence 
                            development.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.

                TITLE III--NATIONAL SERVICE FOR AMERICA

SEC. 301. NATIONAL SERVICE FOR AMERICA'S FUTURE PROGRAM.

    (a) In General.--Title I of the National and Community Service Act 
of 1990 (42 U.S.C. 12511 et seq.) is amended by adding at the end the 
following:

      ``Subtitle K--National Service for America's Future Program

``SEC. 199O. PURPOSE; DEFINITIONS.

    ``(a) Purpose.--The purposes of the National Service for America's 
Future program established under section 199P(a) are to--
            ``(1) create paid service-to-career pathways into jobs that 
        require human judgment, trust, physical presence, 
        communication, empathy, and relationship-based work; and
            ``(2) benefit participants, States, employers, and 
        communities by--
                    ``(A) creating paid on-ramps into human-centered 
                jobs for early-career workers, displaced workers, 
                unemployed or underemployed workers, individuals 
                returning to the workforce, and mid-career workers 
                seeking to move into less artificial intelligence-
                exposed fields;
                    ``(B) integrating national service with the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3101 et seq.), so participants can be connected to a 
                one-stop center, screened for eligibility and co-
                enrolled (as eligible) in programs under such Act, and 
                referred to eligible providers of training services 
                under section 122 of such Act (29 U.S.C. 3152), 
                apprenticeship programs, pre-apprenticeships, community 
                colleges, and employment pathways;
                    ``(C) requiring a documented workforce outcome for 
                every funded position, such as placement in or credit 
                towards an apprenticeship program, pre-apprenticeship 
                completion, an industry-recognized credential, 
                certification, licensure support, clinical or 
                supervised practice hours, postsecondary credit, or 
                employment in an eligible service field; and
                    ``(D) helping States address workforce shortages in 
                human-facing and community-serving fields while 
                allowing State Commissions and State boards to tailor 
                plans to State and regional labor-market needs.
    ``(b) Definitions.--For purposes of this subtitle:
            ``(1) Artificial intelligence; artificial intelligence 
        horizon fund; artificial intelligence advisory council.--The 
        terms `artificial intelligence', `Artificial Intelligence 
        Horizon Fund', and `Artificial Intelligence Advisory Council' 
        have the meanings given such terms in section 3 of the Make AI 
        Work for Americans Act.
            ``(2) Apprenticeship program.--The term `apprenticeship 
        program' means an apprenticeship registered under the Act of 
        August 16, 1937 (commonly known as the `National Apprenticeship 
        Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.).
            ``(3) Eligible host site.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `eligible host site' means 
                any entity operating in an eligible service field that 
                is a nonprofit entity, public agency, institution of 
                higher education (as defined in section 101 of the 
                Higher Education Act of 1965 (20 U.S.C. 1001)), public 
                health entity, care provider, education provider, or 
                business organized for profit that is approved by a 
                State under section 199Q(e).
                    ``(B) Exclusions.--The term `eligible host site' 
                does not include any entity that is--
                            ``(i) a business organized for profit, 
                        other than such a business that is approved by 
                        a State under section 199Q(e);
                            ``(ii) a partisan political organization;
                            ``(iii) an organization engaged in 
                        religious activities, unless the service of a 
                        participant with such entity would not 
                        involve--
                                    ``(I) giving religious instruction;
                                    ``(II) conducting worship services;
                                    ``(III) providing instruction as 
                                part of a program that includes 
                                mandatory religious education or 
                                worship;
                                    ``(IV) constructing or operating 
                                facilities devoted to religious 
                                instruction or worship or maintaining 
                                facilities primarily or inherently 
                                devoted to religious instruction or 
                                worship; or
                                    ``(V) engaging in any form of 
                                proselytization;
                            ``(iv) a nonprofit organization that fails 
                        to comply with the restrictions contained in 
                        section 501(c) of the Internal Revenue Code of 
                        1986 (26 U.S.C. 501(c)), except that nothing in 
                        this subparagraph shall be construed to prevent 
                        participants with such entity from engaging in 
                        advocacy activities undertaken at their own 
                        initiative; or
                            ``(v) an organization that has been found 
                        by the National Labor Relations Board or 
                        Federal Labor Relations Authority to have 
                        violated the National Labor Relations Act or 
                        title 5, United States Code, respectively, 
                        within the preceding 5 years.
            ``(4) Eligible service field.--The term `eligible service 
        field' includes any human-facing and community-serving sector.
            ``(5) Local board.--The term `local board' has the meaning 
        given such term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            ``(6) One-stop center.--The term `one-stop center' has the 
        meaning given such term in such section of such Act.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Labor.
            ``(8) Service-to-career pathway.--The term `service-to-
        career pathway' means a paid service placement for a 
        participant in an activity funded under section 199Q, at an 
        eligible host site in an eligible service field, that provides 
        meaningful and occupation-relevant training, skill development, 
        or work-based learning and results in a documented workforce 
        outcome, including--
                    ``(A) placement in a registered apprenticeship 
                program or completion, or credit toward completion, of 
                such a program;
                    ``(B) completion of a high-quality pre-
                apprenticeship program;
                    ``(C) obtaining an industry-recognized credential;
                    ``(D) obtaining a State or nationally recognized 
                certification;
                    ``(E) obtaining licensure or licensing exam 
                preparation;
                    ``(F) obtaining clinical, practicum, or supervised 
                practice hours;
                    ``(G) obtaining credit from a public institution of 
                higher education (as defined in section 101(a) of the 
                Higher Education Act (20 U.S.C. 1001(a)));
                    ``(H) obtaining employment; or
                    ``(I) another recognized workforce outcome approved 
                by the Artificial Intelligence Advisory Council under 
                the national program framework.
            ``(9) State board.--The term `State board' has the meaning 
        given such term in such section of such Act.

``SEC. 199P. ESTABLISHMENT OF NATIONAL SERVICE FOR AMERICA'S FUTURE 
              PROGRAM.

    ``(a) In General.--There is established a National Service for 
America's Future program as provided under this subtitle.
    ``(b) Program Framework.--The Artificial Intelligence Advisory 
Council shall establish a national program framework for applications 
by States under section 199Q that establishes minimum standards and 
outcomes (while providing States flexibility to design pathways 
appropriate to State and regional workforce needs, eligible service 
fields, participant populations, and occupations), including--
            ``(1) national priorities for service-to-career pathways, 
        based on occupations and eligible service fields experiencing a 
        shortage of workers throughout the United States, which a State 
        may consider addressing in the National Service for America's 
        Future plan of the State;
            ``(2) expectations regarding the training or reskilling the 
        State shall provide participants as part of a service placement 
        regarding--
                    ``(A) durable skills; and
                    ``(B) as appropriate to the service-to-career 
                pathway, occupation, or eligible service field--
                            ``(i) artificial intelligence literacy;
                            ``(ii) artificial intelligence fluency; and
                            ``(iii) other relevant digital or 
                        technological skills;
            ``(3) requirements for coordination and integration, as 
        appropriate, of activities carried out by a State under the 
        grant program with programs under the Workforce Innovation and 
        Opportunity Act, while providing States flexibility in the 
        mechanisms used to achieve such integration based on 
        participant needs, pathway design, and existing State and local 
        workforce systems;
            ``(4) recognized workforce outcomes for service-to-career 
        pathways under section 199O(b)(8)(I);
            ``(5) national guardrails for such States for purposes of 
        establishing the amount that an eligible host site that 
        supports a paid service placement of a participant will be 
        required to provide as a cost-share amount for the participant 
        (which may include a process for the State to waive, reduce, or 
        increase such amount based on the capacity and resources for 
        the eligible host site, including for an eligible host site 
        that is small, in a rural area, associated with an Indian 
        tribe, a nonprofit, in a high-poverty area, or otherwise is 
        underresourced);
            ``(6) requirements and procedures relating to--
                    ``(A) States that elect to coordinate with one or 
                more other States, including through joint 
                solicitations, shared review of applications for 
                subgrants, joint agreements with eligible host sites, 
                or coordinated support of a common host site, and the 
                manner in which each such State remains accountable for 
                the amounts provided to such State under section 199Q; 
                and
                    ``(B) host sites or subgrantees that receives a 
                subgrant under section 199Q(d)(3) that seek to carry 
                out activities under this subtitle in more than one 
                State, including a common format for the 
                organizational, financial, and past performance 
                information required of such an entity, which a State 
                shall accept in lieu of any State-specific format for 
                such information, and a common format for reporting by 
                such an entity; and
            ``(7) requirements for State reporting metrics for purposes 
        of the report under section 199T(a).
    ``(c) Updates for National Priorities.--The Artificial Intelligence 
Advisory Council shall review and annually update the priorities under 
subsection (b)(1).
    ``(d) Rule of Construction.--Nothing in this subtitle shall be 
construed to require a State to use a single service placement or 
program model or to prohibit a State from supporting individual 
placement, cohort-based, crew-based, intermediary, apprenticeship, or 
pre-apprenticeship models or other service-to-career pathway models 
under this subtitle that otherwise satisfy the requirements under this 
section.

``SEC. 199Q. NATIONAL SERVICE FOR AMERICA'S FUTURE GRANTS.

    ``(a) In General.--Subject to the availability of funds allocated 
from the Artificial Intelligence Horizon Fund for purposes of awarding 
grants under this subtitle, the Corporation shall, in accordance with 
the formula under subsection (c), award grants to States with an 
approved application under subsection (b) to carry out the activities 
described in subsection (d).
    ``(b) Application.--
            ``(1) In general.--For each State that submits an 
        application under this subsection for a grant under subsection 
        (a), the Corporation and the Secretary shall jointly--
                    ``(A) approve such application if the application 
                satisfies the requirements of the national program 
                framework established under section 199P(b); or
                    ``(B) if the Corporation and Secretary determines 
                the application is unsatisfactory, reject such 
                application, notify the State Commission of the State 
                of the reasons for the rejection, and provide such 
                State with reasonable opportunity to revise (with 
                technical assistance from the Corporation and 
                Secretary, if appropriate) and resubmit such 
                application.
            ``(2) Requirements.--A State seeking a grant under 
        subsection (a) shall, through the State Commission of the State 
        acting jointly with the State board and State workforce agency 
        of the State, submit an application to the Corporation and the 
        Secretary at such time, in such manner, and containing such 
        information as the Corporation may reasonably require, 
        including--
                    ``(A) a National Service for America's Future plan 
                that--
                            ``(i) describes how the State intends to 
                        use the grant, in accordance with the national 
                        program framework established under section 
                        199P(b), to support paid service placements of 
                        participants in the program in service-to-
                        career pathways;
                            ``(ii) describes the criteria the State 
                        will use to approve eligible host sites under 
                        subsection (d)(2) and the terms the State will 
                        require in an agreement with each such site, 
                        including--
                                    ``(I) requirements relating to 
                                supervision, training, workplace 
                                safety, and nondiscrimination; and
                                    ``(II) the amount, in accordance 
                                with the national guardrails 
                                established in the national program 
                                framework, that the site will be 
                                required to provide as a cost-share 
                                amount for the participant;
                            ``(iii) identifies the eligible service 
                        fields the State will support under the plan, 
                        and describes how the State selected such 
                        fields, including the State and regional labor 
                        market data on which the State relied;
                            ``(iv) describes the terms of service for 
                        participants under the plan, including the 
                        minimum and maximum number of service hours for 
                        such terms;
                            ``(v) describes how the State will recruit 
                        and select participants, including how the 
                        State will apply the priorities described in 
                        section 199R(b); and
                            ``(vi) describes how the State will provide 
                        the training described in section 199P(b)(2), 
                        including the entities that will provide such 
                        training;
                            ``(vii) describes how the State will verify 
                        and document the workforce outcomes described 
                        in section 199O(b)(8), including the 
                        documentation the State will require;
                            ``(viii) describes the entities to which 
                        the State will provide subgrants under 
                        subsection (d)(3), the purposes for which such 
                        subgrants will be provided, and how funds will 
                        flow to participants through such subgrants;
                            ``(ix) describes the standards the State 
                        will use to determine which participants 
                        receive the benefits and supportive services 
                        described in section 199R(c)(1)(B) and how the 
                        State will apply such standards consistently;
                            ``(x) describes the entities the State 
                        consulted in developing the plan, including 
                        employers, labor organizations, community 
                        colleges, Indian tribes, and community-based 
                        organizations; and
                            ``(xi) specifies the period covered by the 
                        plan and the process by which the State may 
                        modify the plan; and
                    ``(B) a certification or concurrence by the State 
                board that the National Service for America's Future 
                plan is aligned with the workforce needs of the State 
                and the programs of the State under the Workforce 
                Innovation and Opportunity Act, including a description 
                of how activities under the plan will--
                            ``(i) connect such participants to local 
                        boards and one-stop centers;
                            ``(ii) screen such participants for 
                        eligibility to participate in programs under 
                        the Workforce Innovation and Opportunity Act 
                        and, if eligible and appropriate to advance the 
                        participant's service-to-career pathway, 
                        facilitate co-enrollment in such programs;
                            ``(iii) connect such participants with 
                        eligible providers of training services under 
                        section 122 of such Act (29 U.S.C. 3152), 
                        apprenticeship programs, pre-apprenticeships, 
                        community colleges, employers, labor 
                        organizations, or public-sector hiring 
                        pathways; and
                            ``(iv) provide that participation count, as 
                        applicable, as work-based learning, work 
                        experience, on-the-job training, participation 
                        in a career pathway, participation in a pre-
                        apprenticeship, or measurable skill gain.
            ``(3) Relationship to state national service plan.--
                    ``(A) In general.--A State may submit the National 
                Service for America's Future plan described in 
                paragraph (2)(A) as part of, or as an addendum to, the 
                national service plan of the State prepared under 
                section 178(e)(1).
                    ``(B) Rule of construction.--The Corporation or 
                Secretary may not require submission of the National 
                Service for America's Future plan as part of, or as an 
                addendum to, such national service plan as a condition 
                of approval of an application under paragraph (1).
    ``(c) Grant Formula.--
            ``(1) Approved state.--For purposes of this subsection, the 
        term `approved State' means a State with an application to 
        receive a grant under this section that has been approved under 
        subsection (b)(1)(A).
            ``(2) Reservation of funds.--Of the total amount received 
        from the Artificial Intelligence Horizon Fund and allocated for 
        use under this subtitle for a fiscal year, the Corporation--
                    ``(A) shall reserve--
                            ``(i) 1 percent of such amount for grants 
                        under this section to approved States that are 
                        the United States Virgin Islands, Guam, 
                        American Samoa, or the Commonwealth of the 
                        Northern Mariana Islands, of which such amount 
                        shall be allotted for a grant to each such 
                        approved State for a fiscal year in an amount 
                        that bears the same ratio to 1 percent of such 
                        amount for that fiscal year as the population 
                        of the approved States bears to the total 
                        population of the United States Virgin Islands, 
                        Guam, American Samoa, and the Commonwealth of 
                        the Northern Mariana Islands; and
                            ``(ii) 5 percent of such amount for grants 
                        under this section to Indian tribes; and
                    ``(B) may reserve not more than 2 percent of the 
                amount that remains from total amount after the 
                reservations under subparagraph (A) for use by the 
                Corporation and the Secretary for the costs of 
                administering this subtitle, including technical 
                assistance, evaluation, and the reports required under 
                section 199T.
            ``(3) Allotment to approved states on formula basis.--The 
        Corporation shall allot the amount received from the Artificial 
        Intelligence Horizon Fund and allocated for use under this 
        subtitle for a fiscal year that is not reserved under paragraph 
        (2) (referred to in this subsection as the `unreserved funds'), 
        for grants under this section to approved States that are one 
        of the several States, the District of Columbia, or the 
        Commonwealth of Puerto Rico in an amount that (excepted as 
        provided in paragraph (4)) bears the same ratio of the 
        unreserved funds for the fiscal year as the population of the 
        State bears to the total population of the several States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.
            ``(4) Minimum amount for formula.--
                    ``(A) In general.--Notwithstanding paragraph (3), 
                the minimum grant made available to any approved State 
                described in such paragraph from the unreserved funds 
                under such paragraph for a fiscal year shall be the 
                greater of--
                            ``(i) the amount published under 
                        subparagraph (B) for purposes of the fiscal 
                        year; or
                            ``(ii) 0.5 percent of the total amount of 
                        the unreserved funds for the fiscal year.
                    ``(B) Minimum amount publication.--Not later than 
                90 days before the beginning of any fiscal year that 
                begins after the date of enactment of the Make AI Work 
                for Americans Act, the Artificial Intelligence Advisory 
                Council shall determine and publish the amount for 
                purposes of subparagraph (A)(i) for the fiscal year.
            ``(5) Effect of failure to apply.--If a State fails to 
        apply for, or fails to give notice to the Corporation of its 
        intent to apply for, a grant under this section, or if the 
        application of the State is rejected under subsection 
        (b)(1)(B), the Corporation may use the amount that would have 
        been allotted under paragraph (2) to the State to make 
        reallotments to approved States under this subsection or make 
        grants to other community-based entities that propose to carry 
        out National Service for America's Future programs in such 
        State or territory.
            ``(6) Population determination.--In determining populations 
        of a State for purposes of this subsection, the Corporation 
        shall use the most recently published data available from the 
        Bureau of the Census that the Corporation determines is 
        appropriate for such purposes.
            ``(7) Unawarded tribal funds.--Any amount reserved under 
        paragraph (2)(B) that is not awarded to an Indian tribe in a 
        fiscal year shall be available to the Corporation and the 
        Secretary to provide technical assistance and support to Indian 
        tribes to apply for and carry out grants under this section.
    ``(d) Activities.--A State that receives a grant under subsection 
(a) shall, in accordance with the application of the State submitted to 
the Corporation under subsection (b) and acting through the State 
Commission as the lead entity in partnership with the State board and 
State workforce agency of the State, carry out the National Service for 
America's Future plan of such State, including by--
            ``(1) enrolling eligible individuals under section 199R for 
        participation in a program under that plan through a service-
        to-career pathway;
            ``(2) approving eligible host sites for placement of such 
        individuals; and
            ``(3) providing subgrants in accordance with the plan.
    ``(e) Host Sites Organized for Profit.--In carrying out subsection 
(d), a State may approve a business organized for profit as an eligible 
host site if the State determines that placement at the business--
            ``(1) would be in an eligible service field and responds to 
        a demonstrated State, regional, or community workforce need;
            ``(2) provides meaningful training, work-based learning, 
        supervision, and a documented workforce outcome under section 
        199O(b)(8);
            ``(3) provides a public or community benefit in addition to 
        any incidental benefit received by the business;
            ``(4) does not displace an existing employee, supplant 
        hiring, or reduce the hours or wages of an existing employee; 
        and
            ``(5) meets such additional safeguards as the State 
        determines appropriate.
    ``(f) Administration.--
            ``(1) State.--Except as provided in paragraph (3), a State 
        that receives a grant under subsection (a) may use not more 
        than 10 percent of the amount provided to a State under this 
        section to pay for administrative costs incurred by the State 
        in carrying out the activities under this section, including 
        for data collection, performance measurement, technical 
        assistance, workforce-system coordination, participant support 
        infrastructure, and oversight.
            ``(2) Subgrantees.--Except as provided in paragraph (3), a 
        subgrantee that receives a subgrant under subsection (d)(3) may 
        use not more than 5 percent of the amount of such subgrant to 
        pay for administrative costs incurred by the entity in carrying 
        out the activities under this section.
            ``(3) Reduction after third year.--
                    ``(A) In general.--With respect to any fiscal year 
                following the third fiscal year for which a State 
                receives a grant under subsection (a), the Corporation 
                may apply a percentage lower than the percentage 
                specified in paragraph (1), and a percentage lower than 
                the percentage specified in paragraph (2) with respect 
                to entities receiving subgrants from such State, except 
                that the Corporation may not apply a percentage lower 
                than 5 percent for purposes of paragraph (1) or 3 
                percent for purposes of paragraph (2).
                    ``(B) Notice and uniform application.--The 
                Corporation shall publish any percentage applied under 
                subparagraph (A) not later than 90 days before the 
                beginning of the fiscal year to which it applies and 
                shall apply such percentage on the same terms to each 
                approved State that has received a grant under 
                subsection (a) for more than 3 fiscal years.
    ``(g) Grants to Indian Tribes.--
            ``(1) In general.--Subject to this subsection, the 
        Corporation may, using amounts reserved under subsection 
        (c)(2)(A)(ii), award grants to Indian tribes under subsection 
        (a) to carry out the activities described in subsection (d) as 
        if such an Indian tribe was a State receiving a grant under 
        subsection (a).
            ``(2) Application.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                Indian tribe may apply for a grant described in 
                paragraph (1) under subsection (b), and the Corporation 
                and Secretary shall approve or reject such application 
                under subsection, as if the Indian tribe was a State 
                seeking a grant under subsection (a).
                    ``(B) Modification.--For purposes of an application 
                by an Indian tribe as described under this paragraph--
                            ``(i) a reference in subsection (b) to the 
                        State Commission, State board, or State 
                        workforce agency of a State shall be deemed to 
                        refer to the Indian tribe; and
                            ``(ii) in the application of the Indian 
                        tribe, in lieu of the certification or 
                        concurrence required under subsection 
                        (b)(2)(B), the Indian tribe shall include in 
                        the application a description of how activities 
                        of the Indian tribe will connect participants 
                        to one-stop centers, screen participant for 
                        eligibility for, and where appropriate to 
                        advance the participant's service-to-career 
                        pathway, co-enroll them in, programs under the 
                        Workforce Innovation and Opportunity Act (29 
                        U.S.C. 3101 et seq.), and connect them to 
                        training providers, apprenticeship programs, 
                        and community colleges, including through 
                        coordination with any program the Indian tribe 
                        operates under section 166 of such Act (29 
                        U.S.C. 3221).
            ``(3) Requirements and conditions.--An Indian tribe that 
        receives a grant described in paragraph (1) shall use the grant 
        funds subject to the same conditions and requirements as grant 
        funds awarded to a State under subsection (a).
    ``(h) Rule of Construction.--This subtitle shall not be interpreted 
to--
            ``(1) alter any responsibility of a State workforce agency 
        or any appropriate local workforce entity for determinations of 
        eligibility, enrollment, or administration of programs under 
        the Workforce Innovation and Opportunity Act; or
            ``(2) require a State Commission to perform functions 
        assigned under Federal or State law to a State workforce 
        agency, local board, or one-stop operator.

``SEC. 199R. PARTICIPANTS.

    ``(a) In General.--In accordance with subsection (b), a State that 
receives a grant under section 199Q to carry out activities in 
accordance with the National Service for America's Future plan of such 
State may enroll any individual who is not less than 18 years of age as 
a participant.
    ``(b) Priority.--In selecting individuals for enrollment under 
subsection (a), a State may prioritize--
            ``(1) early-career workers;
            ``(2) dislocated workers (as defined in section 3 of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3102));
            ``(3) unemployed or underemployed workers;
            ``(4) mid-career workers seeking to transition into a field 
        that is less exposed to artificial intelligence;
            ``(5) veterans;
            ``(6) caregivers returning to work; and
            ``(7) individuals from rural, Tribal, low-income, or 
        underserved communities.
    ``(c) Compensation and Benefits.--
            ``(1) In general.--A participant in activities in a program 
        under the National Service for America's Future plan of a State 
        shall--
                    ``(A) from amounts provided to an eligible host 
                site by the State from grant funds under this section 
                and the cost-share amount of the eligible host site in 
                accordance with the plan, receive compensation from the 
                eligible host site supporting the participant for 
                service, training, professional development, coaching, 
                and other required program activities in such program 
                at a wage rate that is not less than--
                            ``(i) $20 an hour; or
                            ``(ii) beginning in the first fiscal year 
                        beginning after the date of enactment of the 
                        Make AI Work for Americans Act and for each 
                        fiscal year thereafter, the amount in effect 
                        under this subparagraph--
                                    ``(I) increased by the percentage 
                                increase, if any, in the Consumer Price 
                                Index for All Urban Consumers published 
                                by the Bureau of Labor Statistics (or a 
                                successor index); and
                                    ``(II) rounded to the nearest 
                                multiple of $0.05, if the amount after 
                                applying subclause (I) is not a 
                                multiple of $0.05; and
                    ``(B) be eligible, as provided in the plan, for--
                            ``(i) a completion award;
                            ``(ii) health care benefits or health 
                        coverage assistance, as determined by the 
                        Artificial Intelligence Advisory Council; and
                            ``(iii) supportive services, including 
                        transportation, child care, digital access, 
                        credentialing costs, licensing fees, exam fees, 
                        background checks, and required tools or 
                        equipment, as determined by the Artificial 
                        Intelligence Advisory Council.
            ``(2) Completion award.--A completion award to a 
        participant under paragraph (1)(B)(i) shall be--
                    ``(A) in an amount determined by the Artificial 
                Intelligence Advisory Council that is equal to the 
                maximum amount of a Federal Pell Grant under section 
                401 of the Higher Education Act of 1965 (20 U.S.C. 
                1070a) that a student eligible for such Grant may 
                receive in the aggregate (without regard to whether the 
                funds are provided through discretionary or mandatory 
                appropriations) for the award year in which the 
                participation of the participant began;
                    ``(B) pro-rated based on the service hours of the 
                participant in the program under the National Service 
                for America's Future plan of a State; and
                    ``(C) paid by the Corporation from amounts 
                allocated from the Artificial Intelligence Horizon Fund 
                for purposes of awarding such awards, upon the 
                participant's completion of the term of service.
            ``(3) Cost sharing.--In carrying out activities for the 
        placement of a participant in accordance with the National 
        Service for America's Future plan of a State, an eligible host 
        site shall provide for the cost-share amount associated with 
        such participant as set for such eligible host site in such 
        plan.
    ``(d) Criminal History Checks.--
            ``(1) In general.--A State receiving a grant under this 
        subtitle, or an entity receiving a subgrant under section 
        199Q(d)(3), shall conduct a criminal history check for each 
        individual selected as a participant.
            ``(2) Regulations.--The Corporation shall issue regulations 
        governing checks under paragraph (1) that ensure such checks 
        are effective in protecting the individuals and communities 
        served under this subtitle while minimizing the administrative 
        burden on States, entities receiving subgrants under section 
        199Q(d)(3), and eligible host sites.
            ``(3) Inapplicability.--Any regulation issued under section 
        189D shall not apply to a participant.

``SEC. 199S. MATCHING AND COST SHARING.

    ``(a) Use of Funds Under This Subtitle as Matching Funds.--Amounts 
received by a State under section 199Q, or by an entity receiving a 
subgrant under section 199Q(d)(3), may be used to satisfy any matching, 
cost sharing, or maintenance-of-effort requirement under this Act or 
the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.).
    ``(b) Limitation.--The same funds may not be counted to satisfy 
more than one matching, cost sharing, or maintenance-of-effort 
requirement as provided under subsection (a).

``SEC. 199T. REPORTS.

    ``(a) National Reporting.--The Corporation shall--
            ``(1) annually prepare a report regarding the National 
        Service for America's Future program established by subsection 
        (a) of section 199P that--
                    ``(A) summarizes--
                            ``(i) reports submitted by States under the 
                        National Service for America's Future plan of 
                        the State in accordance with the national 
                        program framework established under subsection 
                        (b) of such section; and
                            ``(ii) outcomes of the program; and
                    ``(B) includes--
                            ``(i) information regarding State 
                        participation;
                            ``(ii) information on formula allotments 
                        and expenditures;
                            ``(iii) the number of participants and 
                        member service years supported;
                            ``(iv) data on participant demographics;
                            ``(v) information on eligible service 
                        fields and communities served;
                            ``(vi) information on eligible service 
                        fields and occupations supported;
                            ``(vii) information on outcomes for 
                        integration with programs under the Workforce 
                        Innovation and Opportunity Act;
                            ``(viii) information on credential and 
                        workforce outcomes;
                            ``(ix) information on employment, 
                        education, apprenticeship program, and wage 
                        outcomes, as available;
                            ``(x) information on the use of supportive 
                        services by participants in such program;
                            ``(xi) information on technical assistance 
                        needs; and
                            ``(xii) recommendations for improving the 
                        program; and
            ``(2) submit such report to the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Education and Workforce of the House of Representatives.
    ``(b) AmeriCorps-Wide Participant Support and Modernization 
Report.--The Artificial Intelligence Advisory Council, the Corporation, 
and the Secretary shall jointly--
            ``(1) prepare a report that assess options, and identifies 
        any statutory or regulatory barrier that prevents the 
        Corporation or the Secretary from acting, to--
                    ``(A) raise compensation for full-time service by a 
                participant in any program under this Act;
                    ``(B) provide or expand health care coverage or 
                health coverage assistance for such participants;
                    ``(C) improve recruitment and retention for such 
                participants who are facing financial barriers to 
                service;
                    ``(D) integrate programs under this Act with 
                programs under the Workforce Innovation and Opportunity 
                Act (29 U.S.C. 3101 et seq.);
                    ``(E) enable programs under this Act, and the 
                training and recognized postsecondary credentials 
                provided through such programs, to be included on a 
                State list of eligible providers of training services 
                under section 122 of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3152);
                    ``(F) strengthen the National Service Trust 
                established under section 145 as a pathway into a 
                career, including options to expand the uses for which 
                a national service educational award may be applied, to 
                align such awards with recognized postsecondary 
                credentials and registered apprenticeship programs and 
                to extend the period during which such an award may be 
                used;
                    ``(G) increase the time a participant in a program 
                under this Act may spend in education, training, and 
                professional development related to the participant's 
                service;
                    ``(H) permit programs under this Act to partner 
                with businesses organized for profit for internships, 
                training placements, and work-based learning that 
                support participant professional development or provide 
                a public benefit; and
                    ``(I) establish a voluntary credential recognizing 
                durable skills developed through service that is 
                portable to employers; and
            ``(2) submit such report to the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Education and Workforce of the House of Representatives not 
        later than 360 days after the date of enactment of the Make AI 
        Work for Americans Act.
    ``(c) Use of Existing Systems and Measures.--In carrying out 
subsection (a), and in establishing requirements for State reporting 
metrics under section 199P(b)(6), the Corporation shall--
            ``(1) use the data collection, grant management, and 
        performance reporting systems used by the Corporation for other 
        programs under the national service laws rather than 
        establishing a separate system for the program under this 
        subtitle;
            ``(2) to the maximum extent practicable, use definitions, 
        data elements, and performance measures that are consistent 
        with those used for such other programs and, as appropriate, 
        with the primary indicators of performance described in section 
        116(b)(2)(A) of the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3141(b)(2)(A)); and
            ``(3) minimize duplicative reporting by States, entities 
        receiving subgrants, and eligible host sites, including by 
        accepting data already reported to the Corporation under other 
        programs under the national service laws.''.
    (b) Table of Contents Amendment.--The table of contents in section 
1(b) of the National and Community Service Act of 1990 (42 U.S.C. 12501 
note) is amended by inserting after the item relating to section 199N 
the following:

       Subtitle K--National Service for America's Future Program

Sec. 199O. Purpose; definitions.
Sec. 199P. Establishment of National Service for America's Future 
                            program.
Sec. 199Q. National Service for America's Future grants.
Sec. 199R. Participants.
Sec. 199S. Matching and cost sharing.
Sec. 199T. Reports.
    (c) Exclusion From Gross Income.--Section 74 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(e) Exception for National Service for America's Future 
Completion Awards.--Gross income shall not include the amount of any 
completion award paid to an individual in accordance with section 
199R(c)(1)(B)(i) of the National and Community Service Act of 1990.''.

                 TITLE IV--ENTREPRENEURSHIP FOR AMERICA

SEC. 401. ENTREPRENEURS OF THE FUTURE PROGRAM.

    (a) Program Improvements.--
            (1) Renaming program.--
                    (A) In general.--Section 3306(t) of the Internal 
                Revenue Code of 1986 is amended--
                            (i) in the heading, by striking ``Self-
                        employment Assistance'' and inserting 
                        ``Entrepreneurs of the Future''; and
                            (ii) in the matter preceding paragraph (1), 
                        by striking ``self-employment assistance'' and 
                        inserting ``Entrepreneurs of the Future''.
                    (B) Conforming amendments.--
                            (i) Section 3304(a)(4)(F) of such Code is 
                        amended by striking ``self-employment 
                        assistance'' and inserting ``Entrepreneurs of 
                        the Future''.
                            (ii) Section 3306(f)(6) of such Code is 
                        amended by striking ``self-employment 
                        assistance'' and inserting ``Entrepreneurs of 
                        the Future''.
                            (iii) Section 303(a)(5) of the Social 
                        Security Act (42 U.S.C. 503(a)(5)) is amended, 
                        in the last proviso, by striking ``self-
                        employment assistance'' and inserting 
                        ``Entrepreneurs of the Future''.
            (2) Adjustment of limitation on number of individuals 
        participating.--Section 3306(t)(4) of such Code is amended--
                    (A) by striking ``5 percent of''; and
                    (B) by inserting ``and'' after the semicolon at the 
                end.
            (3) Elimination of requirement that participants are likely 
        to exhaust regular unemployment compensation.--Section 
        3306(t)(3) of the Internal Revenue Code of 1986 is amended by 
        striking subparagraph (B) and by redesignating subparagraphs 
        (C) and (D) as subparagraphs (B) and (C), respectively.
            (4) Modification of requirement to participate in self-
        employment assistance activities.--Section 3306(t)(3)(B) of the 
        Internal Revenue Code of 1986, as redesignated by paragraph 
        (3), is amended to read as follows:
                    ``(B) are participating in proven entrepreneurship, 
                self-employment, or small business ownership activities 
                which are approved by the State agency and either--
                            ``(i) include entrepreneurial training, 
                        business counseling, and technical assistance; 
                        or
                            ``(ii) are performed pursuant to a business 
                        plan submitted by the individual and approved 
                        by the State or an agency or entity designated 
                        by the State; and''.
            (5) Elimination of budget neutrality requirement.--Section 
        3306(t) of the Internal Revenue Code of 1986 is amended by 
        striking paragraph (5) and redesignating paragraph (6) as 
        paragraph (5).
            (6) Notification of eligibility.--Section 3306(t)(1) of the 
        Internal Revenue Code of 1986 is amended by inserting ``, and 
        the State notifies such individuals of their eligibility to 
        receive such allowance'' after ``self-employed''.
    (b) Requirement for States To Establish an Entrepreneurs of the 
Future Program.--
            (1) In general.--Section 3304(a) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) in paragraph (4)(F), by inserting ``, as 
                required under paragraph (19)'' after ``3306(t)'';
                    (B) in paragraph (18), by striking ``and'' at the 
                end;
                    (C) by redesignating paragraph (19) as paragraph 
                (20); and
                    (D) by inserting after paragraph (18) the following 
                new paragraph:
            ``(19) payment of allowances are made under Entrepreneurs 
        of the Future programs (as defined in section 3306(t)) under 
        the State law; and''.
            (2) Conforming amendment.--Section 303(a)(5) of the Social 
        Security Act (42 U.S.C. 503(a)(5)), is amended, in the last 
        proviso, by inserting ``, as required under section 3304(a)(19) 
        of such Code'' after ``1986)''.
    (c) Regulations and Guidance.--
            (1) Issuance of regulations.--The Secretary of Labor shall, 
        after public notice and comment and subject to approval by the 
        Office of Management and Budget, adopt regulations to 
        administer this section.
            (2) Issuance of guidance.--The Secretary of Labor, in 
        consultation with the Administrator of the Small Business 
        Administration, shall provide guidance to State workforce 
        agencies that includes--
                    (A) with respect to States that have established a 
                program under section 3306(t) of the Internal Revenue 
                Code of 1986 as of the date of enactment of this 
                section, best practices for implementing the 
                requirements of this section to such program;
                    (B) with respect to States that have not 
                established a program under section 3306(t) of the 
                Internal Revenue Code of 1986 as of the date of 
                enactment of this section, best practices for 
                establishing such a program in compliance with the 
                requirements of this section;
                    (C) a model list of entrepreneurship, self-
                employment, and small business ownership activities 
                that fulfill requirements of the program under section 
                3306(t) of the Internal Revenue Code of 1986, including 
                the option of engaging with Small Business Development 
                Centers and nonprofit organizations specializing in 
                small business technical assistance; and
                    (D) best practices for verification of completion 
                of the activities described in subparagraph (C).
    (d) Payments to States for Operating an Entrepreneurs of the Future 
Program.--Section 903 of the Social Security Act (42 U.S.C. 1103) is 
amended by adding at the end the following new subsection:
    ``(j) Payments to States for Operating an Entrepreneurs of the 
Future Program.--(1)(A) Subject to paragraph (4), there shall be paid 
to each State an amount equal to 100 percent of--
            ``(i) the total amount of allowances paid to individuals by 
        the State under the State's Entrepreneurs of the Future program 
        (as defined in section 3306(t) of the Internal Revenue Code of 
        1986); and
            ``(ii) any additional administrative expenses incurred by 
        the State by reason of making such payments (as determined by 
        the Secretary of Labor).
    ``(B) Sums payable to any State under this subsection shall be 
payable, either in advance or by way of reimbursement (as determined by 
the Secretary of Labor), in such amounts as the Secretary of Labor 
estimates the State will be entitled to receive under this subsection 
for each calendar month, reduced or increased, as the case may be, by 
any amount by which the Secretary of Labor finds that the Secretary's 
estimates for any prior calendar month were greater or less than the 
amounts that should have been paid to the State. Such estimates may be 
made on the basis of such statistical, sampling, or other method as may 
be agreed upon by the Secretary of Labor and the State agency of the 
State involved.
    ``(2) The Secretary of Labor shall from time to time certify to the 
Secretary of the Treasury for payment to each State the sums payable to 
such State under this subsection.
    ``(3) Sums payable to any State under this subsection shall be--
            ``(A) made by way of transfer from the Artificial 
        Intelligence Horizon Fund (as defined in section 3 of the Make 
        AI Work for Americans Act); and
            ``(B) deposited in the account of such States in the 
        Unemployment Trust Fund.
    ``(4) Payments to States under this subsection shall be subject to 
the availability of funds in the Artificial Intelligence Horizon Fund 
(as defined in section 3 of the Make AI Work for Americans Act).''.
    (e) Effective Date.--The amendments made this section shall apply 
to weeks of unemployment beginning on or after the earlier of--
            (1) the date the State changes its statutes, regulations, 
        or policies in order to comply with such amendments; or
            (2) January 1, 2028.

SEC. 402. SMALL BUSINESS FUTURES PROGRAM.

    Subtitle D of title I of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3221 et seq.) is amended--
            (1) by redesignating section 172 as section 174; and
            (2) by inserting after section 171 the following:

``SEC. 172. SMALL BUSINESS FUTURES PROGRAM.

    ``(a) Grants.--Using the sum received from the Artificial 
Intelligence Horizon Fund and allocated by the Artificial Intelligence 
Advisory Council for use under this section, the Secretary shall make 
grants to States, through the State workforce agencies that carry out 
subtitle B, to assist the States in carrying out the provisions of the 
State plan approved under section 102 or 103 that relate to 
entrepreneurship, self-employment, and small business ownership.
    ``(b) Application.--To be eligible to receive a grant under this 
section, a State shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require, including an assurance that the agency will coordinate the 
activities carried out under the grant with the activities of a lead 
small business development center in the State.
    ``(c) Use of Funds.--A State that receives a grant under this 
section shall use the grant funds to build its capacity to provide 
services relating to entrepreneurship, self-employment, and small 
business ownership, under subtitle B, which may include establishing a 
small business liaison office within the State workforce agency to 
develop resources and connect job seekers to--
            ``(1) counseling at a small business development center, 
        other Small Business Administration resources, private sector 
        training programs, community development financial institutions 
        (as defined in section 103 of the Riegle Community Development 
        and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)), 
        nonprofit organizations providing entrepreneurial training, 
        counseling, or technical assistance, and other entities that 
        provide entrepreneurial training, counseling, or technical 
        assistance; and
            ``(2) assistance in adopting digital tools and artificial 
        intelligence to improve business operations, competitiveness, 
        and efficiency.
    ``(d) Definitions.--For purposes of this section, the terms 
`Artificial Intelligence Horizon Fund', and `Artificial Intelligence 
Advisory Council' have the meanings given such terms in section 3 of 
the Make AI Work for Americans Act.''.

SEC. 403. OTHER SMALL BUSINESS RESOURCES.

    (a) Definitions.--Section 3 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102) is amended--
            (1) in paragraph (51)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) the provision of entrepreneurial training and 
                self-employment transition support.''; and
            (2) by adding at the end the following:
            ``(72) MBDA business center.--The term `MBDA Business 
        Center' means an MBDA Business Center operating under the MBDA 
        Business Center Program established under section 100113 of the 
        Minority Business Development Act of 2021 (15 U.S.C. 9523).
            ``(73) Small business.--The term `small business' has the 
        meaning given the term `small-business concern' in section 3 of 
        the Small Business Act (15 U.S.C. 632).
            ``(74) Small business development center.--The term `small 
        business development center' means a center described in 
        section 21 of the Small Business Act (15 U.S.C. 648).''.
    (b) Workforce Development Boards.--
            (1) State workforce development boards.--Section 
        101(b)(1)(C)(iii)(II) of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3111(b)(1)(C)(iii)(II)) is amended--
                    (A) in item (cc), by striking ``and'' at the end;
                    (B) in item (dd), by striking the period at the end 
                and inserting ``; and''; and
                    (C) by adding at the end the following:
                                            ``(ee) a representative of 
                                        the network of small business 
                                        development centers in the 
                                        State.''.
            (2) Local workforce development boards.--Section 
        107(b)(2)(D) of the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3122(b)(2)(D)) is amended--
                    (A) in clause (iv), by striking ``and'' at the end; 
                and
                    (B) by adding on the end the following:
                            ``(vi) may include a representative of the 
                        network of small business development centers 
                        serving the local area; and''.
    (c) Unified State Plan.--Section 102(b)(2)(B)(v) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3112(b)(2)(B)(v)) is amended 
by inserting ``, and how the activities will incorporate career 
pathways for entrepreneurship, self-employment, and small business 
ownership and will be coordinated with the activities of the Small 
Business Administration, small business development centers, the 
Minority Business Development Agency and any MBDA Business Center 
serving the State, and State- and locally-focused small business and 
economic development nonprofit organizations'' before the semicolon.
    (d) Individualized Career Services.--Section 134(c)(2)(A)(xii) of 
the Workforce Innovation and Opportunity Act (29 U.S.C. 
3174(c)(2)(A)(xii)) is amended--
            (1) in subclause (X), by striking ``or'' at the end;
            (2) in subclause (XI), by striking ``; and'' and inserting 
        ``; or''; and
            (3) by adding at the end the following:
                                    ``(XII) provision of information 
                                about entrepreneurship as a career 
                                pathway, and referrals to the small 
                                business liaison office (if established 
                                under section 172), small business 
                                development centers, women's business 
                                centers operating pursuant to section 
                                29 of the Small Business Act (15 U.S.C. 
                                656), veteran business outreach 
                                centers, MBDA Business Centers, and 
                                nonprofit organizations specializing in 
                                small business technical assistance; 
                                and''.
    (e) Training Services.--Section 134(c)(3)(D) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)(D)) is amended--
            (1) in clause (x), by striking ``and'' at the end;
            (2) in clause (xi), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(xii) business plan development, business 
                        incubation services, and business coaching, 
                        including the provision of training and 
                        technical assistance for small businesses in 
                        the adoption and use of digital tools and 
                        artificial intelligence.''.

SEC. 404. ACCESS TO CAPITAL AND TECHNICAL ASSISTANCE FOR EMERGING 
              ENTREPRENEURS.

    (a) Small Business Administration.--In addition to other uses of 
amounts in the Artificial Intelligence Horizon Fund authorized under 
this Act, and the amendments made by this Act, the Secretary of Labor 
may transfer such sums as the Artificial Intelligence Advisory Council 
determines appropriate to allocate from the Artificial Intelligence 
Horizon Fund to the Administrator of the Small Business Administration 
to carry out--
            (1) the Small Business Development Center Program under 
        section 21 of the Small Business Act (15 U.S.C. 648);
            (2) the Microloan Program under section 7(m) of the Small 
        Business Act (15 U.S.C. 636(m));
            (3) the Growth Accelerator Fund Competition of the Small 
        Business Administration;
            (4) the loan program under section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)); or
            (5) the small business investment company program under 
        title III of the Small Business Investment Act of 1958 (15 
        U.S.C. 681 et seq.).
    (b) Department of Commerce.--In addition to other uses of amounts 
in the Artificial Intelligence Horizon Fund authorized under this Act, 
and the amendments made by this Act, the Secretary of Labor may 
transfer such sums as the Artificial Intelligence Advisory Council 
determines appropriate to allocate from the Artificial Intelligence 
Horizon Fund to the Secretary of Commerce to carry out--
            (1) the MBDA Business Center Program established under 
        section 100113 of the Minority Business Development Act of 2021 
        (15 U.S.C. 9523); or
            (2) revolving loan funds capitalized with grants awarded 
        under section 209 of the Public Works and Economic Development 
        Act of 1965 (42 U.S.C. 3149).
    (c) Department of the Treasury.--In addition to other uses of 
amounts in the Artificial Intelligence Horizon Fund authorized under 
this Act, and the amendments made by this Act, the Secretary of Labor 
may transfer such sums as the Artificial Intelligence Advisory Council 
determines appropriate to allocate from the Artificial Intelligence 
Horizon Fund to the Secretary of the Treasury to provide assistance 
under section 108 of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4707).
    (d) Reducing Barriers to Capital for Covered Entrepreneurs.--
            (1) In general.--Amounts transferred under subsection 
        (a)(4) may be used to improve the terms on which a covered 
        entrepreneur obtains a loan under section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)), including by--
                    (A) reducing or waiving a fee otherwise payable by 
                the borrower or the lender;
                    (B) increasing the percentage of the loan that is 
                guaranteed;
                    (C) reducing the interest rate payable on the loan; 
                or
                    (D) offsetting the cost to a lender of making a 
                smaller-dollar loan.
            (2) Covered entrepreneur defined.--In this subsection, the 
        term ``covered entrepreneur'' means an individual--
                    (A) who owns or controls a small business concern 
                (as defined under section 3 of the Small Business Act 
                (15 U.S.C. 632)); and
                    (B) who--
                            (i) is participating in, or has completed, 
                        an Entrepreneurs of the Future Program (as 
                        defined in section 3306(t) of the Internal 
                        Revenue Code of 1986), as amended by section 
                        401 of this Act; or
                            (ii) demonstrates, in such form and manner 
                        as the Administrator of the Small Business 
                        Administration may require, that the individual 
                        has received entrepreneurial training, 
                        counseling, or technical assistance relating to 
                        starting, acquiring, or operating a small 
                        business concern from a provider of such 
                        assistance, including a small business 
                        development center, an MBDA Business Center, a 
                        community development financial institution, a 
                        nonprofit organization, an institution of 
                        higher education, or a private entity.

        TITLE V--NEW ECONOMY UNEMPLOYMENT INSURANCE FOR AMERICA

SEC. 501. FLOOR ON THE NUMBER OF WEEKS.

    (a) In General.--Section 3304(a) of the Internal Revenue Code of 
1986 is amended--
            (1) in paragraph (18), by striking ``and'' at the end;
            (2) by redesignating paragraph (19) as paragraph (20); and
            (3) by inserting after paragraph (18) the following new 
        paragraph:
            ``(19) the minimum duration of benefits is at least 26 
        weeks, and no variable duration formula that provides for 
        maximum weeks of benefits of fewer than 26 weeks is used, or, 
        in the case of a State that uses a maximum benefit entitlement, 
        an individual's maximum benefit entitlement may not be less 
        than 26 times the individual's weekly benefit amount; and''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--
            (1) the date the State changes its statutes, regulations, 
        or policies in order to comply with such amendments; or
            (2) the date that is 6 months after the date of a 
        submission of recommendations by the Council under section 
        101(c)(4)(A) that includes a declaration that a significant 
        labor market disruption has occurred or is likely to occur in a 
        given fiscal year.

SEC. 502. FLOOR ON THE MINIMUM REPLACEMENT OF WAGES.

    (a) Floor.--
            (1) In general.--Section 3304(a) of the Internal Revenue 
        Code of 1986, as amended by section 501, is amended--
                    (A) in paragraph (19), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (20) as paragraph 
                (21); and
                    (C) by inserting after paragraph (19) the following 
                new paragraph:
            ``(20) an individual's weekly benefit amount is equal to 
        the lesser of--
                    ``(A) the maximum weekly benefit amount under the 
                State law; or
                    ``(B) an amount equal to the quotient of--
                            ``(i) an amount equal to at least 75 
                        percent of the total earnings in the quarter of 
                        the individual's base period with the highest 
                        earnings; divided by
                            ``(ii) 13; and''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to weeks of unemployment beginning on or after the 
        earlier of--
                    (A) the date the State changes its statutes, 
                regulations, or policies in order to comply with such 
                amendments; or
                    (B) the date that is 6 months after the date of a 
                submission of recommendations by the Council under 
                section 101(c)(4)(A) that includes a declaration that a 
                significant labor market disruption has occurred or is 
                likely to occur in a given fiscal year.
    (b) Payments to States for the Increased Floor on the Minimum 
Replacement of Wages.--Section 903 of the Social Security Act (42 
U.S.C. 1103), as amended by section 401(d), is further amended by 
adding at the end the following new subsection:
    ``(k) Reimbursement of State Unemployment Funds for Increased Floor 
on the Minimum Replacement of Wages.--(1) Subject to paragraph (6), in 
addition to any other amounts, for weeks of unemployment beginning on 
or after the date that is 6 months after the date of a submission of 
recommendations by the Artificial Intelligence Advisory Council under 
section 101(c)(4)(A) of the Make AI Work for Americans Act that 
includes a declaration that a significant labor market disruption has 
occurred or is likely to occur in a given fiscal year, there shall be 
paid to each State an amount equal to, with respect to any individual 
for a week, the excess (if any) of--
            ``(A) an amount equal to the lesser of--
                    ``(i) the minimum amount under section 
                3304(a)(20)(B) for such individual for such week; or
                    ``(ii) the maximum weekly benefit amount under the 
                State law for such week; over
            ``(B) an amount equal to the quotient of--
                    ``(i) an amount equal to 40 percent of the total 
                earnings in the quarter of such individual's base 
                period with the highest earnings; divided by
                    ``(ii) 13.
    ``(2) Sums payable to any State under this subsection shall be 
payable, either in advance or by way of reimbursement (as determined by 
the Secretary of Labor), in such amounts as the Secretary of Labor 
estimates the State will be entitled to receive under this subsection 
for each calendar month, reduced or increased, as the case may be, by 
any amount by which the Secretary of Labor finds that the Secretary's 
estimates for any prior calendar month were greater or less than the 
amounts that should have been paid to the State. Such estimates may be 
made on the basis of such statistical, sampling, or other method as may 
be agreed upon by the Secretary of Labor and the State agency of the 
State involved.
    ``(3) The Secretary of Labor shall from time to time certify to the 
Secretary of the Treasury for payment to each State the sums payable to 
such State under this subsection.
    ``(4) Sums payable to any State under this subsection shall be--
            ``(A) made by way of transfer of amounts allocated for such 
        purpose from the Artificial Intelligence Horizon Fund under 
        section 101(b) of the Make AI Work for Americans Act); and
            ``(B) deposited in the account of such States in the 
        Unemployment Trust Fund.
    ``(5) Any amount transferred to the account of a State in the 
Unemployment Trust Fund under this subsection may be used by such State 
only in the payment of cash benefits to individuals with respect to 
their unemployment, exclusive of expenses of administration.
    ``(6) A State shall not be eligible to receive a payment under this 
subsection if such State decreases the maximum weekly benefit amount 
under the State law, as described in section 3304(a)(20)(A), in effect 
as of the date of enactment of this subsection.''.

SEC. 503. FLOOR ON THE MAXIMUM BENEFIT.

    (a) In General.--Section 3304(a) of the Internal Revenue Code of 
1986, as amended by sections 501 and 502(a), is amended--
            (1) in paragraph (20), by striking ``and'' at the end;
            (2) by redesignating paragraph (21) as paragraph (22); and
            (3) by inserting after paragraph (20) the following new 
        paragraph:
            ``(21) the maximum weekly benefit amount may not be less 
        than \2/3\ of the State's average weekly wage (as determined by 
        the Secretary of Labor) as of October 1 of each calendar year 
        and applied for claims effective on or after January 1 of the 
        subsequent calendar year; and''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--
            (1) the date the State changes its statutes, regulations, 
        or policies in order to comply with such amendments; or
            (2) the date that is 6 months after the date of a 
        submission of recommendations by the Council under section 
        101(c)(4)(A) that includes a declaration that a significant 
        labor market disruption has occurred or is likely to occur in a 
        given fiscal year.

SEC. 504. BASE PERIOD.

    (a) In General.--Section 3304(a) of the Internal Revenue Code of 
1986, as amended by sections 501, 502(a), and 503, is amended--
            (1) in paragraph (21), by striking ``and'' at the end;
            (2) by redesignating paragraph (22) as paragraph (23); and
            (3) by inserting after paragraph (21) the following new 
        paragraph:
            ``(22) the State law--
                    ``(A) uses a base period that consists of 4 
                completed calendar quarters preceding the effective 
                date of the claim and includes the most recently 
                completed calendar quarter before the start of the 
                benefit year for purposes of determining eligibility 
                for unemployment compensation; or
                    ``(B) provides that, in the case of an individual 
                who would not otherwise be eligible for unemployment 
                compensation under the State law because of the use of 
                a base period that does not meet the requirements 
                described in subparagraph (A), eligibility is 
                determined using a base period that consists of 4 
                completed calendar quarters preceding the effective 
                date of the claim and includes the most recently 
                completed calendar quarter before the start of the 
                benefit year; and''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to claims with an effective date beginning on or after the 
earlier of--
            (1) the date the State changes its statutes, regulations, 
        or policies in order to comply with such amendments; or
            (2) the date that is 6 months after the date of a 
        submission of recommendations by the Council under section 
        101(c)(4)(A) that includes a declaration that a significant 
        labor market disruption has occurred or is likely to occur in a 
        given fiscal year.

SEC. 505. MODERNIZATION.

    (a) In General.--Beginning with fiscal year 2027 and annually 
thereafter, not less than $225,000,000 of amounts available in the 
Artificial Intelligence Horizon Fund under section 101(b) shall be 
transferred from such Fund to the Unemployment Trust Fund, for 
activities related to the detection and prevention of fraud, the 
promotion of equitable access to unemployment compensation benefits, 
and ensuring the timely payment of benefits with respect to 
unemployment compensation programs, including for--
            (1) Federal administrative costs related to implementation 
        of the amendments made by sections 501 through section 504;
            (2) systemwide infrastructure investment and development 
        related to implementation of such amendments; and
            (3) awarding grants to States to assist such States in 
        complying with such amendments, including through the 
        establishment of procedures or the building of infrastructure 
        to--
                    (A) verify or validate the identity of claimants;
                    (B) calculate unemployment compensation amounts;
                    (C) implement Federal guidance regarding fraud 
                detection and prevention;
                    (D) accelerate the processing of unemployment 
                compensation claims or any backlog of such claims; and
                    (E) issue subgrants to entities--
                            (i) which may include labor organizations, 
                        community-based nonprofit groups, and other 
                        entities that are capable of carrying out the 
                        duties described in clause (iii);
                            (ii) who shall demonstrate existing 
                        relationships, or the ability to readily 
                        establish relationships, with employers and 
                        employees, consumers, and other individuals; 
                        and
                            (iii) to assist individuals in navigating 
                        enrollment in unemployment compensation 
                        programs, health insurance enrollment, and 
                        workforce training opportunities.
    (b) Restrictions on Grants to States.--As a condition of receiving 
a grant under subsection (a)(3), the Secretary of Labor may require 
that a State receiving such a grant shall--
            (1) use such program integrity tools as the Secretary may 
        specify; and
            (2) as directed by the Secretary, conduct user 
        accessibility testing on any new infrastructure developed by 
        the Secretary pursuant to subsection (a)(2).
    (c) Allocation of Grant Funds.--
            (1) In general.--Funding for grants under subsection (a)(3) 
        shall be allocated according to a formula established by the 
        Secretary of Labor.
            (2) Requirements.--In establishing the formula under 
        paragraph (1), the Secretary of Labor shall ensure that--
                    (A) each small State receives 48 percent of the 
                amount allocated to each large State;
                    (B) each medium State receives 65 percent of the 
                amount allocated to each large State;
                    (C) each large State receives the base allocation 
                determined by the Secretary of Labor; and
                    (D) each extra large State receives an amount equal 
                to 133 percent of the amount allocated to each large 
                State.
            (3) Definitions.--In this subsection:
                    (A) Covered employment.--The term ``covered 
                employment'' means employment subject to contributions 
                under State unemployment compensation law.
                    (B) Extra large state.--The term ``extra large 
                State'' means a State with an average covered 
                employment of at least 7,000,000 employees.
                    (C) Large state.--The term ``large State'' means a 
                State with an average covered employment of at least 
                2,000,000 but less than 7,000,000 employees.
                    (D) Medium state.--The term ``medium State'' means 
                a State with an average covered employment of at least 
                1,000,000 but less than 2,000,000 employees.
                    (E) Small state.--The term ``small State'' means a 
                State with an average covered employment of less than 
                1,000,000 employees.
                    (F) State.--The term ``State'' means the 50 States, 
                the District of Columbia, the Commonwealth of Puerto 
                Rico, and the United States Virgin Islands.

SEC. 506. UNEMPLOYMENT INSURANCE COMPENSATION ADMINISTRATION.

    Using amounts available in the Artificial Intelligence Horizon Fund 
under section 101(b), the Secretary of Labor shall provide States and 
territories with--
            (1) guidance on best practices for administration of 
        unemployment insurance compensation benefits, including 
        identity verification, detecting and preventing fraud, the use 
        of artificial intelligence, data collection, and staff 
        training;
            (2) common definitions of terms related to administration 
        of unemployment compensation benefits; and
            (3) greater access to technical assistance, operational 
        support, and implementation guidance as it relates to 
        administration of unemployment compensation programs.

SEC. 507. PROGRAM EXPANSION STUDY AND REPORT.

    (a) Study.--
            (1) In general.--The Secretary of Labor shall conduct a 
        study on the feasibility and possible methods of providing 
        unemployment compensation benefits to covered workers. Such 
        study shall include an analysis of--
                    (A) the data necessary to calculate unemployment 
                compensation benefit amounts for covered workers;
                    (B) the technology necessary to calculate and 
                administer unemployment compensation benefits for 
                covered workers;
                    (C) the measures needed to prevent waste, fraud, 
                and abuse of unemployment compensation benefits for 
                covered workers;
                    (D) the administrative feasibility of allowing 
                covered workers to become eligible for unemployment 
                compensation benefits;
                    (E) the financing options for unemployment 
                compensation benefits for covered workers;
                    (F) the statutory changes necessary to reasonably 
                and effectively administer unemployment compensation 
                benefits to covered workers, including statutory 
                definitions; and
                    (G) other items determined appropriate by the 
                Secretary.
            (2) Covered worker defined.--In this section, the term 
        ``covered worker'' means an individual who is not eligible for 
        regular compensation under State or Federal law because the 
        individual--
                    (A) is self-employed;
                    (B) does not have a sufficient work history; or
                    (C) works as an independent contractor.
    (b) Report.--Not later than 180 days after the date of enactment of 
this section, the Secretary of Labor shall submit to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives a report on the study conducted under subsection 
(a).

SEC. 508. WAGE INSURANCE AND SHORT-TIME COMPENSATION GRANTS.

    (a) Grants Authorized.--Subject to the availability of funds for 
this purpose from the AI Horizon Fund established in section 101(b), 
the Secretary of Labor may award grants to States on a competitive 
basis to--
            (1) establish or operate pilot programs to provide wage 
        insurance to eligible individuals; or
            (2) establish, expand, or enhance a short-time compensation 
        program.
    (b) Wage Insurance.--A State seeking a grant for a wage insurance 
pilot program under subsection (a)(1) may submit an application to the 
Secretary at such time, in such a manner, and containing such 
information as the Secretary may require, including a description of--
            (1) individuals eligible for wage insurance payments under 
        such a program, consideration of which may be based on 
        individual earnings loss in occupations, industries, regions, 
        or employer groups determined to be impacted by artificial 
        intelligence or related technological change;
            (2) the program's design, including the duration of wage 
        insurance payments (which shall not be longer than 2 years), 
        amount of wage insurance payments, employer reporting 
        requirements, how the State will partner with private 
        employers, and other design features as the Secretary may 
        require; and
            (3) how a State will evaluate such program, including its 
        impact on--
                    (A) reemployment and duration of reemployment;
                    (B) wages upon reemployment, including cumulative 
                earnings over time; and
                    (C) unemployment and duration of unemployment.
    (c) Short-Time Compensation Program.--
            (1) Application and use of funds.--A State seeking a grant 
        for a short-time compensation program under subsection (a)(2) 
        may submit an application to the Secretary at such time, in 
        such a manner, and containing such information as the Secretary 
        may require, including a description of--
                    (A) how funds will be used, which may include--
                            (i) implementing or improving the 
                        administration of a short-time compensation 
                        program;
                            (ii) increasing participation, including 
                        through promotion to, and enrollment of, 
                        employers and workers and the creation or 
                        support of rapid response teams to advise 
                        employers about alternatives to layoffs;
                            (iii) providing technical assistance to 
                        employers seeking to participate in a short-
                        time compensation program, including assessing 
                        feasibility of participating in such a program;
                            (iv) the development or enhancement of 
                        systems to automate--
                                    (I) the submission and approval of 
                                plans and the filing and approval of 
                                new claims; and
                                    (II) ongoing short-time 
                                compensation claims; and
                            (v) coordination of benefits with an 
                        existing unemployment compensation program; and
                    (B) how the program will be evaluated for 
                effectiveness in preventing layoffs.
            (2) Testing.--A State seeking a grant for a short-time 
        compensation program under subsection (a)(2) may test 
        approaches to increasing the use and effectiveness of short-
        time compensation, including approaches designed to prevent 
        layoffs resulting from artificial intelligence or technological 
        change.
    (d) Evaluation and Report.--
            (1) Ongoing evaluation.--The Secretary shall conduct an 
        ongoing evaluation of the grants made under this section.
            (2) Report.--Not more than 5 years after the date on which 
        the Secretary begins to make grants under this section, and 
        annually thereafter, the Secretary shall submit to the 
        Committee on Health, Education, Labor, and Pensions and the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives a report on the 
        evaluation conducted under paragraph (1), together with 
        recommendations for such legislation and administrative action 
        as the Secretary determines appropriate.
    (e) Recoupment.--The Secretary shall establish a process under 
which the Secretary shall recoup the amount of any grant awarded to a 
State under the authorization in subsection (a) if the Secretary 
determines that, during the 2-year period beginning on the first date 
that any such grant is awarded to the State, the State--
            (1) in the case of--
                    (A) a grant under subsection (a)(1), terminated the 
                State's wage insurance program; or
                    (B) a grant under subsection (a)(2), terminated the 
                State's short-time compensation program; or
            (2) failed to meet appropriate requirements with respect to 
        the applicable program (as established by the Secretary).
    (f) Administration.--The Secretary is authorized to use 0.25 
percent of the funds available under this section to provide for 
outreach and to share best practices with respect to this section.
    (g) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) Short-time compensation program.--The term ``short-time 
        compensation program'' has the meaning given such term in 
        section 3306(v) of the Internal Revenue Code of 1986.
            (3) State.--The term ``State'' means the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and the 
        United States Virgin Islands.
            (4) Wage insurance.--The term ``wage insurance'' means 
        payments to an eligible individual who obtains reemployment at 
        wages lower than the wages received by the individual at the 
        time of separation from prior employment, in an amount equal to 
        a specified percentage of the difference between--
                    (A) the wages received by the individual at the 
                time of separation; and
                    (B) the wages received by the individual from 
                reemployment.

                 TITLE VI--TRAINING WORKERS FOR AMERICA

SEC. 601. UNIFIED STATE PLAN.

    Section 102 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3112) is amended--
            (1) in subsection (a), by inserting ``and receive funding 
        allocated from the Artificial Intelligence Horizon Fund'' after 
        ``core programs''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``and'' at the end;
                                    (II) in clause (ii), by adding 
                                ``and'' at the end; and
                                    (III) by adding at the end the 
                                following:
                            ``(iii) the impact of artificial 
                        intelligence on existing and projected 
                        employment within the State, including 
                        information identifying industry sectors and 
                        occupations at higher risk of task or job 
                        displacement due to artificial intelligence 
                        adoption;'';
                            (ii) in subparagraph (D)--
                                    (I) by striking ``educated and 
                                skilled'' and inserting ``educated, 
                                skilled, and artificial intelligence-
                                literate''; and
                                    (II) by inserting ``a description 
                                of how such preparation will address 
                                labor market impacts of artificial 
                                intelligence and'' before ``goals'';
                            (iii) in subparagraph (E), by inserting ``, 
                        with a description of how the State has 
                        considered artificial intelligence literacy in 
                        developing such strategy,'' after ``a 
                        strategy''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (B)--
                                    (I) in clause (v), by striking 
                                ``and'' at the end;
                                    (II) in clause (vi), by striking 
                                the period at the end and inserting a 
                                semicolon; and
                                    (III) by adding at the end the 
                                following:
                            ``(vii) how the State's strategy will 
                        ensure participating individuals receive 
                        artificial intelligence-related education, 
                        training, and skill development through the 
                        activities described in clause (i);
                            ``(viii) how the State's strategy will 
                        engage and provide services to midcareer 
                        professionals; and
                            ``(ix) how the State will coordinate 
                        activities with the State Commission on 
                        National and Community Service for the State, 
                        including with respect to the National Service 
                        for America's Future program under subtitle K 
                        of title I of the National and Community 
                        Service Act of 1990, as added by title III of 
                        the Make AI Work for Americans Act.''.

SEC. 602. COMBINED STATE PLAN.

    (a) Requirements.--Section 103(b) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3113(b)) is amended by adding at the end the 
following:
            ``(4) Consideration of artificial intelligence.--Such plan 
        shall include, in each portion described in paragraph (1), a 
        description of how artificial intelligence and its impact on 
        the programs or activities covered in that portion were 
        considered in the development of the plan.''.
    (b) Planning Grants.--Section 103 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3113) is amended--
            (1) by redesignating subsection (d) as subsection (e).
            (2) by inserting after subsection (c) the following:
    ``(d) Planning Grants.--
            ``(1) Grants authorized.--Using the sum received from the 
        Artificial Intelligence Horizon Fund and allocated under 
        section 101 of the Make AI Work for Americans Act for use under 
        this subsection, the Secretary of Labor may award grants to 
        States to improve State capacity to develop and submit a 
        combined State plan as described in this section.
            ``(2) Application.--A State desiring a grant under this 
        section shall submit an application to the Secretary of Labor 
        at such time, in such manner, and containing such information 
        as the Secretary may require.
            ``(3) Use of funds.--A State that receives a grant under 
        this section may use the grant funds to--
                    ``(A) facilitate coordination and collaboration 
                among employers, labor organizations, education and 
                training providers, and State agencies to develop the 
                combined State plan;
                    ``(B) develop strategies for effectively 
                integrating planning for programs described in 
                subsection (a)(2) into a combined State plan;
                    ``(C) align education and training programs, career 
                pathways, credentials, and definitions across programs 
                included in the combined State plan; and
                    ``(D) support staff capacity, and support 
                activities, necessary to develop the combined State 
                plan.''.
            (3) Conforming amendment.--Section 103(c)(1) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3113(c)(1)) 
        is amended by striking ``subsection (d)'' and inserting 
        ``subsection (e)''.

SEC. 603. FUNCTIONS OF LOCAL BOARD.

    Section 107(d)(4)(B) of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3122(d)(4)(B)) is amended by inserting ``and industry 
and sector partnerships'' after ``intermediaries''.

SEC. 604. INDIVIDUAL TRAINING ACCOUNTS.

    (a) Youth.--Section 129(c) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3164(c)) is amended by adding at the end the 
following:
            ``(9) Individual training accounts.--
                    ``(A) In general.--Subject to subparagraph (B), 
                funds allocated as described in paragraph (1) to a 
                local area, and the sum received from the Artificial 
                Intelligence Horizon Fund and allocated under section 
                101 of the Make AI Work for Americans Act for use under 
                this paragraph, may be used to pay, through an 
                individual training account, an eligible provider of 
                training services described in section 122(d) for 
                training services described in section 134(c)(3) 
                provided to eligible youth. The payment shall be made 
                in the same manner that an individual training account 
                described in subparagraph (F)(iii) of section 134(c)(3) 
                is used to pay an eligible provider of training 
                services for training services provided to an adult or 
                dislocated worker, including as provided in 
                subparagraphs (F) and (G) of such section.
                    ``(B) Special rule for in-school youth younger than 
                age 18.--To use an individual training account to pay 
                for a program of training services that will take place 
                during regular school hours for an in-school youth who 
                is younger than the age 18, the local area shall 
                receive written approval from the secondary school at 
                which the in-school youth is enrolled prior to the 
                start of the program of training services.
                    ``(C) Funding from artificial intelligence horizon 
                fund.--
                            ``(i) Grants to local areas.--
                                    ``(I) Grants.--In addition to any 
                                amount allocated as described in 
                                paragraph (1), the Secretary shall make 
                                grants to local areas, from allocations 
                                made under subclause (II), for the 
                                provision of training services (which 
                                may consist of postsecondary education) 
                                through individual training accounts, 
                                as described in subparagraph (A), to 
                                eligible youth.
                                    ``(II) Allocation of funds.--Using 
                                the sum received from the Artificial 
                                Intelligence Horizon Fund and allocated 
                                under section 101 of the Make AI Work 
                                for Americans Act for use under this 
                                paragraph for a fiscal year, the 
                                Secretary shall allocate to each local 
                                area for that fiscal year an amount 
                                that bears the same relationship to 
                                that sum as the amount the local area 
                                receives under section 128(b) for that 
                                fiscal year bears to the total amount 
                                that all local areas so receive.
                            ``(ii) Local areas.--As a condition of 
                        receipt of funds under clause (i), a local area 
                        shall agree that the local area will not--
                                    ``(I) limit the maximum amount 
                                available for an individual training 
                                account for an eligible youth under 
                                this subparagraph to an amount that is 
                                less than $7,000; or
                                    ``(II) pay an amount, through the 
                                use of an individual training account 
                                under this subparagraph, for training 
                                services provided to an eligible youth 
                                that exceeds the costs of such 
                                services.
                            ``(iii) Local area coordination.--Each 
                        local area may, through one-stop centers, 
                        coordinate funding for individual training 
                        accounts described in subparagraph (A) with 
                        funding from other Federal, State, local, or 
                        private job training programs or sources, 
                        including the Artificial Intelligence Horizon 
                        Fund, to assist eligible youth in obtaining 
                        training services.
                            ``(iv) Providers.--The local area shall 
                        enter into agreements with providers on the 
                        list of eligible providers of training services 
                        under section 122(d) to provide training 
                        services under this subparagraph, with funding 
                        provided through direct payments made through 
                        individual training accounts, as described in 
                        section 134(c)(3)(F)(iii).
                            ``(v) Eligible youth.--To be considered an 
                        eligible youth under this paragraph, a youth 
                        shall be an in-school youth who is not younger 
                        than age 16 and not older than age 21 or an 
                        out-of-school youth.''.
    (b) Dislocated Workers and Adults.--Section 134(c)(3) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)) is 
amended--
            (1) by redesignating subparagraph (H) as subparagraph (I); 
        and
            (2) by inserting after subparagraph (G) the following:
                    ``(H) Funding from artificial intelligence horizon 
                fund.--
                            ``(i) In general.--Funds allocated as 
                        described in subparagraph (A) to a local area, 
                        and the sum received from the Artificial 
                        Intelligence Horizon Fund and allocated under 
                        section 101 of the Make AI Work for Americans 
                        Act for use under this subparagraph, may be 
                        used to pay, through an individual training 
                        account under subparagraph (F)(iii), an 
                        eligible provider of training services 
                        described in section 122(d) for training 
                        services described in this paragraph.
                            ``(ii) Grants to local areas.--
                                    ``(I) Grants.--In addition to any 
                                amount allocated as described in 
                                subparagraph (A), the Secretary shall 
                                make grants to local areas, from 
                                allocations made under subclause (II), 
                                for the provision of training services 
                                (which may consist of postsecondary 
                                education) through individual training 
                                accounts, as described in clause (i), 
                                to eligible adults and dislocated 
                                workers.
                                    ``(II) Allocation of funds.--Using 
                                the sum received from the Artificial 
                                Intelligence Horizon Fund and allocated 
                                under section 101 of the Make AI Work 
                                for Americans Act for use under this 
                                subparagraph for a fiscal year, the 
                                Secretary shall allocate to each local 
                                area for that fiscal year an amount 
                                that bears the same relationship to 
                                that sum as the amount the local area 
                                receives under section 133(b) for that 
                                fiscal year bears to the total amount 
                                that all local areas so receive.
                            ``(iii) Local areas.--As a condition of 
                        receipt of funds under clause (ii), a local 
                        area shall agree to each of the following:
                                    ``(I) Required notice to adults and 
                                dislocated workers.--Prior to an 
                                eligible adult or dislocated worker 
                                selecting a program of training 
                                services from the list of eligible 
                                providers of training services under 
                                section 122(d), the local area shall 
                                inform such adult or dislocated worker 
                                of any opportunities the adult or 
                                dislocated may have to participate in 
                                on-the-job training or employer-
                                directed skills development funded 
                                through such local area.
                                    ``(II) Amounts available.--A local 
                                area--
                                            ``(aa) may not limit the 
                                        maximum amount available for an 
                                        individual training account for 
                                        an eligible adult or dislocated 
                                        worker under this subparagraph 
                                        to an amount that is less than 
                                        $7,000; and
                                            ``(bb) may not pay an 
                                        amount, through the use of an 
                                        individual training account 
                                        under this subparagraph, for 
                                        training services provided to 
                                        an eligible adult or dislocated 
                                        worker that exceeds the costs 
                                        of such services.
                            ``(iv) Local area coordination.--Each local 
                        area may, through one-stop centers, coordinate 
                        funding for individual training accounts 
                        described in clause (i) with funding from other 
                        Federal, State, local, or private job training 
                        programs or sources, including the Artificial 
                        Intelligence Horizon Fund, to assist eligible 
                        adults or dislocated workers in obtaining 
                        training services.
                            ``(v) Providers.--The local area shall 
                        enter into agreements with eligible providers 
                        described in clause (iii)(I) to provide 
                        training services under this subparagraph, with 
                        funding provided through direct payments made 
                        through individual training accounts, as 
                        described in section 134(c)(3)(F)(iii).
                            ``(vi) Eligible adult.--To be considered an 
                        eligible adult or dislocated worker under this 
                        subparagraph, an adult or dislocated worker 
                        shall have not received training services 
                        through an individual training account under 
                        section 129(c) during the preceding 5-year 
                        period or, if such adult or dislocated worker 
                        has received such training services during such 
                        period, have been granted an exception by the 
                        local area due to an exceptional circumstance, 
                        as determined by the local area.''.
    (c) Conforming Amendment.--Section 3(44)(B) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102(44)(B)) is amended by 
striking ``section 134(c)(3)(H)'' and inserting ``section 
134(c)(3)(I)''.

SEC. 605. STRENGTHENING COMMUNITY COLLEGES WORKFORCE DEVELOPMENT GRANTS 
              PROGRAM.

    (a) Program.--Subtitle D of title I of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3221 et seq.), as amended by section 402, is 
further amended by inserting after section 172, as inserted by section 
402, the following:

``SEC. 173. STRENGTHENING COMMUNITY COLLEGES WORKFORCE DEVELOPMENT 
              GRANTS PROGRAM.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to establish, improve, or expand high-quality 
        workforce development programs at community colleges; and
            ``(2) to expand opportunities for individuals to obtain 
        recognized postsecondary credentials that are nationally or 
        regionally portable and stackable for high-skill, high-wage, or 
        in-demand industry sectors or occupations.
    ``(b) Strengthening Community Colleges Workforce Development Grants 
Program.--
            ``(1) In general.--From the amounts appropriated to carry 
        out this section under section 173(e) and not reserved under 
        paragraph (2), the Secretary shall, on a competitive basis, 
        make grants to eligible institutions to carry out the 
        activities described in subsection (e).
            ``(2) Reservation.--Of the amounts appropriated to carry 
        out this section under section 173(e), the Secretary may 
        reserve not more than 2 percent for the administration of 
        grants awarded under this section, including--
                    ``(A) providing technical assistance and targeted 
                outreach to support eligible institutions serving a 
                high number or high percentage of low-income 
                individuals or individuals with barriers to employment, 
                and rural-serving eligible institutions, to provide 
                guidance and assistance in the process of applying for 
                grants under this section; and
                    ``(B) evaluating and reporting on the performance 
                and impact of programs funded under this section in 
                accordance with subsections (f) through (h).
    ``(c) Award Period.--
            ``(1) Initial grant period.--Each grant under this section 
        shall be awarded for an initial period of not more than 4 
        years.
            ``(2) Subsequent grants.--An eligible institution that 
        receives an initial grant under this section may receive one or 
        more additional grants under this section for additional 
        periods of not more than 4 years each if the eligible 
        institution demonstrates that, during the most recently 
        completed grant period for a grant received under this section, 
        such eligible institution achieved the levels of performance 
        agreed to by the eligible institution with respect to the 
        performance indicators specified in subsection (f).
    ``(d) Application.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, an eligible institution shall submit an 
        application to the Secretary at such time and in such manner as 
        the Secretary may require.
            ``(2) Contents.--An application submitted by an eligible 
        institution under paragraph (1) shall include a description of 
        each the following:
                    ``(A) The extent to which the eligible institution 
                has demonstrated success building partnerships with 
                employers in in-demand industry sectors or occupations 
                to provide students with the skills needed for 
                occupations in such industries and an explanation of 
                the results of any such partnerships.
                    ``(B) The methods and strategies the eligible 
                institution will use to engage with employers in in-
                demand industry sectors or occupations, including any 
                arrangements to place individuals who complete the 
                workforce development programs supported by the grant 
                into employment with such employers.
                    ``(C) The proposed eligible institution and 
                industry partnership that the eligible institution will 
                establish or maintain to comply with subsection (e)(1), 
                including--
                            ``(i) the roles and responsibilities of 
                        each employer, organization, agency, or 
                        institution of higher education that the 
                        eligible institution will partner with to carry 
                        out the activities under this section; and
                            ``(ii) the needs that will be addressed by 
                        such eligible institution and industry 
                        partnership.
                    ``(D) One or more industries that such partnership 
                will target and real-time labor market data 
                demonstrating that those industries are aligned with 
                employer demand in the geographic area to be served by 
                the eligible institution.
                    ``(E) The extent to which the eligible institution 
                can--
                            ``(i) leverage additional resources to 
                        support the programs to be funded with the 
                        grant, which shall include written commitments 
                        of any leveraged or matching funds for the 
                        proposed programs; and
                            ``(ii) demonstrate the future 
                        sustainability of each such program.
                    ``(F) The steps the institution will take to ensure 
                the high quality of each program to be funded with the 
                grant, including the career pathways within such 
                programs.
                    ``(G) The population and geographic area to be 
                served by the eligible institution, including the 
                number of individuals the eligible institution intends 
                to serve during the grant period.
                    ``(H) The workforce development programs to be 
                supported by the grant.
                    ``(I) The recognized postsecondary credentials that 
                are expected to be earned by participants in such 
                workforce development programs and the related high-
                wage, high skill, or in-demand industry sectors or 
                occupations for which such programs will prepare 
                participants.
                    ``(J) The evidence upon which the education and 
                skills development strategies to be used in such 
                workforce development programs are based and an 
                explanation of how such evidence influenced the design 
                of the programs to improve education and employment 
                outcomes.
                    ``(K) How activities of the eligible institution 
                are expected to align with the workforce strategies 
                identified in--
                            ``(i) any State plan or local plan 
                        submitted under this Act by the State, outlying 
                        area, or locality in which the eligible 
                        institution is expected to operate;
                            ``(ii) any State plan submitted under 
                        section 122 of the Carl D. Perkins Career and 
                        Technical Education Act of 2006 (20 U.S.C. 
                        2342) by such State or outlying area; and
                            ``(iii) any economic development plan of 
                        the chief executive of such State or outlying 
                        area.
                    ``(L) The goals of the eligible institution with 
                respect to--
                            ``(i) capacity building (as described in 
                        subsection (f)(1)(B)); and
                            ``(ii) the expected performance of 
                        individuals participating in the programs to be 
                        offered by the eligible institution, including 
                        with respect to performance indicators 
                        applicable under section 116 or subsection (f) 
                        of this section.
                    ``(M) Any coordination the eligible institution 
                plans to undertake with the State Commission on 
                National and Community Service for the State in which 
                the eligible institution is expected to operate, 
                including with respect to the co-enrollment, in the 
                workforce development programs to be supported by the 
                grant, of participants in the National Service for 
                America's Future program under subtitle K of title I of 
                the National and Community Service Act of 1990, as 
                added by title III of the Make AI Work for Americans 
                Act, or of other participants in national service 
                programs.
            ``(3) Consideration of previous experience.--The Secretary 
        may not disqualify an eligible institution from receiving a 
        grant under this section solely because such institution lacks 
        previous experience in building partnerships, as described in 
        paragraph (2)(A).
            ``(4) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to eligible institutions that--
                    ``(A) will use the grant to serve--
                            ``(i) individuals with barriers to 
                        employment; or
                            ``(ii) incumbent workers who need to gain 
                        or improve foundational skills, including 
                        skills related to technology and artificial 
                        intelligence, to enhance their employability;
                    ``(B) use competency-based assessments to award 
                academic credit for prior learning for programs 
                supported by the grant; or
                    ``(C) have, or will seek to have, the career 
                education programs supported by the grant included on 
                the list of eligible providers of training services 
                under section 122 for the State in which the eligible 
                institution is located.
    ``(e) Uses of Funds.--
            ``(1) Eligible institution and industry partnership.--For 
        the purpose of carrying out the activities specified in 
        paragraphs (2) and (3), an eligible institution that receives a 
        grant under this section shall establish a partnership (or 
        maintain an existing partnership) with one or more employers in 
        an in-demand industry sector or occupation (in this section 
        referred to as an `eligible institution and industry 
        partnership') and shall maintain such partnership for the 
        duration of the grant period. The eligible institution shall 
        ensure that the partnership--
                    ``(A) targets one or more specific high-skill, 
                high-wage, or in-demand industries;
                    ``(B) includes collaboration with the workforce 
                development system;
                    ``(C) serves adult and dislocated workers, 
                incumbent workers, and new entrants to the workforce;
                    ``(D) uses an evidence-based program design that is 
                appropriate for the activities carried out by the 
                partnership;
                    ``(E) incorporates opportunities for work-based 
                learning, as defined in section 3 of the Carl D. 
                Perkins Career and Technical Education Act of 2006 (20 
                U.S.C. 2302); and
                    ``(F) incorporates, to the extent appropriate, 
                virtual service delivery to facilitate technology-
                enabled learning.
            ``(2) Required activities.--An eligible institution that 
        receives a grant under this section shall, in consultation with 
        the employers in the eligible institution and industry 
        partnership described in paragraph (1)--
                    ``(A) establish, improve, or expand high quality, 
                evidence-based workforce development programs, career 
                pathway programs, or work-based learning programs 
                (including apprenticeship programs or 
                preapprenticeships);
                    ``(B) provide career services to individuals 
                participating in the programs funded with the grant to 
                facilitate retention and program completion, which may 
                include--
                            ``(i) career navigation, coaching, 
                        mentorship, and case management services, 
                        including providing information and outreach to 
                        individuals with barriers to employment to 
                        encourage such individuals to participate in 
                        programs funded with the grant; and
                            ``(ii) providing access to course 
                        materials, technological devices, required 
                        equipment, and other supports necessary for 
                        participation in and successful completion of 
                        such programs; and
                    ``(C) make available, in a format that is open, 
                searchable, and easily comparable, information on--
                            ``(i) curricula and recognized 
                        postsecondary credentials offered through 
                        programs funded with the grant, including any 
                        curricula or credentials created or further 
                        developed using such grant, which for each 
                        recognized postsecondary credential, shall 
                        include--
                                    ``(I) the issuing entity of such 
                                credential;
                                    ``(II) any third-party endorsements 
                                of such credential;
                                    ``(III) the occupations for which 
                                the credential prepares individuals;
                                    ``(IV) the skills and competencies 
                                necessary to achieve to earn such 
                                credential;
                                    ``(V) the level of mastery of such 
                                skills and competencies (including how 
                                mastery is assessed); and
                                    ``(VI) any transfer value or 
                                stackability of the credential;
                            ``(ii) any skills or competencies developed 
                        by individuals who participate in such programs 
                        beyond the skills and competencies identified 
                        as part of the recognized postsecondary 
                        credential awarded; and
                            ``(iii) related employment and earnings 
                        outcomes on the primary indicators of 
                        performance described in subclauses (I) through 
                        (III) of section 116(b)(2)(A)(i).
            ``(3) Additional activities.--In addition to the activities 
        required under paragraph (2), an eligible institution that 
        receives a grant under this section shall, in consultation with 
        the employers in the eligible institution and industry 
        partnership described in paragraph (1), carry out one or more 
        of the following activities:
                    ``(A) Establish, improve, or expand--
                            ``(i) articulation agreements (as defined 
                        in section 486A(a) of the Higher Education Act 
                        of 1965 (20 U.S.C. 1093a(a)));
                            ``(ii) credit transfer agreements;
                            ``(iii) corequisite remediation programs 
                        that enable a student to receive remedial 
                        education services while enrolled in a 
                        postsecondary course rather than requiring the 
                        student to receive remedial education before 
                        enrolling in such a course;
                            ``(iv) dual or concurrent enrollment 
                        programs;
                            ``(v) competency-based education and 
                        assessment; or
                            ``(vi) policies and processes to award 
                        academic credit for prior learning or for the 
                        programs described in paragraph (2)(A).
                    ``(B) Establish or implement plans for providers of 
                the programs described in paragraph (2)(A) to meet the 
                criteria and carry out the procedures necessary to be 
                included on the list of eligible providers of training 
                services described in section 122(d).
                    ``(C) Purchase, lease, or refurbish specialized 
                equipment as necessary to carry out such programs, 
                provided that not more than 15 percent of the funds 
                awarded to the eligible institution under this section 
                may be used for activities described in this 
                subparagraph.
                    ``(D) Reduce or eliminate unmet financial need 
                relating to the cost of attendance (as defined under 
                section 472 of the Higher Education Act of 1965 (20 
                U.S.C. 1087ll)) of participants in such programs.
            ``(4) Administrative cost limit.--An eligible institution 
        may use not more than 7 percent of the funds awarded under this 
        section for administrative costs, including costs related to 
        collecting information, analysis, and coordination for purposes 
        of subsection (f).
    ``(f) Levels of Performance and Performance Reviews.--
            ``(1) In general.--The Secretary shall develop and 
        implement guidance that establishes the levels of performance 
        that are expected to be achieved by each eligible institution 
        receiving a grant under this section. Such levels of 
        performance shall be established on the following indicators:
                    ``(A) Each of the primary indicators of performance 
                for adults described in section 116(b), which shall be 
                applied for all individuals who participated in a 
                program that received funding from a grant under this 
                section.
                    ``(B) The extent to which the eligible institution 
                built capacity by--
                            ``(i) increasing the breadth and depth of 
                        employer engagement and investment in workforce 
                        development programs in the in-demand industry 
                        sectors and occupations targeted by the 
                        eligible institution and industry partnership 
                        established or maintained by the eligible 
                        institution under subsection (e)(1);
                            ``(ii) designing or implementing new and 
                        accelerated instructional techniques or 
                        technologies, including the use of advanced 
                        online and technology-enabled learning (such as 
                        immersive technology); and
                            ``(iii) increasing program and policy 
                        alignment across systems and decreasing 
                        duplicative services or service gaps.
                    ``(C) With respect to individuals who participated 
                in a workforce development program funded with the 
                grant--
                            ``(i) the percentage of participants who 
                        successfully completed the program; and
                            ``(ii) of the participants who were 
                        incumbent workers at the time of enrollment in 
                        the program, the percentage who advanced into 
                        higher level positions during or after 
                        completing the program.
            ``(2) Consultation and determination of levels of 
        performance.--
                    ``(A) Consideration.--In developing levels of 
                performance in accordance with paragraph (1), the 
                Secretary shall take into consideration the goals of 
                the eligible institution pursuant to subsection 
                (d)(2)(L).
                    ``(B) Determination.--After completing the 
                consideration required under subparagraph (A), the 
                Secretary shall separately determine the levels of 
                performance that will apply to each eligible 
                institution, taking into account--
                            ``(i) the expected levels of performance of 
                        each eligible institution with respect to the 
                        goals described by the eligible institution 
                        pursuant to subsection (d)(2)(L); and
                            ``(ii) local economic conditions in the 
                        geographic area to be served by the eligible 
                        institution, including differences in 
                        unemployment rates and job losses or gains in 
                        particular industries.
                    ``(C) Notice and acknowledgment.--
                            ``(i) Notice.--The Secretary shall provide 
                        each eligible institution with a written 
                        notification that sets forth the levels of 
                        performance that will apply to the eligible 
                        institution, as determined under subparagraph 
                        (B).
                            ``(ii) Acknowledgment.--After receiving the 
                        notification described in clause (i), each 
                        eligible institution shall submit to the 
                        Secretary written confirmation that the 
                        eligible institution--
                                    ``(I) received the notification; 
                                and
                                    ``(II) agrees to be evaluated in 
                                accordance with the levels of 
                                performance determined by the 
                                Secretary.
            ``(3) Performance reviews.--On an annual basis during each 
        year of the grant period, the Secretary shall evaluate the 
        performance during such year of each eligible institution 
        receiving a grant under this section in a manner consistent 
        with the levels of performance determined for such institution 
        pursuant to paragraph (2).
            ``(4) Failure to meet levels of performance.--After 
        conducting an evaluation under paragraph (3), if the Secretary 
        determines that an eligible institution did not achieve the 
        levels of performance applicable to the eligible institution 
        under paragraph (2), the Secretary shall--
                    ``(A) provide technical assistance to the eligible 
                institution; and
                    ``(B) develop a performance improvement plan for 
                the eligible institution.
    ``(g) Evaluations and Reports.--
            ``(1) In general.--Not later than 4 years after the date on 
        which the first grant is made under this section, the Secretary 
        shall design and conduct an evaluation to determine the overall 
        effectiveness of the eligible institutions receiving a grant 
        under this section.
            ``(2) Elements.--The evaluation of the effectiveness of 
        eligible institutions conducted under paragraph (1) shall 
        include an assessment of the general effectiveness of programs 
        and activities supported by the grants awarded to such eligible 
        institutions under this section, including the extent to which 
        the programs and activities--
                    ``(A) developed new, or expanded existing, 
                successful industry sector strategies, including the 
                extent to which such eligible institutions deepened 
                employer engagement and developed workforce development 
                programs that met industry skill needs;
                    ``(B) created, expanded, or enhanced career 
                pathways, including the extent to which the eligible 
                institutions developed or improved competency-based 
                education and assessment, credit for prior learning, 
                modularized and self-paced curricula, integrated 
                education and workforce development, dual enrollment in 
                secondary and postsecondary career pathways, stacked 
                and latticed credentials, and online and distance 
                learning;
                    ``(C) created alignment between eligible 
                institutions and the workforce development system;
                    ``(D) assisted individuals with finding, retaining, 
                or advancing in employment;
                    ``(E) assisted individuals with earning recognized 
                postsecondary credentials; and
                    ``(F) provided equal access to various demographic 
                groups, including people of different geographic 
                locations, ages, races, national origins, and sexes.
            ``(3) Design requirements.--The evaluation under this 
        subsection shall--
                    ``(A) be designed by the Secretary (acting through 
                the Chief Evaluation Officer) in conjunction with the 
                eligible institutions being evaluated;
                    ``(B) include analysis of program participant 
                feedback and outcome and process measures; and
                    ``(C) use designs that employ the most rigorous 
                analytical and statistical methods that are reasonably 
                feasible, such as the use of control groups.
            ``(4) Data accessibility.--The Secretary shall make 
        available on a publicly accessible website of the Department of 
        Labor any data collected as part of the evaluation under this 
        subsection. Such data shall be made available in an aggregated 
        format that does not reveal personally identifiable information 
        and that ensures compliance with relevant Federal laws, 
        including section 444 of the General Education Provisions Act 
        (commonly known as the `Family Educational Rights and Privacy 
        Act of 1974') (20 U.S.C. 1232g).
            ``(5) Publication and reporting of evaluation findings.--
        The Secretary (acting through the Chief Evaluation Officer) 
        shall--
                    ``(A) in accordance with the timeline determined to 
                be appropriate by the Chief Evaluation Officer, publish 
                an interim report on the preliminary results of the 
                evaluation conducted under this subsection;
                    ``(B) not later than 60 days after the date on 
                which the evaluation is completed under this 
                subsection, submit to the Committee on Health, 
                Education, Labor, and Pensions of the Senate and the 
                Committee on Education and Workforce of the House of 
                Representatives a report on such evaluation; and
                    ``(C) not later than 90 days after such completion 
                date, publish and make the results of such evaluation 
                available on a publicly accessible website of the 
                Department of Labor.
    ``(h) Annual Reports.--The Secretary shall make available on a 
publicly accessible website of the Department of Labor, in transparent, 
linked, open, and interoperable data formats, the following 
information:
            ``(1) The performance of eligible institutions on the 
        capacity-building performance indicator set forth under 
        subsection (f)(1)(B).
            ``(2) The performance of eligible institutions on the 
        workforce development participant outcome performance 
        indicators set forth under subsection (f)(1)(C).
            ``(3) The number of individuals enrolled in workforce 
        development programs funded with a grant under this section.
    ``(i) Definitions.--In this section:
            ``(1) Community college.--The term `community college' 
        means--
                    ``(A) a public institution of higher education (as 
                defined in section 101(a) of the Higher Education Act 
                (20 U.S.C. 1001(a))), at which--
                            ``(i) the highest degree awarded is an 
                        associate degree; or
                            ``(ii) an associate degree is the most 
                        frequently awarded degree;
                    ``(B) a branch campus of a 4-year public 
                institution of higher education (as defined in section 
                101 of the Higher Education Act of 1965 (20 U.S.C. 
                1001)), if, at such branch campus--
                            ``(i) the highest degree awarded is an 
                        associate degree; or
                            ``(ii) an associate degree is the most 
                        frequently awarded degree;
                    ``(C) a 2-year Tribal College or University (as 
                defined in section 316(b)(3) of the Higher Education 
                Act of 1965 (20 U.S.C. 1059c(b)(3))); or
                    ``(D) a degree-granting Tribal College or 
                University (as defined in section 316(b)(3) of the 
                Higher Education Act of 1965 (20 U.S.C. 1059c(b)(3))) 
                at which--
                            ``(i) the highest degree awarded is an 
                        associate degree; or
                            ``(ii) an associate degree is the most 
                        frequently awarded degree.
            ``(2) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) a community college;
                    ``(B) a postsecondary vocational institution (as 
                defined in section 102(c) of the Higher Education Act 
                of 1965 (20 U.S.C. 1002(c))); or
                    ``(C) a consortium of such colleges or 
                institutions.
    ``(j) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local public funds made available for carrying out the 
activities described in this section.''.
    (b) Authorization of Appropriations.--Section 174 of the Workforce 
Innovation and Opportunity Act, as redesignated in section 332, is 
amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Strengthening Community Colleges Program.--There are 
authorized to be appropriated to carry out section 173 such sums as may 
be necessary.''.
    (c) Table of Contents.--The table of contents in section 1(b) of 
the Workforce Innovation and Opportunity Act is amended by striking the 
item relating to section 172 and inserting the following:

``Sec. 172. Small business futures program.
``Sec. 173. Strengthening community colleges workforce development 
                            grants program.
``Sec. 174. Authorization of appropriations.''.

SEC. 606. SERVICE OF MIDCAREER WORKERS.

    Section 3 of the Wagner-Peyser Act (29 U.S.C. 49b) is amended--
            (1) by striking ``State agencies'' and inserting ``State 
        workforce agencies''; and
            (2) by adding at the end the following:
    ``(f)(1) The activities to enhance the professional development and 
career advancement opportunities of staff under subsection (c)(4) shall 
include training, strategies, and practices--
            ``(A) specific to serving midcareer workers; and
            ``(B) as necessary, designed to appropriately and 
        effectively serve individuals displaced, or at risk of 
        displacement, by technological change, automation, artificial 
        intelligence, trade, or business restructuring.
    ``(2) Any activities described in this subsection that involve 
individuals covered by a collective bargaining agreement shall be 
conducted in accordance with the terms of such agreement.''.

         TITLE VII--BETTER ARTIFICIAL INTELLIGENCE FOR AMERICA

SEC. 701. ACCESSIBILITY.

    Any products or materials made available under this title shall be 
made accessible for individuals with disabilities and individuals with 
limited English proficiency.

SEC. 702. NATIONAL WORKFORCE COMPETENCY INITIATIVE.

    (a) Establishment.--Using amounts available for such purpose from 
the Artificial Intelligence Horizon Fund, the Secretary of Labor shall 
establish a national workforce competency initiative to facilitate the 
development, dissemination, and adoption of voluntary, nationally 
recognized competency frameworks, model curricula, assessment tools, 
and industry-recognized credentials for high-demand occupations within 
job sectors impacted by technological change.
    (b) Convening.--In carrying out the initiative established under 
subsection (a), the Secretary shall convene sector-relevant 
representatives of--
            (1) labor organizations;
            (2) sponsors of an apprenticeship registered under the Act 
        of August 16, 1937 (commonly known as the ``National 
        Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 U.S.C. 50 
        et seq.).;
            (3) institutions of higher education, including community 
        colleges;
            (4) State workforce agencies;
            (5) local boards, as defined in section 3 of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3102);
            (6) State Commissions on National and Community Service;
            (7) industry associations;
            (8) credentialing organizations;
            (9) workforce training providers; and
            (10) such other stakeholders as the Secretary determines 
        appropriate.
    (c) Duties.--In carrying out the initiative established under 
subsection (a), the Secretary, in consultation with the sector 
stakeholders described in subsection (b), shall, relevant to such 
sector--
            (1) develop voluntary national competency frameworks for 
        high-demand occupations;
            (2) develop or support common assessment tools;
            (3) facilitate development and recognition of industry-
        recognized credentials;
            (4) maintain a publicly accessible national repository of 
        competency frameworks, curricula, assessments, credentials, and 
        related workforce training resources;
            (5) promote interstate recognition and portability of 
        industry-recognized credentials;
            (6) coordinate with Federal agencies, States, institutions 
        of higher education, employers, labor organizations, and 
        workforce development entities to promote adoption of 
        competency frameworks and credentials;
            (7) periodically review and update competency frameworks to 
        reflect technological change, including advances in artificial 
        intelligence and other emerging technologies; and
            (8) disseminate best practices and technical assistance to 
        employers, educational institutions, workforce development 
        boards, sponsors of an apprenticeship described in subsection 
        (b)(3), and State workforce agencies.
    (d) Occupational Licensing.--Nothing in this section shall be 
construed to authorize the superseding, altering, or modification of an 
occupational or professional license issued or recognized by a State or 
the Federal Government.

SEC. 703. NATIONAL CLEARINGHOUSE FOR ARTIFICIAL INTELLIGENCE EDUCATION.

    (a) Establishment.--Using amounts allocated for such purpose from 
the Artificial Intelligence Horizon Fund, the Secretary of Education 
shall establish and maintain a national clearinghouse for artificial 
intelligence education, which shall serve as a repository and 
collaboration platform for information, instructional resources, best 
and promising practices, and model educational materials related to the 
integration of artificial intelligence in education and educational 
instruction.
    (b) Duties.--The clearinghouse established under subsection (a) 
shall--
            (1) collect, curate, evaluate, and disseminate evidence-
        based instructional resources related to artificial 
        intelligence education for elementary, secondary, and 
        postsecondary education;
            (2) identify and disseminate best and promising practices 
        for instruction of responsible use of artificial intelligence;
            (3) disseminate voluntary model curricula for age-
        appropriate artificial intelligence literacy across grades;
            (4) identify and disseminate model guidance regarding--
                    (A) classroom use of artificial intelligence;
                    (B) academic integrity;
                    (C) responsible artificial intelligence use;
                    (D) student privacy;
                    (E) cybersecurity; and
                    (F) bias, transparency, hallucinations, 
                misinformation, and disinformation; and
            (5) maintain a publicly accessible online repository of 
        lesson plans, instructional materials, assessment tools, 
        professional development resources, research findings 
        (including research on the impact of artificial intelligence on 
        students and learning), competency frameworks, and model 
        policies.
    (c) Leveraging Existing Repositories.--In carrying out subsection 
(b), the Secretary shall utilize existing hubs and repositories that 
may provide such content and allow the clearinghouse to serve as an 
entry point to such platforms.
    (d) Updating Clearinghouse Content.--The Secretary of Education 
shall regularly review and update the contents of the clearinghouse to 
maintain up-to-date content.
    (e) Conflicts of Interest.--The Secretary of Education shall ensure 
appropriate disclosures to maintain research quality and independent 
review of materials hosted by the clearinghouse.

SEC. 704. ARTIFICIAL INTELLIGENCE IN THE WORKPLACE.

    (a) Establishment.--Using amounts available for such purpose from 
the Artificial Intelligence Horizon Fund, the Secretary of Labor, in 
consultation with the Equal Employment Opportunity Commission, shall 
establish an initiative to develop, disseminate, and periodically 
update best practices and guidance for the safe, responsible, and 
effective integration of artificial intelligence technologies in the 
workplace.
    (b) Convening.--In carrying out the initiative established under 
subsection (a), the Secretary shall convene representatives of--
            (1) employers;
            (2) human resource professionals and organizations 
        representing human resource professionals;
            (3) labor organizations;
            (4) civil rights organizations;
            (5) institutions of higher education;
            (6) cybersecurity professions;
            (7) legal professionals responsible for advising employers 
        on workforce and employment matters; and
            (8) such other public and private stakeholders as the 
        Secretary determines appropriate.
    (c) Duties.--In carrying out the initiative established under 
subsection (a), the Secretary, in consultation with the stakeholders 
described in subsection (b), shall--
            (1) develop voluntary guidelines for employers regarding 
        the responsible adoption and use of artificial intelligence 
        technologies in the workplace;
            (2) develop model policies and implementation resources for 
        employers;
            (3) identify practices to mitigate risks relating to worker 
        privacy, bias, discrimination, transparency, and accountability 
        in workplace uses of artificial intelligence, including 
        practices related to--
                    (A) worker and labor organization participation in 
                the design, procurement, testing, and evaluation of 
                artificial intelligence;
                    (B) advance notice to, and consultation with, 
                workers and labor organizations before the adoption of 
                artificial intelligence technologies that materially 
                affect working conditions;
                    (C) algorithmic management;
                    (D) workplace surveillance, including limits on the 
                collection and use of worker data;
                    (E) automated employment decision tools;
                    (F) disclosure to workers related to the use of 
                artificial intelligence;
                    (G) human review of consequential employment 
                decisions, including decisions relating to hiring, 
                scheduling, discipline, compensation, and termination;
                    (H) the ability of a worker to exercise 
                professional judgment to override an automated 
                determination, and protection from retaliation for 
                doing so;
                    (I) the ability of a worker to meaningfully 
                challenge or appeal employer decisions made using 
                artificial intelligence, including the provision to the 
                worker of an understandable explanation of the basis 
                for an adverse decision and a process to request human 
                reconsideration;
                    (J) protection from retaliation for a worker who 
                reports a harm or misuse relating to workplace 
                artificial intelligence;
                    (K) the identification and reporting by employers 
                of workforce reductions substantially related to the 
                adoption of artificial intelligence;
                    (L) independent testing for bias and discriminatory 
                outcomes of artificial intelligence systems, before and 
                during deployment; and
                    (M) the use of artificial intelligence to augment 
                the capabilities of workers and improve job quality and 
                workplace health and safety;
            (4) periodically review and update the guidelines to 
        reflect technological advances and emerging best practices;
            (5) make all guidance, model policies, and related 
        resources publicly available; and
            (6) not later than 2 years after the date of enactment of 
        this Act, and periodically thereafter, submit to the Committee 
        on Health, Education, Labor, and Pensions of the Senate and the 
        Committee on Education and Workforce of the House of 
        Representatives a report identifying which of the practices 
        described in paragraph (3) should be established as 
        requirements, including any recommendation for legislation and 
        an assessment of the extent to which voluntary adoption of such 
        practices has occurred.
    (d) Federal Agencies.--In carrying out the initiative established 
under subsection (a), the Secretary shall develop guidance under this 
section that is suitable for use by Federal agencies in adopting 
artificial intelligence technologies affecting the work of their 
employees or the delivery of public services.
    (e) Rule of Construction.--Nothing in this section shall be 
construed to alter any right or obligation under Federal labor or 
employment law or to affect the terms of a collective bargaining 
agreement.
                                 <all>