I
119THCONGRESS
1
STSESSION H. R. 2651
To amend the Workforce Innovation and Opportunity Act to establish a
State innovation demonstration authority.
IN THE HOUSE OF REPRESENTATIVES
APRIL3, 2025
Mr. O
WENSintroduced the following bill; which was referred to the Committee
on Education and Workforce
A BILL
To amend the Workforce Innovation and Opportunity Act
to establish a State innovation demonstration authority.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘One Door to Work 4
Act’’. 5
SEC. 2. STATE INNOVATION DEMONSTRATION AUTHORITY. 6
Section 190 of the Workforce Innovation and Oppor-7
tunity Act (29 U.S.C. 3250) is amended to read as follows: 8
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‘‘SEC. 190. STATE INNOVATION DEMONSTRATION AUTHOR-1
ITY. 2
‘‘(a) P
URPOSE.—The purpose of this section is to— 3
‘‘(1) authorize States to apply under this sec-4
tion on behalf of the entire State, or on behalf of a 5
local area or a consortium of local areas in the 6
State, to receive the allotments or allocations of the 7
State or the local areas, respectively, for youth work-8
force investment activities and adult and dislocated 9
worker employment and training activities under this 10
Act, as a consolidated grant for 5 years for the pur-11
pose of carrying out a demonstration project to pur-12
sue innovative reforms to achieve better outcomes 13
for jobseekers, employers, and taxpayers; and 14
‘‘(2) require that rigorous evaluations be con-15
ducted to demonstrate if better outcomes and associ-16
ated innovative reforms were achieved as a result of 17
such demonstration projects. 18
‘‘(b) G
ENERALAUTHORITY.— 19
‘‘(1) W
AIVERS AND DEMONSTRATION GRANT 20
AMOUNTS.—Notwithstanding any other provision of 21
law, during the demonstration period applicable to a 22
demonstration project approved for a State pursuant 23
to subsection (d)(3), the Secretary shall comply with 24
each of the following: 25
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‘‘(A) WAIVERS.—Subject to paragraph (2), 1
waive for the State as a whole, or for the local 2
area or the consortium of local areas in such 3
State selected by the State to carry out such 4
demonstration project, all the statutory and 5
regulatory requirements of subtitle A and sub-6
title B. 7
‘‘(B) D
EMONSTRATION GRANT 8
AMOUNTS.—For each fiscal year applicable to 9
such demonstration period: 10
‘‘(i) S
TATE AS A WHOLE .—In a case 11
of a State approved to carry out a dem-12
onstration project under this section on be-13
half of the State as a whole, distribute as 14
a consolidated sum to the State, for pur-15
poses of carrying out the project, the 16
State’s total allotment for such fiscal year 17
under— 18
‘‘(I) subsections (b)(1)(C) and 19
subsection (c) of section 127; 20
‘‘(II) paragraphs (1)(B) and 21
(2)(B) of section 132(b); and 22
‘‘(III) section 132(c). 23
‘‘(ii) L
OCAL AREA.—In a case of a 24
local area selected by a State to carry out 25
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a demonstration project under this section, 1
require the State to— 2
‘‘(I) distribute as a consolidated 3
sum to the local board for such local 4
area, for purposes of carrying out the 5
project, the local area’s allocation for 6
such fiscal year under— 7
‘‘(aa) subsections (b) and (c) 8
of section 128; and 9
‘‘(bb) subsections (b) and 10
(c) of section 133; or 11
‘‘(II) if the local board of the 12
local area enters into a written agree-13
ment with the State for the State to 14
serve as the fiscal agent for the local 15
board during the demonstration 16
project, use the funds described in 17
subclause (I) for purposes of carrying 18
out the project on behalf of the local 19
board. 20
‘‘(iii) C
ONSORTIUM OF LOCAL 21
AREAS.—In a case of a consortium of local 22
areas selected by a State to carry out a 23
demonstration project under this section, 24
require the State to— 25
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‘‘(I) distribute as a consolidated 1
sum to the consortium, for purposes 2
of carrying out the project, the total 3
amount of the allocations for the local 4
areas in such consortium for such fis-5
cal year under— 6
‘‘(aa) subsections (b) and (c) 7
of section 128; and 8
‘‘(bb) subsections (b) and 9
(c) of section 133; or 10
‘‘(II) if the consortium enters 11
into a written agreement with the 12
State for the State to serve as the fis-13
cal agent for the consortium during 14
the demonstration project, use the 15
funds described in subclause (I) for 16
purposes of carrying out the project 17
on behalf of such consortium. 18
‘‘(2) E
XCEPTIONS.— 19
‘‘(A) I
N GENERAL.—A State, local area, or 20
consortium of local areas carrying out a dem-21
onstration project under this section shall com-22
ply with statutory or regulatory requirements of 23
this Act relating to— 24
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‘‘(i) performance accountability and 1
reporting, except as otherwise provided in 2
this section; 3
‘‘(ii) the membership of local or State 4
boards in instances where a State carrying 5
out a demonstration project will maintain 6
the use of such boards during the dem-7
onstration period; and 8
‘‘(iii) the priority of service described 9
in section 134(c)(3)(E). 10
‘‘(B) A
PPLICABILITY OF DEFINED 11
TERMS.—In carrying out a demonstration 12
project under this section, a State, local area, 13
or consortium of local areas may only use a 14
term defined in section 3 to describe an activity 15
carried out under such demonstration project if 16
the State, local area, or consortium of local 17
areas gives such term the same meaning as 18
such term is given under such section. 19
‘‘(3) A
UTHORITY FOR THIRD -PARTY EVALUA-20
TION.— 21
‘‘(A) I
N GENERAL.—Not later than 180 22
days after the first demonstration project is ap-23
proved under this section, the Secretary shall 24
contract with a third-party evaluator to conduct 25
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a rigorous evaluation of each demonstration 1
project approved under this section. The evalua-2
tion shall— 3
‘‘(i) cover the 5-year period of each 4
demonstration project; 5
‘‘(ii) compare the employment and 6
earnings outcomes of participants in activi-7
ties carried out under the demonstration 8
project to— 9
‘‘(I) the outcomes of similarly sit-10
uated individuals that do not partici-11
pate in such activities who are located 12
in such State, local area, or a local 13
area in such consortium; and 14
‘‘(II) the outcomes of partici-15
pants in activities under this chapter 16
in the State, local area, or a local area 17
in the consortium that was awarded a 18
waiver prior to the award of such 19
waiver; 20
‘‘(iii) conduct a qualitative analysis 21
that identifies any promising practices or 22
innovative strategies that— 23
‘‘(I) would not have been con-24
ducted without the waiving of statu-25
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tory or regulatory provisions through 1
the demonstration project; and 2
‘‘(II) lead to positive employment 3
and earnings outcomes for the partici-4
pants; and 5
‘‘(iv) compare the outcomes for sub-6
clauses (I) and (II) of clause (ii) with re-7
spect to the subpopulations described in 8
section 116(d)(2)(B). 9
‘‘(B) R
EPORT.—Not later than 2 years 10
after the fifth year of each demonstration 11
project approved under this section, the Sec-12
retary shall submit to the Committee on Edu-13
cation and the Workforce of the House of Rep-14
resentatives and the Committee on Health, 15
Education, Labor, and Pensions, the results of 16
the evaluation of such conducted under this 17
paragraph. 18
‘‘(c) D
EMONSTRATIONPERIOD; LIMITATIONS.— 19
‘‘(1) I
N GENERAL.—A demonstration project 20
approved under this section for a State, local area, 21
or consortium— 22
‘‘(A) shall be carried out for a 5-year dem-23
onstration period; and 24
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‘‘(B) may be renewed for an additional 5- 1
year demonstration period, if the State, local 2
area, or consortium— 3
‘‘(i) for each of the final 3 years of 4
the preceding 5-year demonstration period, 5
meets its expected levels of performance 6
established under subsection (f)(1)(C); and 7
‘‘(ii) on the final year of the preceding 8
5-year demonstration period, achieves a 9
performance improvement of not less than 10
an average of a 5-percent increase across 11
all of the indicators of performance de-12
scribed in clauses (i) and (ii) of subsection 13
(f)(1)(A), compared with— 14
‘‘(I) the highest level of perform-15
ance for the corresponding indicators 16
of performance, as described in sub-17
section (f)(1)(B)(i) with respect to 18
such State, for the most recent pro-19
gram year that ended prior to the be-20
ginning of the first year of the pre-21
ceding 5-year demonstration period; 22
or 23
‘‘(II) the alternate baseline level 24
of performance for the corresponding 25
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indicators of performance that is 1
agreed upon between the State and 2
the Secretary under subsection 3
(f)(1)(B)(ii). 4
‘‘(2) L
IMITATIONS.— 5
‘‘(A) D
EMONSTRATION PERIOD LIMITA -6
TIONS.—For each 5-year demonstration period 7
(including renewals of such period) the Sec-8
retary may not approve— 9
‘‘(i) more than 8 demonstration 10
projects for States to carry out a dem-11
onstration project described in subsection 12
(b)(1)(B)(i); and 13
‘‘(ii) more than 8 demonstration 14
projects for local areas (or consortia of 15
local areas) to carry out a demonstration 16
project described in clause (ii) or (iii) of 17
subsection (b)(1)(B). 18
‘‘(B) S
TATE LIMITATIONS.—No more than 19
1 demonstration project may be approved under 20
this section per State. For purposes of this sub-21
paragraph, a demonstration project described in 22
clause (ii) or (iii) of subsection (b)(1)(B) ap-23
proved for a local area or a consortium of local 24
areas, respectively, in a State shall be consid-25
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ered a demonstration project approved under 1
this section for the State. 2
‘‘(d) A
PPLICATION.— 3
‘‘(1) I
N GENERAL.—To be eligible to carry out 4
a demonstration project under this section, a State 5
shall submit to the Secretary an application at such 6
time and in such manner as the Secretary may rea-7
sonably require, and containing the information de-8
scribed in paragraph (2). 9
‘‘(2) C
ONTENT.—Each application submitted by 10
a State under this subsection shall include the fol-11
lowing: 12
‘‘(A) A description of the demonstration 13
project to be carried out under this section, in-14
cluding— 15
‘‘(i) whether the project will be car-16
ried out— 17
‘‘(I) by the State as a whole; 18
‘‘(II) by a local area, and if so— 19
‘‘(aa) an identification of— 20
‘‘(AA) such local area; 21
‘‘(BB) whether the 22
local board for such local 23
area is the fiscal agent for 24
the project, or whether the 25
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local board has entered into 1
a written agreement with 2
the State for the State to 3
serve as the fiscal agent dur-4
ing the project; and 5
‘‘(bb) written verification 6
from the local board for such 7
local area that such local board 8
agrees— 9
‘‘(AA) to carry out such 10
project; and 11
‘‘(BB) to the fiscal 12
agent identified in item 13
(aa)(BB); and 14
‘‘(III) by a consortium of local 15
areas in the State, and if so— 16
‘‘(aa) an identification of— 17
‘‘(AA) each local area 18
that comprises the consor-19
tium; and 20
‘‘(BB) the local area 21
that will serve as the fiscal 22
agent for the consortium 23
during the project, or wheth-24
er the consortium has en-25
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tered into a written agree-1
ment with the State for the 2
State to serve as the fiscal 3
agent; and 4
‘‘(bb) written verification 5
from each local board of each 6
local area identified in item 7
(aa)(AA) that such local board 8
agrees— 9
‘‘(AA) to carry out such 10
project as a consortium; and 11
‘‘(BB) to the fiscal 12
agent for the consortium 13
identified in item (aa)(BB); 14
‘‘(ii) a description of the activities to 15
be carried out under the project; and 16
‘‘(iii) the goals the State, local area, 17
or consortium intends to achieve through 18
such activities, which shall be aligned with 19
the purpose described in subsection (a). 20
‘‘(B) A description of the performance out-21
comes the State, the local area, or consortium 22
expects to achieve for such activities for each 23
year of the demonstration period as described 24
in subsection (f)(1). 25
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‘‘(C) A description of how the State, local 1
area, or consortium consulted with employers, 2
the State board, and the local boards in the 3
State in determining the activities to carry out 4
under the demonstration project. 5
‘‘(D) A description of how the State will 6
make such activities available to jobseekers and 7
employers in each of the local areas in the State 8
or, in a case of a project that will be carried out 9
by a local area or a consortium, a description 10
of how such services will be made available to 11
jobseekers and employers in such local area or 12
each of the local areas in the consortium. 13
‘‘(E) A description, if appropriate, of how 14
the State, local area, or consortium will inte-15
grate the funds received, and the activities car-16
ried out, under the demonstration project under 17
this section with State workforce development 18
programs and other Federal, State, or local 19
workforce, education, or social service programs 20
(including the programs and activities listed in 21
section 103(a)(2), the program of adult edu-22
cation and literacy activities authorized under 23
title II, and the program authorized under title 24
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I of the Rehabilitation Act of 1973 (29 U.S.C. 1
720 et seq.)). 2
‘‘(F) An assurance that the State, local 3
area, or consortium will meet the requirements 4
of this section. 5
‘‘(3) S
ECRETARIAL APPROVAL .— 6
‘‘(A) I
N GENERAL.—Not later than 60 7
days after the date on which a State submits an 8
application under this subsection, the Secretary 9
shall— 10
‘‘(i) in a case in which the application 11
meets the requirements of this section and 12
is not subject to the limitations described 13
in subsection (c)(2), approve such applica-14
tion and the demonstration project de-15
scribed in such application; or 16
‘‘(ii) provide to the State a written ex-17
planation of initial disapproval that meets 18
the requirements of subparagraph (C). 19
‘‘(B) D
EFAULT APPROVAL .—With respect 20
to an application submitted by a State under 21
this subsection that is not subject to the limita-22
tions described in subsection (c), if the Sec-23
retary fails to approve such application or pro-24
vide an explanation of initial disapproval for 25
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such application as required under subpara-1
graph (A), the application and the demonstra-2
tion project described in such application shall 3
be deemed approved by the Secretary. 4
‘‘(C) I
NITIAL DISAPPROVAL .—An expla-5
nation of initial disapproval provided by the 6
Secretary to a State under subparagraph (A)(ii) 7
shall provide the State— 8
‘‘(i) a detailed explanation of why the 9
application does not meet the requirements 10
of this section; and 11
‘‘(ii) if the State is not subject to the 12
limitations described in subsection (c), an 13
opportunity to revise and resubmit the 14
State’s application under this section. 15
‘‘(e) S
TATEDEMONSTRATION PROJECTREQUIRE-16
MENTS.—A State, local area, or consortium that has been 17
approved to carry out a demonstration project under this 18
section shall meet each of the following requirements: 19
‘‘(1) U
SE OF FUNDS.—Use the funds received 20
pursuant to subsection (b)(1)(B) solely to carry out 21
the activities of the demonstration project to achieve 22
the goals described in subsection (d)(2)(A). 23
‘‘(2) A
DMINISTRATIVE COSTS LIMITATION .— 24
Use not more than 10 percent of the funds received 25
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pursuant to subsection (b)(1)(B) for a fiscal year for 1
the administrative costs of carrying out the dem-2
onstration project. 3
‘‘(3) P
RIORITY FOR SERVICES .—Give priority 4
for services under the project to veterans and their 5
eligible spouses in accordance with the requirements 6
of section 4215 of title 38, United States Code, re-7
cipients of public assistance, low-income individuals, 8
and individuals who are basic skills deficient. 9
‘‘(4) N
UMBER OF PARTICIPANTS .—Serve a 10
number of participants under the activities of the 11
demonstration project for each year of the dem-12
onstration period that— 13
‘‘(A) is greater than the number of partici-14
pants served by such State, local area, or con-15
sortium under the programs described in sub-16
paragraph (A) of the definition of the term 17
‘core program provision’ under section 3 for the 18
most recent program year that ended prior to 19
the beginning of the first year of the dem-20
onstration period; or 21
‘‘(B) is not less than the number of par-22
ticipants to be served under the activities of the 23
demonstration project that is agreed upon be-24
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tween the State, local area, or consortium, and 1
the Secretary— 2
‘‘(i) prior to the Secretary’s approval 3
of the application submitted under sub-4
section (d); and 5
‘‘(ii) after the Secretary takes into ac-6
count— 7
‘‘(I) the goals the State, local 8
area, or consortium intends to achieve 9
through the demonstration project; 10
and 11
‘‘(II) the participants the State, 12
local area, or consortium intends to 13
serve under such project; and 14
‘‘(iii) prior to approval of the applica-15
tion submitted under subsection (d). 16
‘‘(5) R
EPORTING OUTCOMES .—Submit, on an 17
annual basis, to the Secretary a report, with respect 18
to such State, local area, or consortium, on— 19
‘‘(A) participant outcomes for each indi-20
cator of performance described in subsection 21
(f)(1)(A) for the activities carried out under the 22
project; and 23
‘‘(B) the applicable requirements of section 24
116(d)(2), including subparagraphs (B) 25
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through (G) and subparagraph (J), as such 1
subparagraphs are applicable to activities under 2
the demonstration project. 3
‘‘(6) C
OMPLIANCE WITH CERTAIN EXISTING RE -4
QUIREMENTS.—Comply with the statutory or regu-5
latory requirements listed in subsection (b)(2). 6
‘‘(f) P
ERFORMANCEACCOUNTABILITY.— 7
‘‘(1) E
STABLISHMENT OF BASELINE LEVEL 8
FOR PERFORMANCE .— 9
‘‘(A) I
N GENERAL.—Each State shall de-10
scribe in the application submitted under sub-11
section (d), for each year of the demonstration 12
period— 13
‘‘(i) with respect to participants who 14
are at least 25 years old, the expected lev-15
els of performance for each of the indica-16
tors of performance under section 17
116(b)(2)(A)(i) for the activities carried 18
out under the project under this section, 19
which shall meet the requirements of sub-20
paragraph (B); and 21
‘‘(ii) with respect to participants who 22
are at least 16 years old and no older than 23
24 years old, the expected levels of per-24
formance for each of the indicators of per-25
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formance under section 116(b)(2)(A)(ii) 1
for the activities carried out under the 2
project under this section, which shall meet 3
the requirements of subparagraph (B). 4
‘‘(B) 5
TH YEAR.—Each of the expected 5
levels of performance established pursuant to 6
subparagraph (A) for each of the indicators of 7
performance for the 5th year of the demonstra-8
tion period shall be higher than— 9
‘‘(i) the highest level of performance 10
for the corresponding indicator of perform-11
ance for the programs described in sub-12
paragraph (A) of the definition of the term 13
‘core program provisions’ under section 3 14
for the most recent program year for such 15
State that ended prior to the beginning of 16
the first year of the demonstration period; 17
or 18
‘‘(ii) an alternate baseline level of per-19
formance that is agreed upon between the 20
State and the Secretary— 21
‘‘(I) prior to the Secretary’s ap-22
proval of the application submitted 23
under subsection (d); and 24
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‘‘(II) after the Secretary takes 1
into account— 2
‘‘(aa) the goals the State in-3
tends to achieve through the 4
demonstration project; and 5
‘‘(bb) the participants the 6
State intends to serve under such 7
project. 8
‘‘(C) A
GREED LEVEL FOR PERFORMANCE 9
ON EXPECTED LEVELS OF PERFORMANCE .— 10
Prior to approving an application for a dem-11
onstration project submitted by a State, and 12
using the expected levels of performance de-13
scribed in such application, the Secretary shall 14
reach an agreement with such State on the ex-15
pected levels of performance for each of the in-16
dicators of performance. In reaching an agree-17
ment on such expected levels of performance, 18
the Secretary and the State may consider the 19
factors described in section 116(b)(3)(A)(v). 20
‘‘(2) S
ANCTIONS.— 21
‘‘(A) I
N GENERAL.—The sanctions de-22
scribed in section 116(f)(1)(B) shall apply to a 23
State, local area, or consortium beginning on 24
the 3rd year of the demonstration period for 25
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such State, local area, or consortium, except 1
that the levels of performance established under 2
subsection (f)(1)(C) of this section shall be— 3
‘‘(i) deemed to be the State negotiated 4
levels of performance for purposes of this 5
paragraph; and 6
‘‘(ii) adjusted at the end of each pro-7
gram year to reflect the actual characteris-8
tics of participants served and the actual 9
economic conditions experienced using a 10
statistical adjustment model similar to the 11
model described in section 12
116(b)(3)(A)(viii). 13
‘‘(B) I
NELIGIBILITY FOR RENEWAL .—A 14
State, local area, or consortium that is subject 15
to such sanctions shall be ineligible to renew its 16
demonstration period under subsection (c). 17
‘‘(3) I
MPACT OF LOCAL OR CONSORTIUM DEM -18
ONSTRATIONS ON STATEWIDE ACCOUNTABILITY .— 19
With respect to a State with an approved dem-20
onstration project for a local area or consortium of 21
local areas in the State— 22
‘‘(A) the performance of such local area or 23
consortium for the programs described in sub-24
paragraph (A) of the definition of the term 25
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•HR 2651 IH
‘core program provision’ under section 3 shall 1
not be included in the levels of performance for 2
such State for any of such programs for pur-3
poses of section 116 for any program year that 4
is applicable to any year of the demonstration 5
period; and 6
‘‘(B) with respect to any local areas of the 7
State that are not part of the demonstration 8
project, the State shall reach a new agreement 9
with the Secretary, for purposes of section 10
116(b)(3)(A), on levels of performance for such 11
programs for such program years.’’. 12
Æ
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