Federal bill could cut contractor training costs by up to 50%
The Employer-Directed Skills Act would ultimately establish employer-directed skills accounts through which the federal government would reimburse employers’ training costs
Image: Flickr Creative Commons
ACCA is encouraging members to support a bill pending in Congress that would, if passed, reimburse contractors for training new employees.
What’s happening: The Employer-Directed Skills Act — first introduced in June 2025 but brought to the Senate on Wednesday — would ultimately establish employer-directed skills accounts through which the federal government would reimburse employers’ training costs.
- The reimbursement rate would be 50 percent for businesses with 50 or fewer employees, 25 percent for those with 51 to 100 employees, and would vary for businesses with over 100 employees.
What they’re saying: “Right now, workforce development programs are run by the government,” ACCA wrote in a blog post. “They decide who gets trained, what training they get, and whether those people are actually qualified for your jobs.”
- “[The Employer-Directed Skills Act] flips the script,” it added. “Under this bill, you pick the person, choose the training program (on-the-job, technical school, apprenticeship), and the federal government reimburses you for a chunk of the cost after training is complete.”
Yes, but: The funds are for new employees only — not upskilling current staff.
- Once training is complete, those people must be hired.
- Contractors pay upfront, then get reimbursed.
- And local workforce boards would handle logistics.
What we’re watching: Similar versions of the bill have been introduced in past years without becoming law, ACCA noted, but it does have industry support — and the broad concept of employer-directed workforce funding has bipartisan support.
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