The American Workforce Act establishes a new federal program to provide paid training and employment opportunities as an alternative to four-year college degrees. The program creates contracts between employers and trainees (individuals with a high school diploma but no bachelor's degree) where employers receive federal subsidies of up to $9,000 per trainee to cover educational training costs, while trainees earn at least minimum wage during their training period. Employers who successfully hire trainees as full-time employees receive an additional $1,000 bonus. The bill creates a new Director position within the Department of Commerce to oversee the program, approve training contracts, enforce compliance, and collect data on outcomes like completion rates and participant earnings. The legislation authorizes the program for 10 years with mandatory reporting to Congress at the five and ten-year marks, after which the program sunsets. To help fund the initiative, the bill imposes a one percent annual excise tax on endowments exceeding $2.5 billion at large private colleges and universities (excluding religious institutions), effective for tax years beginning after December 31, 2024.
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