The Federal Jobs Guarantee Development Act of 2026 directs the Secretary of Labor to establish a pilot program that awards competitive grants to up to 15 state, local, or tribal governments with unemployment rates significantly above the national average to create job guarantee programs offering guaranteed employment to all qualified residents age 18 and older. Participating workers would earn at least the prevailing wage, receive federal-level health insurance and paid leave benefits, and have access to supportive services like childcare, transportation, and job training, with employment opportunities lasting up to three years in designated priority areas including childcare, senior care, clean energy, and infrastructure. The pilot includes safeguards such as a three-year maximum employment limit per participant, up to eight weeks of paid training support, and provisions for justice-involved individuals seeking reentry into the workforce. The bill establishes rigorous oversight requirements, including annual audits and detailed reporting on program fund usage and outcomes across demographic categories, as well as evaluation of the program's effects on employment, wages, poverty, and public assistance spending. Additionally, the legislation expands the federal Work Opportunity Tax Credit to include job guarantee program participants employed for at least three months, effective for hires after December 31, 2026.
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