Source: United States House of Representatives – Congressman Raja Krishnamoorthi (8th District of Illinois)
WASHINGTON – Today, Congressman Raja Krishnamoorthi (D-IL) and Senator Mark Warner (D-VA) introduced the Investing in American Workers Act, legislation to help workers gain the skills they need to succeed as artificial intelligence (AI), automation, and rapid technological change reshape the economy. The Investing in American Workers Act would modernize the tax code to encourage employers to invest in workforce training tied to recognized postsecondary credentials, particularly for lower- and moderate-income workers, so employees can adapt to new technologies, transition into emerging roles, and share in the gains of a rapidly evolving economy.
“Businesses across the country are still struggling to find workers with the training needed for today’s jobs, and workers need better access to affordable, employer-supported opportunities to build new skills,” Congressman Krishnamoorthi said. “This legislation expands access to high-quality training programs that help workers move into good, stable careers while strengthening the competitiveness of our businesses and growing the middle class. If we want the United States to remain the world’s economic leader, we must invest in the workers who drive our economy. When people have the skills they need to get ahead, our communities grow stronger and the entire country benefits.”
“As artificial intelligence and automation transform nearly every sector of our economy, the question isn’t whether jobs will change – it’s whether workers will be given a fair shot to keep up. If we want the United States to lead in innovation, we must also lead in preparing workers for the jobs of the future,” Sen. Warner said. “Right now, our tax code rewards companies for investing in machines and software, but not nearly enough for investing in people. This bill applies a proven model, the R&D tax credit, to incentivize employers to offer workforce training, so workers can build new skills, businesses can stay competitive, and the benefits of technological change are more widely shared.”
As AI tools increasingly alter job requirements in sectors from manufacturing and logistics to health care, finance, and professional services, many workers lack access to affordable, employer-supported training. At the same time, businesses often face little incentive to make long-term investments in their employees. While the tax code offers a Research and Development (R&D) tax credit for investments in technology and capital assets, it provides no comparable incentive for workforce training.
The Investing in American Workers Act addresses this gap by:
-
Establishing a tax credit for employers who increase spending on worker training, equal to 20 percent of increased training expenditures for eligible workers earning $96,000 or less per year.
-
Incentivizing high-quality, industry-aligned training, including registered apprenticeships, WIOA-certified programs, community college and career and technical education programs, and employer- or labor-sponsored training that leads to recognized postsecondary credentials.
-
Encouraging participation by small businesses, allowing eligible small employers and tax-exempt entities to apply the credit against payroll taxes through a simplified filing process.
-
Promoting accountability and transparency, including data collection to ensure training investments are reaching a diverse workforce.
Supporters note that aligning workforce policy with the pace of technological change is critical to maintaining U.S. economic leadership and ensuring that AI-driven productivity gains benefit workers as well as employers.
“The accelerating pace of change in the workplace is reshaping workforce needs and reinforcing the importance of proactive, sustained investment in skills. Workday strongly supports the reintroduction of the Investing in American Workers Act, which recognizes the critical role employers play in helping workers build the agility needed for the future of work. This legislation affirms a powerful truth: reskilling is not an operational burden, but a strategic investment in an organization’s most valuable resource – its people,” said Chandler Morse, Vice President of Public Policy, Workday.
“Workers need access to high-quality skills training, and employers need a workforce with the skills required to meet rapidly changing hiring needs. By incentivizing employer investments in training, including small businesses, this bill helps meet hiring needs while expanding workers’ access to good jobs and strengthening communities more broadly,” said Megan Evans, Senior Government Affairs Manager, National Skills Coalition.
“AI is transforming jobs at unprecedented speed, putting many workers at risk of being left behind unless we act quickly to help them build new, in-demand skills before they exit the labor market. The Investing in American Workers Act offers a smart, scalable solution – modeled on the R&D credit – by incentivizing employers to expand high-quality training that leads to portable credentials and enables workers to advance while staying connected to the workforce.” – Maria Flynn, President & CEO, Jobs for the Future
The legislation has also been endorsed by Jobs for the Future and the American Association of Community Colleges.
Text for the Investing in American Workers Act is available here.