New Bills Aim to Expand Labor Pool and Develop Skilled Workers

A pair of new bills seek to tackle labor shortages by offering tax incentives to companies that donate to local workforce development programs and by creating a new visa type to fill long-vacant jobs.

Rep. Lloyd Smucker (R-PA) reintroduced the USA Workforce Investment Act (H.R. 5493) and the Essential Workers for Economic Advancement Act (H.R. 5494) on Sept. 18. The first bill would encourage charitable donations for community-based apprenticeship initiatives, career and technical education, workforce development, and K-12 preparedness. Businesses that contribute to nonprofit organizations that offer those programs would be eligible to claim a tax credit.

The Essential Workers for Economic Advancement Act, meanwhile, aims to create a market-driven temporary worker program designed to adapt to changing economic conditions. Employers would be able to tap into a new H-2C nonimmigrant visa to hire foreign workers for positions that have gone unfilled for three consecutive months in areas where the unemployment rate is 7.9 percent or less.

“The Essential Workers for Economic Advancement Act is a common-sense, bipartisan and market-driven solution that addresses workforce shortages in key industries while ensuring American workers are prioritized,” Smucker said in a statement announcing the bill. “This guest worker program will help employers fill positions that have remained vacant for months and grow our economy.”

The legislation received wide support from business organizations, including the National Restaurant Association and the U.S. Chamber of Commerce. Noting that the restaurant industry is forecast to create 200,000 new jobs this year, Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, said the ongoing labor shortage will make it challenging to fill those positions. “There is no silver bullet that will solve the industry’s recruitment challenge but the Essential Workers for Economic Advancement Act creates one opportunity to address the issue,” he explained.

Neil Bradley, executive vice president and chief policy officer for the U.S. Chamber of Commerce, urged Congress to pass the bill. “The Essential Workers for Economic Advancement Act represents a significant step toward solving our nation’s labor shortage by creating a new H-2C visa category for workers in critical, nonagricultural sectors while ensuring the rights of qualified U.S. workers are protected.”