COST ESTIMATE H.R. 8183, MODERNIZING ACCESS TO TALENTS, CREDENTIALS, AND HIRING ACT OF 2026
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Increases net direct spending in any of the four consecutive 10-year periods beginning in 2037? No.
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2037? No.
Statutory pay-as-you-go procedures apply? No.
Mandate Effects:
Contains intergovernmental mandate? No.
Contains private-sector mandate? No.
H.R. 8183 would direct the Secretary of Labor to establish a pilot program to provide grants for states to build workforce longitudinal data systems, talent marketplaces, and related tools. The bill would require the Secretary to allocate to the pilot program between 5 percent and 10 percent of funding of the Dislocated Worker Assistance (DWA) national reserve each fiscal year starting in 2027. The bill also would require the Department of Labor (DOL) to provide technical assistance to grantees and develop tools to assess workers' skills.
The authorization of Title I of the Workforce Innovation and Opportunity Act (WIOA) of 2014--which includes DWA--expired after 2020, but funds have been provided in annual appropriation acts since that expiration. For this analysis, CBO estimates
only the cost to implement the new activities specified in
the bill and not the cost of reauthorizing DWA.
WIOA requires the Secretary to allocate 20 percent of the
amounts appropriated for DWA to the national reserve. In
2026, $1.4 billion was appropriated for DWA and $301 million
was allocated to the national reserve, slightly more than the
20 percent required by law. CBO's estimate of the
authorization for the pilot program reflects the assumption
that funding for DWA would be provided each year, along with
adjustments for inflation, and that 20 percent of the amount
appropriated would be allocated to the national reserve.
Further, CBO estimates that the Secretary would allocate 10
percent of the national reserve funding for the pilot
program. Thus, CBO estimates that the pilot program would
receive $29 million in 2027, rising to $33 million in 2031,
for a total of $155 million over the 2027-2031 period. Using
historical spending patterns, CBO estimates that outlays for
the pilot program would total $112 million over that period.
On the basis of information from DOL about the cost of
similar activities, CBO estimates that, over the 2027-2031
period, DOL would require $10 million to administer the pilot
program and $14 million to provide technical assistance and
develop the skills assessment tools.
In total, CBO estimates that implementing H.R. 8183 would
cost $136 million over the 2027-2031 period, assuming
appropriation of the estimated amounts.
The estimated budgetary effects of the legislation are shown in Table 1. The costs of the legislation fall within budget function 600 (income security).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 8183 ----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-------------------------------------------------------
2027 2028 2029 2030 2031 2027-2031 ----------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN SPENDING SUBJECT TO APPROPRIATION Grants:
Estimated Authorization............................. 29 30 31 32 33 155
EstImated Outlays................................... 3 22 27 29 31 112 Administration Costs:
Estimated Authorization............................. 2 2 2 2 2 10
Estimated Outlays................................... 2 2 2 2 2 10 Technical Assistance and Skills Assessment Tools:
Estimated Authorization............................. 2 3 3 3 3 14
Estimated Outlays................................... 2 3 3 3 3 14 Total Changes:
Estimated Authorization............................. 33 35 36 37 38 179
Estimated Outlays................................... 7 27 32 34 36 136 ----------------------------------------------------------------------------------------------------------------
The CBO staff contact for this estimate is Kristin Kharrat. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.
Phillip L. Swagel, Director, Congressional Budget Office.