New federal bill could slash your HVACR training costs
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Finding qualified techs is hard. Training them is expensive. But there’s legislation working through Congress right now that could reimburse you for up to 90%* of your training costs and put you in control of who gets trained and how.
Here’s what you need to know about H.R. 4049/S. 3846, the Employer-Directed Skills Act.
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There are already enormous opportunities for employers to engage with workforce programs funded through the Workforce Innovation and Opportunity Act (WIOA), including wage reimbursement through On-the-Job Training (OJT) contracts. But ultimately, local workforce agencies and schools are the gatekeepers, controlling who gets trained and what training they get, regardless of whether those people are actually qualified for your jobs.
The Employer Directed Skills Act flips the script. Under this bill, you pick the person, choose the training program (on-the-job, technical school, apprenticeship), and the federal government reimburses you for a chunk of the cost after training is complete.
Employers will still have to contribute some of the cost of training, with reimbursement amounts determined locally and subject to funding availability. Local workforce boards will have the final say on how much can be reimbursed and many other aspects of new and existing WIOA programs, so it pays to start building a relationship with your local workforce board today. You could even express interest in serving on the board yourself.
Here are the minimum amounts employers must contribute under the bill:
For many ACCA members, that’s up to a 90% reimbursement, whether you’re paying training wages for on-the-job training or covering the cost of sending someone to technical school.
What’s the catch?
There are a few strings attached:
- Only new employees qualify. This is for bringing new people into your company, not upskilling current staff.
- You have to commit to hiring them. Once they successfully complete training, you have to hire them.
- You pay upfront, get reimbursed later. You’ll need the cash flow to cover training costs initially.
- You must work with your local workforce board. They’ll set up cost share levels and process reimbursements, but the bill cuts out the middleman by prioritizing small businesses like yours rather than education systems and training providers.
Despite the rules, this bill proposes way less red tape than typical government programs. If you select someone who’s eligible and sign an agreement, you’re good to go.
Why is this big news for your business?
We all know the drill: EPA certifications, manufacturer training, refrigerant handling, electrical troubleshooting. Training a new tech isn’t cheap, and the skills shortage means you can’t always find someone who’s already qualified.
This bill puts you in the driver’s seat. You find someone with potential, you decide what training they need, and you get federal help covering the cost. For small contractors, a reimbursement could make the difference between being able to grow their team or staying stuck at current capacity.
What’s the outlook on Capitol Hill?
H.R. 4049 and S.3846 was introduced by Rep. Elise Stefanik (R-NY) and Sen. Ted Budd (R-NC) respectively. They haven’t been voted on yet, and similar versions of this bill have been introduced before without becoming law. Securing co-sponsors for these stand-alone bills will demonstrate support for including the Employer Directed Skills Act in the context of urgently-needed legislation to reauthorize WIOA.
Fortunately, WIOA enjoys strong bipartisan support, passing the House by a vote of 378-26 in 2024, but nothing is a sure thing in the current political climate and procedural disagreements caused the bill to stall in the Senate.
As Congress takes up WIOA reauthorization again this year, we’re told that leaders of the House Committee on Education and Workforce and Senate Committee on Health Education, Labor and Pensions strongly support the concept of the Employer Directed Skills Act. There are entrenched interests that benefit from and will defend the current system, however, so your support is essential.
Teaming up to advance the bill
In a statement, ACCA President and CEO Barton James applauded the bill, which directly supports ACCA’s top priority for 2026: strengthening the HVACR workforce and leveling the playing field for the skilled trades.
“Our members consistently tell us that attracting and retaining skilled workers is their top priority,” said James. “The Employer-Directed Skills Act addresses this challenge by making WIOA funds more accessible, flexible, and effective for employers and workers alike. We are immensely grateful to Senator Budd and his team for their work on this bill and their commitment to strengthening and modernizing the skilled trades workforce.”
Supporting this bill is also an early opportunity for collaboration in the recently-announced strategic alliance between ACCA and the Plumbing Heating and Cooling Contractors Association (PHCC). ACCA and PHCC recently teamed up to secure a letter of support from the HVACR Industry Alliance – achieving rare consensus among seven organizations representing every segment of our industry.
Now it’s your turn.
ACCA’s advocacy team can educate Congress about this issue, but only YOU can make them care. Please urge your Senators and Representatives to co-sponsor H.R. 4049/S. 3846 today!
Do you reside in a blue state? With Republicans controlling Congress it can feel like you don’t have a voice, but WIOA reauthorization will need 60 votes in the Senate. Democratic co-sponsors for S. 3846 are urgently needed to demonstrate that our bill won’t hold up the overall package.
Start by sending a message at accaadvocacy.org, but don’t stop there! Members of Congress are home in the district more than half the year, including almost every weekend. Invite them and their staff to come see the training programs you’ve built and meet the people whose lives you’ve transformed!
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ACCA’s advocacy team can arm you with contact info, advice, and of course we’re eager to share photos of your events.
With your help, we’ll rebuild America’s workforce development system to better serve your hiring and training needs!
Want to dig deeper?
- Read the full bill at congress.gov
- Find your local workforce board: careeronestop.org
- Questions about ACCA’s advocacy efforts? Take action at accaadvocacy.org
*Actual reimbursement amounts will vary and are determined locally based on funding availability.
Posted In: Employee Training, Government, Top Priorities, Training, Workforce
