Rep. Liccardo Introduces SKILL Act to Prepare Workers for AI-Driven Job Market Shifts

WASHINGTON, D.C. - Today, Congressman Sam Liccardo (CA-16), joined by Congressman Jimmy Panetta, introduced the Supporting Knowledge Through Industry-Led Learning (SKILL) Act, a mechanism to incentivize private sector investment in American workers to anticipate the likely disruption from the increasingly widespread deployment of artificial intelligence (AI) and automation.

Specifically, the SKILL Act will leverage tax credits to engage corporate investment in local community colleges and public universities to co-create medium-term programs (less than two years in duration) to instill next-generation skills in students and dislocated workers. Rather than attempting to turn back the clock on technological progress in the face of widespread fear of AI-driven jobs disruption--driven by warnings by some of "doomsday" prognosticators that artificial intelligence could eliminate half of all entry-level white-collar jobs in the next five years and drive unemployment as high as 20 percent-Reps. Liccardo and Panetta seek to empower workers to more nimbly navigate an AI-powered economy.

As AI reshapes the economy, some jobs will disappear - and new, well-paying career tracks will emerge. The SKILL Act helps workers prepare for those jobs by creating a new tax credit for employers that partner with public colleges, universities, community colleges, and registered apprenticeship programs to build degree or certificate programs designed for fast-growing fields. Many qualifying programs can be completed in under two years.

"We can't know what skills workers will need a decade from now, but we can be certain that our private sector employers will know before we do," said Liccardo. "When we incentivize companies to build the talent pipelines they need, we help more workers land good-paying, in-demand jobs. The SKILL Act turns disruption into opportunity: companies can build their workforce, and more Americans find a path to better jobs-and an economic future- in an AI-driven economy."

Liccardo piloted this model as Mayor of San José, when he sought to address obstacles to one airline's expansion at San José Mineta International Airport: a lack of local airline mechanics. Liccardo helped to bring the airline together with a local California State University campus to expand its engine mechanic program to the aviation industry, and students could secure high-paying mechanic jobs for top airlines in San José.

Public colleges and universities, particularly community colleges, play a critical role in workforce development. Under the SKILL Act, qualified investments include curriculum development, skills assessments, internships, applied learning opportunities, registered apprenticeship programs, labs, and donations of cash, equipment, or personal services.

The bill earned endorsements from TechNet, The American Association of Community Colleges, The Digital Chamber, Chamber of Progress, and Workday.

"The SKILL Act provides exactly the kind of alignment between workforce policy and private sector execution that will ensure workers and employers thrive in the age of AI. The Act encourages employers to invest in their most important asset-their people-while building a training ecosystem tailored to market demands. The collaborative investment encouraged by this bill will drive workforce agility and bring a skills-based talent approach to scale. Workday is pleased to support public policy that ensures that as technology accelerates, our workforce has the foundational tools and capabilities to excel alongside it," said Chandler Morse, Chief Corporate Affairs Officer, Workday.

"Forward-thinking job training is essential to maintaining U.S. leadership in innovation and getting America's workforce ready for the jobs of tomorrow, created by emerging technologies. The SKILL Act is a workforce development plan made for this moment - it encourages employers to invest in training initiatives that address their hiring needs while equipping people with the skills to land good-paying jobs. We applaud Representative Liccardo for putting forward this proposal to ensure U.S. technological advancement is powered by American workers," said Linda Moore, TechNet President and CEO.

"AI is changing how we work, but it shouldn't leave workers behind. The SKILL Act is built around a simple idea: people are more likely to succeed when they have opportunities to learn real-world skills and put them into practice. It will help more people get a foot in the door, gain real-world experience, and build skills that employers are looking for. In an AI economy, opportunity starts with skills," said Adam Kovacevich, CEO and Founder, Chamber of Progress.

The SKILL Act would:

• Create a new tax credit to encourage employer investment in short-term workforce development programs;
• Support partnerships among employers, community colleges and public colleges that co-create curriculum for reskilling and upskilling, including registered apprenticeships;
• Cover investments in curriculum development, skills assessments, internships, applied learning, apprenticeships, labs, equipment, cash, and professional services;
• Provide employers with a $2,500 credit for each student who completes a qualifying program; and an additional $2,500 credit for each graduate hired by the participating employer;
• Allocate $500 million in annual tax credit authority to states on a per capita basis.

Full text of the legislation is available here.

A one-pager on the SKILL Act is available here.