The COVID-19 pandemic has exacerbated workforce development challenges facing both workers and employers. Millions of workers who have lost jobs are seeking new opportunities. Many already have the skills and credentials needed for well-paying jobs in high-demand sectors, but face barriers to attaining employment. Others need training and support to obtain new skills and credentials. Meanwhile, employers in high-demand sectors face an unmet need for diverse pipelines of skilled workers. This need is only expected to grow with the passage of the Infrastructure Investment and Jobs Act.

As state and local governments develop and review their options for spending American Rescue Plan (ARP) funds, they should consider investing in a model designed to help both youth and adults land well-paying jobs by attending and successfully completing evidence-based job training and career coaching. Policymakers can implement this program in two steps:

1. Establish a scholarship program with funds sufficient to cover: 

• Program tuition in evidence-based job training connected to real, good jobs;

• Career coaching programs; and 

• Necessary wraparound supports, such as guidance counseling, transportation, and child care costs. 

2. Set up an evaluation system intended to determine those programs that scholarship recipients may attend, as well as to assess the quality of job training, guidance counseling, and career coaching programs. These criteria can be used to approve certain programs for scholarship recipients to attend.

Governments can tailor their program to meet local needs, targeting certain populations or sectors to improve employment rates in well-paying careers. This approach would serve to meet workforce development needs critical to COVID-19 economic recovery, making it well-suited for the use of ARP funds.

Policymakers can expect to see a substantial return on investment. This model will lead to more residents — especially those who have historically been underserved — employed in high-demand, well-paying jobs, with sustained wage growth over time. In turn, this could lower demand for other social safety net programs.