The American Workforce Act creates a new federal program that offers paid training as an alternative to college. Here's how it works: employers partner with the government to hire people without bachelor's degrees and provide them with on-the-job training combined with classroom education. The federal government subsidizes the training costs (up to $9,000 per trainee) while employers must pay trainees at least minimum wage. Trainees must be U.S. citizens with a high school diploma who don't have a bachelor's degree.

The program is designed to help people gain skills in high-demand industries and earn industry-recognized credentials like certifications or licenses. Employers get a $1,000 bonus if they hire a trainee as a full-time employee after training. The jobs being trained for must pay at least 80% of the median household income in that county, ensuring trainees aren't stuck in low-wage positions. Trainees can participate in up to three separate training programs over their lifetime, with at least a year between programs.

A new federal office called the American Workforce Division will oversee the program, approve training contracts, handle complaints, and track results. The program includes strong protections: trainees can file complaints if employers violate agreements, employers who don't meet standards can be fined or suspended, and it's illegal for employers to retaliate against trainees who file complaints. The government will collect detailed data on completion rates, job placement, wages, and trainee demographics to measure the program's success. The program is authorized for 11 years, after which Congress will decide whether to continue it based on performance reports.