The American Workforce Act creates a new federal program designed to offer paid job training as an alternative to a four-year college degree. Here's what it does: The government establishes an American Workforce Division within the Department of Commerce, headed by a Director who oversees the entire program. Private employers can partner with people who have a high school diploma but no bachelor's degree to create training contracts. These contracts combine paid, full-time work with on-the-job training and educational coursework. The government provides financial support (called "workforce education subsidies") to help employers pay for this training, and offers bonuses when employers hire trainees as permanent employees after training is complete.

The program is designed to help people gain practical skills and industry credentials—like certifications or licenses—without taking on college debt. Trainees must be U.S. citizens with a high school diploma and no bachelor's degree. The Director approves all training contracts, maintains a public website where employers can post job training opportunities, and tracks outcomes like how many trainees complete their training, get hired, and stay employed. If employers violate the terms of their contracts or mistreat trainees, the Director can issue warnings, fines, or temporarily ban them from the program. The bill also protects trainees from retaliation if they file complaints about employers not following the rules.