Employer-Directed Skills Act Could Reimburse HVAC Contractors for New Hire Training
Proposal would shift control of workforce dollars directly to contractors
POLICY SHIFT: HVAC contractors may gain more control over workforce training under new legislation.
A new proposal in Congress could give HVAC contractors some significant new flexibility to address ongoing labor shortages.
The Employer-Directed Skills Act (H.R. 4049) would help to reduce the costs associated with training new technicians by amending the Workforce Innovation and Opportunity Act (WIOA) to create "employer-directed skills accounts," explicitly designed to "empower job creators to determine the skills their workforce needs" and "leverage private sector investments to make employers a stakeholder in the skills-based education process," according to a press release from Rep. Elise Stefanik (R-NY), who introduced the measure.
Under the new proposal, HVAC contractors would be able to pick the candidate, and choose what type of training they should undergo, whether it’s on-the-job, technical school, or an apprenticeship. Then, once training is complete, the federal government would issue a reimbursement for a portion of the associated costs.
As for how much money that actually amounts to depends on company size: 50 or fewer employees 10%, 51-100 employees 25%, and more than 100 employees is 50%.
According to ACCA’s analysis, 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 the account and process reimbursements, but the bill prioritizes small businesses like yours.
Another caveat is that the individual must not already be an employee of that employer.
The bill has a tiered skin-in-the-game clause that determines the minimum costs that an employer must cover: 10% in fewer than 50 employees, 25% if 51-100 employees, and 50% if more than 100. The rest of the funding comes from the government, and small businesses would be given explicit priority in the local workforce board.
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“Despite the rules, this bill proposes way less red tape than typical government programs,” ACCA stated in its blog. “If you select someone who’s eligible and sign an agreement, you’re good to go.”
Currently, H.R. 4049 has been introduced in the House Committee on Education and Workforce by Stefanik, and it so far has zero cosponsors, and a companion bill (S. 3846) has been brought to the Senate by Sen. Red Budd (R-NC). No votes have been taken yet, but Stefanik has introduced similar versions of this bill since at least 2023 without passing.
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.”
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