The Employer-Directed Skills Act would allow companies to not only pick who they train but also have up to 50% of their training expenses reimbursed, cutting through red tape to streamline recruitment. 

The bill was introduced in the House on June 17, 2025, as H.R. 4049, and the Senate companion bill, S. 3846, was reintroduced on Feb. 11, 2026. Both were referred to committees. Though their fates remain uncertain, they could provide much-needed solutions to the HVAC industry’s ongoing labor shortage. 

A Growing Problem 

A recent study from Bring Back the Trades shows that just over 192,000 HVAC technician jobs will be unfilled by 2030, underscoring a need for easier recruitment and retention to fill those critical jobs. 

“The shortage in the skilled trades impacts every sector of our economy,” said Steve Turner, founder and CEO of Bring Back the Trades, in a written statement. “We must act now to fill the current need, and share solutions on how to empower the next generation of skilled workers.” 

But it’s not as simple as posting a job online. Contractors face numerous hurdles, whether it’s finding interested candidates or footing the bill for HVAC-related licensing and certifications. 

“The biggest barrier with contractors is what they’re up against every day, and it’s having the time to implement something new,” said Steve Howard, founder of The ACT Group, a training and consulting firm. “There’s a money aspect, too, that some contractors have a problem with, because training is an investment; it doesn’t show immediate return.” 

The Employer-Directed Skills Act could be one of those solutions. Sean Robertson, vice president of membership, advocacy, and events with the Air Conditioning Contractors of America Association, said it aims to optimize workforce training programs by amending portions of the Workforce Innovation and Opportunity Act, though there are some caveats to keep in mind. 

“Most of the things that the Employer-Directed Skills Act enables can be achieved one way or another through the existing system, but this streamlines that process and helps remove some hurdles that have made it cumbersome for employers to engage,” said Robertson. 

Training Reimbursements 

If passed as-is, the bill allows contractors to choose the training program they desire, and the federal government reimburses a portion of the costs. Eligible training programs can include apprenticeships, on-the-job training, and technical schools.  

Companies must contribute a minimum amount to training costs depending on their size. Those with 50 or fewer employees are expected to contribute a minimum of 10%, while those with 51 to 100 employees must contribute 25%. For companies with more than 100, that amount is 50%. 

The downside, however, is that contractors will only receive reimbursements after the training is completed. This means they’ll need the cash flow to cover upfront expenses, which can be tens of thousands of dollars. 

Contractors will also need to work with their local workforce boards. These boards will set up the account and process reimbursements, and will determine how much can be reimbursed.

“If you haven't already, now would be the time to start building your relationship with those Workforce Development Boards. Try to get on your local Workforce Development Board yourself,” Robertson said. 

Neither bill goes into detail about how long reimbursements will take to process, nor whether contractors will be able to retroactively be reimbursed. Robertson said those finer details will likely be hashed out in rulemaking procedures should the bill pass. 

“We’ll be eager to engage on that to try to speed up those payments or come up with creative solutions,” Robertson said. 

New Hires Only 

Most workforce programs run by the government dictate who is trained as well as the type of training they receive. In their current forms, the bills would put that control into the hands of contractors. 

“[Contractors] can find the person with the right attitude, the right aptitude, and somebody they like, and they can bring them on board,” Howard said. “I think that’s one of the best parts of this whole bill, is you can hire who you want to.” 

There is, however, a caveat. This reimbursement program only qualifies for new hires, not for training up your current workforce.  

Additionally, once a new hire has completed the training, companies are committed to hiring them. The bill doesn’t provide any further details, such as what exceptions can be made, whether there are penalties for not hiring the person, or if they must remain employed for a certain amount of time. Like the reimbursement details, issues like these would be addressed in rulemaking. 

“Given the nature of the program, I hope that there will be, and particularly this administration, I would expect to see a fair amount of flexibility for employers there,” Robertson said. 

Will They Become Law? 

Neither bill has a sure path to becoming law. Similar bills have been introduced in both chambers of Congress since 2021 without moving forward. GovTrack.us gives both versions of the bill a dismal 1% chance of being enacted. 

“We really do need contractors’ help. I mean, organizations like ACCA and PHCC can tell members of Congress what the issues are, but only local contractors — their constituents — can make them care. And so that's why we need contractors to get involved,” said Robertson. 

The legislation has received endorsements from ACCA and other industry organizations, including the Plumbing-Heating Cooling Contractors Association, Floor Covering Education Foundation, and Skills First Coalition. 

“This is a critical step in realigning the nation’s public workforce system to work more closely with employers, prioritize high-quality work-based learning and on-the-job training programs, and prepare Americans for in-demand jobs,” said Skills First Coalition Co-Chairs Rosemary Lahasky and Josh Connolly in a joint statement. 

In the meantime, Howard’s advice for contractors looking into training programs is to seek out junior colleges, which he says are becoming more involved in the trades. He also encourages contractors to investigate the training programs available from their manufacturers and distributors.  

“I’ve heard for so many years … ‘What if you train your people and then they go someplace else?’ What if you don’t train them and they stay?” he said. “As a former technician, if a company wanted to train me, I wanted to work for them … I think that’s part of human nature, part of the law of reciprocity.”