2025 Priorities in Workforce and Economic Development Legislation

Summary

2025 workforce and economic development legislation at the state level reveals a shift toward integrated, future-focused workforce and economic development strategies. This POV analyzes key legislation and themes: apprenticeship expansion, data-driven decision-making, technology modernization, and the intersection of labor policy and economic growth. Learn how states are responding to persistent labor shortages, evolving federal funding structures, and the need for continuous digital transformation.

[Estimated read time: 14 – 16 minutes]

The 2025 U.S. state legislative sessions show: As federal and state priorities shift, leaders and agencies across government, workforce, and education must adapt quickly to a complex, rapidly evolving policy landscape. This summary of recent legislation outlines critical trends to watch and opportunities to align strategic efforts. 

Key 2025 workforce and economic development legislation themes

The 2025 legislative landscape reveals several interconnected themes driving state policy in workforce and economic development:  

• Skills development and apprenticeships 
• ROI and funding alignment 
• Cross-sector coordination 

These themes reflect a multifaceted response to contemporary economic challenges and opportunities. 

Expanding apprenticeships and career pathways

States recognize that a skilled labor pool is essential for long-term economic vitality. In response, legislatures are making substantial investments to expand skill acquisition pathways and align workforce training with specific industry needs. 

At the federal level, the Trump Administration has placed renewed emphasis on apprenticeship programs. In April, President Trump directed the U.S. Departments of Labor, Commerce, and Education to submit a plan by August 2025 to reach, then exceed, one million new active apprentices. This aligns with growing progress at the state level, where apprenticeships, non-degree credentialing, and career readiness initiatives have gained momentum in response to labor shortages and evolving workforce demands. 

Just this week, the USDOL announced over 80 million dollars in funding to states, renewing State Apprenticeship Expansion Formula grants and providing a much needed boost to accelerate apprenticeship development. 

National organizations like the National Association of State Workforce Agencies (NASWA) have also identified apprenticeship expansion and employer-aligned workforce investments as top priorities for 2025. Across the country, states are acting on these goals through legislation that expands workforce access, deepens career counseling, and strengthens alignment between education and employment. 

Examples of this state legislation include:

• Florida House Bill 681: Revises standards for apprenticeship and pre-apprenticeship programs. 
  • Mandates partnerships between these programs and local educational agencies   
  • Directs the Florida Department of Education and Florida Commerce to build a model contract template and a funding transparency tool  
  • Calls for a yearly report by November 30 showing how funds were used and how participants fared, including completion rate and wage data 
  • Brings Florida’s registered apprenticeship programs into compliance with WIOA, supporting both federal alignment and funding eligibility 

• Arkansas Senate Bill 390: Establishes a State Apprenticeship Agency to oversee and regulate apprenticeship programs.  

• Nevada Assembly Bill 539: Requires the Department of Employment, Training and Rehabilitation to establish a program placing career coaches in middle and junior high schools.  
  • Coaches will help students explore career pathways and build skills for career readiness, particularly financial literacy.  
  • Schools in areas with high unemployment rates will have first priority to receive coach placement. 

• Maryland Senate Bill 431, the Registered Apprenticeship Investments for a Stronger Economy (RAISE) Act: Introduces changes to facilitate and enhance registered apprenticeship programs.  
  • Waives certain licensing examination requirements for individuals completing approved apprenticeship programs 
  • Restructures the Maryland Apprenticeship and Training Council’s responsibilities 
  • Establishes new programs and offices, including the Maryland Office of Registered Apprenticeship Development and the Registered Apprenticeship Qualified Intermediary Program 
  • Provides financial incentives for employers and sponsors engaging in registered apprenticeships  
  • Creates a special fund supporting these initiatives 
  • Emphasizes monitoring and reporting on program outcomes 
• Pennsylvania’s 2025–26 budget: Builds upon prior investments in vocational technical education, CTE, and apprenticeships (a $65 million increase to date), and includes a further $5.5 million increase for CTE programs. Efforts during the first two years of this administration have already led to the creation of more than 110 new pre-apprenticeships and registered apprenticeships. 

Across the country, state legislatures are responding with initiatives that address labor shortages, promote re-entry and expedited licensing, and support underserved populations.  

Measuring ROI and targeting investments

That focus on alignment and value is driving a second major legislative trend: measuring outcomes and targeting public investments based on return, both for workers and the state economy. 

• Georgia House Bill 192, the Top State for Talent Act, which took effect July 1: Focuses on aligning education and workforce investments with high-demand careers by requiring:
  • An annual ROI analysis of education programs tied to Georgia’s High-Demand Career List 
  • Regular updates to the High-Demand Career List to reflect evolving labor market needs 
  • Integrated career planning in student graduation plans
  • Expanded career counseling for students in grades 6–12 
  • Improved coordination between the State Workforce Development Board, Department of Education, and postsecondary institutions 

In parallel, the 2025–26 state budget allocates $141 million to launch the Promise Scholarship Program, offering up to $6,500 per eligible student for education-related expenses.  

• Mississippi Senate Bill 2290:  Directs a state-level workforce and social service reform task force to identify ways to improve the state’s labor force participation rate and raise earnings across the working population. These efforts reflect an ROI-driven approach to workforce strategy, with a focus on long-term economic impact.
• Utah Senate Bill 162:  Introduces a cooperative education program that offers paid, structured work experiences for students, coupled with academic credit, building career-relevant skills while supporting workforce pipeline development and measurable educational outcomes. 

Coordinating education, workforce, and economic systems

To maintain progress and remain agile in a changing labor market, many states are restructuring how public systems interact. 2025 workforce and economic development legislation increasingly emphasizes integration across education, workforce, and social service agencies: breaking down silos, aligning shared goals, and creating unified access points for residents and employers.  

• Mississippi Senate Bill 2290 also establishes the “Task Force to Study Workforce and Social Service Reform and Implementation of a One Door Policy.” The task force is charged with defining how to unify state services, improve labor market participation, and help individuals access education, training, employment, and public assistance through a centralized, coordinated approach. The legislation explicitly calls for technology integration across agencies and explores opportunities created by WIOA reauthorization to pilot innovative service models.
•  Utah Senate Bill 162 supports systemic coordination through the creation of the Talent Connect portal, a statewide digital platform that integrates real-time labor market data with employer-submitted job postings. The bill also establishes requirements for analytics and verification systems to ensure the quality of listings. This effort positions Utah’s public workforce and higher education systems to work more seamlessly with industry to meet high-demand job needs.
•  Indiana Senate Bill 448 contributes to this trend by requiring postsecondary institutions to align credential offerings with in-demand occupations and SOC codes. The legislation mandates stronger data transparency on student outcomes and institutional accountability to ensure training programs are responsive to the state’s economic needs. 

These legislative efforts reflect a growing understanding that siloed systems cannot keep pace with the complexity of today’s workforce and economic development challenges. States are moving toward more integrated models: linking agencies, data, and funding strategies to streamline service delivery and improve outcomes. 

But integration isn’t only structural; it’s also technological. And in 2025, that transformation is accelerating. 

Accelerating digital transformation in workforce systems

A defining trend in 2025 state legislation is the strategic use of technology and data to modernize public systems and improve service delivery. From artificial intelligence task forces to labor market data platforms, states are rethinking how information is collected, shared, and acted upon to support better outcomes for workers and employers alike. 

The 2025 executive order launching the Department of Government Efficiency (DOGE) to modernize federal technology and software for governmental efficiency sets a precedent and priority for digital transformation that states often follow. States are making investments in digital transformation including infrastructure and data systems and governance. NASWA advocates for flexible funding for ongoing technology support, maintenance, and innovation for Unemployment Insurance (UI) systems, emphasizing the need for digital transformation to ensure scalability and resilience. 

Strengthening data governance and integration

• Hawaii’s Senate Bill 742: Establishes a working group within the Office of Enterprise Technology Services to institute data sharing and governance between state agencies enabling analysis of Hawaii public school graduate outcomes, among other uses. 
• Pennsylvania Senate Bill 101: Enhances data systems to address the two-year lag in transmitting workforce data, such as wages and unemployment claims, from Department of Labor and Industry and Center for Workforce Information & Analysis to local workforce development boards, promoting accountability for public funds invested in workforce initiatives.
• Indiana Senate Bill 448: Improves degree program accountability by mandating a stackable credentials framework tied to Standard Occupational Classification (SOC) codes to identify in-demand jobs and skills. Enhances transparency through expanded data collection on student outcomes and resident enrollment, helping ensure Indiana’s postsecondary institutions align with the state’s evolving workforce needs.
• New Mexico House Memorial 2: Requests the Legislative Education Study Committee to establish a working group focused on improving statewide education data governance and developing policies for AI use in educational settings. The group will assess current data system accuracy and security, recommend governance structures, and explore AI use cases in schools. 

Many legislatures considered bills that would enhance data governance and facilitate better data sharing across state agencies. Some failed to pass, including: 

• Kansas House Bill 2303: Would have established the division of longitudinal data in the legislative research department. 
• Oklahoma Senate Bill 224: Would have created the Oklahoma Education and Workforce Efficiency Data System (EDS), a secure system to de-identify, exchange, and match education and workforce data among approved entities.  

Driving accountability through data and performance metrics

States are increasingly focused on using data to drive accountability and measure the effectiveness of workforce and economic development programs. NASWA’s 2025 priorities emphasize the need for timely, local, and actionable labor market data to inform strategic investments and policy decisions. Legislation such as Georgia’s Top State for Talent Act exemplifies this growing emphasis on outcome measurement and ROI, as does other legislation outlined below for both workforce and economic development programs.  

• Texas Senate Bill 1143: Establishes detailed performance measures and evaluation requirements for youth workforce programs. 
  • Targets individuals aged 14–25 through federally funded workforce development initiatives 
  • Mandates annual evaluations to assess program effectiveness and identify best practices 
  • Requires detailed reporting on metrics such as employment outcomes, dropout reenrollment, and participation in education or military programs 
  • Directs findings to be made public, with a comprehensive report and legislative recommendations submitted by January 15 of each odd-numbered year 

• Minnesota budget bill: creates a uniform outcome report card and allows the Department of Employment and Economic Development to withhold grants if the grantee has not provided up-to-date information.
• New York Senate Bill S6291, the “Economic Development Performance Review Act”: Would require state agencies to conduct annual, comprehensive reviews of economic development programs. Reviews will include quantitative metrics, job placement data (such as occupations entered, job retention rates, and pre- and post-program wages), and a comparison of results to stated objectives. Though still in committee, the bill reflects a growing legislative focus on data-driven accountability. 

These efforts reflect a broader shift toward proactive, data-informed governance. States are using real-time labor market data and performance metrics to guide investments, evaluate program impact, and improve service delivery. The goal isn’t limited to efficiency but includes measurable outcomes and accountability to taxpayers. By establishing continuous feedback loops where data informs policy, and policy drives improved results, states are embracing a more sophisticated approach to workforce strategy. This evolution also underscores the rising importance of strong data infrastructure, predictive analytics, and cybersecurity across workforce systems. 

Federal program updates and state implications

Specific federal programs central to workforce and economic development are undergoing significant legislative and administrative adjustments in 2025, reflecting both immediate needs and long-term strategic planning.

Evolving Workforce Innovation and Opportunity Act (WIOA) and Wagner-Peyser Act priorities 

Key developments: 

• WIOA reauthorization remains under debate in Congress, especially around training mandates and funding flexibility. 
• Despite proposed FY26 cuts, WIOA Title II adult education programs will maintain consistent FY25 funding from July 2025–June 2026. 
  • The Trump Administration has proposed the “Make America Skilled Again” (MASA) grants, which would: 
  • Consolidate various federal workforce programs (including YouthBuild and reentry initiatives) 
  • Allocate formula-based grants to states 
  • Require at least 10% of funds go to registered apprenticeship programs 

• The FY26 budget includes significant funding reductions for both the Department of Labor and the Department of Education. 

• Wagner-Peyser funding for PY25 exceeds $675 million, distributed to states based on civilian labor force and unemployment data from calendar year 2024. 

What it means for states: 

These shifts reflect a federal push for greater efficiency, industry alignment, and program consolidation. States must align with national priorities while maintaining flexibility to meet local needs. The MASA proposal, in particular, signals a movement toward integrated workforce ecosystems that reduce duplication and better serve both employers and jobseekers. 

Modernizing Unemployment Insurance and Reemployment Services Unemployment Insurance (UI):

• NASWA’s 2025 priorities emphasize UI system modernization to prepare for future economic downturns. 
• Many states are investing in technology upgrades, fraud prevention, and administrative capacity to improve claim processing and service delivery. 
• The pandemic exposed vulnerabilities in outdated UI systems, reinforcing the need for resilient, scalable infrastructure. 

Reemployment Services and Eligibility Assessment (RESEA): 

• Florida’s updated RESEA policy as of May 2025 will use 2024–2025 data to establish a baseline for performance metrics and align with the state’s WIOA combined plan, focusing on: 
  • Appointment attendance 
  • No-show reschedules 
  • Partner co-enrollment

Nationally, RESEA is becoming a more data-driven and outcome-focused program aimed at: 

• Improving job placement for unemployment claimants 
• Reducing time on benefits 
• Preventing improper payments 
• Connecting claimants to other workforce services 

Key takeaway: 

RESEA’s evolution reflects a broader shift from benefits administration to proactive reemployment strategy. States are adopting more sophisticated, evidence-based approaches that strengthen accountability and prepare for future economic shocks. 

Integrated approaches to workforce and economic growth  

States are adopting legislative strategies that blend economic development with workforce planning to create a more favorable business climate. These efforts include supporting businesses, modernizing infrastructure, and promoting regional equity. Recent legislation reflects an integrated approach: pairing regulatory reforms (such as in Texas Senate Bill 1143) with investments in career training and job-ready infrastructure. 

This holistic strategy treats economic growth and workforce readiness as inseparable. It encourages—or in some cases requires—greater collaboration between traditionally siloed agencies like Commerce, Labor, and Education. Increasingly, economic incentives are tied to workforce outcomes and community impact, signaling a shift toward more sustainable, inclusive development. 

• Tennessee Executive Order 109: Strengthens the State Workforce Development Board by mandating a unified, results-driven approach to workforce development. The order directs alignment between education and training programs and the evolving needs of employers and high-growth industries. 

• Mississippi House Bill 1414: Transfers administration of the Mississippi Workforce Enhancement Training Fund to the Office of Workforce Development (OWD). The fund supports training programs in partnership with the Mississippi Community College Board and local colleges. Eligible uses include: 
  • Training unemployed individuals 
  • Meeting immediate training needs for new jobs 
  • Supporting job retention 
  • Building a work-ready, credentialed applicant pool 

Conclusion: Strategic trends and what comes next

The 2025 U.S. state legislative sessions reveal a deepening and increasingly strategic focus on workforce and economic development. State leaders are advancing holistic policies that prioritize worker well-being, align with employer needs, and drive long-term prosperity. Three themes emerge across legislation: 

1. A shift toward proactive, supply-side workforce development

States are moving beyond business attraction strategies alone, investing instead in building the talent pipelines required for future competitiveness. Key efforts include: 

• Expanding apprenticeships, CTE, and credentialing programs 
• Aligning training with in-demand sectors 
• Integrating diverse populations including veterans, individuals with disabilities, and those exiting incarceration into the workforce 

Initiatives like Mississippi’s Task Force to Study Work Force and Social Service Reform and Georgia’s Top State for Talent Act illustrate how states are planning proactively, rather than reactively, to shape their future labor force. 

2. Elevating technology and data as tools for governance

Digital transformation and data-driven decision-making are now central to modern workforce strategy. States are: 

• Mandating ROI studies and performance reviews to assess impact 
• Embedding SOC code reporting and labor market data into program design 
• Exploring how AI will affect both education and employment systems 

Legislation in Georgia, New York, Florida, Texas, Minnesota, and Indiana reflects this trend, signaling a pivot toward evidence-based policymaking and increased accountability for public investments. 

3. Linking workforce strategy to broader economic development

Economic development is no longer treated as separate from workforce policy. States are combining business support, infrastructure investment, and talent development into integrated, place-based strategies. This approach encourages closer collaboration across agencies and ties economic incentives to local workforce outcomes, helping ensure that growth is both inclusive and sustainable. 

In sum, the 2025 legislative cycle represents a turning point. States are embracing a more connected, data-literate, and future-ready framework, recognizing that long-term economic success depends on a skilled, adaptable, and broadly supported workforce. These efforts lay the groundwork for resilience in the face of economic disruption and a more prosperous future for all. 

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