“(a) Purposes.—The purposes of this section are—

“(1) to improve the employment, earnings, and skill attainment, and reduce recidivism, of adults and youth who have been involved with the justice system;

“(2) to prompt innovation and improvement in the reentry of justice-involved individuals into the workforce so that successful initiatives can be established or continued and replicated; and

“(3) to further develop the evidence on how to improve employment, earnings, and skill attainment, and reduce recidivism, of justice-involved individuals, through rigorous evaluations of specific services provided, including how they affect different populations and how they are best combined and sequenced, and disseminate such evidence to entities supporting the reentry of justice-involved individuals into the workforce.

“(b) Reentry employment competitive grants, contracts, and cooperative agreements authorized.—

“(1) IN GENERAL.—From the amounts appropriated under section 173(e) and not reserved under subsection (h), the Secretary—

“(A) shall, on a competitive basis, make grants to, or enter into contracts or cooperative agreements with, eligible entities to implement reentry projects that serve eligible adults or eligible youth;

“(B) may use not more than 30 percent of such amounts for awards under subparagraph (A) to eligible entities to serve as national or regional intermediaries to provide such funds to other eligible entities to—

“(i) implement reentry projects described in subparagraph (A); and

“(ii) monitor and support such entities;

“(C) shall use 30 percent of such amounts for awards under subparagraph (A) to eligible entities using pay-for-performance contracts—

“(i) that specify a fixed amount that will be paid to the entity based on the achievement of specified levels of performance on the indicators of performance described in subsections (e)(1)(A)(i) and (e)(2)(A) within a defined timetable; and

“(ii) which may provide for bonus payments to such entity to expand capacity to provide effective services; and

“(D) shall ensure awards under this paragraph are made to eligible entities from geographically diverse areas, in addition to the priorities described in paragraph (4).

“(2) AWARD PERIODS.—The Secretary shall make awards under paragraph (1) for an initial period of not more than 4 years.

“(3) ADDITIONAL AWARDS.—The Secretary may award, for a period of not more than 4 years, one or more additional awards to an eligible entity that received an award under paragraph (1) if the eligible entity achieved the performance levels agreed upon with the Secretary (as described in subsection (e)(3)) for the award period immediately before the additional award.

“(4) PRIORITY.—In making awards under paragraph (1), the Secretary shall give priority to eligible entities whose applications submitted under subsection (c) demonstrate a commitment to use the funds from the award to implement reentry projects—

“(A) that will serve high-poverty areas;

“(B) that will enroll eligible youth or eligible adults—

“(i) before the release of the eligible youth or eligible adult from incarceration in a correctional institution; or

“(ii) not later than 90 days after such release;

“(C) that have an evidence-based strategy and design;

“(D) that establish partnerships with—

“(i) businesses; or

“(ii) institutions of higher education or providers under section 122 (as determined by the State where services are being provided) to provide project participants with programs of study leading to recognized postsecondary credentials (as identified in a State plan under subtitle A) in in-demand occupations; or

“(E) that provide training services, including customized training and on-the-job training, that are designed to meet the specific requirements of an employer (including a group of employers) and are conducted with a commitment by the employer to employ individuals upon successful completion of the preparation.

“(c) Application.—

“(1) FORM AND PROCEDURE.—To be qualified to receive an award under subsection (b)(1), an eligible entity shall submit an application at such time, and in such manner, as determined by the Secretary, and containing the information described in paragraph (2) and, as applicable, paragraph (3).

“(2) CONTENTS.—An application submitted by an eligible entity under paragraph (1) shall contain the following:

“(A) A description of the eligible entity, including the experience of the eligible entity in providing employment and training services for justice-involved individuals.

“(B) A description of the needs that will be addressed by the reentry project supported by an award under subsection (b)(1), and the target participant population and the geographic area to be served.

“(C) A description of the proposed employment and training activities and supportive services, if applicable, to be provided under such reentry project, and how such activities and services will prepare participants of the reentry project for employment in in-demand industry sectors and occupations within the geographic area to be served by such reentry project.

“(D) The anticipated schedule for carrying out the activities proposed under the reentry project.

“(E) A description of—

“(i) the partnerships the eligible entity will establish with agencies and entities within the criminal justice system, local boards and one-stop operators, community-based organizations, and employers (including employers that are located in the area to be served by such reentry project) to provide participants of the reentry project with work-based learning, job placement, and recruitment (if applicable); and

“(ii) how the eligible entity will coordinate its activities with other services and benefits available to justice-involved individuals in the geographic area to be served by the reentry project.

“(F) A description of the manner in which individuals will be recruited and selected for participation for the reentry project.

“(G) A detailed budget and a description of the system of fiscal controls, and auditing and accountability procedures, that will be used to ensure fiscal soundness for the reentry project.

“(H) A description of the expected levels of performance to be achieved with respect to the performance measures described in subsection (e).

“(I) A description of the evidence-based practices the eligible entity will use in administration of the reentry project.

“(J) An assurance that the eligible entity will collect, disaggregate by each subpopulation of individuals with barriers to employment, and by race, ethnicity, sex and age, and report to the Secretary the data required with respect to the reentry project carried out by the eligible entity for purposes of determining levels of performance achieved and conducting the evaluation under subsection (f).

“(K) An assurance that the eligible entity will provide matching funds, as described in subsection (d)(4).

“(L) A description of how the eligible entity plans to continue the reentry project after the award period.

“(3) ADDITIONAL CONTENT FOR INTERMEDIARY APPLICANTS.—An application submitted under paragraph (1) by an eligible entity seeking to serve as a national or regional intermediary as described in subsection (b)(1)(B) shall also contain the following:

“(A) An identification and description of the eligible entities that will be subgrantees of such intermediary for purposes of implementing the reentry projects, which shall include subgrantees in—

“(i) not less than 3 noncontiguous metropolitan areas or rural areas; and

“(ii) not less than 2 States.

“(B) A description of the services and supports the intermediary will provide to the subgrantees, including administrative and fiscal support to ensure the subgrantees comply with all award requirements.

“(C) A description of how the intermediary will facilitate the replication of evidence-based practices or other best practices identified by the intermediary across all subgrantees.

“(D) If such intermediary is currently receiving, or has previously received, funds under this section as an intermediary to implement a reentry project, an assurance that none of the subgrantees identified under subparagraph (A) were previous subgrantees of the intermediary for such reentry project that failed to meet the levels of performance established for such reentry project.

“(d) Uses of funds.—

“(1) REQUIRED ACTIVITIES.—An eligible entity that receives funds under subsection (b)(1) shall use such funds to implement a reentry project for eligible adults or eligible youth that provides each of the following:

“(A) One or more of the individualized career services listed in subclause (I) through (IX) of section 134(c)(2)(A)(xii).

“(B) One or more of the training services listed in clauses (i) through (xi) in section 134(c)(3)(D), including subsidized employment opportunities through transitional jobs.

“(C) For participants who are eligible youth, one or more of the program elements listed in subparagraphs (A) through (N) of section 129(c)(2).

“(2) ALLOWABLE ACTIVITIES.—An eligible entity that receives funds under subsection (b)(1) may use such funds to implement a reentry project for eligible adults or eligible youth that provides the following:

“(A) Follow-up services after placement in unsubsidized employment as described in section 134(c)(2)(A)(xiii).

“(B) Apprenticeship programs.

“(C) Education in digital literacy skills.

“(D) Mentoring.

“(E) Assistance in obtaining employment, including as a result of the eligible entity—

“(i) establishing and developing relationships and networks with large and small employers; and

“(ii) coordinating with employers to develop customized training programs and on-the-job training.

“(F) Assistance with driver’s license reinstatement and fees for driver’s licenses and obtaining other necessary documents for employment.

“(G) Provision of or referral to evidence-based mental health treatment by licensed practitioners.

“(H) Provision of or referral to substance use disorder treatment services, provided that funds awarded under subsection (b)(1) are only used to provide such services to participants who are unable to obtain such services through other programs providing such services.

“(I) Provisions of or referral to supportive services, provided that no more than 5 percent of funds awarded to an eligible entity under subsection (b)(1) may be used to provide such services to participants who are able to obtain such services through other programs providing such services.

“(3) ADMINISTRATIVE COST LIMIT.—An eligible entity may not use more than 7 percent of the funds received under subsection (b)(1) for administrative costs, including for costs related to collecting information, analysis, and coordination for purposes of subsection (e) or (f).

“(4) MATCHING FUNDS.—

“(A) IN GENERAL.—Except as provided in subparagraph (B), an eligible entity shall provide a non-Federal contribution, which may be provided in cash or in kind, for the costs of the project in an amount that is not less than 25 percent of the total amount of funds awarded to the entity for such period.

“(B) EXCEPTION.—The Secretary may waive the matching funds requirement under subparagraph (A), on a case-by-case basis and for not more than 20 percent of all awards made under subsection (b)(1), if the eligible entity receiving the award demonstrates significant financial hardship.

“(e) Levels of performance.—

“(1) ESTABLISHMENT OF LEVELS.—

“(A) IN GENERAL.—The Secretary shall establish expected levels of performance for reentry projects funded under this section for—

“(i) each of the primary indicators of performance for adults and youth described in section 116(b)(2); and

“(ii) an indicator of performance established by the Secretary with respect to participant recidivism.

“(B) UPDATES.—The levels established under subparagraph (A) shall be updated for each 4-year award period.

“(2) AGREEMENT ON PERFORMANCE LEVELS.—In establishing and updating performance levels under paragraph (1), the Secretary shall reach agreement on such levels with the eligible entities receiving awards under subsection (b)(1) that will be subject to such levels based on, as the Secretary determines relevant for each indicator of performance, the following factors:

“(A) The expected performance levels of each such eligible entity described in the application submitted under subsection (c)(2)(H).

“(B) The local economic conditions of the geographic area to be served by each such eligible entity, including differences in unemployment rates and job losses or gains in particular industries.

“(C) The characteristics of project participants when entering the project involved, including—

“(i) criminal records;

“(ii) indicators of poor work history;

“(iii) lack of work experience;

“(iv) lack of educational or occupational skills attainment;

“(v) low levels of literacy or English proficiency;

“(vi) disability status;

“(vii) homelessness; and

“(viii) receipt of public assistance.

“(3) FAILURE TO MEET PERFORMANCE LEVELS.—In the case of an eligible entity that fails to meet the performance levels under paragraph (1), the Secretary shall provide technical assistance to the eligible entity, including the development of a performance improvement plan.

“(f) Evaluation of reentry projects.—

“(1) IN GENERAL.—Not later than 5 years after the first award of funds under subsection (b)(1) is made, the Secretary (acting through the Chief Evaluation Officer) shall meet each of the following requirements:

“(A) DESIGN AND CONDUCT OF EVALUATION.—Design and conduct an evaluation to evaluate the effectiveness of the reentry projects funded under subsection (b)(1), which meets the requirements of paragraph (2), and includes an evaluation of each of the following:

“(i) The effectiveness of such projects in assisting individuals with finding employment and maintaining employment at the second quarter and fourth quarter after unsubsidized employment is obtained.

“(ii) The effectiveness of such projects in assisting individuals with earning recognized postsecondary credentials.

“(iii) The effectiveness of such projects in relation to their cost, including the extent to which the projects improve reentry outcomes, including outcomes in employment, compensation (which may include wages earned and benefits), career advancement, measurable skill gains, credentials earned, and recidivism of participants in comparison to comparably situated individuals who did not participate in such projects.

“(iv) The effectiveness of specific services and interventions provided and of the overall project design.

“(v) If applicable, the extent to which such projects effectively serve various demographic groups, including people of different geographic locations, ages, races, national origins, sex, and criminal records, and individuals with disabilities.

“(vi) If applicable, the appropriate sequencing, combination, or concurrent structure of services for each subpopulation of individuals who are participants of such projects, such as the order, combination, or concurrent structure and services in which transitional jobs and occupational skills development are provided to ensure that such participants are prepared to fully benefit from employment and training services provided under the project.

“(vii) Limitations or barriers to education and employment as a result of occupational or educational licensing restrictions.

“(B) DATA ACCESSIBILITY.—Make available, on the publicly accessible website of the Department of Labor, data collected during the course of evaluation under this subsection, in an aggregated format that does not disclose personally identifiable information.

“(2) DESIGN REQUIREMENTS.—An evaluation under this paragraph (1)(A)—

“(A) shall—

“(i) be designed by the Secretary (acting through the Chief Evaluation Officer) in conjunction with the eligible entities carrying out the reentry projects being evaluated;

“(ii) include analysis of participant feedback and outcome and process measures; and

“(iii) use designs that employ the most rigorous analytical and statistical methods that are reasonably feasible, such as the use of control groups; and

“(B) may not—

“(i) collect personally identifiable information, except to the extent such information is necessary to conduct the evaluation; or

“(ii) reveal or share personally identifiable information.

“(3) PUBLICATION AND REPORTING OF EVALUATION FINDINGS.—The Secretary (acting through the Chief Evaluation Officer) shall—

“(A) in accordance with a timeline determined to be appropriate by the Chief Evaluation Officer, publish an interim report on such evaluation;

“(B) not later than 90 days after the date on which any evaluation is completed under this subsection, publish and make publicly available such evaluation; and

“(C) not later than 60 days after the completion date described in subparagraph (B), submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report on such evaluation.

“(g) Annual report.—

“(1) CONTENTS.—Subject to paragraph (2), the Secretary shall post, using transparent, linked, open, and interoperable data formats, on its publicly accessible website, an annual report on—

“(A) the number of individuals who participated in projects assisted under this section for the year preceding the report;

“(B) the percentage of such individuals who successfully completed the requirements of such projects;

“(C) the performance during the year preceding the report of eligible entities on such projects as measured by the performance indicators set forth in subsection (e); and

“(D) an explanation of any waivers granted by the Secretary of the matching requirement under subsection (d)(4).

“(2) DISAGGREGATION.—The information provided under subparagraphs (A) through (C) of paragraph (1) with respect to a year shall be disaggregated by each project assisted under this section for such year.

“(h) Reservation of funds.—Of the funds appropriated under section 173(e) for a fiscal year, the Secretary—

“(1) may reserve not more than 5 percent for the administration of awards under subsection (b)(1), of which not more than 2 percent of the funds appropriated may be reserved for the provision of—

“(A) technical assistance to eligible entities that receive funds under such subsection; and

“(B) outreach and technical assistance to eligible entities desiring to receive such funds, including assistance with application development and submission; and

“(2) shall reserve not less than 1 percent and not more than 2.5 percent for the evaluation activities under subsection (f) or to support eligible entities with any required data collection, analysis, and coordination related to such evaluation activities.

“(i) Definitions.—In this section:

“(1) AWARD.—The term ‘award’ means a grant, contract, or cooperative agreement.

“(2) CHIEF EVALUATION OFFICER.—The term ‘Chief Evaluation Officer’ means the head of the independent evaluation office in the Office of the Assistant Secretary for Policy of the Department of Labor.

“(3) COMMUNITY SUPERVISION.—The term ‘community supervision’ means mandatory oversight (including probation and parole) of a formerly incarcerated person—

“(A) who was convicted of a crime by a judge or parole board; and

“(B) who is living outside a secure facility.

“(4) CORRECTIONAL INSTITUTION.—The term ‘correctional institution’ has the meaning given the term in section 225(e).

“(5) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—

“(A) a private nonprofit organization under section 501(c)(3) of the Internal Revenue Code of 1986, including a community-based or faith-based organization;

“(B) a local board;

“(C) a State or local government;

“(D) an entity eligible for grants under section 166(c);

“(E) a labor organization or joint labor-management organization;

“(F) an industry or sector partnership;

“(G) an institution of higher education; or

“(H) a consortium of the entities described in subparagraphs (A) through (G).

“(6) ELIGIBLE ADULT.—The term ‘eligible adult’ means a justice-involved individual who—

“(A) is age 25 or older; and

“(B) in the case of an individual that was previously incarcerated, was released from incarceration not more than 3 years before enrollment in a project funded under subsection (b)(1).

“(7) ELIGIBLE YOUTH.—The term ‘eligible youth’ means a justice-involved individual who is not younger than age 14 or older than age 24.

“(8) EVIDENCE-BASED.—The term ‘evidence-based’, when used with respect to an activity, service, strategy, or intervention, means an activity, service, strategy, or intervention that—

“(A) demonstrates a statistically significant effect on improving participant outcomes or other relevant outcomes based on—

“(i) strong evidence from at least 1 well-designed and well-implemented experimental study;

“(ii) moderate evidence from at least 1 well-designed and well-implemented quasi-experimental study; or

“(iii) promising evidence from at least 1 well-designed and well-implemented correlational study with statistical controls for selection bias; or

“(B) (i) demonstrates a rationale based on high-quality research findings or positive evaluation that such activity, strategy, or intervention is likely to improve student outcomes or other relevant outcomes; and

“(ii) includes ongoing efforts to examine the effects of such activity, service, strategy, or intervention.

“(9) HIGH-POVERTY.—The term ‘high-poverty’, when used with respect to a geographic area, means an area with a poverty rate of at least 20 percent as determined based on the most recently available data from the American Community Survey conducted by the Bureau of the Census.

“(10) JUSTICE-INVOLVED INDIVIDUAL.—The term ‘justice-involved individual’ means an individual who has been convicted as a juvenile or an adult and imprisoned under Federal or State law.

“(11) WORK-BASED LEARNING.—The term ‘work-based learning’ has the meaning given the term in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302).”.