Entrepreneurs of the Future Program

(a) Program improvements (1) Renaming program (A) In general Section 3306(t) of the Internal Revenue Code of 1986 is amended— (i) in the heading, by striking Self-employment Assistance and inserting Entrepreneurs of the Future; and (ii) in the matter preceding paragraph (1), by striking self-employment assistance and inserting Entrepreneurs of the Future. (B) Conforming amendments (i) Section 3304(a)(4)(F) of such Code is amended by striking self-employment assistance and inserting Entrepreneurs of the Future. (ii) Section 3306(f)(6) of such Code is amended by striking self-employment assistance and inserting Entrepreneurs of the Future. (iii) Section 303(a)(5) of the Social Security Act (42 U.S.C. 503(a)(5)) is amended, in the last proviso, by striking self-employment assistance and inserting Entrepreneurs of the Future. (2) Adjustment of limitation on number of individuals participating Section 3306(t)(4) of such Code is amended— (A) by striking 5 percent of; and (B) by inserting and after the semicolon at the end. (3) Elimination of requirement that participants are likely to exhaust regular unemployment compensation Section 3306(t)(3) of the Internal Revenue Code of 1986 is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively. (4) Modification of requirement to participate in self-employment assistance activities Section 3306(t)(3)(B) of the Internal Revenue Code of 1986, as redesignated by paragraph (3), is amended to read as follows: (B) are participating in proven entrepreneurship, self-employment, or small business ownership activities which are approved by the State agency and either— (i) include entrepreneurial training, business counseling, and technical assistance; or (ii) are performed pursuant to a business plan submitted by the individual and approved by the State or an agency or entity designated by the State; and. (5) Elimination of budget neutrality requirement Section 3306(t) of the Internal Revenue Code of 1986 is amended by striking paragraph (5) and redesignating paragraph (6) as paragraph (5). (6) Notification of eligibility Section 3306(t)(1) of the Internal Revenue Code of 1986 is amended by inserting, and the State notifies such individuals of their eligibility to receive such allowance after self-employed. (b) Requirement for States To establish an Entrepreneurs of the Future program (1) In general Section 3304(a) of the Internal Revenue Code of 1986 is amended— (A) in paragraph (4)(F), by inserting, as required under paragraph (19) after 3306(t); (B) in paragraph (18), by striking and at the end; (C) by redesignating paragraph (19) as paragraph (20); and (D) by inserting after paragraph (18) the following new paragraph: (19) payment of allowances are made under Entrepreneurs of the Future programs (as defined in section 3306(t)) under the State law; and. (2) Conforming amendment Section 303(a)(5) of the Social Security Act (42 U.S.C. 503(a)(5)), is amended, in the last proviso, by inserting, as required under section 3304(a)(19) of such Code after 1986). (c) Regulations and guidance (1) Issuance of regulations The Secretary of Labor shall, after public notice and comment and subject to approval by the Office of Management and Budget, adopt regulations to administer this section. (2) Issuance of guidance The Secretary of Labor, in consultation with the Administrator of the Small Business Administration, shall provide guidance to State workforce agencies that includes— (A) with respect to States that have established a program under section 3306(t) of the Internal Revenue Code of 1986 as of the date of enactment of this section, best practices for implementing the requirements of this section to such program; (B) with respect to States that have not established a program under section 3306(t) of the Internal Revenue Code of 1986 as of the date of enactment of this section, best practices for establishing such a program in compliance with the requirements of this section; (C) a model list of entrepreneurship, self-employment, and small business ownership activities that fulfill requirements of the program under section 3306(t) of the Internal Revenue Code of 1986, including the option of engaging with Small Business Development Centers and nonprofit organizations specializing in small business technical assistance; and (D) best practices for verification of completion of the activities described in subparagraph (C). (d) Payments to States for operating an Entrepreneurs of the Future program Section 903 of the Social Security Act (42 U.S.C. 1103) is amended by adding at the end the following new subsection: (j) Payments to States for operating an Entrepreneurs of the Future program (1) (A) Subject to paragraph (4), there shall be paid to each State an amount equal to 100 percent of— (i) the total amount of allowances paid to individuals by the State under the State's Entrepreneurs of the Future program (as defined in section 3306(t) of the Internal Revenue Code of 1986); and (ii) any additional administrative expenses incurred by the State by reason of making such payments (as determined by the Secretary of Labor). (B) Sums payable to any State under this subsection shall be payable, either in advance or by way of reimbursement (as determined by the Secretary of Labor), in such amounts as the Secretary of Labor estimates the State will be entitled to receive under this subsection for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary of Labor finds that the Secretary’s estimates for any prior calendar month were greater or less than the amounts that should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary of Labor and the State agency of the State involved. (2) The Secretary of Labor shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this subsection. (3) Sums payable to any State under this subsection shall be— (A) made by way of transfer from the Artificial Intelligence Horizon Fund (as defined in section 3 of the Make AI Work for Americans Act); and (B) deposited in the account of such States in the Unemployment Trust Fund. (4) Payments to States under this subsection shall be subject to the availability of funds in the Artificial Intelligence Horizon Fund (as defined in section 3 of the Make AI Work for Americans Act).. (e) Effective date The amendments made this section shall apply to weeks of unemployment beginning on or after the earlier of— (1) the date the State changes its statutes, regulations, or policies in order to comply with such amendments; or (2) January 1, 2028.