Overview
Title
To increase cybersecurity education and job growth, and for other purposes.
ELI5 AI
H.R. 2447, called the "New Collar Jobs Act of 2025," is a plan to help people learn about protecting computers from bad guys and to grow jobs in that area. It offers things like money help for school and encouragement for companies to teach their workers about computer safety.
Summary AI
H.R. 2447, titled the "New Collar Jobs Act of 2025," aims to boost education and job growth in cybersecurity fields. The bill proposes incentives like tax credits for employers who fund cybersecurity education for employees, student loan forgiveness for cybersecurity workers in economically distressed areas, and increased scholarships and funding for cybersecurity training programs. It also introduces benefits for businesses that invest in employee cybersecurity education when competing for government contracts.
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AnalysisAI
The proposed legislation, known as the "New Collar Jobs Act of 2025," aims to enhance cybersecurity education and boost job growth in that field. The bill introduces several measures, including tax incentives for employers, student loan forgiveness programs for cybersecurity professionals, and increased funding for relevant educational programs. The bill also modifies government contracting processes to encourage participation in cybersecurity training.
General Summary of the Bill
The bill comprises various provisions aimed at developing the cybersecurity workforce. It includes incentives for employers to invest in education for their employees, forgives some student loan debt for cybersecurity workers in economically distressed areas, and increases scholarships available through the CyberCorps program. Additionally, it proposes increased funding for programs focused on technological education and introduces preferential treatment in government contracts for businesses involved in cybersecurity training.
Significant Issues
A notable concern is the lack of oversight and accountability measures, which may lead to the inefficient or biased use of funds. Furthermore, the definition of "qualified employee cybersecurity education expenses" is narrow, potentially excluding valid educational programs not covered by specified frameworks. This could limit opportunities for emerging educational paths within cybersecurity.
The bill's loan repayment feature ties benefits to employment in economically distressed areas. However, the criteria for what constitutes such an area are vague, creating potential confusion. The cap on loan forgiveness may not be sufficient for individuals with significant student debt, thus reducing the program's attractiveness. Additionally, shifting the focus away from prioritizing federal employment might limit opportunities for scholarship recipients under the CyberCorps program.
Public and Stakeholder Impact
Public Impact:
For the general public, the bill promises to enhance national cybersecurity by expanding the skilled workforce. By encouraging education and professional development through various incentives, it aims to create a more robust defense against cyber threats. However, the broad applicability and potential lack of preparation in some sectors might challenge the quick adaptation of businesses to these new incentives.
Stakeholder Impact:
For employers, the bill offers financial incentives to invest in cybersecurity education but may complicate compliance due to the complex requirements and cross-referenced regulatory sections. Smaller businesses may find difficulty in accessing the benefits due to high entry thresholds for participation, particularly in government contracts.
For individuals in cybersecurity professions, especially those with student debt, the loan forgiveness program could provide significant relief. However, the geographic and financial constraints might limit the number of professionals who can benefit. Prospective students might find increased opportunities through the proposed scholarship expansions, though the removal of federal employment priority could affect job prospects post-graduation.
Overall, while the intention of the bill is to foster growth in the cybersecurity workforce, the practical implications and execution present challenges that need careful consideration to ensure that the initiatives reach their intended goals effectively.
Financial Assessment
The "New Collar Jobs Act of 2025" features several financial incentives and references designed to foster growth in cybersecurity education and jobs. This commentary will explore the financial elements of the bill and how they intersect with identified issues.
Employee Cybersecurity Education
The bill proposes a tax credit for employers equivalent to 50% of the costs incurred for qualifying cybersecurity education for employees, capped at $5,000 per employee each year. This credit is intended to motivate employers to invest in the cybersecurity skills of their workforce, which supports the bill's overarching goal of job growth in the cybersecurity sector.
However, an issue arises from the restrictive nature of what constitutes "qualified employee cybersecurity education expenses." The limitation to programs listed in the NICE Cybersecurity Workforce Framework might inadvertently exclude innovative or emerging educational opportunities that do not fall within this framework, thus potentially reducing the attractiveness of this incentive for some employers.
Student Loan Repayment for Cybersecurity Employees
Section 4 introduces a loan repayment initiative targeting cybersecurity workers in economically distressed areas, allowing for cancellation of loans up to $25,000. This measure is designed to attract skilled workers to underserved regions, thereby promoting economic development and cybersecurity expertise where it is needed most.
Critically, the $25,000 cap might not be sufficient relative to the actual student debt loads, diminishing the effectiveness of this incentive in persuading potential participants. Furthermore, the requirement for participants to work in these areas for a significant percentage of their time could pose enforcement challenges and limit engagement from workers whose roles cannot be geographically constrained.
CyberCorps Scholarship-for-Service Program
The bill expresses a congressional intention to significantly boost funding for the CyberCorps program, aiming to double the scholarships awarded to students preparing for careers in cybersecurity. This initiative underscores a commitment to expanding the pipeline of cybersecurity talent in the United States.
However, the removal of a federal employment preference for scholarship recipients could limit job opportunities in the public sector, potentially impacting both the growth of the cybersecurity workforce and the distribution of these trained professionals into federal roles where they might be most needed.
Cybersecurity Training Incentive for Government Contracts
In an effort to incorporate cybersecurity awareness in the private sector, the bill offers a competitive advantage—a five percent score increase—for government contracts over $5,000,000 to businesses that have previously utilized the employee cybersecurity education credit. This proposal aims to integrate cybersecurity standards into existing business practices by adding a financial reason for companies to invest in employee training.
Yet, this incentive might lead to fairness concerns, as it could inadvertently create an uneven playing field for companies unable or unwilling to take part in such training practices, thus raising questions regarding equitable access to government contracts.
Broader Financial Implications
The bill's sections on employee cybersecurity education and loan repayment are financially focused, using credits and potential savings to encourage action. However, there is an absence of clarity regarding overall budgetary impacts or detailed funding allocations, which could lead to inefficiencies or strategic misalignments in the use of funds.
In summary, while the financial incentives in the bill are crafted to enhance cybersecurity education and workforce development, several elements—cap thresholds, specific educational requirements, and definitional ambiguities—could impact their effectiveness and equitable implementation.
Issues
The lack of oversight or accountability measures in Section 1 could lead to inefficient or preferential use of funds, which could undermine public trust and result in wasteful spending.
Section 7's provision for a five percent score increase for qualified offerors on government contracts could be seen as preferential treatment, potentially disadvantaging other businesses and raising concerns about fairness in government procurement processes.
The definition of 'economically distressed area' in Section 4 references another law without providing detail, causing potential confusion and inconsistency in identifying such areas, which may impact borrowers eligible for loan repayment.
Section 4's requirement for borrowers to work in economically distressed areas for at least 60% of work hours may be difficult to enforce and verify, leading to administrative challenges and possible non-compliance.
In Section 5, the elimination of priority for Federal Government employment placements in the CyberCorps program could limit job opportunities for scholarship recipients, possibly affecting the intended growth of the cybersecurity workforce.
The restrictive definition of 'qualified employee cybersecurity education expenses' in Section 3 might limit the eligibility of valid educational programs not covered by the NICE Cybersecurity Workforce Framework, potentially excluding emerging cybersecurity educational paths.
The $25,000 cap on loan cancellation in Section 4 could be insufficient for many borrowers with larger student debts, impacting the effectiveness of the loan repayment provision in attracting talent to economically distressed areas.
The amendment to Section 5 allowing teaching as fulfilling service obligations might not align with the program's intent to expand the cybersecurity workforce if teaching roles are non-critical.
Section 7's broad applicability of the cybersecurity training incentive to solicitations issued post-enactment could cause challenges if businesses are not informed in advance, affecting their preparedness.
The absence of detailed budget implications and allocation details in Sections 1 and 2 leaves room for ambiguity regarding how funds will be spent, possibly leading to inefficient resource distribution.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title; table of contents Read Opens in new tab
Summary AI
The section provides the short title of the Act, calling it the "New Collar Jobs Act of 2025," and includes a table of contents outlining the Act's structure, which covers topics from cybersecurity education to incentives for government contracts.
2. Findings Read Opens in new tab
Summary AI
Congress identified that while US factory production has increased significantly since 2009, job growth in manufacturing has stagnated. They pointed out that new technologies in manufacturing require workers with skills in cybersecurity, which is increasingly important due to a rise in cyber-attacks on industrial systems.
3. Employee cybersecurity education Read Opens in new tab
Summary AI
The bill proposes a new tax credit called the Employee Cybersecurity Education Credit, allowing employers to claim up to 50% of the costs, with a cap of $5,000 per employee, for their employees' cybersecurity education expenses; this includes earning certificates or degrees related to specific work roles listed by the National Initiative for Cybersecurity Education. The credit would be part of the general business credits and prevent employers from claiming double benefits for the same expenses.
Money References
- “(b) Limitation.—The amount allowed as a credit under subsection (a) for the taxable year with respect to an employee shall not exceed $5,000.
45BB. Employee cybersecurity education Read Opens in new tab
Summary AI
The Employee Cybersecurity Education section provides a tax credit for employers equal to 50% of the expenses paid for employee cybersecurity education, up to a maximum of $5,000 per employee. These expenses must be for training that leads to specific certifications recognized by the National Initiative for Cybersecurity Education.
Money References
- (b) Limitation.—The amount allowed as a credit under subsection (a) for the taxable year with respect to an employee shall not exceed $5,000. (c) Qualified employee cybersecurity education expenses.—For purposes of this section, the term “qualified employee cybersecurity education expenses” means amounts paid or incurred for each employee who earns a certificate or degree at the undergraduate or graduate level or industry-recognized certification relating to those specialty areas and work roles that are listed in NCWF Work Roles in the document entitled, “NICE Cybersecurity Workforce Framework (NCWF)”, published by the National Initiative for Cybersecurity Education (NICE) of the National Institute of Standards and Technology.
4. Student loan repayment for certain cybersecurity employees Read Opens in new tab
Summary AI
The section establishes that certain cybersecurity employees working in economically distressed areas can have up to $25,000 of their federal student loan debt forgiven after making 36 consecutive monthly payments, provided they meet specific employment and payment conditions. It also clarifies that they cannot receive double benefits by participating in multiple loan forgiveness programs for the same service.
Money References
- “(B) $25,000.
5. CyberCorps scholarship-for-service program Read Opens in new tab
Summary AI
The text outlines changes to the CyberCorps scholarship-for-service program, suggesting that the number of scholarships awarded in 2026 and future years should be at least double those awarded in 2024. It adds cybersecurity course instructors as eligible participants in the program and removes the previous priority given to placing graduates in Federal Government jobs.
6. Increased funding for Advanced Technology Education program Read Opens in new tab
Summary AI
The section expresses Congress's intention that the budget for the Information Technology and Cybersecurity Division of the Advanced Technological Education program should be at least 110% of the amount spent in 2024 for the fiscal year 2026. This program is part of the National Science Foundation and was established by the Scientific and Advanced-Technology Act of 1992.
7. Cybersecurity training incentive for Government contracts Read Opens in new tab
Summary AI
The bill section describes a cybersecurity training incentive for government contracts. It requires that executive agencies give a 5% score increase to proposals from businesses that have taken advantage of a specific employee cybersecurity education credit within the past three years when those businesses compete for contracts worth more than $5 million.
Money References
- (a) In general.—The head of an executive agency shall award a five percent score increase to each competitive proposal submitted by a qualified offeror for the evaluation of a competitive proposal received in response to a solicitation for a contract valued in excess of $5,000,000.
- (2) QUALIFIED OFFEROR.—The term “qualified offeror” means a business that has claimed the employee cybersecurity education credit under section 45BB of the Internal Revenue Code of 1986, as added by section 3, at least once within the three-year period preceding the date on which the business submits a competitive proposal for a contract valued in excess of $5,000,000.