This is the multi-page printable view of this section. Click here to print.

Return to the regular view of this page.

Merit Institute

1 - THE ALTERNATIVE CREDENTIALING & SKILLS ACT (ACSA)

THE ALTERNATIVE CREDENTIALING & SKILLS ACT (ACSA)

A Bill to Establish Federally Recognized Merit-Based Credentials as an Alternative to Traditional Degrees

SECTION 1. SHORT TITLE

This Act may be cited as the “Alternative Credentialing & Skills Act (ACSA).”

SECTION 2. PURPOSE

To create federally recognized merit-based credentials as an alternative to college degrees, ensuring that individuals can demonstrate competency through measurable skills rather than seat time or institutional prestige. This Act is designed to support workforce development, global economic competitiveness, and industry-aligned credentialing that meets 21st-century labor market demands.

TITLE I — DEFINITIONS & STANDARDS

Sec. 101. Key Terms

  1. (a) “Merit-Based Credential” A skills-based certification that verifies an individual’s ability in a specific domain or field, assessed through direct competency evaluations, rather than traditional degree programs. These credentials shall be recognized at the federal level and used for employment, professional licensing, and further education.
  2. (b) “Competency-Based Assessment” A structured, objective evaluation measuring an individual’s actual knowledge, skills, and abilities in a field, as opposed to time spent in coursework. These assessments include: – Standardized competency exams in technical and professional domains. – Project-based assessments demonstrating hands-on expertise. – Workforce evaluations validated by employers and industry experts. – AI-verified skills testing utilizing adaptive learning analytics.
  3. (c) “Equivalent Skills Certification” A federal certification that officially replaces degree requirements in public sector hiring and licensing boards for fields that do not legally require a degree.
  4. (d) “Portable Credential” A certification recognized across all U.S. states, preventing local or state-level agencies from rejecting it in favor of traditional degrees.
  5. (e) “Unbundled Higher Education” An education model in which individuals can earn and stack individual credentials in specific skills without being required to complete an entire degree program.

TITLE II — CREATION OF A NATIONAL ALTERNATIVE CREDENTIALING SYSTEM

Sec. 201. Establishing the National Skills Accreditation Board (NSAB)

  1. (a) The U.S. Department of Labor, in collaboration with the Department of Education, shall establish the National Skills Accreditation Board (NSAB) to: – Oversee the development and validation of alternative credentials. – Ensure federal agencies and contractors accept merit-based certifications as an equal alternative to degrees. – Audit credentialing organizations for accuracy and transparency. – Create crosswalks between state licensing requirements and alternative credentials to facilitate nationwide adoption.
  2. (b) The NSAB shall prioritize industry-driven credentialing, ensuring that skills-based certifications align with market needs and workforce demand.

Sec. 202. Establishment of Federally Recognized Alternative Credentials (FRACs)

  1. (a) FRACs shall be created in the following high-demand industries: – Technology (software development, AI, cybersecurity, data science). – Healthcare (medical coding, patient care, laboratory technology). – Engineering & Trades (electrical, mechanical, construction). – Business & Finance (accounting, financial analysis, operations management). – Legal & Government (paralegal studies, compliance, policy analysis).
  2. (b) FRACs Shall Be Equal to Degrees for Federal Hiring – Any federal job posting requiring a degree must accept an equivalent FRAC. – Agencies failing to comply will face funding penalties and an audit of hiring practices.

Sec. 203. Employer Incentives for Recognizing Alternative Credentials

  1. (a) Employers who hire individuals based on FRACs rather than traditional degrees shall receive: – Federal tax incentives for skills-based hiring. – Priority access to federal contracts. – Workforce development grants to support further skill training.
  2. (b) Private-sector employers receiving federal funding must publicly report how many employees were hired based on alternative credentials.

Sec. 204. Unbundling Higher Education & Federal Aid for Individual Courses

  1. (a) Students shall be able to use federal student aid for individual courses or certifications, rather than being forced to enroll in full degree programs. – Institutions must offer financial aid options for individual skills-based courses. – Unused federal student aid may be rolled over for future certifications.
  2. (b) Federal Work-Study Expansion for Skill-Based Training – Students may apply work-study funds to industry-certified apprenticeships instead of on-campus employment.

TITLE III — STATE LICENSING & PORTABILITY OF CREDENTIALS

Sec. 301. Cross-State Recognition of Alternative Credentials

  1. (a) All alternative credentials approved by the NSAB shall be recognized across state lines.
  2. (b) State licensing boards may not reject NSAB-approved certifications in favor of degree requirements, except where explicitly required by federal law (e.g., MD for medical doctors, JD for attorneys).

Sec. 302. Mandatory Alternative Pathways to Licensure

  1. (a) State boards must provide a non-degree path for any licensing program where a degree is not legally required.
  2. (b) Licensing exams must be open to all individuals, regardless of degree status, if they meet competency-based prerequisites.

TITLE IV — AI-BASED SKILL ASSESSMENT & DATA PROTECTION STANDARDS

Sec. 401. AI-Verified Skill Testing & Oversight

  1. (a) The NSAB shall oversee the use of AI-based skills testing to ensure: – Transparency in AI scoring algorithms. – Bias audits of AI evaluation models. – Regular updates to align with workforce needs.
  2. (b) AI-generated competency assessments must be explainable and reviewable by human auditors.

Sec. 402. Data Protection & Privacy Standards

  1. (a) All alternative credentialing data must be encrypted and comply with: – The Federal Data Protection Act (FDPA). – Anonymized reporting for non-consensual data analysis.
  2. (b) Strict access controls to prevent unauthorized third-party use.

Implementation Timeline & Next Steps

• Year 1: NSAB established; initial FRACs launched. • Year 2: Employers begin receiving tax benefits for skills-based hiring. • Year 3: Full alternative credential portability enforced. • Year 4: Federal agencies fully transition to FRACs in hiring.

2 - THE MERIT-BASED EDUCATION & WORKFORCE REFORM ACT (MEWRA)

THE MERIT-BASED EDUCATION & WORKFORCE REFORM ACT (MEWRA)

A Bill to Overhaul Education and Workforce Training Through Measurable Merit and Accountability

SECTION 1. SHORT TITLE

This Act may be cited as the “Merit-Based Education & Workforce Reform Act (MEWRA).”

SECTION 2. PURPOSE

To replace outdated accreditation and federal education funding mechanisms with real-time, merit-based measurement systems that ensure funding goes to schools, programs, and training initiatives that demonstrate verifiable student and worker outcomes while aligning education with workforce demands and economic competitiveness.

TITLE I — DEFINITIONS & STANDARDS

Sec. 101. Key Terms

  1. (a) “Failing School” A public or private educational institution that meets any two of the following conditions over a three-year rolling period:
  • Declining or stagnant student performance on federally recognized standardized assessments.
  • Student proficiency rates below 50% in core subjects (math, reading, science).
  • Graduation rates below 67% for high schools.
  • Failure to meet established career and college readiness benchmarks (e.g., SAT/ACT thresholds, workforce placement rates).
  • Negative net outcomes for students, as demonstrated by post-graduation employment rates, income data, or remedial education enrollment.
  1. (b) “Measurable Improvement” Demonstrated, verifiable academic or skill growth assessed through:
  • Federally recognized standardized assessments (e.g., NAEP, state-specific exams).
  • Competency-based evaluations, including direct assessments of knowledge and application.
  • Longitudinal tracking of individual student growth, with adaptive comparisons to peer performance.
  • Third-party skill validation and certification outcomes (e.g., professional licensing exams, trade skill certifications).
  • Industry-validated workforce readiness assessments measuring job placement success.
  1. (c) “Learning Outcomes” For an educational institution to qualify for federal funds, it must demonstrate measurable learning outcomes in at least three of the following areas:
  • Core Subject Mastery – Proficiency in math, reading, writing, and science.
  • Critical Thinking & Problem-Solving – Measured through structured reasoning assessments.
  • College & Career Readiness – Placement rates into higher education or skilled employment.
  • Retention of Knowledge Over Time – Demonstrated competency six months to one year post-instruction.
  • Workforce Competency – Job performance evaluations for vocational training programs.
  • Entrepreneurial & Innovation Readiness – Ability to start and manage new businesses or projects.

TITLE II — FEDERAL EDUCATION FUNDING REFORM

Sec. 201. Federal Education Funds Tied to Measured Outcomes

  1. (a) Creation of the National Learning Measurement Framework (NLMF)
  • Establishes a federal learning and workforce performance database tracking student skill acquisition, comprehension, and long-term retention.
  • Institutions must participate in this real-time tracking system to qualify for federal funding.
  1. (b) Defunding Non-Performing Institutions
  • Any K–12 school, college, or workforce program that fails to demonstrate measurable improvement over 3 consecutive years shall lose federal funding.
  • Reallocation of funds to high-performing institutions serving similar demographics.
  1. (c) Public Accountability Dashboard
  • A national, open-access dashboard will provide real-time, anonymized performance data to ensure public transparency in school and workforce training outcomes.
  1. (d) State & Employer Alignment Requirement
  • Federal education funds shall prioritize schools that align curricula with workforce and industry needs.
  • Employers will be incentivized to partner with education providers to ensure curricula meet modern labor demands.

TITLE III — ACCREDITATION TRANSITION PLAN & IMPLEMENTATION

Sec. 301. Phased Transition from Traditional Accreditation

  • (a) Year 1–2: Parallel system with both accreditation and performance-based funding models in place.
  • (b) Year 3: Performance-based funding expands to 50% of federal education dollars.
  • (c) Year 4–5: Traditional accreditation is phased out entirely, replaced by merit-based evaluation.

Sec. 302. Alternative Credentialing & Crosswalk with State Licensure Requirements

A National Credentialing Equivalency System (NCES) will integrate:

  • Alternative skill-based certifications with state professional licensing boards.
  • Employer-verified job performance data as a recognized substitute for degrees.
  • Third-party competency assessments for non-degree pathways to licensure.

TITLE IV — AI-DRIVEN ASSESSMENT & DATA PRIVACY PROTECTIONS

Sec. 401. Implementation of AI-Based Performance Tracking

  1. (a) AI-driven assessments must comply with transparency and bias-auditing requirements.
  2. (b) All AI algorithms used for assessments must be publicly documented and subject to periodic third-party review.
  3. (c) Strict security measures must be implemented for student and worker data collected by AI-driven assessments.

Sec. 402. Data Privacy & Security Measures

  1. (a) Encryption & Anonymization Standards
  • All student and worker data must be stored with end-to-end encryption and anonymized before public reporting.
  1. (b) Limited Data Access
  • No third-party access to personally identifiable information (PII) without explicit user consent.
  1. (c) Mandatory Data Breach Response Plan
  • Any institution found violating data privacy standards will face funding penalties and legal action.

TITLE V — CONFORMING AMENDMENTS TO EXISTING LAWS

Sec. 501. Repeal of Outdated Federal Education Mandates

  1. (a) No Child Left Behind Act and Race to the Top provisions that rely solely on accreditation-based funding are repealed.
  2. (b) Higher Education Act amendments: Accreditation requirements for federal student aid eligibility are modified to incorporate performance-based evaluation standards.

Sec. 502. Adjustments to Workforce & Licensing Regulations

  1. (a) Occupational licensing boards must incorporate competency-based pathways for licensure where possible.
  2. (b) Federal job applications must recognize alternative credentials and skill-based hiring standards.

TITLE VI — IMPLEMENTATION & REVIEW

Sec. 601. Federal Oversight & Five-Year Review

  1. (a) The Office of Management and Budget (OMB) shall oversee compliance and implementation of this Act.
  2. (b) Every five years, a comprehensive review will determine the effectiveness of MEWRA and recommend amendments based on real-world data.

3 - THE GOVERNMENT TRANSPARENCY & PERFORMANCE ACT

THE GOVERNMENT TRANSPARENCY & PERFORMANCE ACT

A Bill to Implement Real-Time Accountability, Data-Driven Decision-Making, and Performance-Based Funding Across Federal Programs

SECTION 1. SHORT TITLE

This Act may be cited as the “Government Transparency & Performance Act.”

SECTION 2. PURPOSE

To enhance the efficiency, effectiveness, and transparency of federal government operations by mandating performance-based evaluations, real-time public financial tracking, and the elimination of underperforming programs. This Act will phase in performance-based funding to ensure sustainable adoption and bipartisan support.

TITLE I — DEFINITIONS & STANDARDS

Sec. 101. Key Terms

  1. (a) “Performance-Based Evaluation” A structured, objective measurement of a government agency, program, or initiative based on clear, quantifiable benchmarks of success, including efficiency, cost-effectiveness, and public impact.
  2. (b) “Public Accountability Dashboard” A real-time, publicly accessible database that tracks federal spending, agency performance, and program effectiveness.
  3. (c) “Failing Government Program” A federally funded initiative that meets any two of the following conditions over a three-year period: – Fails to meet key performance indicators (KPIs) outlined in its mission statement. – Costs exceed allocated budgets by more than 20% without justification. – Fails to produce measurable benefits to the public, as determined by independent audits. – Has declining public engagement or usage metrics.
  4. (d) “Automated Budget Auditing System (ABAS)” A federal system that monitors government spending in real time, flags financial inefficiencies, and recommends automatic funding reductions for failing programs.

TITLE II — IMPLEMENTATION OF REAL-TIME TRANSPARENCY

Sec. 201. Establishment of the Public Accountability Dashboard

  1. (a) The U.S. Treasury shall develop and maintain a real-time, publicly accessible dashboard displaying: – All federal spending in real time, categorized by agency, department, and initiative. – Performance data for each federal program, including goal achievement and budget utilization. – Public feedback metrics, allowing citizens to rate government programs and submit recommendations for improvement or elimination.
  2. (b) Failure to report financial or performance data within required timeframes shall result in an automatic funding reduction of 5%.

Sec. 202. Government Spending Report Card

  1. (a) Each federal agency shall receive an annual “Government Performance Report Card,” ranking its effectiveness based on: – Operational efficiency (cost per unit of service delivered). – Success rate of initiatives. – Budget compliance (overspending vs. savings). – Public satisfaction and engagement.
  2. (b) Agencies receiving failing scores (D or F) for two consecutive years will have their leadership automatically reassigned or terminated.

TITLE III — PERFORMANCE-BASED FUNDING & PROGRAM ELIMINATION

Sec. 301. Phased Implementation of Performance-Based Federal Funding

  1. (a) Year 1: Transparency dashboards and real-time tracking go live.
  2. (b) Year 2: Performance-based funding begins with 10% of agency budgets.
  3. (c) Year 3: Expands to 30% of agency budgets.
  4. (d) Year 4: Full transition to performance-based allocations across federal agencies.

Sec. 302. Independent Performance Audits

  1. (a) The Government Accountability Office (GAO) shall conduct independent performance audits of every federal program on a rotating three-year basis.
  2. (b) Programs found to be fraudulent, redundant, or consistently ineffective shall be immediately defunded.

TITLE IV — EXECUTIVE ACCOUNTABILITY & PERSONNEL REFORM

Sec. 401. Executive Performance-Based Accountability

  1. (a) All federal agency leaders shall be required to meet key performance objectives to remain in office.
  2. (b) Failure to meet two consecutive annual performance evaluations will result in automatic removal from leadership.
  3. (c) Executive bonuses and pay raises shall be tied directly to agency effectiveness scores.

Sec. 402. Ending Lifetime Bureaucratic Tenure

  1. (a) All federal employees must undergo performance reviews every two years.
  2. (b) Employees receiving failing reviews twice in a row shall be subject to automatic reassignment or termination.

TITLE V — CITIZEN PARTICIPATION IN GOVERNMENT ACCOUNTABILITY

Sec. 501. Public Voting on Government Initiatives

  1. (a) Citizens shall be allowed to vote on proposed government initiatives, determining whether underperforming programs should be reformed or eliminated.
  2. (b) Any initiative receiving more than 65% disapproval from public voting shall trigger a Congressional review for potential defunding.

Sec. 502. Federal Whistleblower & Fraud Reporting Portal

  1. (a) Establishment of a secure, anonymous reporting system where federal employees and citizens can submit evidence of waste, fraud, or abuse.
  2. (b) Whistleblowers exposing corruption or inefficiency that leads to cost savings exceeding $10 million shall receive a 5% financial reward from recouped funds.

TITLE VI — DATA SECURITY & TRANSPARENCY STANDARDS

Sec. 601. Government Data Security Requirements

  1. (a) All government financial data must be encrypted and protected against cyber threats.
  2. (b) Agencies failing to meet federal cybersecurity compliance shall face an immediate budget reduction of 10%.

Sec. 602. AI Oversight of Government Efficiency

  1. (a) A federally managed AI-driven monitoring system shall track inefficiencies, fraudulent expenditures, and redundant programs in real time.
  2. (b) AI recommendations for program improvements must be submitted to Congress and the public every six months.

TITLE VII — IMPLEMENTATION & COMPLIANCE

Sec. 701. Federal Oversight & Implementation Authority

  1. (a) The Office of Management and Budget (OMB) shall oversee compliance and implementation of this Act.
  2. (b) Agencies failing to meet transparency or performance requirements will be subject to executive restructuring.

Sec. 702. Five-Year Sunset Review

  1. (a) All provisions under this Act shall be reviewed after five years for effectiveness.
  2. (b) Any provision failing to show measurable government improvement shall be subject to amendment or repeal by a two-thirds Congressional vote.

4 - THE PRO-ENTREPRENEURSHIP & AI WORKFORCE ACT

THE PRO-ENTREPRENEURSHIP & AI WORKFORCE ACT

A Bill to Modernize Workforce Development, Accelerate AI Integration, and Remove Barriers to Entrepreneurship

SECTION 1. SHORT TITLE

This Act may be cited as the “Pro-Entrepreneurship & AI Workforce Act.”

SECTION 2. PURPOSE

To transform the U.S. economy by eliminating regulatory barriers to entrepreneurship, accelerating AI adoption, and prioritizing skills-based workforce training to make American workers globally competitive while ensuring fairness, transparency, and governance in AI-driven hiring and credentialing.

TITLE I — DEFINITIONS & STANDARDS

Sec. 101. Key Terms

  1. (a) “AI-Integrated Workforce” A workforce in which AI tools are used to enhance productivity, automate routine tasks, and enable human-AI collaboration for higher efficiency in various industries.
  2. (b) “Skills-Based Hiring” A hiring approach where measurable competency in job-related skills is prioritized over degree requirements, validated through AI-verified assessments and practical evaluations.
  3. (c) “Entrepreneurial Fast-Track” A federal program that eliminates administrative delays for small business creation, streamlining compliance, financing, and operational setup, with particular focus on supporting minority and underserved entrepreneurs.
  4. (d) “AI Credentialing” A federally recognized certification system that validates an individual’s proficiency in AI-related skills such as machine learning, data analytics, and AI-assisted decision-making while ensuring transparency and fairness in AI-based evaluations.
  5. (e) “Regulatory Burden Reduction” The process of simplifying, eliminating, or automating unnecessary regulations that hinder entrepreneurship and workforce mobility, while ensuring necessary oversight to prevent systemic risks.

TITLE II — AI-BASED WORKFORCE TRAINING & CERTIFICATION

Sec. 201. Establishment of a National AI Workforce Initiative

  1. (a) The Department of Labor, in collaboration with the National Science Foundation (NSF), private sector leaders, and civil rights organizations, shall create a federal AI workforce training program.
  2. (b) The initiative shall include: – AI literacy training for federal employees and workforce development programs. – AI Credentialing (AIC) that replaces degree requirements for AI-based roles, ensuring that hiring decisions remain free of bias and discrimination. – Government grants for AI skills training to retrain displaced workers and those transitioning from traditional jobs into AI-related careers.

Sec. 202. AI Hiring Standards for Federal and State Jobs

  1. (a) Federal agencies must adopt AI-driven hiring assessments to measure candidate competency while complying with anti-discrimination standards.
  2. (b) AI Credentialing (AIC) must be accepted as an alternative to traditional degrees.
  3. (c) Bias audits on AI-driven hiring tools must be conducted annually, ensuring fairness, equity, and non-discriminatory hiring practices.

TITLE III — DEREGULATING ENTREPRENEURSHIP & STREAMLINING BUSINESS CREATION

Sec. 301. Entrepreneurial Fast-Track Program

  1. (a) Creation of a one-click business formation system allowing entrepreneurs to: – Register a business within 24 hours. – Automatically generate a federal tax ID and business bank account. – Receive AI-generated compliance assistance tailored to their industry.
  2. (b) Entrepreneurs who enroll in this program shall be exempt from select bureaucratic hurdles for 3 years, including: – Unnecessary licensing delays. – Non-essential compliance audits. – Costly annual reporting requirements for small businesses earning less than $500,000 in revenue.

Sec. 302. AI-Driven Small Business Assistance Grants

  1. (a) AI-powered grant eligibility platform shall match small businesses with applicable grants in real-time.
  2. (b) Startups in AI, automation, and workforce development sectors shall be eligible for expedited funding approval.
  3. (c) Special provisions shall be made for minority- and women-owned businesses, ensuring equitable access to fast-track funding.

Sec. 303. Reduction of Occupational Licensing Barriers

  1. (a) State governments must streamline licensing requirements for professions that do not involve safety risks.
  2. (b) AI-based licensing tests must be available for non-degree pathways to professional credentials.
  3. (c) Interstate recognition of AI-driven skill certifications shall be mandatory for federally regulated professions.

TITLE IV — AI TRANSPARENCY, GOVERNANCE, & DATA SECURITY

Sec. 401. AI Oversight Board for Workforce Use Cases

  1. (a) A federal AI Oversight Board shall be established to: – Audit AI hiring algorithms for bias, transparency, and accuracy. – Ensure worker rights are protected in AI-monitored workplaces. – Mandate periodic public reporting on AI employment trends.

Sec. 402. AI Data Protection Standards

  1. (a) All AI workforce assessments must meet federal data security requirements: – Encrypted personal data storage. – Clear disclosure of AI decision-making criteria. – Right to human review of AI-generated employment decisions.

TITLE V — ACCOUNTABILITY & COMPLIANCE

Sec. 501. Enforcement Mechanisms

  1. (a) The Department of Labor shall conduct annual compliance audits of federal agencies and private employers receiving federal funding.
  2. (b) Non-compliance with AI transparency or hiring requirements shall result in loss of federal contracts and penalties up to $10 million per violation.

Sec. 502. Entrepreneurial Progress Reports

  1. (a) The Small Business Administration (SBA) shall publish quarterly reports tracking: – Number of businesses created under the Fast-Track Program. – Percentage of federal contracts awarded to startups. – Economic impact of reduced regulatory barriers on entrepreneurship.

TITLE VI — IMPLEMENTATION & REVIEW

Sec. 601. Phase-In Timeline

• Year 1: AI Credentialing & workforce training program launch. • Year 2: Entrepreneurial Fast-Track Program becomes fully operational. • Year 3: AI hiring assessments and licensing reform take effect nationwide. • Year 4: Full AI workforce integration and transparency mandates enforced.

Sec. 602. Review & Sunset Clause

  1. (a) Programs under this Act shall be reviewed after 5 years for effectiveness.
  2. (b) Any provision found to be ineffective may be repealed by a 2/3 vote of Congress.