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.