This article explains the major changes proposed in the 2026 National Apprenticeship Act reform, focusing on what contractors in North and South Carolina need to know. It covers the history of the Act, details of the Cassidy reform package, and practical steps for ABC Carolinas members.
Senator Bill Cassidy’s April 27, 2026, bipartisan reform package represents the most significant update to the National Apprenticeship Act since 1937, with direct impacts on construction apprenticeships in North and South Carolina.
The National Apprenticeship Act (NAA) was signed into law by President Franklin D. Roosevelt in 1937, establishing standards for federally recognized Registered Apprenticeship Programs.
The National Apprenticeship Act has not been reauthorized since its passage in 1937, but recent legislation aims to expand and streamline apprenticeship programs for the modern era while maintaining job quality and minimum standards. For commercial contractors in North and South Carolina, this framework underpins workforce development strategies critical to meeting project demand.
ABC Carolinas members rely on registered apprenticeship programs and broader workforce development initiatives to address persistent skilled worker shortages across commercial and industrial construction markets. The 2026 Cassidy reform package aims to update the 1937 framework to reflect modern construction methods, competency-based training, and employer-led workforce development—directly impacting hiring pipelines, productivity, and project profitability.
The National Apprenticeship Act (also called the Fitzgerald Act) was signed into law by President Franklin D. Roosevelt in 1937, establishing standards for federally recognized registered apprenticeship programs. The history of apprenticeships in America dates back to the colonial period, when British artisans brought their apprentices to the colonies.
The Act authorizes the Department of Labor to set minimum standards covering:
During the New Deal era, industry codes established under the National Industrial Recovery Act set standards for working conditions, wages, and apprenticeships in sectors like construction.
The Act provides a formalized “earn and learn” model bridging education and employment. It granted authority to appoint national advisory committees and established federal recognition of state agencies overseeing apprenticeship, allowing states like North Carolina and South Carolina to run their own systems under federal guidelines. The Secretary of Labor was empowered to appoint persons necessary for administering the Act, with due regard to qualifications and in accordance with civil service commission procedures. Employees previously employed by the National Youth Administration who had heretofore conducted apprenticeship-related activities were transferred to the Department of Labor, with the inclusion thereof certified by the Civil Service Commission.
Implementation of the Act was guided by executive orders issued pursuant to the President’s authority.
By the mid-1940s, there were approximately 6,233 registered apprenticeship programs training around 4,000 apprentices, primarily in manufacturing, construction, and utilities. Today, the Office of Apprenticeship within the Employment and Training Administration handles program registration, compliance reviews, and issuance of journeyperson certification, complementing industry-led models like ABC Carolinas’ apprenticeship and craft education programs.
A construction program becomes “registered” through a sponsor application to either the federal Office of Apprenticeship or a recognized State Apprenticeship Agency. In states with SAAs, state agencies have primary direct responsibility, though they are still subject to federal oversight.
Current standards require:
The Department of Labor distributes roughly $200-300 million annually through grants and state formula funds, with only a fraction reaching construction employers in the Carolinas. Common contractor pain points include slow approval timelines, limited recognition of competency-based models, inconsistent interpretations between state agencies, and difficulty aligning federal paperwork with fast-moving jobsite realities—issues explored in depth in ABC Carolinas’ Driving Growth: Registered Apprenticeships Modernization analysis.
Registered apprenticeship enrollment shows steady growth across the Carolinas’ construction industry. North Carolina reported 25,400 active apprentices in FY2023, including 10,200 in construction occupations. South Carolina had 7,800 total apprentices with 3,500 in construction trades.
Combined, the states host over 33,000 apprentices. Regional labor market projections indicate 15,000-20,000 annual openings for craft professionals through 2032, driven by infrastructure, industrial, and health care projects, highlighting the need for a comprehensive workforce development management system to recruit, train, and retain talent at scale. Despite growth, apprenticeship seats fall short by 30-40%, underscoring why modernized federal policy is vital.
Senator Bill Cassidy (R-LA), Ranking Member of the Senate Health, Education, Labor, and Pensions Committee, introduced a comprehensive modernization bill on April 27, 2026, alongside a bipartisan group including Senators Kaine, Scott, and others. This represents the most significant overhaul of federal apprenticeship act legislation in nearly 90 years.
The legislation aims to create nearly 1 million new apprenticeship opportunities, focusing on expanding into new occupations and industry sectors such as health care, information technology, computer science, and renewable energy—areas where ABC Carolinas advances construction excellence by helping members build and sustain high-performing teams. The bill better aligns federal policy with 21st-century industries, including advanced manufacturing and clean energy, while preserving core earn-while-you-learn principles.
Registration Reforms:
Office of Apprenticeship Restructuring:
Funding Provisions: HR 447 proposes federal investment of over $3.5 billion in the registered apprenticeship system over the next five years, including $400 million for apprenticeship programs in fiscal year 2022, with annual increases of $100 million through 2026. New grant streams target employer consortia and industry associations.
Competency-Based Models: The bill fully codifies competency-based progression, allowing sponsors to measure progress by demonstrated skills rather than hours alone. The Act emphasizes increasing participation from underrepresented populations, including women, people of color, veterans, and individuals with disabilities, aligning with ABC Carolinas initiatives empowering women in construction through mentorship, training, and leadership development.
One business-critical goal of the Cassidy package is to make it easier for reputable employers and industry groups to be recognized as apprentice training sponsors without unnecessary regulations. The framework encourages industry leaders and labor organizations to develop national standards for new occupations, supporting replication of successful models.
Key changes for ABC Carolinas members:
These changes support merit shop contractors by rewarding performance, giving employers more say over how apprentices learn, and meeting rigorous quality standards issued pursuant to federal guidelines, reinforcing the value of ABC Carolinas membership for merit shop contractors.
ABC has championed apprenticeship modernization for years, advocating employer-driven, market-based training solutions guided by the ABC Carolinas leadership team to build the future of construction. ABC Vice President of Government Affairs Kristen Swearingen characterized the Cassidy package as a “critical, bipartisan step to update an 80-year-old law so it actually supports today’s construction workforce,” praising provisions that “recognize the central role of employers and industry associations in training the next generation of craft professionals.”
ABC’s broader legislative agenda includes:
ABC has consistently opposed efforts to limit apprenticeships to union-dominated structures. ABC Carolinas aligns with ABC National’s support for this legislation, enacted to expand opportunity, and actively engages members through committees that shape industry workforce and advocacy priorities.
North Carolina’s ApprenticeshipNC (under the NC Department of Commerce) and South Carolina’s State Apprenticeship Council operate as recognized SAAs managing primary oversight. The Cassidy bill clarifies federal and state roles, including expectations for performance reporting and alignment with such standards, while preserving state-level flexibility. ABC Carolinas’ safety, networking, and educational events will remain key venues for updating members on how these changes play out at the state level.
State councils may need to update policies and approval processes if the bill passes. Contractors operating in both states benefit from more consistent interpretations and improved interstate portability. ABC Carolinas will stay engaged with both states’ apprenticeship offices to ensure member programs transition smoothly.
The typical path runs from recruitment through employment, progressive skill development, wage progression, and eventual journeyperson certification. The Cassidy bill’s competency-based models could shorten time-to-journeyperson by 20-30% for motivated apprentices demonstrating skills and safety mastery.
Apprentices receive a portable, nationally recognized certificate upon completion, validating their expertise across state lines. Modernized data requirements improve the tracking of completion rates and outcomes for working conditions. Clearer federal recognition of industry-developed curricula simplifies documentation from enrollment through certification and underscores the importance of sharing best practices through resources like ABC’s construction education and workforce videos.
Post-April 27 introduction, the bill referrals to the HELP Committee for hearings (likely May-June 2026), markup (July-August), with a floor vote target by September. Bipartisan momentum from consensus on the workforce shortage—4 million construction gap nationally—supports passage, though debates over funding levels and oversight mechanisms continue.
The next five years represent a critical implementation window, and the next 6-12 months are essential for contractor voices from states such as North Carolina and South Carolina to influence the final provisions. House companion legislation could enable reconciliation by Q1 2027.
Operational Benefits:
Financial Implications: Employers implementing apprenticeship programs experience an average return of $1.44 to $1.50 for every $1.00 invested. Completion of registered apprenticeship programs leads to graduates earning a starting salary of approximately $77,000 to $80,000 as of 2024-2025, especially when paired with strong safety and management education that protects workers and boosts productivity.
Strategic Advantages: Approximately 90% to 94% of apprentices remain with their employers and companies after completing programs, significantly reducing turnover. Participation in structured safety initiatives, such as the Safety Training Evaluation Process (STEP) and related committees and programs, enables scaling of talent pipelines aligned with major capital projects.
Responsibilities: Maintain robust documentation, meet performance benchmarks, and actively manage program quality to benefit from modernization.
ABC Carolinas serves as your regional partner, interpreting federal changes and optimizing apprenticeship programs. Services include member briefings, model standards updates, compliance checklists, liaison support with state apprenticeship agencies, and expert construction safety training that keeps apprentices and crews safe on evolving job sites.
Integration with existing ABC Carolinas safety training and education programs ensures apprenticeships remain embedded in merit-based advancement. We coordinate with ABC National and the Free Enterprise Alliance to provide policy analysis and advocacy tools.
Now is the time to weigh in while the Cassidy package moves through Congress, assembled in committee consideration.
Take action:
Member engagement shapes not only the passage of reform but also the implementation of regulations and supporting papers related to final rules.
ABC Carolinas and national partners offer deeper-dive resources complementing this briefing:
Contact your ABC Carolinas membership representative or use the membership application and chapter contact pages to align resources with your company’s trades and growth plans.
The following FAQs address common questions Carolinas contractors may have regarding practical implementation details of the National Apprenticeship Act reform.
Existing programs are expected to be grandfathered and remain valid under the effective date provisions. However, sponsors will likely need to update standards, documentation, and reporting over a transition period to align with new federal requirements once implementing regulations are published. ABC Carolinas will provide compliance checklists as guidance becomes available.
Even if the bill passes this Congress, actual funding flows depend on appropriations cycles and grant competitions. Most contractors should expect a ramp-up period of 12-24 months before seeing significant new dollars at the program level, though early applicants to competitive grants may access funds sooner.
The Cassidy package maintains neutrality regarding labor affiliation, focusing on quality, outcomes, and accountability rather than union status. ABC supports the bill because it avoids privileging union-only models and opens the system to employer-led programs consistent with merit shop principles and equal opportunity.
Registered apprenticeship involves formal contracts, approved standards, documented related instruction, progressive wages, and recognized credentials. Informal OJT lacks external quality assurance through such department oversight and does not produce a nationally portable journeyperson credential that validates expertise across industries and state lines.
Smaller firms should consider partnering with ABC Carolinas or multi-employer apprenticeship programs that handle registration and compliance tasks. This allows you to sponsor or host apprentices while focusing on supervision and mentoring, without requiring extensive administrative infrastructure. Nonassembled examinations and streamlined processes under the reform will further reduce the burden for such activities.
