SENATE LABOR COMMITTEE

STATEMENT TO

SENATE, No. 2194

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 5, 2026

      The Senate Labor Committee reports favorably and with committee amendments Senate Bill No. 2194.

      As amended, this bill establishes a two-year tuition-free apprenticeship pilot program that requires public institutions of higher education to waive the tuition fees of certain courses which are qualified to serve as the classroom training or education component of a registered apprenticeship for eligible persons.

      Under the bill, an eligible person is an individual who has not previously completed a pre-apprenticeship program and whose gross aggregate household income at the time of admission to a New Jersey public institution of higher education or county vocational does not exceed 400 percent of the federal poverty level.  The person is to be deemed eligible for a tuition fee waiver if:

      1.   tuition costs are not covered by the employer through employment benefits;

      2.   the person completes a New Jersey Alternative Financial Aid Application or a Free Application for Federal Student Aid each year and has exhausted all financial aid assistance;

      3.   the person retains employment as an active registered apprentice under the registered apprenticeship program and maintains satisfactory academic progress to qualify for renewal of the tuition waiver; and

      4.   the person completes each course for which a tuition waiver is provided with a passing grade.

      The bill requires the Department of Labor and Workforce Development to reimburse public institutions of higher education and county vocational schools for the cost of the tuition waivers.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  clarify that an eligible person is an individual who has not previously completed a pre-apprenticeship program and whose gross aggregate household income at the time of admission to a New Jersey public institution of higher education or county vocational school does not exceed 400 percent of the federal poverty level;

      (2)  provide that the bill will be a two-year pilot program;

      (3)  provide that an individual is to be deemed eligible for a tuition fee waiver if the person completes a New Jersey Alternative Financial Aid Application or a Free Application for Federal Student Aid under the provisions of the bill and additionally provide that the individual must complete each course for which a tuition waiver is provided with a passing grade;

      (4)  provide that the Department of Labor and Workforce Development will provide funding in an amount not to exceed $500,000 per year to public institutions of higher education and county vocational schools for the tuition cost of eligible persons who enroll in the institution pursuant to the provisions of the bill with any available funds provided to the State under the Wagner-Peyser Act, or from funds that may be available from the Workforce Development Partnership Fund which was appropriated pursuant to the annual appropriations act for State fiscal year 2026; and

      (5)  require the Commissioner of Labor and Workforce Development to submit a report to the Governor and the Legislature on the results of the pilot program, including information on the individuals served, program spending, and a recommendation regarding its continuation.