This bill amends the Workforce Innovation and Opportunity Act (WIOA) to enhance the recognition of individuals' prior learning and skills. It mandates that states coordinate with various stakeholders, including industry organizations, employers, and training providers, to identify or develop **competency-based assessments**. These assessments are designed to reliably measure the knowledge, skills, and abilities of adults and dislocated workers. The primary purposes of these assessments are to facilitate the awarding of recognized postsecondary credentials or credit, to inform the development of individual employment plans by identifying relevant in-demand occupations, and to help individuals effectively communicate their validated skills to prospective employers. Furthermore, the bill allows states to support employers in adopting **skills-based hiring practices**, offering technical assistance on assessment use and the creation of skills-based job descriptions. Local employment and training activities are also authorized to determine if individuals would benefit from these assessments and to provide them during initial skill assessments or after training.