The New Collar Jobs Act of 2025 seeks to address the growing demand for cybersecurity talent and mitigate cyber threats, particularly in industrial sectors, by enhancing education and job opportunities. Congress finds that while domestic factory output has increased, manufacturing employment has not kept pace, and new technologies require a skilled cybersecurity workforce to prevent cyber incidents.

The bill introduces a new employee cybersecurity education tax credit, allowing employers to claim 50 percent of qualified expenses, up to $5,000 per employee, for certifications or degrees aligned with the NICE Cybersecurity Workforce Framework. This credit aims to incentivize businesses to invest in upskilling their workforce in critical cybersecurity roles.

To attract cybersecurity professionals to underserved regions, the Act establishes a student loan repayment program. Eligible cybersecurity workers in economically distressed areas can receive up to $25,000 in Federal Direct Loan cancellation after making 36 consecutive monthly payments while employed in such an area for at least 60 percent of their work hours.

Furthermore, the legislation strengthens existing federal programs. It expresses a sense of Congress to double the number of scholarships awarded under the CyberCorps Scholarship-for-Service program and expands its scope to include cybersecurity course instructors. The bill also removes the priority for federal government employment placements for CyberCorps recipients, broadening their career options.

Finally, the Act encourages further investment in cybersecurity training through government contracts. It mandates a five percent score increase for competitive proposals from qualified offerors on contracts exceeding $5,000,000, where a qualified offeror is a business that has utilized the employee cybersecurity education tax credit within the preceding three years. It also recommends increased funding for the Information Technology and Cybersecurity Division of the Advanced Technological Education program.