The "One Door to Work Act" proposes to amend the Workforce Innovation and Opportunity Act (WIOA) by establishing a new State innovation demonstration authority. This authority would allow states, or local areas and consortia within states, to apply for consolidated grants for five-year demonstration projects. The primary goal is to enable innovative reforms that lead to improved outcomes for jobseekers, employers, and taxpayers, with a mandatory requirement for rigorous evaluations of these projects.

Under this authority, the Secretary of Labor would be required to waive most statutory and regulatory requirements of WIOA Subtitles A and B for approved demonstration projects. States or selected local entities would receive their WIOA youth, adult, and dislocated worker funds as a consolidated sum. This consolidated funding aims to provide greater flexibility in how workforce development services are designed and delivered.

However, certain WIOA requirements would remain in effect, including those related to performance accountability and reporting, the membership of local or State boards (if maintained), and the priority of service for veterans, eligible spouses, public assistance recipients, low-income individuals, and those with basic skills deficiencies. The bill also mandates that the Secretary contract with a third-party evaluator to conduct a rigorous assessment of each demonstration project, comparing participant outcomes and identifying promising practices.

Each demonstration project would run for a five-year period, with the possibility of a single five-year renewal if specific performance improvement targets are met. There are limitations on the number of projects approved: no more than eight statewide projects and eight local/consortium projects nationally, and only one demonstration project can be approved per state at any given time.

States applying for this authority must describe their proposed project, expected performance outcomes, and how they consulted with employers and workforce boards. Approved projects must use funds solely for project activities, adhere to a 10 percent administrative cost limit, and serve a greater or agreed-upon number of participants. Performance accountability includes establishing higher expected performance levels for participants, and sanctions, including ineligibility for renewal, apply if these levels are not met after the third year.