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Heartland Policy Update: Talent Pipeline

June 23, 2025

As many legislative sessions wrap across the heartland, the Pulse of the Heartland willoffer a retrospective policy update for each of Heartland Forward’s key impact areas. The last issue explored Health and Wellness, and this installment will focus specifically on legislation passed in support of the Talent Pipeline—efforts to advance economic success through innovation, workforce development, human capital, education and entrepreneurship.

To better understand how governors and policymakers are executing their entrepreneurship agendas, the National Governors Association Center for Best Practices (NGA Center) and Heartland Forward convened a series of structured learning calls in early 2025. These conversations—held with governors’ advisors and state policymakers from across the heartland—surfaced emerging practices and challenges in entrepreneurship. The findings, which can be found here, build on existing work by both organizations to spotlight state-level policy opportunities that support entrepreneurial ecosystems—insights worth exploring in addition to the legislation highlighted below.

Arkansas

Arkansas advanced a skills-first approach to workforce development in 2025. The state announced Arkansas LAUNCH, a free platform developed in partnership with Walmart and Google designed to match job seekers with employers based on verified skills rather than degrees. LAUNCH also integrates CiviForm, streamlining applications for government services, including job training programs.

To support graduates, HB 1601 (Act 354) mandates that state-supported higher education institutions provide career counseling and resources to students for up to six months post-graduation. Additionally, SB 50 (Act 145) initiates a comprehensive study to reform workforce and social services, aiming to create a more integrated and efficient service delivery model.

Arkansas also joined several interstate licensure compacts to address workforce shortages and enhance professional mobility. Notably, HB 1185 (Act 799) adopts the Dietitian Licensure Compact, allowing dietitians to practice across state lines more easily. Similarly, HB 1712 establishes the Social Work Licensure Compact, expanding access to mental health care and professional opportunities. Additionally, HB 1258 (Act 1011) establishes a statewide Community Health Worker certification and training program to strengthen the health workforce and expand access to care, particularly in underserved areas.

Texas

Texas implemented a multifaceted approach to strengthen its talent pipeline. HB 20 introduces the Applied Sciences Pathway, allowing high school students to earn workforce credentials alongside their high school diplomas. Complementing this, HB 120 expands career and technical education by enhancing the Financial Aid for Swift Transfer (FAST) program, which provides free dual credit courses at institutions of higher education to educationally disadvantaged students. Additionally, HB 120 updates school funding formulas to better support vocational training.

To address the evolving needs of the tech industry, HB 3260 establishes the Texas Industry-Recognized Apprenticeship Programs Grant Program, providing grants to support industry-recognized apprenticeship programs. Furthermore, HB 3963 creates an Early Childhood Integrated Data System aimed at improving child care coordination. Additionally, SB 1265 supports working families through employer child care hubs and SB 462 provides targeted child care scholarships, collectively reducing barriers for parents to enter or remain in the workforce.

Iowa

Iowa undertook significant reforms to enhance workforce services and economic development. SF 603 overhauls workforce services by creating a statewide one-stop intake system and skills assessment, streamlining the process for job seekers and employers to connect effectively. Complementing this, SF 645 provides broad appropriations for economic development, job training, housing and workforce alignment initiatives, ensuring a holistic approach to workforce development and community growth.

Oklahoma

Oklahoma focused on enhancing work-based learning opportunities and stabilizing the child care workforce. SB 95 clarifies workers’ compensation rules for interns and apprentices, making it easier for businesses to offer work-based learning without additional liability concerns. To address child care workforce shortages, HB 2778 offers free child care for early childhood educators, helping child care centers retain staff and expand services, which in turn supports broader workforce participation. Additionally, the Oklahoma Community Health Worker Act (SB 424) became law, creating a voluntary certification process for community health workers (CHWs) through the State Department of Health. 

Indiana

Indiana prioritized aligning higher education with workforce demands. SB 448 (Public Law 138) mandates the development of stackable credentials, regular program reviews and workforce outcome reporting. These measures aim to ensure that educational programs are responsive to labor market needs, providing students with clear pathways to employment and supporting the state’s economic growth

The 2025 legislative sessions across the heartland have made significant progress to strengthen the region’s talent pipeline. Through a series of enacted policies focusing on workforce development, innovation and entrepreneurship, states have laid the groundwork for a more robust and adaptable workforce. These initiatives are poised to advance economic growth, support working families and position the heartland as an even more competitive force in the national talent landscape.