A bill to promote training programs for individuals receiving unemployment compensation.

Directs the Secretary of Labor (the Secretary) to: (1) develop model criteria that States can use in approving training programs for individuals receiving unemployment compensation and in approving individuals to participate in such programs; (2) provide technical assistance to States in developing and implementing such criteria; and (3) make available information concerning State laws and regulations with respect to such programs.

Sets forth the responsibilities of State Governors for the approval of such training programs and the approval of individuals' participation in such training. Directs Governors, in connection with the State unemployment compensation program, to designate State agencies for such purposes. Requires the designated State agency to approve any training program offered by an accredited training or educational institution, and to approve an individual's participation in an approved training program, unless the agency determines that the training is entirely unrelated to employment or is for a vocation for which employment opportunities do not exist and are unlikely to become available.

Directs the Secretary to conduct a study to evaluate the implementation of such provisions for Federal assistance and State responsibilities with respect to such training programs for individuals receiving unemployment compensation. Requires that such study be conducted over a 12-month period and involve at least five States, at least three of which are actively involved in such implementation. Sets forth considerations to be included in such study. Directs the Secretary to transmit such study to the Congress by October 1, 1988.

Amends title XII (Advances to State Unemployment Funds) of the Social Security Act to direct the Secretary of the Treasury to annually credit to a State's Unemployment Trust Fund account the amount paid by the State as unemployment compensation to individuals who, while receiving such compensation, were in an approved training program. Provides that any such amount so credited shall be used to reduce the interest owed on the balance of advances made to the State's Unemployment Trust Fund account.

Amends title III (Grants to States for Unemployment Compensation Administration) of the Act to require a State's annual report to the Secretary to include certain information concerning unemployment compensation paid to individuals in approved training programs.

Directs the Secretary to report to Congress annually concerning unemployment compensation paid to individuals in training.

Provides that the provisions of this Act and activities carried out pursuant to such provisions shall not be taken into consideration in determining whether there has been a net decrease in the solvency of any State unemployment compensation system.