Federal Reentry Programs: Second Chance Act, Bonding, and More (2026)

The Second Chance Act (SCA), originally signed into law in 2008 and reauthorized multiple times, is the primary federal legislation funding reentry programs across the country. Administered by the Bureau of Justice Assistance (BJA) within the Department of Justice, the SCA provides grants to state and local governments, tribal entities, and nonprofit organizations to implement evidence-based reentry strategies.

The SCA funds a wide range of services including: employment training and job placement, transitional and permanent housing, substance abuse and mental health treatment, mentoring and family reunification programs, technology-based supervision and support tools, reentry courts, and programs specifically for young adults (18-24).

Since 2009, the SCA has distributed over $1 billion in grants to more than 800 grantees across all 50 states. These grants fund local programs that provide free services to people reentering society.

How to access SCA-funded services: you do not apply for the grant directly. Instead, organizations in your community receive these grants and offer free programs. Contact your local reentry coalition, ask your probation officer, call 211, or search the National Reentry Resource Center directory to find SCA-funded programs near you.

The Federal Bonding Program (FBP), administered by the Department of Labor, provides fidelity bonds to employers who hire people considered 'at-risk' job applicants — including anyone with a criminal record. A fidelity bond is essentially an insurance policy that protects the employer against losses due to employee dishonesty (theft, fraud, embezzlement).

How it works: the bond provides $5,000 to $25,000 of coverage for the first six months of employment at no cost to the employer or the employee. After six months of satisfactory job performance, the employer can purchase continued coverage through a commercial bonding company.

Why it matters: many employers are willing to hire someone with a criminal record but are concerned about liability and risk. The Federal Bonding Program removes that barrier entirely. When you tell an employer 'I come with a free bond,' it can change the conversation from 'we cannot take that risk' to 'let us give this person a chance.'

How to get bonded: contact your state's Federal Bonding Program coordinator (every state has one) or visit your local American Job Center and ask about bonding. You can also request bonding through bonds4jobs.com. There is no credit check, no application denial, and no cost to you.

Who is eligible: anyone with a criminal record (arrest, conviction, or incarceration), anyone who has been in recovery from substance abuse, ex-offenders, and other 'at-risk' applicants. You do not need to be on probation or parole to qualify.

The Work Opportunity Tax Credit gives employers a federal tax credit of up to $2,400 for each person they hire from certain target groups, including people with felony convictions. This makes you a more financially attractive hire — you are essentially worth a tax break to the employer.

How it works: when an employer hires you, they complete IRS Form 8850 and submit it to their state workforce agency within 28 days of your start date. If approved, the employer receives a tax credit of up to 40% of your first $6,000 in wages (up to $2,400) if you work at least 400 hours.

Why it matters for you: when you apply for jobs, mentioning that you qualify for the WOTC can be a selling point. Many large employers — Walmart, Amazon, and staffing agencies — routinely screen new hires for WOTC eligibility and actively seek eligible candidates.

Who qualifies: people with felony convictions who are hired within one year of their conviction or release from prison. You also qualify if you are a veteran, a long-term unemployment recipient, or a member of several other target groups.

How to use it in your job search: you do not need to do anything special — the employer claims the credit. However, knowing about WOTC and mentioning it during interviews shows initiative and gives the employer an incentive to hire you over other candidates.

In June 2023, the Department of Education officially restored Pell Grant eligibility for incarcerated individuals, reversing a 1994 ban that had excluded people in federal and state prisons from receiving need-based federal financial aid for higher education.

This is a historic change. Before the ban, there were over 350 college-in-prison programs across the country. After the ban, that number dropped to about 8. With Pell restoration, college education is once again accessible to incarcerated people and to those who have been recently released.

Pell Grants provide up to $7,395 per year (2025-2026 award year) for tuition, books, and other educational expenses. The grants do not need to be repaid. Eligibility is based on financial need, not academic performance.

If you are currently incarcerated: check with your facility's education department about whether they partner with Pell-eligible colleges. The number of prison education programs is rapidly expanding.

If you are recently released: apply for the FAFSA (Free Application for Federal Student Aid) at studentaid.gov. Having a criminal record does not disqualify you from Pell Grants (with very limited exceptions for certain drug and sex offenses). Many community colleges and universities have dedicated programs for students with criminal records.

Important: a drug conviction may temporarily affect your eligibility for federal student aid, but only if the conviction occurred while you were receiving aid. The rules have been significantly relaxed — check studentaid.gov for current eligibility rules.

The REO program, funded by the Department of Labor's Employment and Training Administration, provides $80-$100 million annually in grants to organizations that offer employment services specifically for people returning from incarceration.

REO-funded programs provide: job readiness training (workplace expectations, communication, conflict resolution), occupational skills training (certifications, apprenticeships, industry-specific skills), job search assistance (resume building, interview coaching, employer connections), job placement and retention support (help keeping a job once you find one), and supportive services (transportation, work clothing, tools, childcare).

Many REO programs operate through American Job Centers and community-based organizations. Some focus on specific populations — young adults (18-24), women, veterans, or people with substance use disorders.

To find REO-funded programs: contact your local American Job Center (use the locator at careeronestop.org), call 211, or ask your probation officer about employment programs in your area. The Department of Labor also maintains information about current REO grantees at dol.gov/agencies/eta/reentry.

Residential Reentry Centers (RRCs / Halfway Houses): The Federal Bureau of Prisons operates a network of halfway houses that provide a structured transition from prison to community. If you are in the federal system, you may be eligible for RRC placement during the final months of your sentence. RRCs provide housing, employment assistance, and supervision.

SAMHSA Grants for Substance Abuse Treatment: The Substance Abuse and Mental Health Services Administration funds treatment programs specifically for people in the criminal justice system. Call SAMHSA's National Helpline at 1-800-662-4357 for free referrals to treatment programs near you.

VA Reentry Programs: If you are a veteran, the VA offers specialized reentry services including the Health Care for Re-entry Veterans (HCRV) program, the Veterans Justice Outreach (VJO) program, and Supportive Services for Veteran Families (SSVF). Contact the VA at 1-877-4AID-VET.

HUD Reentry Housing: The Department of Housing and Urban Development funds reentry-specific housing programs through the Continuum of Care grants. These provide transitional and permanent supportive housing for people exiting incarceration. Contact your local housing authority or 211 for information.

Social Security: If you received SSI or SSDI before incarceration, you may be eligible for reinstatement upon release. Contact the Social Security Administration before or immediately after release to begin the reinstatement process. Benefits can sometimes be reinstated within 30 days.