Federal Bonding Program

A Unique Job Placement Tool

  • Fidelity Bond: Free fidelity bonding for at-­-risk job seekers
  • Public-Private Partnership: Program operated by the Federal government, state government agencies, and private companies
  • Longevity: Founded in 1966

During the administrations of John Kennedy and Lyndon Johnson, the federal government created and supported a broad range of policies, programs, and projects that had the major objective of improving the overall welfare of people at or below the poverty level.

These programs became part of a mission referred to as “The War on Poverty.” This massive undertaking was operated at the national, state, and local levels. Much of the impetus for the development and operation of new programs was at the local level. The Federal Bonding Program (FBP) is one of a handful of federal programs from that time that are operating today. They iinclude Head Start, the Job Corps, and the Peace Corps.

FBP began in 1966. The president of The McLaughlin Company, an insurance brokerage company, approached the Secretary of Labor with a plan to help at-­-risk job seekers obtain employment. This effort involves the business sector as the primary agent for helping at-­-risk job seekers, especially ex-­-offenders, secure employment. FBP was developed as a job placement tool through the use of fidelity bonding. Additional details about FBP can be found at www.bonds4jobs.com.

The operation of FBP is a remarkable example of public-­-private partnership. Under contract with the U.S. Department of Labor, The McLaughlin Company, as exclusive agent for Travelers Insurance, manages the program. This partnership and program longevity, along with a 99% success rate, are the primary reasons why employers have participated in FBP during high and low points of the national economy. This is also a basis for the participation of non-­-government organizations with FBP.

All parts of the workforce community (State workforce agencies, Workforce Investment Boards, Community-­-Based Organizations, etc.) can use the FBP public-­-private partnership as a template to create other employment and training initiatives.