The Federal Bonding Program: a free reason for employers to say yes

If you have a criminal record, are in recovery, have poor credit or little work history, some employers worry about the risk of hiring you. The Federal Bonding Program, run by the U.S. Department of Labor since 1966, takes some of that worry away for free. Here is how it works and how to use it.

What a fidelity bond is

A fidelity bond is insurance that pays an employer if an employee steals money or property. Commercial bonds can be hard to get for people with certain backgrounds. The Federal Bonding Program provides them for free.

• The usual bond is $5,000 of coverage for your first six months on the job. Some states can go higher, up to $25,000, with a written reason.
• It costs nothing for you or the employer, and there is no deductible.
• It covers full-time and part-time jobs, as long as you are paid wages with taxes withheld.

Who can use it

• People with an arrest, conviction or time in jail or prison.
• People in recovery from drug or alcohol use.
• People with poor credit or a bankruptcy.
• People getting public assistance.
• People with a dishonorable discharge.
• People with little or no work history, and other job seekers the program serves.

Step 1: Contact your State Bonding Coordinator

Go to or call your local American Job Center (CareerOneStop has a finder) and ask for the State Bonding Coordinator. The official program site, bonds4jobs.com, also lists state contacts.

Ask whether your state gives a letter of eligibility before you have an offer. Many states do, but not all. A letter is useful to show employers.

Step 2: Use it when you apply and interview

You decide when to mention it. Many people bring it up when the subject of their background comes up, or near the end of an interview.

A simple way to say it: “I’m eligible for the Federal Bonding Program. If you hire me, the U.S. Department of Labor gives you a free $5,000 fidelity bond for my first six months, at no cost to you.”

You do not need to explain why you qualify.

Step 3: Activate it after the offer

Once you have an offer and a start date, you or the employer contact the coordinator. The coordinator issues the bond to the employer. The employer only needs to give basic details such as the start date.

Pair it with a strong application

• Lead your resume with skills and results, including work done in programs, volunteering or inside.
• Prepare a short, honest answer about your background, focused on what you have done since.
• Ask your American Job Center about other help, such as training and fair chance employers in your area.

FAQ

Does the Federal Bonding Program cost anything?

No. Bonds are free for both the job seeker and the employer, with no deductible.

How much does the bond cover?

Usually $5,000 for the first six months of the job. Some states can issue larger bonds, up to $25,000, with a written reason.

Do I need a job offer first?

The bond itself is issued once you have an offer and a start date. Many states will also give you a letter of eligibility earlier, so you can show it to employers.

Is the Work Opportunity Tax Credit still available?

WOTC was authorized only until December 31, 2025 and had not been renewed as of November 2026. Employers may still ask you to fill out IRS Form 8850 in case Congress renews it retroactively.

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